CB Properties of Memphis LLC 1060 Brookfield Road Suite 100 Memphis, TN O: F:

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1 CB Properties of Memphis LLC 1060 Brookfield Road Suite 100 Memphis, TN O: F: Property Management Agreement Property Address: Expected Rent:. 1. The owner hereby employs the Agent exclusively to rent and manage the property known as: : upon the terms and conditions set forth hereinafter for a period of one (1) year commencing on (20 ) and ending on (20 ), with this management agreement being automatically renewed for successive periods of one year unless cancelled or terminated by either of the parties here to and thereafter for periods of one year at a time. A 60 day written notice is required to terminate the contract (see 1e) a. For services rendered by Agent, Owner agrees to pay to Agent a monthly service fee in an amount equal to nine percent (9%) of the total amount of monthly rent and any assessed late fee(s) charged to a tenant who occupies or leases the subject property, or the sum of $50.00, whichever is greater, However, in the event that Owner acquires titled ownership of the subject property from or through Memphis Turnkey Properties, GP, then the monthly service fee to be paid by Owner to Agent is discounted and shall be an amount equal to eight percent (8%) of the total amount of monthly rent and any assessed late fee(s) charged to a tenant who occupies or leases the subject property, these service fees to be effective for the first and each subsequent month of any leased tenancy of the property. b. For new lease agreements that are executed by a tenant for the subject property, Owner agrees to pay to Agent an amount equal to seventy-five percent (75%) or the sum of $750.00, whichever is greater, of the first month s rent paid by a tenant pursuant to the provisions of a newly executed lease agreement; however, if the monthly rent for the subject property is an amount of $ or less, then Owner agrees to pay to Agent the entire first month s rental payment. c. Agent will charge $350 for taking over management of occupied properties. d. Owner grants permission to Agent to resign a tenant left in good standing at the end of a lease term so long as the terms and amounts negotiated are within the Owners best interest. The fee is $125 for a one year lease and $250 for a two year lease. If the tenant does not fulfil ½ of the new lease obligation, ½ of the lease renewal fee that was charged will be refunded in the form of a credit towards the next subsequent lease up fee. e. TERMINATION OF CONTRACT Either party may terminate this agreement by serving the other party a sixty (60) day written notice prior to the expiration date of this agreement or the expiration date of the most recent renewal if any. If owner has made refusal to keep property up to Memphis or Shelby County Code or is refusing to follow the TN Landlord Act, CB Properties of Memphis LLC may cancel the agreement immediately. f. TERMINATION WITH LEASE STILL IN EFFECT Where there is a lease or leases still in effect at the date of termination of this agreement, the Owner agrees to pay the agent the monthly management fee for the unexpired term of the lease or leases. If the property is on a month to month lease, the owner agrees to pay the agent the monthly management fee of 2 months management fees. 2. Agent may collect from Tenants any of the following; late rent administrative charges, credit report fee or insufficient check charge. CB Properties of Memphis LLC will consider the above charges as administrative in nature and will retain such fees collected. 3. We do not hold Security Deposits from Tenants. We receive reservation fees which will be disbursed to the

2 owner. The reservation fees are non-refundable to the tenant. 4. Owner agrees to save Agent harmless from all damage suits in connection with the management of the property and liability for injuries suffered by any employee or other persons whomsoever and to carry at his/her own expense public liability insurance. CB Properties of Memphis LLC must be names on the policy. If property is not insured, CB Properties of Memphis LLC will not be held liable. Owner must provide a copy of insurance naming CB Properties of Memphis LLC on policy. Owner must send over a certificate of insurance naming CB Properties of Memphis LLC as additionally insured. 5. For a non-qualifying lease purchase transaction, Owner agrees to pay 35% of the initial down payment to CB Properties of Memphis LLC as a new lease fee. The balance of the non-refundable down payment will be remitted to Owner. 6. Agent Agrees to the following: a. To accept the management of the above-described property and to furnish the services of its organization for the rent, operation, and management of said property. b. To verify employment, previous landlord and credit report, concerning all references of prospective tenant, verify the tenant s ability to secure utilities in their name, as available. c. To render a monthly accounting of receipts, charges, and expenses, and remit balance to owner, less maintenance & service charges if applicable and Agent s commission. Agent s books close on the last day of each month and will make the funds available by check or ACH deposit by the 5 th of the following month. If the month has a deficit balance, the balance is to be paid within 10 days or a 10% service charge will be assessed. This is not a finance charge. Nothing herein shall obligate Agent to advance its own funds on behalf of owner. 7. Agent is hereby given the authority to act on behalf of Owner including, but not limited to, engaging in and conducting the following activities: a. To display FOR RENT signs thereon: to advertise to sign leases for the premises or any part thereof, long distance phone calls; to terminate tenancies and to sign and serve in the name of Owner such notices are appropriate: to institute and prosecute actions; to evict tenants and to recover possessions of said premised; to sue for in the name of Owner and recover rents and other sums due, and when expedient, to settle, compromise, and release such actions or suits or reinstate such tenancies. b. Repairs: To make or cause to be made and supervise repairs, alterations, and to do decorating on said premises; to purchase supplies, and pay bills therefore, including reasonable compensation. CB Properties of Memphis LLC will notify Owner of all expenditures by ; expenses in excess of $ will require Owner approval before Agent proceeds. Agent will notify Owner of all incoming maintenance request. Agent encourages Owner to be engaged during this process with questions or concerns they may have. If Agent does not respond with approval within the timeframes in the Residential Landlord and Tenant Act of Tennessee, Agent will move forward with repairs. Some maintenance items may fall under Section , Tennessee Code Annotated, Failure to Supply Essential Services, would require Agent to immediately respond and initiate maintenance to the Owner s property. It is strongly suggested the Owner read Part 5-Enforcement & Remedies, Sections and 502, Tennessee Code Annotated, that specify landlord responsibilities in regards to maintenance. These expenses, if any, will be deducted from the Owners rental payment with a receipt explaining charges, plus a 15% administrative charge/handling fee. c. Employees and Independent Contractors: To hire, discharge, and supervise all labor; independent contractors including but not limited to attorneys, accountants, appraisers; and, employees for the operation and maintenance of the premises. d. Service Contract: To make contracts for electricity, gas, fuel, water, telephone, window-cleaning, ash or rubbish hauling, and other services or such of them, as Agent shall deem advisable. CB Properties of Memphis LLC will charge $50.00 for the installation plus cost of materials of 2 smoke detectors and 1 fire extinguisher, if the property does not already meet this requirement. 8. The waiver of any breach shall not be construed as a continuing waiver of any subsequent breach, and the acceptance by the Agent of partial payments due shall not, UNDER ANY CIRCUMSTANCES, constitute a waiver of any rights of Agent under this contract, nor effect any notice of legal proceedings in unlawful detainee, theretofore given and commenced under state law. 9. Agent shall be entitled to recover costs and reasonable attorney s fees in any action or proceeding to secure any rights under this Agreement to enforce any remedies available hereunder or at law.

3 10. If property is sold to a tenant secured by Agent at any time during the period of this contract or 12 months thereafter, Owner agrees to pay Agent a sales commission of 6% of the selling price if Agent represents both seller and buyer. Owner agrees to pay Agent 3% if sold outside of those parameters. 11. CB Properties of Memphis LLC notifies the Tenant upon signing of the Residential Lease Agreement to transfer MLGW services of utilities in their name within three days of the signed CB Properties of Memphis LLC Residential Lease Agreement. CB Properties of Memphis LLC also emphasizes the importance to Owner to act accordingly by contacting MLGW at and placing a disconnect order of services for the date listed above. If Owner and Tenant fail to act, the utilities will be billed to Owner. At which time, CB Properties of Memphis LLC will not be held accountable for the charges. 12. Property Inspections may be requested by the owner for a charge of $55; that service will include inside/outside pictures only. An expanded service is offered that includes inside/outside pictures, plus filter replacement, hot water tank visual inspection, smoke detector test and fire extinguisher check for a charge of $80. Units without functioning smoker detectors will be repaired or replaced. Units without fire extinguishers will be furnished at Owner s expense (see 7d). Lead time for these services is 2 weeks. For urgent request under 2 weeks, service fee is 2 times the standard rate. CB Properties of Memphis LLC Representative: Date: Owner Signature: Date: Please print the following: Name: Mailing Address: Telephone Numbers: Home Work Cell Fax Address: Tax ID/SSN Number: Home Warranty: Carrier/Telephone # Contract # Termite: Insurance Company: Agents Name: Other: Alarm System If Activated (Tenant Responsibility Once Occupied) Company: Telephone #

4 Alarm Code: Password: Eviction Overview 1. Rental Payments from the Tenants are due on the 1 st of the month. Tenants are supplied envelopes with prepaid postage. 2. If rental payment is not collected by the 5 th of the month, a late rent administrative charge will be accessed and a letter will be sent to Tenant stating to pay rent or vacate the property. Prior to the 5 th we will have attempted phone calls, s and often times, property visits. In addition, the letter also explains if the rental payment is not received by the 6th of the month; the matter will be referred to our attorney. 3. If the rental payment is not received by the 6 th, the Owner will be notified of the delinquency and at this point a discussion is appropriate on whether or not to move forward with the eviction process. CB Property Management Division refers all legal matters to Howard Peppel, Attorney at Law, Peppel, Gomes, and MacIntosh, P.C. The firm s address is 474 Perkins Extended, Suite 205 Memphis, TN Attorney Retainer Fee: Charge an initial fee of $50.00 as a retainer that may be credited back against the final attorney fees for the case. Number of Signatories on Lease Court Filing Fee Process Server Fee Attorney Retainer Fee Total Amount Needed to File FED One $99.50 $30.00 $50.00 $ Two $99.50 $50.00 $50.00 $ Three $99.50 $70.00 $50.00 $ Four $99.50 $90.00 $50.00 $ The attorney fees that are charged by Peppel, Gomes & MacIntosh, P.C. for the handling of an FED action depends upon whether the matter is contested. Generally, we handle uncontested FED cases on a contingent fee basis of 25% of the amount awarded by a court for rental arrears, late fees, and other damages such as returned check charges, etc., exclusive of advanced filing fees and court costs. For contested matters however, our fee is billed at a rate of $ per hour. With respect to cases that require the commencement of litigation in the bankruptcy court, such as a motion for relief from stay, we likewise charge a fee that is billed at a rate of $ per hour. There is no hourly charge for preparing and filing a proof of claim. 5. The goal of the eviction process is to gain possession of the property. Garnishment collections that are acquired will be a bonus; due to the difficult and complex nature of garnishing wages. 6. Pursuit of the financial judgment must be requested by Owner Signature(s): 4

5 Monthly Investor Statement Policy Electronic Funds Transfer 1. CB Properties of Memphis LLC uses property management software hosted by Buildium, LLC. CB Properties of Memphis LLC will send all investors a personal login and password to access the property management software. Each investor will be able to access information for their properties in real time. Maintenance requests will be entered in the software. You may access your account anytime 2. Electronic Funds Transfers will be made available. Since owners are able to access the reports needed, CB Property Management Division will make funds available to investor on the 5 th of the following month the payments are received. If the 5 th falls on a weekend or a holiday, all payments will be made the next business day. EFT Transfers, once initiated, can take up to 5 business days. CB Properties of Memphis, LLC has no control over the time it takes for the funds to arrive when the EFT Transfer is initiated. I would like to have my funds transferred electronically I would like CB. Property Management Division to send me a check monthly. 3. For the funds to be transferred electronically, please provide the following checking account information: Routing Number Account Number Signature(s): 5

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