THIS IS A SAMPLE OF THE TIMBER TOPS RENTAL MANAGEMENT 60/40 CONTRACT.
TIMBER TOPS RESERVES THE RIGHT TO CHANGE OR MODIFY THIS AGREEMENT AT ANY TIME.

TIMBER TOPS, LLC
A Tennessee Vacation Lodging Service
OVERNIGHT RENTAL MANAGEMENT CONTRACT
This AGREEMENT. by and between TIMBER TOPS, LLC. hereinafter referred to as AGENT,
and — — — — , hereinafter referred to as OWNER,
will constitute a contract for the overnight rental of the below mentioned property. Upon execution of this contract, AGENT and OWNER agree to the following:
SECTION 1
OWNER appoints AGENT as the Exclusive Overnight Rental Management Company for the property unit named:
_________________________________located at __________________________________________ in Sevier County, TN. When there are multiple OWNERS of a property unit, one OWNER will be appointed as the primary contact between the OWNERS and the AGENT.
SECTION 2
AGENT shall receive the following as compensation for management of this property:
40% of the monthly gross receipts for managing and booking the property,
2% of the monthly gross receipts for hot tub care,
$20 monthly for trash removal,
$50 monthly for marketing,
60% of actual credit card usage fees,
0.125% of gross receipts tax levied on business activity for Sevier County, Tennessee.
SECTION 3
The basic rental rate and category will be determined by AGENT (ask for a copy of the current rates schedule). Agent may change the rate and category as necessary based on the unit’s rental history.
At AGENTS discretion, OWNER rentals may be granted, in which case an additional cleaning fee will be charged to the guest and retained by AGENT.

Property Management Agreement; This Contract consists of a total of 6 pages.

Page 1

THIS IS A SAMPLE OF THE TIMBER TOPS RENTAL MANAGEMENT 60/40 CONTRACT.
TIMBER TOPS RESERVES THE RIGHT TO CHANGE OR MODIFY THIS AGREEMENT AT ANY TIME.

SECTION 4
AGENT’S OBLIGATIONS
This contract constitutes a goal for both the OWNER and AGENT to provide superior accommodations in the overnight vacation lodging industry. The actual occupancy of your unit will vary due to guest preferences, location, and size, ease of use. and access during inclement weather, quality and detail completeness and possible restrictions of the OWNER.
Accordingly, the AGENT agrees:
1 To make every effort to keep your unit rented as much as possible throughout the year using our expertise and utilizing various marketing strategies such as specials, discounts, free nights, etc.. when appropriate. It is possible that the AGENT may contact you about using your specific unit for marketing efforts.
2. To use diligent effort in advertising through channels of communication which AGENT has found to be reliable.
3, To supervise the cleaning and maintenance of your unit. AGENT ill make a diligent effort to notify builder or warranty holder of any problem covered by warranty. If there is no response within a reasonable amount of time. AGENT will authorize repairs by other parties to properly serve the guests.
4. To provide laundry and cleaning service for your unit. Internal AGENT resources, or third parties may provide these services.
5. To notify OWNER (S), upon discovery, of any defects or potential problems that could result in injury or damage to third parties. AGENTS however, accepts no responsibility to search out and find said problems. If a discovered safety defect or potential problem is not resolved by the OWNER on a “with time of the essence” basis, the AGENT reserves the unilateral right to suspend or remove the unit from the rental program for safety's sake and move any existing reservations without recourse or reimbursement to the OWNER for any lost income.
6. To provide, in the units with wood burning fireplaces, firewood, at OWNER expense.
7, To provide, in units with [lot Tubs, cleaning & chemical maintenance. There will be an additional charge for the upkeep of hot Tubs, This fee will be 2% of the gross rental income. This charge is to help deter the cost of chemicals and routine maintenance. It is mandatory that hot tub filters be replaced a minimum of two times per year and billed on OWNER monthly report.
8. To provide disposable items such as bath soap. dish soap, dishwasher soap, laundry detergent, paper towels. toilet paper, and trash bags. Agent will also refurnish unit with kitchenware, blankets and pillows as needed to accommodate guests and these items will be at a charge to the OWNER.
9, To provide, for a fee. cleaning service after the OWNER or the OWNER family or friends use the unit,
10. To provide and supervise a major cleaning at least once per year paid for by OWNER. This will include ceiling fan cleaning. behind appliances cleaning. valances & bedspreads, and all windows with in arms reach. Window washing will be also be done by a professional on an as-needed basis. Carpets will be done on an as-needed basis. Bedspreads and comforters will also) be washed and replaced on an as-needed basis. The cost will depend on the size of the units. I housekeeping services will be performed and billed on OWNER monthly report.
I 1 . 1 0 contact and contract any repairman or service companies or individuals to perform services on units deemed necessary by AGENT. AGENT reserves the right to move guests into any other unit due to problems with the originally hooked unit.
Property Management Agreement; This Contract consists of a total of 6 pages. Page 2

12. To pay to the OWNER on a monthly basis (minus necessary expenses for that unit) the net proceeds. This shall be post marked no later than the 15°’ of the following month. OWNER Is asked to please not call the office about reports until the report is received.
13. To allow OWNER to use their cabin whenever they so choose provided there is not a previous booking. We do ask that OWNER strongly consider not using unit during holiday and peak periods, as this will reduce their overall profit for the year.
 

THIS IS A SAMPLE OF THE TIMBER TOPS RENTAL MANAGEMENT 60/40 CONTRACT.
TIMBER TOPS RESERVES THE RIGHT TO CHANGE OR MODIFY THIS AGREEMENT AT ANY TIME.

SECTION 5
OWNER(S) OBLIGATIONS
I. To insure the unit is furnished comparable to the Timber Top’s Standard and Style, with all items needed for an overnight rental cabin based on the maximum number of persons the cabin can accommodate, including safety items such as smoke detectors Sc fire extinguishers (list can be obtained from AGENT).
2. To be responsible for the costs of necessary repairs and maintenance for the property. OWNER hereby authorizes AGENT to spend up to $500.00 per incident for emergency repairs, without first notifying the OWNER. Every effort will be made to contact the OWNER prior to repairs over $300.00. however, when necessary, the AGENT will authorize repairs as necessary to avoid the unit losing excessive amounts of income.
3. To pay utilities. taxes, insurance, telephone service and needed maintenance of yard and driveway. Monthly pest control is mandatory. AGENT will contract for this service (currently $12 per month) and bill OWNER for this expense on monthly statement
4. To provide cable or satellite for TV, such service shall have at least one (1) movie channel.
5. To inform AGENT, with as much notice as possible, as to when you intend to use your cabin. OWNER will not request that previous bookings be canceled to accommodate them or their family or friends. AGENT will, however, try to find a comparable cabin for their use and drop the 40% management fee. In no case, however, will the OWNER sublet the unit during such OWNER usage, or at any other time without express, written arrangements being made between OWNER and Agent
6. To carry liability insurance on said unit in the amount of$I,000,000.OO, with Timber Tops, LLC listed as additionally insured and to furnish a copy of the insurance binder to AGENT.
7. OWNER shall indemnify AGENT against all liabilities, expenses, and losses incurred by AGENT as the result of the following:
A. Failure by OWNER to perform any covenant required by terms of this agreement.
B. Any accident, injury, or damage which shall happen in or about premises, on bordering streets. sidewalks, curbs, or resulting from the condition, maintenance, or the operation of the premises. or adjoining streets. sidewalks or curbs.
8. Failure to comply with any provisions of this agreement by the OWNER shall constitute a default and upon 15 days written notice by AGENT to OWNER said default still continuing, AGENT shall have the option of terminating this agreement OWNER hereby covenants and agrees to hold harmless the AGENT from all damages caused by fire, wind, or other casualty resulting in damage to premises. OWNER further covenants and agrees to hold AGENT harmless for any damage or loss caused by occupants to any equipment. appliances. etc.
owned by the OWNERS and located on the premises.
9. To notify AGENT. in writing, of intent to sell said property and to sell subject to existing reservations for this unit The OWNER will also instruct the real estate agent, or any selling parties to respect reservations for the property with guests in residence, contacting the
Property Management Agreement This Contract consists of a total of 6 pages. Page 3

AGENT for access and respecting guest wishes if they do not wish to be disturbed. Further, the OWNER agrees to release and hold the AGENT harmless from any responsibility for the acts of the OWNER real estate agent or selling party, such as accident, theft, etc. while they are on or in the property. If OWNER cannot honor this agreement, OWNER agrees to• compensate AGENT and guests for any related losses.
10. To permit the AGENT from time-to-time to disclose rental information regarding
performance of the property to neutral third parties. . . .
1 1. in the event fan OWNER, or the AGENT terminating this agreement, there must be written provision of 30 days notice to cancel to the other party. unless other written arrangements have been made between the OWNER and AGENT. For bookings beyond the 30 days notice period. AGENT will make best effort to re-book reservations in a similar property. However, if an alternative property cannot be reserved. OWNER must honor original reservation under the terms of the contract with respect to performance and division of monies.
The preceding constitutes the entirety of the overnight rental agreement between the OWNER and the AGENT. No verbal or informal understandings apply, either from prior arrangements, or in current form. Any different arrangements than those explicitly set out above must be mutually agreed to and appended in written form to this contract.
We appreciate the opportunity you have given us here at Timber Tops to be part of your business. We strive to make this a profitable venture and look forward to working with you in the future.
The term of this Contract shall be from the date of execution until January 31, 2005.

THIS IS A SAMPLE OF THE TIMBER TOPS RENTAL MANAGEMENT 60/40 CONTRACT.
TIMBER TOPS RESERVES THE RIGHT TO CHANGE OR MODIFY THIS AGREEMENT AT ANY TIME.

 
EXECUTED  this DAY OF 20
BY AND BETWEEN:
OWNER Signature
AGENT (Timber Tops) Signature
Property Management Agreement; This Contract consists of a total of 6 pages. Page 4

Supplemental Owner Data
Owner Name
(This MUST be the name to which the monthly checks are made payable)
Home Address
City. State & Zip
Social Security # (his) (hers) - - FID____________
home phone # ______________________________________
Work phone # —
Emai1 Address: _________________________________________
Fax# __________________________________
Pager# ____________________________________
Cellular# _
Cabin Name Cabin Phone ___________________
Cabin Address. City. State and Zip
To ensure the most efficient and fastest maintenance/service calls for our staff, please complete, where applicable, the following information:
Propane Gas Company
Acct. #_______________________________________
hot Tub Manufacturer
Model #_____________________________________
Cable/Satellite Co.
Acct. #_______________________________________
Water System . —
acct#
Name on Electric Account ____________________________________________________________________
Property Management Agreement; This Contract consists of a total of 6 pages Page 5

Name on Phone account ____________________
Is your unit heated with electric or propane?
Is your water heated with electric or propane?
If cabin is under warranty:
P1umbers Name
Phone #________________________________________________
Electrician's Name
Phone #___________________________________________________
Bui1dersNamc
Phone #___________________________________________________
Other Warranty Items:
If there is a specific company that you would like us to attempt to contact for appliances, a/c units, repairs/service calls, etc., please list below:
Property Management Agreement; This Contract consists of a total of 6 pages. Page 6

THIS IS A SAMPLE OF THE TIMBER TOPS RENTAL MANAGEMENT 60/40 CONTRACT.
TIMBER TOPS RESERVES THE RIGHT TO CHANGE OR MODIFY THIS AGREEMENT AT ANY TIME.

SUMMARY OF RESPONSIBILITIES
Actions and Responsibilities of Agent at Owners Expense
Not limited to
L Carpet cleanings will be performed twice a year, or more often as needed.
2. Window cleanings will be performed on a yearly basis, or more often as needed.
3. Deep cleanings/Spring cleanings will be scheduled and performed on a yearly basis, or more often as may be needed, unless written notice is received that owner is taking care of cleaning, subject to having it inspected and approved by Timber Tops.
4. Comforter replacement will be done on an as needed basis.
5, Hot Tub filters will be replaced twice a year, or more often as needed.
6. Hot Tub covers will be replaced as needed after owner is notified.
7. HVAC inspections will be done twice a year, once in the spring and again in the fall.
8. Fireplace inspections will be performed on a yearly basis.
9. Yard care will be done throughout the year as needed and billed to the owner, unless otherwise arranged.
10. Mattress pads will be replaced on a yearly basis, or more often as needed.
11. Pillows will be replaced on a yearly basis, or more often as needed.
12.Trash removal: $20.00/month after every reservation and on an as needed basis.
13. Hot Tub fee: 2% Of the monthly gross receipts for hot tub care
14.We will do all cleaning of hot tubs before, after, and, if dictated by safety and health issues, during guest stays.
15. Marketing co-pay: $50.00 (which includes upkeep of Internet sites and standard advertising)
16.IPIX photography at $150 per image if requested.
17.Credit card usage fee: 60% of actual credit card usage
18.O.1875% of gross receipts tax levied on business activity for Sevier County, Tennessee.
60/40

Actions included in Agent’s 40 % Fee:
.Not limited
1. Initial layout photography for website.
2. Housekeeping services for guest reservations.
3, Supply all linens such as sheets, towels, washcloths, hand towels, dish cloths, etc.
4. Supply all soap products such as bar soap, dish liquid, dish powder, laundry detergent.
5, Supply all paper products such as toilet paper, paper towels and trash bags.
6. Changing of air filters, batteries for remotes and keyless entry as well as standard light bulbs.
7, Booking of the cabin confirmations maps.
8. Periodic inspections of the rental unit(s).
9. “Timber Tops” sign for the outside of unit.
1O.Guest information sheets in the unit(s) with unit phone number, address, emergency information, area information, etc.
11.Customer support, i.e., showing how to work TV, fireplaces, hot tubs, finding cabin, advising about weather conditions, etc.
60/40

Explanation for Document Inclusion
Included in this package are two additional documents for reference purposes. One is the Caretakers Inspection Criteria, the other Is the Spring Deep Clean Criteria. They illustrate the criteria and tasks we expect of anyone undertaking the activities associated with either document; cleaning the unit after a guest stay.  Caretaker’s Inspection Criteria and what Is expected of a spring cleaning exercise e Spring Deep Clean Criteria.
The reason these Inclusions were made was to support the rationale as to why we are no longer recommending that an owner dean their own cabin after their stay. Essentially, both owner Cleans” and Owner Stay cleans” did not meet the inspection criteria and/or the owner was not able to provide the proper type and execute the method applicable to the chemicals used for the hot tub, nor are they able to haul off any and all trash to the approved dump point
Background; Caretakers Inspection Criteria
It has become increasingly dear over time that steps need to be taken to assure a more uniform approach to readying cabins for guest occupancy. We recognize that what takes place with one cabin on the Timber Tops program has a ripple or domino effect on all other cabins on the program, with respect to guest referrals, repeat future business, etc. Last year we revamped our housekeeping department to eliminate ‘housekeepers” or ‘cabin cleaners”, in favor of “Caretakers”. This represents much more than a mere name change. It , constitutes a move to a much more comprehensive and responsible position for those charged with reconditioning a PROPERTY between guest stays.
In the past we had multiple people caring for various aspects of cabin servicing. A single individual (or team) is now responsible for cleaning, hot tub servicing, trash collection and light “household maintenance” each time a cabin Is serviced between guests. They are then subject to inspection and grading of their performance.
Please reference the copy of our Caretaker’s Inspection Criteria. This list is used by our Caretakers to review their work In the cabin before they lock the door and leave. It is also used by limber Tops Inspectors to make random checks behind each Caretaker.
Notice that each item is point valued - according to its perceived value to the incoming guest. When a cabin is Inspected, and an item is judged to be deficient, the number of points associated with that Item Is deducted. No partial deductions are taken — either an item passes or Is deducted. Under our system, a cabin fails inspection if there are 12 or more points deducted for items not completed in an acceptable fashion. Some items are, by themselves, valued at
60/40

12 points, In recognition of how serious a potential issue these Items represent for most guests.
When a cabin fails inspection, the cabin is reentered into our reservation system as dirty” and the Caretaker is recalled to correct the deficiencies. If the original Caretaker Is unavailable, and other personnel are used to make the corrections, then significant compensation adjustments are made.
Experience to Date
We have been very pleased with the results from the initial Implementation of this system. Guest satisfaction has Improved. Refunds have diminished. Overall OWNER observations have been very positive. Management sees many ways to continue to leverage this system for additional benefits In the near future.
The only casualty from the change has been the discontinuation of our flexibility to allow for cleaning of cabins by owners after an owner stay. We apologize to those of you who occasionally requested this option in the past, but we hope you will agree that the recurrent benefits of the new arrangement far outweigh any attendant Inconvenience.
Background; Spring Clean/Deep Clean Criteria
As suggested above, the basic problem In recent times with having owners provide the In-depth, periodic cleaning their rental unit varyingly called “spring dean” or “deep cleaning” has been that most simply do not execute this activity to the degree and extent we now expect of these services. As a result, we no longer encourage owners or their surrogates to do so; rather we strongly encourage the use of Timber Tops resources.
Experience to Date
We have been very pleased with the results from the initial implementation of this policy. We have had significantly fewer callbacks to address shortcomings. Friction between OWNER(S) and limber Tops Inspection staff has been eliminated.
Ultimately, this effort has, and will increase Guest satisfaction. Refunds are diminishing. Routine cleaning turnaround cycle time Is meaningfully foreshortened after these more thorough spring/deep dean efforts.
The only casualty from the change has been the discontinuation of our flexibility to allow for spring-cleaning of cabins by owners. Again, we apologize to those of you who occasionally requested this option In the past.
60/40

02/23/2005