STATE OF GEORGIA COUNTY OF CLARKE MANAGEMENT AND LEASING AGREEMENT THIS Agreement is entered into as of this day of , 2008 by and between the "Owner") and Chastain, Jenkins & Leathers, LLC (hereinafter the "Agent"). WITNESSETH: WHEREAS, Owner owns a certain tract of land with improvements thereon being known and designated as and being more particularly described on Exhibit A, attached hereto and incorporated herein by reference (the "Property"); and WHEREAS, Owner desires to employ Agent to manage and lease the Property subject to the terms of this Agreement; and NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, and other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged, Owner and Agent, intending to be legally bound, hereby agree as follows: 1. Employment, Appointment, and Acceptance. Owner hereby employs Agent for the term of this Agreement as its sole and exclusive manager and leasing Agent of the Property. Owner further appoints and designates Agent as its duly authorized representative to perform the functions and services listed herein in the name of and on behalf of Owner, all at Owner’s sole cost and expense. Agent hereby accepts such employment and appointment on the terms and conditions set forth herein. 2. Functions and Services of Agent. Agent agrees to perform, and shall have the power and authority for, on behalf of, and in the name of Owner, the services listed herein as manager and leasing agent of the Property, and Agent shall have the authority to expend such sums and incur such expenditures (subject to the terms of this Agreement), all at Owner’s expense as may be necessary in connection therewith. Agent shall establish and maintain, in a bank whose deposits are insured by the Federal Deposit Insurance Corporation and in a manner to indicate the custodial nature thereof, a separate bank account as Agent of the Owner for the deposit of monies of the Owner. Agent shall have the authority to endorse checks payable to Owner, deposit funds of Owner into the account, and to draw on such account or accounts any payment to be made by Agent to discharge any of the liabilities or obligations incurred by Agent pursuant to this Agreement, and be subject to the limitations set forth in this Agreement. The Agent shall hold security deposits in a federally insured trust account registered with the Georgia Real Estate Commission. (hereinafter
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3. Advertising. The Agent will carry out advertising activities on behalf of the Owner. In addition, Agent will implement a comprehensive advertising plan for the Company which will benefit the Owner. The Owner agrees not to place any advertisements on Property or to advertise Property for lease in any media except with the prior written consent of the Agent. a. The Owner will pay an annual fee in the amount of thirty dollars ($30.00) per unit for advertising, which will be payable each year during the month January. Should the first year of management begin in a month other than January, the fee shall be prorated. b. The Owner agrees that Agent may advertise rental units in the Athens Area Association of Realtor’s Multiple Listing Service. c. The Owner agrees that any advertising specific to the Owner’s unit(s) that is not part of the Company’s comprehensive advertising plan will be approved by the Owner and billed to the Owner (i.e., a newspaper advertisement for a single rental unit). 4. Rentals. The Agent will offer for rent and will rent the dwelling units. Incident thereto, the following provisions will apply: a. The Agent will make preparations for initial rent-up and the parties hereby agree that Agent will have discretion to make expenditures as needed to prepare the units for initial rent-up. b. The Agent will show the premises to prospective tenants. c. The Agent will take and process applications for rentals. The Agent will use all legal means necessary to appropriately qualify the prospective tenant as credit worthy. If an application is rejected, the applicant will be told the reason for rejection. d. The Agent will prepare and execute all dwelling leases. The Agent will provide the Owner with a copy of all leases at the time that the lease is signed. e. The Agent will collect, demand, request, receive and deposit and disburse security deposits, if required, in accordance with the terms of each tenant's lease. f. The Agent will collect, demand, request, receive and deposit when due all rents, charges and other amounts receivable in connection with the management and operation of the Property. The Agent will send rent collected less expenses incurred and paid on behalf of the owner to the Owner via U.S. mail no later than the 15th of each month. 5. Enforcement of Leases. The Agent will secure full compliance by each tenant with the terms of his lease. The Agent may lawfully terminate any tenancy, when, in the Agent's judgment, sufficient cause (including but not limited to nonpayment of rent) for such termination occurs under the terms of the tenant's lease. For this purpose, the Agent is authorized to consult with legal counsel, to bring actions for eviction and to execute notices to vacate and judicial pleadings incident to such actions; provided however, that the Agent will keep the Owner informed of such actions and will follow such instructions as the Owner may prescribe for the conduct of any such action.
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6. Maintenance and Repair. The Agent will cause the Property to be maintained and repaired at a level as to be competitive in the market as determined by the Agent and approved by the Owner. Incident thereto, the following provisions shall apply: a. The Agent will contract with qualified independent contractors for any and all necessary repairs as determined by the Agent. b. The Agent will systematically and promptly receive and investigate all service requests from tenants, take such action thereon as may be justified, and will keep records of same. c. The Agent is authorized to purchase all materials, equipment, tools, appliances, supplies and services necessary for proper maintenance and repair as agreed in Subsection (e) below. d. The Agent is authorized to investigate, hire, pay, supervise, and discharge the personnel necessary to be employed in order to properly maintain and operate the Property, including janitor and maintenance personnel. e. The Agent shall notify the Owner of any necessary repairs in excess of one hundred fifty dollars ($150.00) prior to scheduling said repairs. 7. Utilities and Services. The Agent will make arrangements for necessary utility service. The Agent will make such contracts as may be necessary to secure such utility services. 8. Records and Reports. The Agent shall have the following responsibilities with respect to records and reports: a. The Agent will establish and maintain a comprehensive system of records, books, and accounts. b. With respect to each fiscal year ending during the term of this Agreement, the Agent will cause an annual financial report to be prepared based upon the preparer's examination of the books and records of the Owner and Agent. c. The Agent will prepare and furnish the Owner with a copy of monthly financial reports. 9. Insurance. The Agent agrees to carry public liability insurance, workers‘ compensation insurance, and other such insurance as may be necessary for protection of both the interests of Owner and Agent. The carrier shall be licensed in the State of Georgia. The Owner agrees to carry liability and hazard insurance on the rental unit. 10. Compliance with Governmental Orders. The Agent will take such action as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Property whether imposed by federal, state, county or municipal authority.
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11. Agent's Compensation. The Agent will be compensated for its services under this Agreement as follows: a. The Agent will be paid a management fee of ten percent (10%) of all rental and other income collected. b. The Agent will be paid fifty percent of all late fees collected. 12. Term of Agreement. This Agreement shall be in effect for a period of one year beginning ______________and ending ______________. Thereafter, it shall continue until either party provides notice of termination as required by Section 13 below. 13. Termination of Agreement. This Agreement may be terminated by either party upon written notice sent via certified US Mail sixty (60) days prior to the termination date. However, the parties hereby agree that if the Owner terminates this Agreement during the initial one year term, the Owner shall be obligated to pay to Agent a lump sum of ten percent of the rent due for the remaining term of all leases currently in effect. Parties also hereby agree that if the Owner terminates this Agreement, the Owner shall pay a finder’s fee of fifty percent of one month’s rent on all leases signed with future start dates (also referred to as pre-leased units). Should Agent fail to perform in procuring a tenant, no fee shall be due. 14. Indemnification and Other Agreements. a. Everything done by the Agent pursuant to the provisions of this Agreement shall be done as agent of the Owner, and all obligations incurred hereunder, except as specified otherwise, shall be for the account of, at the expense of, and on behalf of, the Owner except that the Owner shall not be obligated to pay any overhead expenses of Agent. b. Owner agrees to indemnify, defend and hold harmless Agent from any and all claims, actions, damages, loss, liabilities, and expenses, including, without limitation, attorneys‘ fees, accounting fees, and court costs which Agent may incur or which may arise out of or on account of this Agreement and the performance of the duties and services set forth herein and from liability for personal injury, including death, or property damage experienced by any employee or other person or entity whatsoever, provided however, that this section shall not impose any obligations on Owner to indemnify Agent against willful misconduct or gross negligence of Agent. c. Agent does not assume and is given no responsibility for compliance of the Property or any equipment therein with the requirements of any statute, ordinance, law, or regulation of any governmental body or of any public authority or official thereof having jurisdiction except to notify the Owner promptly or forward to the Owner promptly any complaints, warnings, notices, or summonses received by it relating to such matters.
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15. Miscellaneous Stipulations. a. This Agreement shall be construed under the laws of the State of Georgia. b. Any notice required to be given to either party shall be in writing and shall be deemed to have been served and given when deposited by registered or certified mail in a United States Post Office, addressed to the party hereto to whom directed, or when sent by electronic mail to the electronic mail address of the party to whom directed (notice to terminate this agreement shall be given in accordance with Section 13 above and not via electronic mail). The parties have previously designated to each other proper addresses; however, either party may designate a different address for the mailing of notices or for electronic mail notices. c. Time is of the essence in this Agreement. d. This Agreement may not be changed, terminated or discharged except by an instrument in writing expressly referring to this Agreement and signed by the party or parties to be charged. e. This Agreement shall be binding upon the parties hereto, their heirs, successors and assigns. f. This Agreement is intended by the parties hereto to be the final expression of their Agreement and is a complete and exclusive statement of the terms thereof. g. This Agreement shall not be construed as creating a partnership agreement between the parties. h. For the convenience of the parties hereto, any number of counterparts hereof may be executed, and each counterpart shall be deemed to be an original. 16. Owner’s Obligations. a. Owner hereby agrees that he will be available to Agent during normal business hours for consultation regarding Agent’s performance hereunder. Owner will provide Agent with an address, at least one telephone number, and an electronic mail address at which he may be reached and will immediately notify Agent if there is a change in said address, telephone number, or electronic mail address. Owner recognizes that Agent’s ability to perform its duties hereunder will be compromised by an inability to contact Owner, and agrees that he will respond to communications from Agent (whether by regular mail, telephone, or electronic mail) within a period of two (2) weeks. b. Owner further agrees that all funds requested by Agent for expenses necessary for the performance of Agent’s duties hereunder will be provided by Owner to Agent within five (5) business days of request unless an alternative agreement regarding the identified expenses is reached between Agent and Owner within the five (5) day time period.
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17. Default. In the event of default in this Agreement by either party, the other party shall have the right to terminate this Agreement upon the giving of written notice to the defaulting party and a five (5) business day opportunity to cure any such default following receipt of such notice.
Agreement shall be executed when returned to the Owner at the address specified below. IN WITNESS WHEREOF, This Agreement was executed at Athens-Clarke County, Georgia on the date and year first written above. OWNER By: Contact Information: Mailing address: Email address: ________________________________________________________ _______________________________________________________ (SEAL)
Phone number: _____________________ Fax number: _____________________ ________________________ Phone: _____________________
Social Security/Federal Tax ID: Emergency Contact:
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It is the responsibility of the Owner to notify the Agent of any changes in the above contact information. AGENT By: CHASTAIN, JENKINS & LEATHERS, LLC 675 Pulaski Street, Suite 700 Athens, GA 30601 706-559.4520 office 706-559.4522 fax (SEAL)