Common use of Market Pause Event Clause in Contracts

Market Pause Event. A “Market Condition” for the unpurchased Homesites on a Property exists if: (a) the Burns Home Value Index for the metropolitan statistical area (“MSA”) in which the Property is located (“MSA Index”) (or other mutually acceptable index if a Burns report is not available) shows a seasonally adjusted home sale pricing decline in the MSA of 10% or more (measured from the Effective Date); or (b) a pandemic, epidemic or other public health emergency occurs (including restrictions imposed by emergency orders, rules or regulations) which does or is expected to materially and adversely impact Builder’s ability to construct, market and/or sell residences on the Property. In such event, Builder shall be entitled to designate up to two “Pause Periods”, each a “Pause Period” with respect to such Property of up to six (6) months, during which time all takedown and construction deadlines for such Property shall be extended, no Closings shall occur, and no payments will be made by Owner to Contractor under the Construction Agreement. During a Pause Period, Builder shall, as a condition to the continuation of the Pause Period, pay a Monthly Option Payment for such Property pursuant to Section 1.7 but based upon an Applicable Rate equal to the Pause Rate (as defined in the Master Agreement). Following expiration of the Pause Periods described in the foregoing sentence, two additional Pause Periods of up to six months each may be elected during the term of an Option Agreement subject to Owner’s approval (not to be unreasonably withheld, conditioned, or delayed) and the continued existence of the Market Condition at such time. Nothing herein shall limit Builder’s or any Builder Party’s right to unilaterally declare a Pause Period pursuant to the Founder’s Rights Agreement.

Market Pause Event. A “Market Condition” for the unpurchased Homesites on a Property exists if: (a) the Burns ▇▇▇▇▇ Home Value Index for the metropolitan statistical area (“MSA”) in which the Property is located (“MSA Index”) (or other mutually acceptable index if a Burns ▇▇▇▇▇ report is not available) shows a seasonally adjusted home sale pricing decline in the MSA of 10% or more (measured from the Effective Date); or (b) a pandemic, epidemic or other public health emergency occurs (including restrictions imposed by emergency orders, rules or regulations) which does or is expected to materially and adversely impact Builder’s ability to construct, market and/or sell residences on the Property. In such event, Builder shall be entitled to designate up to two “Pause Periods”, each a “Pause Period” with respect to such Property of up to six (6) months, during which time all takedown and construction deadlines for such Property shall be extended, no Closings shall occur, and no payments will be made by Owner to Contractor under the Construction Agreement. During a Pause Period, Builder shall, as a condition to the continuation of the Pause Period, pay a Monthly Option Payment for such Property pursuant to Section 1.7 but based upon an Applicable Rate equal to the Pause Rate (as defined in the Master Agreement). Following expiration of the Pause Periods described in the foregoing sentence, two additional Pause Periods of up to six months each may be elected during the term of an Option Agreement subject to Owner’s approval (not to be unreasonably withheld, conditioned, or delayed) and the continued existence of the Market Condition at such time. Nothing herein shall limit Builder’s or any Builder Party’s right to unilaterally declare a Pause Period pursuant to the Founder’s Rights Agreement.