PROPERTY MANAGEMENT AGREEMENT

(Short Term and/orVacation/Holiday Rentals)

THIS AGREEMENT, by andbetween:  _________________ (hereinaftercalled "Owner") and Walt FloodRealty, a Hawaii sole proprietorship (hereinafter called"Agent"), wherein the parties hereby agree as follows:

AGENCY. Owner exclusivelyappoints Agent to rent, lease, operate, and manage on the owner's behalf theproperty located at: ____________________________________ 

Property Name: _____________________      Unit #: ________

TERM. Thisagreement shall be for an initial period of twelve months beginning on:__________ andshall be automatically renewed for successive one year terms thereafter.However, either party upon sixty (60) days written notice may terminate thisagreement. Termination of this agreement does not invalidate any existingrental agreements made by Agent on Owner's behalf. Upon termination, Ownershall continue to be responsible or shall cause to be completed all obligationsor expenses incurred hereunder by the Agent. In the event this agreement is terminated,or the property is sold, the Owner shall honor all confirmed reservations.

RESPONSIBILITIES OF AGENT. Agent agrees to and shall:

(a) Complete an initial propertyinspection and prepare a condition report of the unit. If necessary, makerecommendations to Owner and prepare unit for occupancy.
            (b)Advertise the rental unit in the local newspapers, bulletin board, and on theInternet. Provide the invoice(s) from the media, and pay the charges and passon the cost to the Owner, on the monthly proceeds statements. 

            (c) Collect all rents for property anddeposit same in a special trust account in an insured financial institutionauthorized to do business in the State of Hawaii. Owner understands and agreesthat all finds may be placed in an interest bearing account and the interestshall accrue to the benefit of the Rental Agent.
            (d)Provide Owner with a monthly statement of income and expenses for the property.To the extent there are amounts available for distribution to the owner; agentshall distribute the amount to the owner or as owner may direct.
            (e)Contract for services and authorize expenditures on Owner's behalf forhousekeeping and regular maintenance. Agent shall obtain prior written approvalfrom Owner for any expenditure in excess of Three Hundred Dollars ($300.00)except for what the Agent shall in its best judgment consider an emergency

RESPONSIBILITIES OF OWNER. Owneragrees to and shall:

            (a) Furnish and maintain unit inaccordance with recommended inventory and maintenance standards as may beestablished from time to time by Agent.
            (b)Allow Agent to establish rental rates for the property.
            (c)Provide Agent with written notification within five (5) business days of alisting agreement if the property is for sale. And to notify Agent prior to authorizing access to theproperty to anyone.
            (d)Provide Agent with Owner's General Excise Tax License.
            (e)Provide Agent with Owner's U.S. Federal Tax Id, or Social Security number.      

            (f)Provide Liability Insurance coverage for the property with minimum limits of$300,000 for bodily injury and $25,000 for property damage to others. The Agentshall be named as additional insured and shall be furnished with a copy of theinsurance policy and a certificate of insurance.

PROPERTY MANAGEMENT AGREEMENT:                                  (Page 2/2)

(ShortTerm and/or Vacation/Holiday Rentals)

AGENT'S FEES. Owner isadvised and agrees to pay the following:

(a) Agent is allowed by Owner to accept creditcards and to deduct for credit card and/or bankcard fees from the Owner’sproceeds.

(b) A fee/commission of twenty five percent (25%) of the gross revenues formanagement services for short term and/or vacation rentals (reservations ofless than 180 days).

(c) A fee/commission of ten percent (10%) of the gross revenues formanagement services for long term leases (leases of more than 180 days).

(d) A pro-ration charge for advertising forshort-term (vacation rentals), at $75.00/month.

(e) A minimum charge for administration andaccounting, at $50.00/month (not toinclude tax preparation/returns/forms).

(f)  A fee of ten percent (10%) on the total charge for repairs, upgrades,  and/or renovations.

(g) A charge of $35/hour to schedule repairs, upgrades, renovations, replacement ofappliances, carpets, curtains, drapes, and/or to escort the contractors, repairpersons, technicians and handymen.

(h) Plus, the Agent will assess/charge the Ownerthe Hawaii Gross Excise tax (currently at 4.712%)on all the above fees, commissions and charges.

 AGENCYSTART-UP FEE. Upon the execution of this Agreement, the Owner shallpay one hundred fifty dollars ($250.00)to the Agent as a non-refundable start-up fee. The Agent shall use such fee topay initial administrative expenses of including the premises (property) in itsrental program, to conduct a complete inventory of all furniture andfurnishings in the rental unit, to produce a condition/inspection report of thepremises, appliances and contents, and to pay other sums initially required forthe performance of its duties under this agreement.

            DISCLAIMER OFGUARANTEES. The Owner understands and agrees that Agent has made noguarantees (written or verbal) of occupancy or income levels for the property.

HOLD HARMLESS. The Owneragrees that Agent shall not be liable for any claim for loss or injury to anyperson or property located on the property subject to this agreement, exceptfor loss or injury caused by Agent's gross negligence or wilful misconduct, andOwner shall hold Agent harmless and indemnify Agent for any such claim orliability.

GOVERNINGLAW. This is the entire Agreement between the parties andshall be governed by the laws of the State of Hawaii. This Agreement shall be binding uponthe successors and assigns of Owner or Agent.

SIGNED in duplicate this _________ day of ________2008 .
Bothparties acknowledge receipt of a copy of this Agreement.

       OWNER:                                                     AGENT:  Walt FloodRealty

  By: __________________________     By:___________________________

                        It’s Owner                                         It's Principal Broker

  Date:_________________________     Date:__________________________