Load, Inc. - Page 8

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               During the time they are located on the sales lots that ADI            
          leases, model manufactured homes are owned by and titled to ADI.            
               The independent salespersons, not ADI, are responsible for             
          local media advertising costs, wages, if any, paid to sales                 
          assistants, sales commissions, sales taxes, and utility fees and            
          insurance premiums on the sales lot.                                        
               As indicated, ADI enters into the sales lot lease agreements           
          with owners of the real property, and ADI, not the independent              
          salespersons, makes the lease payments due on these leases.                 
               Also, ADI pays some miscellaneous costs relating to the                
          model manufactured homes that are placed on the sales lots.                 
               For the majority of its income relating to the purchase and            
          sale of manufactured homes, ADI receives various incentive                  
          payments from the manufacturers and from lenders (e.g., on each             
          manufactured home sold ADI might receive a cash incentive payment           
          from the manufacturer of 10 percent of the total purchase price             
          paid to the manufacturer).  Incentive payments that ADI receives            
          are referred to in the record as “retail” incentives, and it                
          appears that these payments represent incentives typically given            
          by manufacturers and lenders to retail sellers of manufactured              
          homes.                                                                      
               ADI also receives from the independent salespersons a $300             
          processing fee for each manufactured home sold.                             








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Last modified: May 25, 2011