PROPERTY MANAGEMENT AGREEMENT Owner: Manager: Bridge Management LLC, 3077 Merriam Lane Kansas City, KS Property(ies): THIS PROPERTY MANAGEMENT AGREEMENT ( Agreement ) is made this day of _, 20 by and between (hereinafter referred to as Owner ) and Bridge Management LLC (hereinafter referred to as BMLLC ). WHEREAS: 1. BMLLC is in the business of managing properties for owners and is willing to undertake the management of Owner s properties in accordance with the terms and conditions set forth herein. 2. Owner desires to hire BMLLC to manage the above listed Property(ies) legally owned by Owner. NOW THEREFORE, in consideration of the promises set forth herein and for other good and valuable consideration, intending to be legally bound, the parties hereto hereby agree as follows: I. Exclusive Representation Agreement: BMLLC is hereby designated as the sole and exclusive agent and representative of Owner for the purpose of managing the above listed Properties. Owner [ ]is [ ] is not currently a party to any other exclusive representation agreement with respect to the management of leasing of the Properties If Owner is a party to such an exclusive representation agreement, such agreement ends, 20_. II. Term of Agreement: This Agreement shall begin on, 20 (If not specified, the execution date of this Agreement, or upon the termination of a current exclusive representation agreement, whichever is later) and shall end on _, 20. Provided, however, that either party may terminate this Agreement at any time after the end of months after the execution date of this Agreement by giving the other party no less than days prior Notice of election to terminate, and the elected termination date. At the expiration of such term, this Agreement, if not renewed in writing for an additional fixed period and if not terminated in writing by either party, shall be deemed a month-to-month agreement cancelable by either party on not less than days prior Notice, which may be given at any time during the month. Any cancellation shall be effective as of the end of the calendar month during which such Notice period expires. III. Authority and Power of BMLLC: Unless and until Owner shall provide Notice to BMLLC instruction otherwise, Owner hereby confers upon BMLLC the following authority and power, all or any of which may be exercised in the name of the Owner designated by a mark in the appropriate box(es) below. Options which are not marked are deemed to be the responsibility of Owner: [ ] Leasing. To advertise the Property or any part thereof for rent in accordance with a budget supplied by Owner and to display signs thereon and to execute leases and lease renewals according to a rent schedule, terms, and BMLLC s lease. Owner has read BMLLC s lease and is aware how the lease pertains to their property. As part of leasing the Property, BMLLC shall fully screen and 1
evaluate prospective tenants by obtaining credit reports, tenant eviction history, tenant criminal history, and the like. [ ] Termination of Tenancies: To serve tenants with appropriate notices on behalf of Owner to terminate tenancies, and to institute legal proceedings in the Owner s name for purposes of recovering rents and other sums due and for possession of the Property. [ ] Notices: To serve tenants with appropriate notices on behalf of Owner and to advise Owner promptly of the service upon BMLLC of any notice from any tenant or receipt of any notice, summons, subpoena, or other legal document or other communication setting out or claiming an actual or alleged potential liability of the Owner. [ ] Rent and Security Deposits: To collect rents, fees, and charges and to collect and disburse security deposits as provided herein. All receipts shall be collected for Owner in a trust account with a qualified banking institution. [ ] Employees and Independent Contractors: To hire, supervise and discharge all employees and independent contractors necessary for the operation and maintenance of the Property. All independent contractors shall be required to provide proof of workers compensation and liability insurance. [ ] Service Contracts: To execute contracts for utilities and services for the operation, maintenance, repair and safety of the Property as BMLLC shall deem advisable. [ ] Repairs: To oversee all repairs, decorating and alterations to the Property and to purchase all necessary supplies therefore, including the following: - Inspecting the Property on a regular basis and making repairs necessary to assist Owner in complying with all Federal, State and Local laws, codes and regulations affecting the Property; - Arranging for exterior painting, pavement repairs, roof repairs, gutter and downspout repairs, window well repairs, fence repair, sewer cleaning, and in general, to provide for appropriate attention and service to all interior and exterior parts of the property and the utilities thereon; - Handling all tenant repair requests and negotiations that may arise from time to time regarding all or any part of the Property leased by such tenant. - Providing Owner with period reports on the condition of the Property. - BMLLC shall obtain Owner s prior authorization for any repair or expense item in excess of $, except for those expenses (i) previously approved monthly or recurring operating expenses, and (ii) emergency repairs to protect the Property or a tenant. [ ] Disbursements: To accrue and make disbursements from Owner s funds for mortgage payments, taxes, insurance, assessments and other necessary expenses. BMLLC shall provide Owner with a monthly statement which itemizes all receipts, expenses, charges and accruals and shall remit to Owner the balance of the receipts less all disbursements for management services, repairs, expenses, and accruals for future expenses. In the event disbursements and accruals for future expenses shall exceed the receipts, the Owner shall promptly remit to BMLLC such excess money. 2
IV. Duties and Obligations of Owner: Owner covenants and agrees as follows: A. Furnish Documents: Owner shall furnish BMLLC all documents and records required to properly manage the Property as may be periodically requested by BMLLC, including, but not limited to, Owner s tax identification number, non-foreign ownership and related forms, copies of all leases, status of rental payments, loan payment information and existing service contracts. Owner acknowledges having read and approved the information contained in the Property Data and Disclosure Form regarding the Property and that BMLLC is authorized to relay upon said information in advertising and promoting the Property. Owner represents that all information in the Property Data and Disclosure Form is true and accurate to the best knowledge of Owner, and that Owner will fully and promptly disclose in writing to BMLLC any new information pertaining to the Property that is discovered by or made known to Owner at any time during the term of this Agreement and constitutes an adverse material fact or would make any existing information in the Property Data and Disclosure Form false or materially misleading. B. Insurance. Owner shall furnish BMLLC with the name, address, and telephone number of the agent and underwriter for each insurance policy, policy number and, upon request, with copies of all insurance policies from time to time carried by Owner during the term of this Contract and any endorsements called for herein or by the terms of any lease agreement entered into, together with written authorization (if needed) for BMLLC to communicate with the insurer. Owner agrees to carry fire and extended coverage insurance, and bodily injury, property damage and personal injury public liability insurance in limits as required pursuant to any lease agreement entered into, but in any event not less than $. Owner shall name BMLLC as an additional insured party. C. Reimbursement of Advancements: Owner shall reimburse BMLLC, on demand, all monies advanced by BMLLC for account of Owner in carrying out the purposes of this Contract; it being understood that BMLLC is not obligated to advance any money hereunder. D. Compensation to BMLLC: Owner shall pay BMLLC for services as follows: 1. For Management: _% of the gross amount of money received from the operation of the Property during the term of this Contract, however, in no event less than $ per month. In addition, BMLLC shall also receive a minimum fee of $ per unit for each month that any such unit is not leased. 2. For Leasing: For each time a unit is leased, BMLLC shall receive % of the first full month s rent for each rental unit, or _% of the total rent for the entire term of the lease, whichever is greater. For each 12 month lease extension past the initial 12 month lease, BMLLC shall receive $ due upon the next rent payment. 3. Termination Fee Upon Sale of Property: If Owner sells the Property during the term of this Contract, Owner shall pay BMLLC at the time of the closing of the sale a termination fee of $. Thereupon, this Contract shall terminate. Owner, however, shall be required to give BMLLC prior Notice as provided in Section II. If BMLLC has a listing agreement with Owner for the sale of the Property at any time during the term of this Agreement, if any tenant procured by BMLLC shall enter into a contract or exercise an option to purchase the Property from Owner during the term of the lease, then Owner agrees to compensate BMLLC in accordance with the listing contract. If the lease includes an option to purchase and separate consideration is paid for the option, Owner agrees that if the option is not exercised, the consideration shall be divided equally between Owner and BMLLC. 3
4. Additional Fees: Forfeited rent, deposits and fees charged for the following shall be split as indicated: Rents: % BMLLC _% Owner Returned Check Fee: % BMLLC _% Owner Security Deposit _% BMLLC % Owner Lease Amend. Fees % BMLLC _% Owner Late Rent: % BMLLC _% Owner After Hours Svc. % BMLLC _% Owner Sublease Fees % BMLLC _% Owner Other: % BMLLC _% Owner 5. Initiation Fee: Startup fee charged upon execution of this Agreement in the amount of $, nonrefundable. E. Taxes and Insurance: (Check one box as applicable) 1. [ ] Owner [ ] BMLLC shall pay any real property taxes and other taxes levied and assessed against the Property. If BMLLC is to pay taxes pursuant to this Paragraph, BMLLC shall withhold from gross revenues an amount equal to the estimated annual taxes and then pay such taxes from this reserve prior to delinquency. 2. [ ] Owner [ ] BMLLC shall pay the premium for fire and extended coverage and liability insurance. If BMLLC is to pay the insurance premiums, BMLLC shall withhold from gross revenues an amount equal to the estimate annual insurance payments and then pay such premiums from this reserve prior to the delinquency. F. Conformity with the Law. Owner hereby represents to BMLLC that the Property is in full compliance with the requirements of all applicable laws. BMLLC is hereby authorized to take such action as BMLLC deems appropriate to comply with such laws. G. Indemnification of BMLLC: Except for the willful and reckless misconduct and gross negligence of BMLLC, Owner agrees to indemnify and defend BMLLC against all cost, expenses, bad checks, loses because of a tenant s bankruptcy, attorneys fees, suits, liabilities, and any other damages, arising from or connected in any way with the operation or management of the Property by or the performance or exercise of any of the duties, obligations or powers herein granted to BMLLC, including the cost of defense. V. Remedies: A. In the event of default, the party aggrieved shall give written notice of default to the other party, who shall have thirty (30) days from the date of such notice to remedy the default. B. If the default has not been cured within the thirty (30) days, the aggrieved party is entitled to the remedies set forth herein. C. After notice and opportunity to cure as set forth above, in the event that the defaulting party shall fail to comply with the terms of this Agreement, the aggrieved party shall have the right to immediately terminate this Agreement and seek all damages to which it is entitled under this Agreement as if it remained in effect. D. Promptly upon any termination of this Agreement, whether by expiration of the term hereof or otherwise, and notwithstanding the absence of a final accounting between the parties hereto, BMLLC will promptly deliver to Owner all funds, documents, accounts, ledgers and other materials which BMLLC prepared, received, collected or otherwise acquired in the course of its employment under this Agreement. 4
VI. E. Force Majeure: BMLLC shall not be liable for any loss, damage, delay or failure to perform in whole or in part, which results from causes beyond BMLLC s control including, but not limited to, fire, strikes, riots, embargoes, shortages in supplies, delays in transportation or requirements of any governmental authority. Other Miscellaneous: A. Entire Contract: This Agreement constitutes the entire agreement of the parties hereto, and all prior agreements, understandings, representations and statements, oral or writte, are hereby merged herein. In the event of a conflict between the terms of this Agreement and any prior written agreements, the terms of this Agreement shall prevail. This Agreement may only be amended or modified by an instrument in writing, signed by the party intended to be bound thereby. B. Severability: If any portion of this Agreement is held to be unenforceable by a court of competent jurisdiction, the remainder of this Contract shall remain in full force and effect. C. No Waiver: No covenant, term or condition of this Agreement other than as expressly set forth herein shall be deemed to have been waived by Owner or BMLLC unless such waiver is in writing and executed by Owner or BMLLC as the case may be. D. Other Agreements: IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have caused this Agreement to be made as of the day and year first above written: Owner: Bridge Management LLC: Print Name: Print Name: Title: Title Address: Phone: Email: Fax: Date: Address: Phone: Email: Fax: Date: 5