Biography. Let our knowledgeable staff manage your day to day operations for your property.

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1 Biography Established in 1982, Jackson Group Property Management offers no-nonsense Property Management at a reasonable rate. Jackson Group currently manages 400+ units consisting of both Commercial and Residential properties throughout the many districts of San Francisco. Founded on personally owned and managed San Francisco Property; we know what an Owner expects from our service. We are large enough to handle any size property, yet small enough to provide your property individual service. Raymond Scarabosio, MPM Raymond Scarabosio is owner of Jackson Group Property Management in San Francisco, CA. and has been involved in the Property Management industry since Raymond is a past president of the San Francisco based Professional Property Managers Association (PPMA). He is a charter member of the San Francisco Chapter of NARPM and currently serves as Past President Emeritus. He has been a member of NARPM since 1992 and has served on various committees such as Finance, Convention, Publications and Marketing, to name a few. Raymond holds the Master Property Manager (MPM ) and Residential Management Professional (RMP ) designations from NARPM. He has been a NARPM instructor at the National Convention, past Florida, California, Texas, Washington & Colorado state conferences as well as an instructor in the NARPM designation program. He is a Past NARPM National President, and continues to be active on many National committees. His greatest achievement within NARPM occurred at the 2001 National Convention where Raymond was presented with the President s Award from his best friend within NARPM, then NARPM National President Melissa Prandi. Along with Ray the staff of Jackson Group Property Management has continued to grow and excel; from attending training seminars such as the CCRM (Certified California Resident Manager) to monthly meetings of the Professional Property Management Association. Our staff currently holds certifications and licenses from the following; CCRM Certification, California Licensed Realtor, California Licensed Notary, 2008 Professional Property Management Association Board Member, members of the National Association of Residential Property Managers and more. Our staff strives to be at the forefront of education and leadership of San Francisco Property Management Let our knowledgeable staff manage your day to day operations for your property. Attached, please find a list of services that Jackson Group Property Management can offer your property, as well as an explanation of services. Please feel free to contact us at the below-mentioned information to further discuss your Property Management needs. Jackson Group Property Management Jackson Group Property Management Phone (415) Fax (415)

2 Management Services Jackson Group Property Management services include but are not limited to the following: Advertising Vacancies Application Management Verification of applicants Drafting/Executing Leases Drafting/Executing Addendums Collection of Security Deposit Monthly Owner Statements Online Statement Accessibility Accounts Receivable / Accounts Payable (taxes, insurance, and maintenance.) Distributions via Check, Bank Deposit or ACH (Automated Clearing House) Rent Increases and Security Deposit Disposition Management Project and Capital Improvement Management General knowledge of building codes and conditions General knowledge of current rent control ordinances and requirements Maintenance Management Tenant/Vendor Work Orders Jackson Group Property Management Jackson Group Property Management Phone (415) Fax (415)

3 Explanation of Services Offered Accounting We offer an on time accounting system that offers precise monthly income and expenditures and year-to-date totals for easy tax preparation. Owners receive monthly statements, cash flow reports along with distribution payments. Distributions may be received via Check, Bank Deposit, or ACH Payment. Rentals Jackson Group manages rental units from start to finish. Inspections are performed prior to tenant vacancy to set a plan for necessary maintenance and repairs upon vacating. A plan is then formulated between Management and Owner; the required contractors/vendors are then scheduled to make necessary repairs and upgrades as quickly and efficiently as possible. Units are advertised through various media to ensure maximum exposure. Upon rental we use the PPMA (Professional Property Management Association) landlord favorable lease written to be in full compliance with California Real Estate and San Francisco rent control laws and ordinances. Rental service is offered at a commission rate based upon service contract and rental amount. Repairs We deal directly with professional contractors for all repairs and maintenance. Our relationship is based on the ideal that the job is done once and it is done completely. All contractors/vendors are fully licensed and insured. Jackson Group only works with vendors and contractors who have established a good relationship over multiple projects. One mistake or bad performance is one too many. No more headaches from a handyman s lack of experience or expertise in a specific area. Property Inspection / Reports We make semi-annual inspections of the entire premises to make sure the building stays clean and problem free. During the inspection we look for any potential problems that can be corrected now at a reduced expense and report to ownership. We are a full service company; these are just some aspects of Property Management that we handle. We treat your property as if it is ours. Please let us know how we can tailor a specific Property Management program for your needs. Jackson Group Property Management Jackson Group Property Management Phone (415) Fax (415)

4 References Name Units (Buildings) Phone Mr. Bill Rippe 24 Units (3 Buildings) Mr. Brian Costello 20 Units (2 Buildings) Mrs. Karin Burger 15 Units (3 Buildings) Mr. Neil Sechan 12 units (1 Building) Mr. Glenn Grant 4 units (3 Buildings) Mr. Jack Cavallero 1 unit (Single Family Home) Monthly Management Fee Schedule* Single Family Dwelling $ Units 6% of Collected Rent 6-10 Units 5.75% of Collected Rent Units 5.5% of Collected Rent 20+ Units To be negotiated *All management fees are subject to negotiation and verification of rental income Should you have any questions please feel free to contact us at the below mentioned information or via our toll-free number at We look forward to handling your Property Management day-today operations. Jackson Group Property Management Jackson Group Property Management Phone (415) Fax (415)

5 Powered by Property Manager AppFolio Property Management Software Owner Statement AppFolio s easy-to-read owner statements will be ed directly to you each month. 1

6 Powered by Property Manager Electronic Owner Payments (ACH) Owners get paid securely and quickly via convenient electronic payment. Your funds arrive faster. Craigslist Integration We can fill vacancies faster and easier with AppFolio s Craigslist Integration. Eye-catching vacancy advertisements are posted to Craigslist, the #1 rental listing website, directly from AppFolio. AppFolio Ad In Craigslist Typical Craigslist Ad 2

7 Powered by Property Manager Work Orders Printed Work Order System Record of Work Order 3

8 Owners Portal Guide An Easy to Use Secure Owners Portal Now you have on-demand access to your owner reports! What can you do with the Owners Portal? You will have the ability to access current and historical Owner packets, and will be able to download these reports on demand in PDF format. This gives you anytime, anywhere access to the same Owner Packets you receive on a monthly basis. How do I access the Owners Portal? The Owners Portal was specifically designed to make it easy for you to access your information without needing to have yet another ID and password. All you need to access your Owner Portal is your address. To access the Owners Portal simply: 1. In your Internet Browser, enter the URL address associated with your Management Company s AppFolio account Typically in the form of companyname.appfolio.com. (Exact URL is provided in the you received with this document) 2. On the AppFolio Property Manager Login page, click the link called Access Owners Portal. This will open a new browser window and will load the Access Owners Portal page. 3. Enter your and click the Send Access button. (Be sure you are using the same address that you have on file with your Property Management Company). This will send the with the special one-time-use link to access your Owners Portal. 4. Go to your program and open the from your Property Management Company. Click the link for the Reports. This will open a new browser window and your Owners Portal will load. 5. On the Owners Portal page, click the link for the Owners Packet (in PDF format) that you wish to view. The PDF document of the Owners Packet will launch and open in a new window. AppFolio, Inc. Owners Portal Guide Page 1

9 Property Address Management Agreement Residential Property Management Jackson Group Property Management 09

10 MANAGEMENT AGREEMENT THIS AGREEMENT IS MADE THIS Start Date BY AND BETWEEN Owner Name(s) (THE "OWNER") AND Jackson Group Property Management (THE "AGENT") Section 1 APPOINTMENT OF MANAGING AGENT Owner hereby appoints Agent as sole and exclusive Agent of Owner to manage the property known as: Full Property Address (the Premises ) upon the terms and conditions provided herein. Agent accepts the appointment and agrees to furnish the services of its organization for the management of the Premises and Owner agrees to pay all reasonable expenses in connection with those services. The term of this Agreement shall be for an initial period of One (1) Year (the "initial term") from Contract Start Date to and including Contract End Date and thereafter shall be automatically renewed from year to year unless terminated as provided in Section 16 herein. Section 2 ADVERTISING Agent is authorized to advertise the Premises or portions thereof for rent, using periodicals, signs, or displays, or such other means, as Agent may deem proper and advisable. Such advertising shall be paid by Owner from the trust account. Agent is authorized to place signs on the Premises advertising the Premises for rent, provided such signs comply with applicable laws. Section 3 LEASING AND RENTING 3.1 AGENT S AUTHORITY TO LEASE PREMISES Agent shall use all reasonable efforts to keep the Premises rented by procuring tenants for the Premises. Agent shall work with Owner to establish and change or revise all rents and deposits, and any other charges with respect to the Premises. Agent shall procure approval from Owner in regards to negotiating, preparing, and executing all Rental Agreements including all renewals and extensions and the canceling and modifying of existing Agreements. Agent & Owner shall execute all Agreements jointly. All costs of renting shall be paid out of the Trust Account. No Agreement shall be in excess of one (1) year without written approval by Owner. 3.2 ENFORCEMENT OF LEASES Agent is authorized to institute, in Owner's name, all legal actions or proceedings for the enforcement of any rental term for the collection of rent or other income from the Premises, or for the evicting or dispossessing of tenants or other persons from the Premises. Agent is authorized to sign and serve such notices, as Agent deems necessary for enforcement, including the collection of rent or other income. Agent is authorized, when expedient, to settle, compromise, and release such legal actions or suits or reinstate such tenancies. Attorneys' fees, filing fees, court costs, and other necessary expenses incurred in connection with such actions and not recovered from tenants shall be paid out of the Trust Account. Agent may select the attorney, upon court and owner approval. Section 4 COLLECTION OF RENTS AND OTHER RECEIPTS 4.1 AGENTS AUTHORITY Agent shall collect (and issue receipts for, if necessary) all rents, charges and other amounts receivable on Owner's account in connection with the management and operation of the Premise. Such receipts shall be deposited in the Trust Account maintained by Agent. If permitted by applicable law, Agent may collect and retain from tenants any or all of the following: an administrative charge for late payment of rent, a charge for returned or non-negotiable checks, a credit report fee and a transfer fee. Page 2 of 9 Initials

11 4.2 SECURITY DEPOSITS MANAGEMENT AGREEMENT Agent shall collect tenant s security deposits in the following manner (Owner to select one) Agent shall remit Security Deposit to Owner who shall be obligated to disburse in accordance with the terms of each tenant s lease and/or local, state and federal government regulations. Owner will hold Agent harmless from Owner s breach of duties to properly handle and disburse tenant s Security Deposits. Agent shall place deposits in a Trust Account to be handled and disbursed in accordance with the terms of each tenant s lease and/or local, state and federal government regulations. Section 5 TRUST FUNDS 5.1 INITIAL DEPOSIT AND CONTINGENCY RESERVE Upon rental of the unit the Agent shall retain the sum of $ as a contingency reserve. Owner agrees to maintain the contingency reserve stated above at all times in the Trust Account to enable Agent to pay the obligations of Owner under this Agreement. Owner and Agent shall review the amount of the contingency reserve amount when such is required. 5.2 DEPOSITS Agent will deposit all receipts to a Trust Account maintained at a financial institution whose deposits are insured by an agency of the United States government. Agent shall not be held liable in the event of bankruptcy or failure of a depository. Funds in the Trust Account remain the property of Owner subject to disbursement of expenses by Agent as described in this Agreement. 5.3 DISBURSEMENTS OF OPERATING EXPENSES Agent will disburse funds, to the extent available, to pay all expenses, including but not limited to repairs, maintenance, services, management and other fees necessary to manage the Premises. 5.4 ACCOUNTING Between the 20th & 25th day of each month, Agent will render monthly statements of income and expenses, to include Owner Statement, Cash Flow Statement and Property Rent Roll. Owner(s) shall receive monthly statements via designated account. Owner(s) have 60 calendar days from issuance of statements to review and return comment. Owner shall have the right to request periodic audits of all applicable accounts managed by Agent, and the cost of such audit shall be paid by Owner. 5.5 NET PROCEEDS To the extent that funds are available by the 20th of each month, Agent shall transmit cash balances to the Owner. Such periodic cash balances shall be remitted to the Owner via ACH Transfer, or to such other person(s) as designated in writing by Owner. Page 3 of 9 Initials

12 5.6 OWNER DEFICIENCY MANAGEMENT AGREEMENT Owner acknowledges that from time to time Owner s account may not have sufficient funds to pay ordinary and/or extraordinary expenses due within a short period of time. In the event disbursements shall exceed the available funds, Agent will immediately notify Owner of such deficiency, and Owner shall promptly remit sufficient funds to cover any deficiency. In the alternative, and at Agent s sole discretion, Owner authorizes Agent to advance personal funds to Owner s account to cover these expenses; Owner agrees to repay said advances, plus interest at an annual rate of 7%, upon demand from Agent or upon attaining a sufficient balance in Owner s account. Agent acknowledges that said advances are for the sole purpose of Owner s account and are not available for personal use by Agent. Agent has no obligation to advance funds to Owner s account and will exercise this authority only when events dictate expediency in the payment of expenses. Section 6 BUILDING MAINTENANCE 6.1 MAINTENANCE AND REPAIR Agent is authorized to make, or cause to be made, through contracted services or otherwise, all ordinary repairs and replacements reasonably necessary to preserve the Premises in its present condition and for the operating efficiency of the Premises, and all alterations required to comply with lease requirements, government regulations or insurance requirements. Agent is also authorized to perform necessary painting & repairs of the Premises and to purchase or rent, on Owner's behalf, all equipment, tools, appliances, materials, supplies, uniforms and other items necessary for the management, maintenance or operation of the Premises. Such maintenance or decorating expenses shall be paid out of the Trust Account. 6.2 APPROVAL FOR EXCEPTIONAL MAINTENANCE EXPENSE The expense incurred for any item of maintenance, alteration, refurbishing, or repair shall not exceed $250.00, unless such expense is specifically authorized by Owner in writing, or is incurred under such circumstances, as Agent shall reasonably deem to be an emergency. 6.3 NOT COVERED BY THE MANAGEMENT FEE Owner understands that the following services rendered by the Authorized Agent to Owner shall be reimbursed for their time at the agreed upon rate of $75.00 per hour, with a one (1) hour minimum. A full accounting of billable hours shall be provided to the Owner(s), fees shall be deducted from collected rents received during calendar month of services performed. These services include but are not limited to: Monthly Inspections Court Representation/Hearings Rent Board Representation/Hearings Department of Buildings Inspections/Hearings Depositions Homeowner Association Representation/Meetings Property Tax Assessment Appeal Hearings Insurance Claims/Inspections/Estimates/Paperwork Forensic Accounting (60 Days) Section 7 CONTRACTS, UTILITIES AND SERVICES Agent is authorized to negotiate contracts for nonrecurring items of expense, not to exceed $250.00, unless approved by Owner, and to enter into agreements in Owner's name for all necessary repairs, maintenance, minor alterations, and utility services. Agent shall, in Owner's name and at Owner's expense, make contracts on Owner's behalf. These contracts include but are not limited to: Electricity Natural Gas Water Page 4 of 9 Initials

13 MANAGEMENT AGREEMENT Scavenger Landscaping Cleaning Fire Prevention Telephone Annual Maintenance Section 8 AGENT ASSUMES NO LIABILITY Agent assumes no liability whatsoever for any acts or omissions of Owner, or any previous owners of the Premises, or any previous management or other agent of either. Agent assumes no liability for any failure of or default by any tenant in the payment of any rent or other charges due Owner or in the performance of any obligations owed by any tenant to Owner pursuant to any lease or otherwise. Nor does Agent assume any liability for previously unknown violations of environmental or other regulations, which may become known during the period of this Agreement. Section 9 RELATIONSHIP OF AGENT TO OWNER The relationship of the parties to this Agreement shall be that of Principal and Agent, and all duties to be performed by Agent under this Agreement shall be for and on behalf of Owner, in Owner's name, and for Owner's account. In taking any action under this agreement, Agent shall be acting only as Agent for Owner, and nothing in this Agreement shall be construed as creating a partnership, joint venture, or any other relationship between the parties to this Agreement except that of Principal and Agent, or as requiring Agent to bear any portion of losses arising out of or connected with the ownership or operation of the Premises. Nor shall Agent at any time during the period of this Agreement be considered a direct employee of Owner. Neither party shall have the power to bind or obligate the other except as expressly set forth in this Agreement, except that Agent is authorized to act with such additional authority and power as may be necessary to carry out the spirit and intent of this Agreement. Section 10 SAVE HARMLESS Owner shall indemnify, defend, and save Agent harmless from all loss, damage, cost, expense (including attorneys' fees), liability, or claims for personal injury or property damage incurred or occurring in, on, or about the Premises. Section 11 INSURANCE Owner shall obtain and keep in force adequate insurance against physical damage (e.g., fire with extended coverage endorsement, boiler and machinery, etc.) and against liability for loss, damage, or injury to property or persons which might arise out of the occupancy, management, operation, or maintenance of the Premises. Such limits of insurance shall be in amounts that are acceptable to Agent and Agent shall be covered as an additional insured on all liability insurance maintained with respect to the Premises. Owner agrees to furnish Agent with certificates evidencing such insurance or with duplicate copies of such policies within fifteen days of the execution of this Agreement. Any deductible required under such insurance policies shall be Owner's expense. Section 12 REPRESENTATIONS Owner represents and warrants: That Owner has full power and authority to enter this Agreement; that there are no written or oral agreements affecting the Premises other than tenant leases, copies of which have been furnished to Agent; that there are no recorded easements, restrictions, reservations, or rights of way which adversely affect the use of the Premises for the purposes intended under this Agreement; that to the best of Owner's knowledge, the property is zoned for the intended use; that all permits for the operation of the Premises have been secured and are current; that the building and its construction and operation do not violate Page 5 of 9 Initials

14 MANAGEMENT AGREEMENT any applicable statutes, laws, ordinances, rules, regulations, orders, or the like (including, but not limited to, those pertaining to hazardous or toxic substances); that the building does not contain any asbestos hazards, urea, formaldehyde, radon, or other toxic or hazardous substance; and that no unsafe condition exists, to the extent of owner s knowledge. Section 13 STRUCTURAL CHANGES Owner expressly withholds from Agent any power or authority to make any structural changes in any building or to any equipment in any such building, or to incur any expense chargeable to Owner other than expenses related to exercising the express powers vested in Agent through this Agreement, without the prior written consent of the Owner. Section 14 BUILDING COMPLIANCE 14.1 CODE COMPLIANCE Owner represents that to the best of Owner's knowledge the Premises and all such equipment comply with all requirements of any building codes or with any statute, ordinance, law, or regulation of any governmental body or any public authority or official thereof having authority. The Owner authorizes Agent to disclose the ownership of the Premises to any such officials and agrees to indemnify and hold Agent, its representatives, servants, and employees, harmless of and from all loss, cost, expense, and liability whatsoever which may be imposed by reason of any present or future violation or alleged violation of such laws, ordinances, statutes or regulations CONFORMITY OF UNITS If the property contains a unit which is not legal according to property records maintained by local government, Owner further agrees in connection with the rental and management of the property, to indemnify and hold Agent harmless from any suits, claims, or actions brought by any person(s) for or on account of any injuries or damages sustained or arising from the illegality of the rental unit or consequences thereof, including but not limited to: failure of the property to conform to building codes, life/safety standards, and building permit, parking, and zoning requirements. Owner further acknowledges that in any action in a court of law or any other governmental agency, Owner may suffer serious economic penalties as a result of taking rent for illegal or substandard rental improvements, and Owner may be asked by the Bureau of Building Inspection (or counterpart governmental agency) to dismantle any improvements deemed by same to be illegal. Rental of illegal units is entirely at the discretion of the Owner and against the advice of Agent. Section 15 AGENT'S COMPENSATION AND EXPENSES As compensation for the services provided by Agent under this Agreement (and exclusive of reimbursement of expenses to which Agent is entitled hereunder), Owner shall pay Agent as follows: 15.1 MANAGEMENT SERVICES The amount of Dollar Amount per month, shall be payable by the 10th day of each month for the duration of this Agreement, to be paid from the Trust Account. Percentage of gross collected rents per month, shall be payable by the 10 th day of each month for the duration of this Agreement, to be paid from the Trust Account RENTAL/VACANCY SERVICES Rental/Vacancy Commissions: Commission Amount of one (1) month of agreed upon rental amount. Page 6 of 9 Initials

15 MANAGEMENT AGREEMENT 15.3 CAPITAL IMPROVEMENT/PROJECT MANAGEMENT SERVICES Capital Improvements/Project Management/Supervisory Fee: Capital Improvement Fee For any capital improvement, remodeling, and/or major repair over $2, A full accounting of billable hours shall be provided to the Owner(s) SPECIAL SERVICES Special Services: If any special services are provided, other than those enumerated in this Agreement, additional fees shall be payable upon agreement of the parties, at a rate of $75.00 per hour, one hour minimum with monthly billing. These services include but are not limited to: Remediation Consultation Estimate Collection Meeting with Contractors, Inspectors, Architects, Etc. Meeting with Financial Institutions Neighborhood Meetings Meeting with City Officials Please reference section 6.3 for further services Section 16 TERMINATION 16.1 TERMINATION BY EITHER PARTY This Agreement may be terminated at the end of the initial term, or at any time thereafter, by either Owner or Agent, with or without cause, upon thirty (30) days written notice by either party to the other TERMINATION FOR CAUSE Notwithstanding the foregoing, this Agreement shall terminate in any event, and all obligations of the parties hereunder shall cease (except as to liabilities or obligations which have accrued or arisen prior to such termination), upon a breach of this Agreement or the occurrence of any of the following events: (a) FAILURE TO ACT, ETC. - In the event it is alleged or charged that the Premises, or any portion thereof, fails to comply with any law or regulation, or any order or ruling of any public authority; or the Agent, in its sole discretion, considers that the action or position of Owner or its representatives with respect thereto may result in damage or liability to Agent, or disciplinary proceeding with respect to Agent's license, Agent shall have the right to terminate this Agreement at any time by written notice to Owner. Such termination shall not release the indemnities of Owner set forth herein. (b) EXCESSIVE DAMAGE - Upon the destruction of or substantial damage to the Premises by any cause, or the taking of all or a substantial portion of the Premises by eminent domain, in either case making it impossible or impracticable to continue operation or management of the Premises OWNER RESPONSIBLE FOR PAYMENTS Upon termination of or withdrawal from this Agreement, Owner shall assume the obligations of any contract or outstanding bill executed by Agent under this Agreement for and on behalf of Owner, and responsibility for payment of all unpaid bills. In addition, Owner shall furnish Agent security, in an amount satisfactory to Agent, against any obligations or liabilities, which Agent may have properly incurred on Owner's behalf under this Agreement. Agent may withhold funds for up to ninety (90) days after the end of the month, in which this Agreement is terminated, in order to pay bills previously incurred but not yet invoiced and to close accounts. Agent shall deliver to Owner, within ninety (90) days after the end of the month in which this Agreement is terminated, any balance of monies due Owner or of tenant security deposits, or both, which were held by Agent with respect to the Premises, as well as a final accounting reflecting the balance of income and expenses with respect to the Page 7 of 9 Initials

16 MANAGEMENT AGREEMENT Premises as of the date of termination or withdrawal, and all records, contracts, leases, receipts for deposits and other papers or documents which pertain to the Premises. Section 17 DISPUTE RESOLUTION Agent and Owner agree that they will mutually benefit from a procedure for resolving legal disputes, which may arise between them and which might otherwise become the subject of litigation, in an expeditious, cost efficient, fair and impartial manner. Therefore, Agent and Owner agree that all potentially litigable claims or controversies arising from the rights, duties and/or obligations of this Agreement shall be submitted to nonbinding mediation before a mutually acceptable mediator. If the parties cannot agree upon a mediator, the dispute shall be mediated before the American Arbitration Association Agent and Owner understand and agree that they will proceed with good faith mediation before filing or pursuing any lawsuit or adversarial proceeding with the exception of the following matters: (a) a judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or real property sales contract, (b) an unlawful detainer action, (c) the filing or enforcement of a mechanic s lien, (d) any matter which is within the jurisdiction of a probate or small claims court, or (e) an action for bodily injury or wrongful death, or for latent or patent defects. The filing of a judicial action to enable the recording of a notice of pending action, for order of attachment, receivership, or other provisional remedies, shall not constitute a waiver of the right to arbitrate under this provision. Section 18 INDEMNIFICATION SURVIVES TERMINATION All representations and warranties contained herein shall survive the termination of this Agreement. All provisions of this Agreement that require Owner and or Agent to have insured or to defend, reimburse, or indemnify Agent or Owner shall survive any termination; and if Agent or Owner becomes involved in any proceeding or litigation by prior business relationship, such provisions shall apply as if this Agreement were still in effect. Section 19 FORCE MAJEUR Any delays in the performance of any obligation of Agent under this Agreement shall be excused to the extent that such delays are caused by wars, national emergencies, natural disasters, strikes, labor disputes, utility failures, governmental regulations, riots, adverse weather, and other similar causes not within the control of Agent, and any time periods required for performance shall be extended accordingly. The same provisions shall be accorded to the Owner. Section 20 SALE OF PROPERTY If property is listed with a Real Estate Broker for sale other than PR Realty Co., Jackson Group will assist as requested/needed. Jackson Group fee will be based on an $75.00 per hour fee, minimum charge of 1 hour. A full accounting of billable hours will be provided to Owner. Agreement to be signed at time of listing and payable at close of escrow from listing agent's commission. Normal property management charges shall not be billed to listing agent. Page 8 of 9 Initials

17 MANAGEMENT AGREEMENT Section 22 ADDITIONAL PROVISIONS 22.1 AGENTS DUE DILIGENCE Agent Agrees to use due diligence in performance of this contract and in all matters involved with the management of this property WRITTEN NOTICE TO TERMINATE If it shall become necessary for Agent or Owner to give notice of any kind hereunder, it shall be in writing and shall be served by sending such notice by certified or registered mail (return receipt requested) to the address of the other, postage pre-paid. Section 23 COMPLETE AGREEMENT This Agreement, including any specified attachments, constitutes the entire agreement between Owner and Agent with respect to the management and operation of the Premises and supersedes and replaces any and all previous management agreements entered into and/or negotiated between Owner and Agent relating to the Premises covered by this Agreement. No change to this Agreement shall be valid unless made by supplemental written agreement executed and approved by Owner and Agent. The management agreement consists of 6 pages and one addendum. Section 24 AGREEMENT BINDING UPON SUCCESSORS AND ASSIGNS This Agreement shall be binding upon the parties hereto, their respective representatives, heirs, administrators, executors, successors and assigns. Owner Name Tax ID # Owner Signature Date Agent Name Date Agent Signature Jackson Group Property Management Tax ID # CA DRE License # Page 9 of 9 Initials

18 RESIDENTIAL TENANCY AGREEMENT 1. INTRODUCTION Click here to enter text.( AGENT TO OWNER ) rents to Click here to enter text., ( TENANT ) and Tenant agrees to rentclick here to enter text., California, (the PREMISES ). No other portion of the building (hereinafter, the Building ), wherein the Premises is located is included unless expressly provided for in this Agreement. The Premises is provided as Unfurnished / Furnished (see attached Furniture Inventory). The appliances provided at inception of the tenancy are described as:click here to enter text.. 2. TERM The term of this rental shall begin on Click here to enter text. and end on Click here to enter text., and thereafter shall be month-to-month on the same terms and conditions as stated herein, save any changes made pursuant to law, until terminated. 3. PHYSICAL POSSESSION If Owner is unable to deliver possession of the Premises at the commencement of the term, Owner shall not be liable for any damage caused thereby, nor shall this Agreement be void or voidable, but Tenant shall not be liable for any rent until possession is delivered. 4. RENT The initial monthly base rent for the Premises shall be $Click here to enter text.. All rent is due and payable in advance on the 1st day of each and every month (the Due Date ) without offsets, deductions or credits. All rent shall be paid to Jackson Group Property Management or such other person as Owner shall designate in writing. Tenant agrees always to pay rent by personal check, cashier s check, or money order and/or cash. Rent shall be paid to Owner at the following address: 1806 Balboa Street, San Francisco, CA or at such other place designated by Owner. In the event of roommates, or another form of multiple tenancy, Tenant understands and agrees that rent shall be paid with a single payment and that it is up to Tenant to collect individual checks independently in order to submit a combined, single payment. Tenant bears the risk of loss or delay of any payment made by mail. Owner must receive mailed rent payments on or before the Due Date. Rent for any partial month shall be pro-rated at the rate of 1/30th of the monthly rent per day. Owner may apply any payment made by Tenant to any obligation of Tenant to Owner notwithstanding any dates or other direction from Tenant that accompanies any such payment. Any attempt by Tenant to allocate a payment in any other way shall be null and void. Owner will accept rent payments ONLY from the actual Tenant(s). No third party checks will be accepted, nor shall Owner be liable to Tenant in any way as a result of refusing any third party check. Should Owner elect to accept a third party check such acceptance shall not be construed as a waiver of this provision. Tenant(s) Initials: 5. SECURITY DEPOSIT Before the commencement of the term, Tenant shall pay a security deposit of $Click here to enter text. (the Security Deposit ) for the purposes set forth in Civil Code Section No trust relationship between Owner and Tenant is created because of the Security Deposit and Owner may commingle the Security Deposit with other funds of Owner. Owner may retain such amounts of the Security Deposit as allowed by law including, but not limited to, Tenant s obligation to restore, replace or return personal property. Owner shall, within the time period allotted by law, refund any balance after such deductions to Tenant after Tenant has vacated the Premises. Tenant shall not be deemed to have vacated the Premises for purposes of this paragraph until a) Tenant returns to Owner ALL keys to the Premises, and b) Tenant has surrendered the Premises to Owner free and empty of all persons claiming any right to possess the Premises. Any balance of the Security Deposit and an accounting of any deductions therefrom will be mailed to Tenant at the Premises unless Tenant provides, in writing to Owner, a mailing address to which the balance, if any, of the Security Deposit and the accounting should be sent. Owner s check or other draft refunding any balance of the Security Deposit may be made in the name of all original tenants regardless of the party who in fact made the deposit and regardless of the identity of the persons then occupying the Premises. Tenant may NOT apply the Security Deposit, nor any portion thereof, to the last month's rent. If any portion of the Security Deposit is applied by Owner to any obligations of Tenant at any time during the tenancy Tenant must, upon 5 days written notice, reinstate the Security Deposit to its full original amount. If required, Owner shall pay to Tenant simple interest as directed by such law on the amount held as a Security Deposit, provided this tenancy does not terminate before the Security Deposit has been held for one year. Said payment of interest shall be made once a year commencing with the date the Security Deposit has been held for a year. Upon Tenant s surrender of the Premises, if the Security Deposit is insufficient to remedy Tenant s default in rent, to repair damages caused by Tenant and to clean the Premises, Owner may use from the accrued unpaid interest such amounts as are necessary for those purposes. Accrued Copyright PPMA 2008 RESIDENTIAL TENANCY AGREEMENT This document may not be reproduced without the express, written permission of the Professional Property Management Association of San Francisco Version ORIGINAL COPY: Owner COPY #1: Tenant COPY #2: File Page 1 of 20

19 RESIDENTIAL TENANCY AGREEMENT unpaid interest or balance thereof, if any, shall be mailed to Tenant at last known address in the same manner as any refund of the Security Deposit. Owner may increase the security deposit up to the maximum allowed by law at any time with notice. The parties agree that the Security Deposit is not rent and therefore not subject to the Rent Ordinance. 6. LATE PAYMENTS Tenant and Owner agree that Owner will sustain costs and damage as a result of any late payment of rent but that it will be extremely difficult to determine with specificity the actual amount of that damage. Therefore, Tenant agrees to pay a late charge equal to Click here to enter text. for any payment of rent not received by Owner within Three (3) calendar days of the Due Date. The parties agree that this late charge represents a fair and reasonable estimate of the costs and damages that Owner will incur by reason of late payment by Tenant. The provision for payment of a late charge does not constitute a grace period and Owner may serve a 3-Day Notice to Pay Rent or Quit on the day after the Due Date. Owner and Tenant agree that Tenant paying rent five days after the Due Date on three separate occasions within any twelve month period shall constitute habitual late payment of rent and may be considered a just cause for eviction. Payment of the late charge does not cure the late payment for purposes of establishing habitual late payment of rent. Tenant(s) Initials: 7. RETURNED CHECKS In the event that Tenant makes any payment required hereunder with a check which is not honored by the bank on which it is drawn for any reason, Tenant agrees to pay to Owner the additional sum of $7.00 as a reimbursement of the expenses incurred by Owner. A dishonored check shall constitute late payment of rent and shall be subject to the provisions of paragraph 6 above regarding late payment, including but not limited to habitual late payment of rent. Such charges shall be immediately due and payable upon notice to Tenant. Failure to immediately pay the charges shall constitute a default under the terms of this Agreement. Owner reserves the right to demand payment of rent by certified funds, cashier s check or money order for all future payments in the event of any such returned check or any other monetary default by Tenant and rent tendered in any other form may be refused by Owner. Nothing in this paragraph shall limit other remedies available to Owner as a payee of a dishonored check. Owner and Tenant agree that three returned checks in any twelve month period shall constitute frequent return of checks due to insufficient funds and may be considered a just cause for eviction. Tenant(s) Initials: 8. FAILURE TO PAY Pursuant to Civil Code Section , you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations, such as your financial obligations under the terms of this Agreement. 9. INDIVIDUAL LIABILITY Each person who signs this agreement, whether or not said person is or remains in possession of the Premises, shall be jointly and severally responsible for the full performance of each and every obligation of this agreement, including, but not limited to, the payment of all rent due and the payment of costs to remedy damages to the Premises regardless of whether such damages were caused by Tenant, Tenant s Guests or Invitees. 10. INSPECTION OF PREMISES Tenant has inspected the Premises, furnishings and equipment including smoke detectors, where applicable, and has found the same to be satisfactory and in good working order. All plumbing, heating and electrical systems are operative and deemed satisfactory by Tenant if Owner is not notified in writing to the contrary within 48 hours of occupancy of the Premises. Tenant(s) Initials: 11. USE/OCCUPANCY The Premises are leased for use as a permanent, principal, and full-time residence, utilizing designated portions of the premises for living, sleeping, cooking and dining purposes, and for no other purpose by the following named person(s) and no others: 1. Name: Click here to enter text. 2. Name: Click here to enter text. Only And; Only And; 3. Name: Click here to enter text. 4. Name: Click here to enter text. Only And; Only Copyright PPMA RESIDENTIAL TENANCY AGREEMENT This document may not be reproduced without the express, written permission of the Professional Property Management Association of San Francisco Version ORIGINAL COPY: Owner COPY #1: Tenant COPY #2: File Page 2 of 20

20 RESIDENTIAL TENANCY AGREEMENT This Agreement is between Owner and each named Tenant who is signatory to this Agreement, individually and severally. The named signatory Tenants are jointly and severally responsible for the performance of their obligations under this Agreement, including the payment of rent until such time as the tenancy in its entirety is terminated and the premises relinquished to Owner, regardless of whether the named Tenant occupies the Premises. No retail, or commercial or professional use of the Premises shall be made unless such use conforms to applicable zoning laws and the prior written consent of Owner is obtained in ADVANCE of such proposed use. As a condition for granting such permission, Owner may require that Tenant obtain liability insurance for the benefit of Owner. Smoking is not permitted in any common area(s) of the building. If checked, this unit is dedicated as non-smoking and Tenant agrees not to smoke or permit smoking in the unit. Notwithstanding any law to the contrary, the growing, cultivation, sale, or use in any form, of marijuana, for any purpose, is not permitted in or about the Premises, at any time, by Tenant, or Tenant s guests, invitees or friends. The failure to abide by the covenant shall constitute a material breach of this Agreement and is a just cause for eviction. Tenant may have guests on the Premises for not over fifteen consecutive days or thirty days in a calendar year, and no more than two guests per bedroom at any one time. Persons staying more than fifteen consecutive days or more than thirty days in any calendar year shall NOT be considered original tenants of the unit. Tenant must obtain the prior written approval of Owner if an invitee of Tenant will be present at the Premises for more than fifteen consecutive days or thirty days in a calendar year. Violation of the provisions of this section shall be deemed a substantial and material breach of this Agreement and is agreed to be a just cause for eviction. 12. PETS Click here to enter text. pets, dogs, cats, birds, fish or other animals are allowed in or about the Premises, even temporarily or with a visiting guest, without prior written consent of Owner, excepting service animal(s) as required by law. Any such consent is conditioned upon Tenant completing and signing Owner s Pet Agreement which shall become part of this Agreement. Strays shall not be kept or fed in or about the Premises. Strays can be dangerous and Owner must be notified immediately of any strays in or about the Premises. If a pet has been in a Tenant s apartment or allowed into the building, even temporarily (with or without Owner s permission) Tenant may be charged for cleaning, de-fleaing, deodorizing or shampooing any portion of the building or Premises at the discretion of Owner. 13. WATERBEDS Waterbeds and/or liquid filled furniture are PROHIBITED in accordance with Civil Code Section If the Premises are located in a structure for which the original Certificate of Occupancy was issued after January 1, 1973 then such furniture may be permitted only upon written consent of Owner, upon the completion of a Waterbed Agreement which shall become part of this Agreement and subject to continued compliance by Tenant of all provisions therein. 14. ROOF/FIRE ESCAPES Use of the roof and/or the fire escapes by tenants and/or guests is limited to emergency egress ONLY. No other use is permitted, including but not limited to, the placement of personal property. 15. ASSIGNMENT AND SUBLETTING: (Owner must select ONLY one, either A or B) A. Tenant may not assign this Agreement or sublet the whole or any portion of the Premises without obtaining the prior written consent of Owner which MAY be unreasonably withheld. The named Tenant above is the only original Tenant. No person other than the named Tenant shall be permitted to regularly or continuously use or occupy the Premises unless all of the following conditions are met: (1) Tenant notifies Owner in writing, signed by every Tenant, stating a request to have a new person occupy the Premises; (2) said prospective occupant completes and gives to Owner Owner s rental application; (3) Owner approves of the prospective occupant s creditworthiness and references from prior landlords; and (4) Tenant(s) and prospective occupant acknowledge, in writing, receipt of a copy of Section 6.14 of the Rules and Regulations of the San Francisco Rent Ordinance, if applicable, and the new occupant signs Owner s standard form sub-tenancy agreement for such occupancy BEFORE occupying the Premises, which agreement will include a provision that the new occupant will abide by and perform all the obligations of this Agreement and that the rent for the Premises may be raised to market rates when the last of the original Tenant(s) moves from the Premises. In the event that Owner consents to any sub-tenancy, it is hereby agreed that the Original Tenant may not charge more to the sub-tenant(s) than that proportional share of the rent which is being charged by and paid to Owner which is attributable to any exclusive use area leased to the sub-tenant, plus a reasonable pro-rata share of the common area space of the apartment unit that the sub-tenant has a right to utilize. Copyright PPMA RESIDENTIAL TENANCY AGREEMENT This document may not be reproduced without the express, written permission of the Professional Property Management Association of San Francisco Version ORIGINAL COPY: Owner COPY #1: Tenant COPY #2: File Page 3 of 20

21 RESIDENTIAL TENANCY AGREEMENT No action or inaction or acceptance of rent or knowledge on the part of Owner shall be deemed to be a waiver of the provision of this Paragraph on the part of Owner and shall not be deemed an approval of any person as a subtenant for any purpose. B. Tenant(s) may NOT assign this Agreement nor sublet the whole or any portion of the Premises. This is a blanket prohibition which means that Tenant may not have any other person reside at the Premises; that even if one tenant leaves, no replacement tenant(s) will be permitted and no additional tenant or occupant will be allowed in the unit. Said prohibition on assignment and subletting shall apply equally to any parking space, garage, storage area or other rented space made available to Tenant(s). The Owner expressly intends not to waive this prohibition unless such waiver is specifically put in writing and signed by Owner. The parties agree that unless the absolute prohibition against subletting is waived in writing and signed by Owner it shall be conclusively presumed that there has been no waiver. If the foregoing absolute prohibition is at any time invalidated, the provisions of subparagraph 15A above shall govern any assignment and subletting, there must be an original tenant who uses the premises as his/her primary residence, and any additional rights which are granted to Owner as part of any changes in laws with regard to assignment and subletting shall be incorporated into the Agreement and become binding upon Tenant. Tenant(s) Initials: 16. STORAGE (Owner to select one) No additional storage space outside of the Premises is authorized, permitted or provided under this Agreement. Storage space described as: Click here to enter text.is hereby provided. The monthly charge for said storage space shall be $Click here to enter text. in addition to, $Click here to enter text. included in, the monthly rent. Tenant agrees that the charge indicated herein plus any allowable increase represents the maximum reasonable value of the service throughout the term of the tenancy. Tenant releases Owner from any liability for loss or damage to Tenant's property while stored on the Premises. Any property stored in designated storage areas shall be removed on or before the date of termination of tenancy. In the event such property is not so removed, Owner may dispose of same without any liability to Tenant whatsoever and Tenant hereby specifically waives any rights as defined in Civil Code Section 1980 et. seq. Owner reserves the right to inspect all such storage areas and require necessary removal or clean up as it deems necessary for the health and safety of the Premises, the building and/or its occupants. No storage of any kind will be permitted on fire escapes or in other common areas. Tenant(s) Initials: 17. PARKING SPACE(S) (Owner to select one) This agreement does NOT provide for parking space(s) of any motor vehicle or motorcycle anywhere in or about the Premises and/or the building. Parking space(s) described as: Click here to enter text.is herein provided. The monthly charge for said parking space(s) shall be $Click here to enter text. in addition to, $Click here to enter text. included in, the monthly rent. Tenant agrees that the charge indicated herein plus any allowable increase represents the maximum reasonable value of the service throughout the term of the tenancy. Tenant agrees to use the parking space(s) exclusively for the parking of motor vehicles; excluding trailers of any kind, boats, campers, buses, or trucks larger than a one-ton pickup. Absolutely NO automotive cleaning, washing, maintenance or repair work of any kind and NO storage of any kind shall be permitted in or about the parking space(s). 18. UTILITIES Tenant(s) Initials: Tenant shall pay directly for all utilities, services and charges provided to the Premises EXCEPT for those listed as follows:click here to enter text.. Tenant agrees to comply with any energy or water conservation programs implemented by Owner. Tenant understands that the rent paid by all residents is partially determined by the cost of utilities. Nothing contained herein prevents Owner from passing through to Tenant utility costs as provided by law. In accordance with local regulations Owner shall provide one working telephone line and one working telephone jack into the Premises. Unlike the local gas and electric company, the telephone company charges for time required to repair telephone lines, wall jacks, etc. Therefore, Tenant shall obtain and keep in force an Inside Wiring Repair Plan, if available, with the telephone company that will defray the costs of any necessary repairs. Tenant shall be provided access to the building and the Premises for the installation of utility and communication lines and services ONLY as required by law and ONLY upon prior written consent by Owner. Tenant(s) Initials: Copyright PPMA RESIDENTIAL TENANCY AGREEMENT This document may not be reproduced without the express, written permission of the Professional Property Management Association of San Francisco Version ORIGINAL COPY: Owner COPY #1: Tenant COPY #2: File Page 4 of 20