OCEANFRONT VACATION RENTALS, INC. MANAGEMENT AGREEMENT

THIS AGREEMENT for the management and rental of _____________________________________ condominium (property)

located at _____________________________________________  made and entered into this __________________________ day

 of  ____________________, 20____, by and between Oceanfront Vacation Rentals, Inc. (Agent) and Owner.

Name ____________________________________________ Home Phone _______________________________________________

Address __________________________________________ Office Phone _______________________ __________________

_________________________________________________  Fax Line ________________________/Cell______________________
City                                    State                                             Zip

Soc. Sec. No.______________________________________

E-Mail Address____________________________________

I.  TERM:

This Agreement shall be in effect from the date property is available for rental until December 31, 2009, Property will be available for rental beginning ________________________________, 20 _____ .

II.  NATURE OF AGREEMENT:

(a) Owner and Agent agree that any questions, controversies or claims arising under this Agreement shall be subject to the laws and statutes of the State of South Carolina.

(b) It is mutually agreed that the maintenance of good will of all renters and prospective renters (exclusive of those destructive of property or violation of rules and regulations) shall be a paramount objective and both parties will strive to meet this objective.

III.  AGENT'S RESPONSIBILITIES:

(a) To furnish the services of their organization for the renting, leasing, operating and management of the property.

(b) To perform a major inspection annually.

(c) To physically inspect the property, inventory major items, and have necessary cleaning performed following each rental.

(d) To provide a minimum of one inspection of the property during the off-season provided, however, that Owner agrees that Rental Agent is not a licensed contractor, licensed home inspector, engineer, nor has any special certifications or licenses concerning safety, home repairs, etc.. Thus, Rental Agents’ duties under this paragraph are limited to reporting only obvious problems to Owner, it being understood and agreed that Owner has a superior knowledge of the property.
(d-1.)  This limits Rental Agent’s duties only to those specified herein, and excludes any duty to monitor the premises or activity in the premises; no duty to repair, provide security, etc.

(e) To maintain an office (of the rental department) convenient to resort guests and visitors, which shall contain marketing information and visual aids, which promote the rental property.

(f) To use a written contract, the terms of which shall be binding on the Owner, Renter, and Agent for the period so rented, a copy of which has been read, understood, and approved by Owner.

(g) To set the rental rates for the premises and to act as the Exclusive Agency for collection and disbursements of all rents paid under this Agreement.

(h) To maintain and operate an accounting function, issuing monthly statement of receipts, less expenses and Agent's commission, and remit balance to Owner on the 10th of the following month, following collection of rent and checks having cleared.  In case the disbursements shall be in excess of rents collected by Agent, Owner agrees to pay such expenses on demand.  To issue an annual report which will conform with governmental requirements and which will assist Owner in filing tax returns.

(i) To maintain a reservation system through which all reservations for the property shall be processed.

IV.  OWNER'S RESPONSIBILITIES

(a) To authorize the Agent to accept reservations for the premises up to twelve (12) months in advance, except for excluded dates reserved by the Owner through the Agent's reservation system.  Such reservations shall be binding on the Owner or his assigns.  Any other instructions not to rent must be submitted in writing to the Office of Oceanfront Vacation Rentals, Inc. and will be acknowledged in writing by that office subject to existing reservations previously confirmed to rental guests.  A reservation confirmation will be sent to Owner for all "Owner Use" (as explained in Section VII-C of this Agreement) and it must be signed and returned to Agent before Owner time is confirmed. Owner agrees that during the term of this Agreement, Agent shall have the sole and exclusive listing rights to rent the Property, and that no other rental agency, nor Owner, shall be allowed to rent the property during the term of the Agreement. Owner excluded dates must be given in writing at the beginning of term in order to ensure Owner gets those dates.                                                                                                                                                               

(b) To authorize Agent, in an effort to promote rental interest, to use the property four (4) complimentary nights per year to house personnel whose business activities will be beneficial to the rental program.  In the event that the Owner requests use of the property during the time it has been reserved for complimentary use, the Owner will be given preference and the complimentary reservation moved.  Complimentary use to occur from September through May, with the Agent responsible for cleaning after such use.                                                                                                                                                                                                                                  

(c) To arrange for all utility services, including but not limited to electricity, telephone, cable, water and pest control.  All utility bills should be paid directly to the utility company.  If the Owner maintains long distance service, the collection of any long distance charges will be the Owner’s responsibility.   

_______________                                             ________________
       INITIALS                                                                INITIALS

(d) To maintain the property, including but not limited to furnishings, fixtures, personal property, appliance, etc. in first-class rental condition and maintain a complement of glasses, flatware, kitchen utensils and other equipment as specified in the "Rental Property Basic Equipment List."  The Owner also agrees the Agent may replace missing or unusable items and charge Owner’s account for such expenses.  No more than $150.00 will be incurred at any one time without Owner first being notified.  In the event than an adequate supply of basic equipment is not present, the property will be placed in an “out of order” status.  If the Property is placed in out of order status, the Owner will be notified in writing, and the Owner will have 15 days from the notice date to correct the problem; otherwise, the Agent has no duty to rent.                                                                                                                                                                                                                                                                                                                                                                                                                        _________________                                                        _______________                                                                                                            INITIALS                                                                               INITIALS                                                                                                                                                                                                                                                                                                                                                          

(e) To authorize Agent to have operational equipment repaired; i.e., air conditioner, television, refrigerator, dishwasher, oven and range at Agent's discretion, and charge Owner's account for such services, not to exceed $150.00 without Owner's permission.

(f) Not to enter the property or permit any person, whether family member, repairman or guest, to enter the property other than during confirmed times of occupancy by Owner without prior notification to, approval of and coordination by the office of Oceanfront Vacation Rentals, Inc.

(g) To advise Agent in writing when property is listed for sale, and to provide a copy of the contract of sale.

(h) To provide the Agent five original keys for the property to be rented, from which any spares needed can be made and a minimum $35.00 key charge will be charged annually.

(i) To store his personal property in the unit at his own risk.  The Agent assumes no liability for the loss or damage thereof.

(j) To indemnify, save and hold harmless the Agent from and against all claims, suits, damages, costs, losses and expenses and duty to defend arising from injury to any person, persons or property occurring on or about the said premises whether relating to this Agreement or not.  The Owner agrees to secure single limit liability insurance of at least $300,000.00 during the term of this Agreement and the insurance policy of the Owner shall list Oceanfront Vacation Rentals as an additional insured, and a copy of the policy will be provided to the Agent. Owner also agrees to indemnify and hold harmless Agent against any damages awarded against Agent (whether actual, consequential, special, or punitive), in any action involving any tenant, guest, invitee, or involving the property, or any personal property thereon.

(k) The Agent and its agent or employees shall not be liable for any loss or damage to the premises or to equipment, furnishings or appurtenances thereto to property of any nature brought thereon resulting from any accident or occurrence in or upon the premises or the building which they are a part, including but not limited to claims for damages resulting from (i) negligent or willful action or omission of renters or their guests: (ii) injury done or occasioned by wind, rain or other elements: (iii) theft, vandalism, fire or acts of God.

(l) To notify Agent immediately in writing should homeowner's association, which governs the condominium project, adopt any rule or regulation, which would in any way alter Owner's or Agent's existing rights to rent the property.

(m) To authorize the rental manager to lower the published rate in an effort to stimulate rental activity.

(n) To participate in the Owner Link portion of the OVR, Inc. website.  An annual fee of $50.00 per property will be charged.

(o) To pay portion of the Business License Fee per property as outlined by the appropriate governing entity.

V.  REGULATIONS AND RESTRICTIONS

(a) A one bedroom must sleep four.  A two bedroom property must sleep six.  A three bedroom property must sleep eight.

(b) It shall be policy of Oceanfront Vacation Rentals, Inc. to accept rentals as follows:  (1) Summer months (June, July, August) -7 night minimum: (2) All other months - 2 nights minimum.  This policy is subject to occasional variations at the discretion of the Agent.

(c) It is agreed that Agent may offer renter up to a 25% reduction or refund in the rental rate in the event of failure of heating, air-conditioning or a major appliance, which cannot be repaired immediately.  Owner agrees that renter may be moved to another rental property if the discount is unacceptable.  Owner also agrees that in the event such a transfer becomes necessary, Owner will be credited with his pro-rata share of the rents earned from such renter, the balance being credited to the Owner of the unit to which said renter is transferred.  

(d) All parties understand that the Agent does not guarantee or assure an occupancy rate at any level. Owner agrees that Agent has not promised any particular level of rentals or any amount of rental income Owner may receive from rentals during the term of this Agreement.  

                                                                                                                                                                                                                                       
(e) While this Agreement is in effect, all periods of occupancy, whether by renters or owners, shall be processed through Oceanfront Vacation Rentals, Inc. Reservation System.

  _______________    _______________
      INITIALS                       INITIALS

(f) This Agreement and the relationship created herein may be terminated by either party at any time upon thirty (30) days written notice to the other party of such intention to terminate.  Provided; however, the rights of either party to any monies which have accrued prior to such notice shall not be divested by the termination of this Agreement.  And provided further that all rentals
confirmed by Agent will be honored by Owner or his assigns.  However, if Owner terminates this Agreement, Agent reserves the right to transfer confirmed reservations to another property.

(g) Waiver of Jury Trial: The Owner agrees that if any dispute arises between the parties, the Owner knowingly, intentionally, and voluntarily waives all rights to a jury trial, whether granted by statute or not, and the prevailing party gets their attorney’s fees and costs paid.

VI.  WARRANTIES AND SERVICE CONTRACTS

(a) Owner agrees to provide Oceanfront Vacation Rentals, Inc. with a list of all warranties and maintenance contracts which are in force during any time during the term of this agreement, otherwise, rental manager may use his discretion in effecting repairs as agreed herein.

VII.  COMMISSIONS AND FEES

(a) Oceanfront Vacation Rentals, Inc., as Agent, shall receive _____% commission on rental of less than one month.  On rentals greater than one month the commission rate shall be _____%.  In the event a reservation deposit is forfeited, the cancellation fee will be distributed to the agent.

____________                                    _____________
     INITIALS                                                INITIALS

(b) Rentals obtained by the Owner for his/her own property will result in a _____% commission to Oceanfront Vacation Rentals, Inc., Agent will provide regular service on these rentals, and Owner will not be penalized in receiving his/her fair amount or regular rental activity because of these rentals.  Monthly rentals obtained by owner will result in a ____% commission due to agent.

(c) "Owner Use" is limited to owner and his/her immediate family only.  Immediate family is limited to parents or children of the Owner.  Should Owner allow anyone else to use said property, then agent is due its normal commission and the commission will be charged to the Owner.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   ____________                                                    __________                                                                                                                              INITIALS                                                             INITIALS                                                                                                                               

(d) Owner understands and agrees to the following cleaning policies:

1. Mandatory Vacancy Cleans:  Vacancy cleans are completed upon every nightly, weekly and monthly rental and are included in our rates quoted to the guest. (Vacancy Cleans include cleaning and linens,except for monthly rentals,there are no linens provided!)
2. Mandatory Vacancy Cleans for Owners: Vacancy cleans are completed upon every nightly, weekly and monthly rental and will be charged against Owner’s account. (Vacancy Cleans include cleaning).  Mandatory Deep Cleans:   Performed once a year with the owner responsible for refurbishing unit with items needed.  Owner may elect to deep clean their property with a paid inspection and inventory done by Oceanfront Vacation Rentals, Inc.  Prices set per property size and depth of additional cleaning needed. 
3. Maintenance:  A 13% service charge will be applied toward every invoice paid through our accounting division.
   

VIII.         

Whereas, Owner wishes to have an active participation role in the management of his property, he hereby acknowledges and agrees that he will do so in writing and at his cost if any and the following does apply:

Owners Active Participation:

1. Owner may submit recommendations to Oceanfront Vacation Rentals, Inc. on setting of vacation rates.  Oceanfront Vacation Rentals, Inc. will compile recommendations and provide proposed rates for Owner's review.
2. Owner may request periodic on-site inspections of the property and to review the management plan and operations.
3. Owner will be notified of maintenance and repairs necessary and will authorize in writing how their repairs are to be made.  Owner may choose to personally make repairs.
4. Owner may request in writing promotional material to be used off-site.  Oceanfront Vacation Rentals, Inc. will provide rate schedules, brochures as well as sample advertising and marketing ideas.
5. Oceanfront Vacation Rentals, Inc. makes no representations as to the compliance of this Agreement with regard to the guidelines set under the New Tax Reform Act.
6. Other remarks:_________________________________________________________________________________                       _____________________________________________________________________________________________                        _____________________________________________________________________________________________                            _____________________________________________________________________________________________                          _____________________________________________________________________________________________                                _____________________________________________________________________________________________
   
   

VIIII. General Provisions Section – Waiver of jury trial.

The Owner agrees that if any dispute arises between the parties, the Owner knowingly, intentionally, and voluntarily waives all rights to a jury trial, whether granted by statute or not, and the prevailing party gets their attorney’s fees and costs paid.

Whereas, the Owner of Unit   ____________________________________________          at____________________________________________                                                                                            
Acknowledges and agrees to authorize Company to open interest bearing trust accounts for the benefit of Owner and Company.  Owner acknowledges and agrees that all accrued interest in these accounts shall be retained by Company.  Company may withdraw said interest at any time without prior approval of Owner.  Owner hereby waives all its rights to said interest.

IN WITNESS WHEREOF, the parties have caused this Management Agreement to be duly executed as of the date first above written.

* OWNER(S)                                                                                                           OCEANFRONT VACATION RENTALS, INC. AGENT

________________________________________________                                                By: _______________________________

* If the premises are owned by more than one person, all owners must sign and one person be designated as the single point of contact with Oceanfront Vacation Rentals, Inc.  Those signing this Agreement certify that they have full authority to enter into this Agreement.