Effective Date: Date of the last signature below

Manager / Broker: Sapphire Hill Realty LLC

This Property Management and Exclusive Right to Rent Agreement ("agreement") is entered into by and between the owner identified above ("Owner") and Sapphire Hill Realty LLC ("manager") and shall become effective on the date of the last signature below.

Owner, as the owner of the Property or otherwise being duly and lawfully authorized to enter into this Agreement, hereby grants Manager the sole and exclusive right to manage the Property and to offer the Property for rent on terms customary to the geographic location of the Property, and reasonably acceptable to Owner.

This Agreement shall commence as of the effective date above for 12 months (initial term). This Agreement shall automatically continue on a month-to-month basis unless terminated in accordance with this Section. Either party may terminate this Agreement, in writing, by providing the other party with thirty (30) days' written notice of its intent to terminate; such termination shall be effective at the end of the calendar month in which the notice period expires.

Any outstanding fees shall be paid in full as of the effective date of any termination of this Agreement. Owner understands, acknowledges, and agrees that the termination right cannot be utilized to avoid the payment of any fees or payments due under this Agreement.

Upon any termination of this Agreement, Manager shall, within thirty (30) business days, transfer to Owner or Owner's designated successor manager all tenant security deposits, tenant ledgers, lease files, move-in and move-out inspection reports, notices, keys, access codes, warranties, vendor records, and Owner funds held by Manager, subject only to lawful deductions and a final reconciliation of Owner's account.

In consideration of Manager's duties, Owner shall pay the following fees, which shall be payable upon demand and may be deducted from any rents and fees collected by Manager on Owner's behalf:

• Management Fee: 10% of gross rent collected per month, per unit.

• Leasing Fee: one (1) full month's rent, due upon execution of a lease.
• Renewal Fee: $100.00, charged with the first month's rent of each renewal term.
• Subcontracted Work: a 10% margin will be added to each invoice for overhead and administrative costs on subcontracted repairs, maintenance, improvements, landscaping, snow removal, and professional specialty work for the Property, including first- and second-cause eviction filings and judgments.
• In-House Work: $75.00 per hour for in-house general maintenance, landscaping, consulting, or other work performed by Manager beyond the scope of Manager's duties.
• Default Cure Fee: upon taking over management of a Property with an existing tenant who is in default, if Manager resolves the default and makes the tenant current, Manager shall be paid a fee equal to 10% of the total default rent and other charges repaid by the tenant.

• Manager shall take all reasonable measures to identify tenants who will rent the Property on terms customary to the geographic location of the Property and reasonably approved by Owner. Manager is not responsible for false, inaccurate, or misleading information provided by tenants and does not guarantee tenant performance.
• Manager shall collect rents and other charges due to Owner for the rental and management of the Property. Owner agrees that Manager will obtain security deposits from tenants and that security deposits shall be held by Manager. Security deposits of more than one month's rent must bear interest in accordance with Ohio law.
• Manager shall take steps reasonably necessary to market, show, and rent the Property. All monies received by Manager on behalf of Owner, including security deposits, shall be deposited into a trust account in the name of Manager or the broker affiliate of Manager.
• Manager is authorized to endorse checks payable to Owner, deposit funds of Owner into the trust account, and draw on such account to discharge liabilities or obligations incurred pursuant to this Agreement.
• Manager shall, in its reasonable discretion, arrange maintenance, repairs, replacements, and decorating necessary to maintain the Property. Owner agrees to pay Manager for expenses related to maintenance, repair, and/or renovation of the Property, and those expenses may be deducted from amounts held by Manager for Owner's benefit.
• Manager shall obtain Owner's prior approval for any single repair or expense exceeding $500, except in the case of a bona fide emergency, which Manager may handle and report to Owner within twenty-four (24) hours.
• Manager shall handle tenant negotiations on behalf of Owner and execute leases as agent for Owner, as well as other documents relating to the management or rental of the Property. Tenants shall be encouraged to obtain renter's insurance.
• Manager shall advertise the Property for rent and is authorized to display "for lease" signs on it. Owner shall promptly advise Manager in writing of any signage, advertising, condominium, homeowner association, or rental restrictions.

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• Manager is authorized to sign and serve notices to tenants as Manager deems appropriate.
• Unless Owner advises Manager in writing as to Owner's legal counsel, Manager is authorized to retain legal counsel to act on Owner's behalf to institute legal actions in Owner's name, evict tenants, recover possession, recover rents and sums due, and settle, compromise, and release such actions. Owner consents to being a named plaintiff in any legal action against a tenant.
• Manager shall maintain an accounting of the Property, open for inspection by Owner at reasonable times upon reasonable notice and shall provide quarterly financial statements to Owner.
• Owner will have access to monthly owner statements with online portal access, in addition to the quarterly statements.
• Provided Manager has sufficient proceeds in Owner's account; Manager may pay expenses related to the Property, including mortgage, HOA fees, management fees, utilities, and other Property-related expenses.
• Net rental proceeds above the Property Reserve are remitted monthly by ACH to Owner's designated account by the 15th of each month. US domestic ACH transfers are free of charge; no wire or transfer fees apply.
• Owner's designated account: On file
• Manager shall provide the actual cost for materials and the actual cost for all subcontractors to Owner and shall maintain a commercial Errors and Omissions insurance policy at commercially reasonable limits during the term of this Agreement.

• Owner warrants that Owner is and shall remain in compliance with all federal, state, and local laws and rules related to the Property, including fair housing laws, occupancy permits, Ohio Residential Rental Registration, county rental registration, and municipal rental registration.
• Owner agrees to complete and update, as necessary, the federal lead-paint disclosure addendum if the Property was built before 1978, and to provide copies of any sex-offender notices received from the local sheriff's office pursuant to Ohio law.
• Owner agrees to hold Manager harmless from any claims, actions or causes of action arising or relating from failure to comply with any laws or rules, including Manager's attorney fees, damages awards, settlement fees, and any associated expenses.
• Owner agrees to maintain a fixed reserve of $500 in Manager's trust account for the Property (the "Property Reserve"). If the funds fall below the minimum balance or are insufficient to pay expenses, Owner agrees to promptly provide sufficient additional funds upon Manager's request.
• If Owner's account shows a negative balance and the deficiency is not cured within thirty (30) days, Owner acknowledges that Manager may charge interest on the deficiency at the rate of 10% per annum, added to the balance owed to Manager, upon prior written notice to Owner.

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• Owner agrees to maintain all properties in compliance with local building and housing codes and Section 5321.04 of the Ohio Revised Code, and to comply with Manager's recommendations to meet those requirements. Manager may terminate its duties for any property that does not meet local building and housing requirements.
• Owner agrees to place and maintain utilities in Owner's name when utilities are not transferred to a tenant, and to remain solely responsible for utility charges. Manager shall not place utilities in Manager's name and shall not be responsible for utility charges under any circumstances unless mutually agreed upon.
• Owner agrees to obtain and maintain liability insurance for the Property with policy minimums of $100,000 per occurrence and $300,000 aggregate, naming Manager as an additional insured. Owner shall provide the declarations page and immediately notify Manager in writing if insurance lapses. In exchange, Manager shall provide Owner with the declarations page of its commercial Errors and Omissions policy (carrier and limits) and shall keep it current during the term.
• Owner agrees to indemnify Manager, its owners, agents, employees, officers, franchisors, successors, and assigns, and to hold such parties harmless from claims, actions, complaints, demands, attorney fees, settlement expenses, damages, and related costs connected with the Property, except to the extent caused by Manager's gross negligence, willful misconduct, breach of this Agreement, violation of law, or failure to follow Owner's written instructions.
• Owner understands that real estate investments involve risk and that Manager makes no express or implied guarantee that Owner will be profitable.
• If Owner is in default of a mortgage or receives notice of foreclosure or any other legal notice or proceeding, Owner agrees to notify Manager immediately in writing.
• All utilities in a tenant's name will be set up with the landlord-reversion process when available. When a tenant moves out or neglects to pay and service is threatened, billing will revert to Owner's account, and utility fees will be billed to the tenant's ledger.

Owner empowers and authorizes Manager to act on behalf of Owner as authorized representative with respect to violations assessed by any United States agency, governmental department, or federal, state, or municipal judicial system. Owner authorizes Manager to appear, act on behalf of, negotiate, settle, and resolve matters in Manager's sole discretion, including municipal housing violations, forcible entry and detainer matters, tenant damages, rent escrow cases, and housing violations. Owner also grants Manager the right to appear in Court for any matters related to the Property, including, but not limited to matters for Forcible Entry and Detainer, damages caused by a Tenant, claims to defend against or seek recovery from rent escrow cases, or housing violations assessed against the Property. Notwithstanding the above, the actions of Manager shall not cause Manager to incur any liability whatsoever by any actions taken under this Section.

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Owner acknowledges that Manager intends to comply with the letter and spirit of all federal, state, and local fair housing laws. If Owner does not agree to comply, Manager reserves the right to terminate this Agreement immediately by written notice to Owner.

It is illegal under Ohio Fair Housing Law and Federal Fair Housing law to refuse to sell, transfer, assign, rent, lease, sublease, or finance housing accommodations; refuse to negotiate; deny or make unavailable housing; or discriminate in advertising, financing, or real estate brokerage services because of protected classes including race, color, religion, sex, familial status, national origin, military status, disability, or ancestry. It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding entry into the neighborhood of persons belonging to protected classes.

Owner authorizes Manager to offer the Property for lease on terms customary and reasonable for the geographic area and reasonably authorized by Owner. Owner understands and agrees that lease terms must be agreed to by Tenant in a written lease.

During the term of this Agreement, Owner grants Manager the sole and exclusive right to publish descriptive information about the Property, including print, video, audio, photographic, and electronic descriptions. Owner authorizes Manager to take or have taken interior and exterior photographs of the Property and to digitize, reproduce, publish, and disseminate such photographs through the internet and other media selected by Manager. Owner releases Manager from liability relating to advertising, showings, marketing, and signage and shall indemnify Manager from claims arising from the same.

This Agreement does grant Manager any exclusive right, or right of first refusal, to list or sell the Property. The parties have elected to opt in to the Exclusive Right to Sell.

Opt-Out confirmed by initialing below:

By law, Manager must keep confidential any information that Owner designates as confidential, unless disclosure is required by Ohio law. Owner agrees to notify Manager in writing of any information Owner directs to be kept confidential.

This Agreement constitutes the sole agreement of the parties and supersedes all prior written or oral understandings and agreements regarding the Property. No amendment, modification, or alteration of this Agreement shall be binding unless in writing and executed by the parties. No

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waiver of any default or breach shall be deemed a waiver of any other breach of the same or any other term or condition. This Agreement shall be construed in accordance with Ohio law.

In the event that any dispute under this Agreement arises between the parties, the dispute shall be resolved by binding arbitration. If the parties cannot agree on an arbitrator, each party shall select one arbitrator, and both arbitrators shall select a third arbitrator.

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Ohio.

Manager may update its operational policies, procedures, forms, and administrative requirements from time to time upon notice to Owner. However, any modification to management fees, commissions, term, termination rights, indemnification provisions, or any other material term of this Agreement must be in writing and signed by both parties.

• Residents First Legislative Package: clevelandohio.gov
• Lead Safe Resources and Explanation: leadsafecle.org
• Paying Taxes – Cuyahoga County Treasury: cuyahogacounty.gov
• Sapphire Hill Realty Website: www.sapphirehillrealty.com

MANAGER / BROKER:
Sapphire Hill Realty LLC
By: Julie McNeeley, Manager

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