ALFORIS REAL ESTATE MANAGEMENT AGREEMENT

This Agreement is made effective as of the date of electronic acceptance (“Effective Date”) between:

Alforis Real Estate (“Manager”) and
The undersigned or electronically accepting party (“Owner”).

ARTICLE 1 – DEFINITIONS

For purposes of this Agreement, the following capitalized terms have the meanings set forth below:

1.1 “Agreement” means this Management Agreement, together with all attached Schedules, as may be amended from time to time.
1.2 “Owner” means the individual(s), company, trust, or other entity owning or controlling the Properties and designating such Properties for Services under this Agreement.
1.3 “Manager” means Alforis Real Estate, its affiliates, officers, employees, and authorized contractors.
1.4 “Properties” means any real estate owned or controlled by Owner and specifically designated for Services under this Agreement, as described in Schedule A or later by written notice.
1.5 “Services” means the administrative, coordination, and oversight functions performed by Manager as outlined in this Agreement and expanded in Schedule C.
1.6 “Fees” means all amounts payable by Owner to Manager including management fees, disbursements, reimbursements, penalties, late fees, and any other charges.
1.7 “Gross Rent” means all rent legally payable by tenants under leases for the Properties, whether or not collected, excluding deposits and prepaid rents.
1.8 “Disbursements” means costs incurred by Manager on Owner’s behalf including marketing, travel, vendor invoices, administrative extras, and any other reimbursable items under Schedule B.
1.9 “Stripe” means the third-party payment processor used by Manager for automated recurring credit card charges.
1.10 “Applicable Laws” means all municipal, provincial, and federal statutes, codes, ordinances, and regulations relating to landlord/tenant matters, licensing, trust funds, safety, zoning, taxation, and property condition.
1.11 “Emergency” means any condition that materially threatens health, safety, habitability, or immediate property damage if not remedied.

ARTICLE 2 – APPOINTMENT AND RELATIONSHIP

2.1 Appointment. Owner hereby appoints Manager to provide Services with respect to Properties designated by Owner, and Manager accepts such appointment subject to this Agreement.

2.2 Independent Contractor. Manager acts solely as an independent contractor. Nothing herein shall be construed as creating a partnership, joint venture, fiduciary duty, trustee relationship, or agency beyond the limited authority expressly granted.

2.3 Non-Licensed Disclosure. Owner expressly acknowledges that Manager is not a licensed property management company, real estate brokerage, or trust account holder, and shall not perform functions requiring such licenses.

2.4 Scope of Services. Services shall be limited to those described herein and in Schedule C. Manager may subcontract or delegate tasks without Owner’s consent provided Manager remains responsible for overall performance.

2.5 Exclusivity. During the Term, Manager shall be the exclusive provider of the Services for the Properties. Owner shall not engage a competing manager for overlapping functions without Manager’s written consent.

ARTICLE 3 – OWNER’S OBLIGATIONS

3.1 General Compliance. Owner shall comply with all Applicable Laws and assumes full landlord responsibility including, without limitation:
(a) collection and holding of rents, deposits, and trust funds;
(b) registration, licensing, or permitting of rental properties;
(c) tax filings, remittances, and GST/HST compliance;
(d) compliance with building, health, and fire codes;
(e) providing habitable and safe premises.

3.2 Insurance. Owner shall maintain policies of landlord, liability, fire, casualty, and such other insurance as Manager may reasonably require, naming Manager as additional insured. Proof of coverage shall be provided upon request.

3.3 Funds and Reserves. Owner shall maintain adequate reserves to meet operational and emergency costs. Manager may terminate this Agreement immediately if Owner fails to do so.

3.4 Information Provision. Owner shall promptly provide Manager with accurate information regarding the Properties, including addresses, legal descriptions, tenant contact details, lease terms, and special conditions.

3.5 Approvals. Owner shall respond to Manager requests for approvals of repairs above CAD $300 within forty-eight (48) hours, failing which Manager may proceed if delay risks property damage or tenant harm.

3.6 Indemnity. Owner shall indemnify Manager from any loss arising from Owner’s failure to meet obligations under this Article.

ARTICLE 4 – MANAGER’S SERVICES AND LIMITATIONS

4.1 Services. Manager may, in its sole discretion, perform any or all of the functions set forth in Schedule C, including marketing, showing coordination, screening reports, maintenance coordination, reporting, and administrative tasks.

4.2 Authority for Repairs. Manager may authorize:
(a) Emergency repairs without Owner approval;
(b) Non-emergency repairs not exceeding CAD $300 (exclusive of taxes);
(c) All other repairs only with Owner approval.

4.3 Limitations. Manager shall not:

• Collect rent or deposits;

• Hold or manage trust accounts;

• Provide legal, accounting, or financial advice;

• Guarantee tenant performance, rent levels, or occupancy;

• Advance funds on behalf of Owner.

4.4 No Fiduciary Duty. The parties agree Manager does not owe fiduciary duties to Owner; duties are contractual only.

ARTICLE 5 – FEES AND PAYMENTS

5.1 Management Fee. Owner shall pay Manager a fee equal to seven to ten percent (7-10%) of Gross Rent, the exact percentage confirmed in writing by email.

5.2 Leasing Fee. None currently. Subject to future notice per Schedule B.

5.3 Disbursements. Owner shall reimburse all Disbursements incurred by Manager.

5.4 Payment Method. All Fees are automatically charged via Stripe on the 21st of each month. Owner authorizes recurring charges without further consent. Manager does not store card details.

5.5 Late Payment. Declined payments accrue a CAD $75 service charge plus 2% monthly interest until paid.

5.6 Right of Set-Off. Manager may set-off any unpaid amounts against sums otherwise payable to Owner.

ARTICLE 6 – TERM AND TERMINATION

6.1 Term. One (1) year from Effective Date, automatically renewing year-to-year unless either party gives sixty (60) days’ notice.

6.2 Early Termination by Owner. If Owner terminates prior to expiry, Owner shall pay liquidated damages equal to Fees that would have been payable for the balance of the first year. The parties agree this is a reasonable pre-estimate of Manager’s costs and not a penalty.

6.3 Termination by Manager. Manager may terminate immediately upon:
(a) non-payment;
(b) breach of this Agreement;
(c) Owner failure to maintain reserves, insurance, or licenses;
(d) Owner abuse, misconduct, or unlawful acts.

6.4 Effect of Termination. All accrued Fees remain due. Indemnity, limitation of liability, and dispute resolution provisions survive termination.

ARTICLE 7 – LIABILITY, INDEMNITY, AND REMEDIES

7.1 No Guarantees. Manager provides Services on a reasonable-efforts basis only. No guarantee is made as to results.

7.2 Indemnity. Owner indemnifies, defends, and holds Manager harmless against all claims, liabilities, and costs arising out of:
(a) the Properties, tenants, or vendors;
(b) Owner’s failure to comply with laws;
(c) personal injury or property damage related to the Properties;
except to the extent caused by Manager’s willful misconduct or fraud.

7.3 Limitation of Liability. Manager’s total liability shall not exceed the lesser of (i) Fees paid in the preceding twelve (12) months, or (ii) CAD $5,000.

7.4 Consequential Damages. In no event shall Manager be liable for consequential, indirect, or punitive damages.

7.5 Costs of Enforcement. Owner shall reimburse Manager’s legal fees, costs, and expenses incurred in enforcing this Agreement.

ARTICLE 8 – DISPUTE RESOLUTION

8.1 Negotiation. Parties shall first attempt to resolve disputes amicably.

8.2 Mediation. If unresolved, disputes shall be submitted to private mediation in Calgary, Alberta.

8.3 Arbitration. Failing mediation, disputes shall be resolved by binding arbitration under the Arbitration Act (Alberta).

8.4 Fallback Jurisdiction. If arbitration is unenforceable, exclusive jurisdiction shall lie with the courts of Alberta.

ARTICLE 9 – FORCE MAJEURE

Neither party shall be liable for failure to perform due to events beyond reasonable control, including natural disasters, pandemics, strikes, system failures, or government orders. Obligations are suspended during such events.

ARTICLE 10 – MISCELLANEOUS

10.1 Entire Agreement. This Agreement with Schedules constitutes the entire understanding.

10.2 Amendments. Must be in writing, electronic acceptance permitted.

10.3 Severability. If any provision is held invalid, the remainder shall continue in effect.

10.4 Assignment. Owner may not assign rights without Manager’s written consent.

10.5 Notices. Email shall suffice for notice.

10.6 Governing Law. Province of Alberta.

10.7 Electronic Acceptance. Owner’s click acceptance binds them as though physically signed.

SCHEDULE A – PROPERTIES COVERED

1. Scope of Properties
   This Agreement applies only to those properties which:
   (a) the Owner owns or directly controls through a company, trust, or other entity; and
   (b) the Owner designates in writing for Manager to undertake under this Agreement (“Covered Properties”).

2. Designation Procedure
   (a) Each Property must be designated by written notice to Manager, which may be in the form of email correspondence or electronic submission through Manager’s systems.
   (b) Manager shall have no obligations regarding any Property until such designation is confirmed.
   (c) A Property ceases to be covered once Owner provides written notice of removal, subject to any outstanding Fees and obligations.

3. Property Information Required
   For each Covered Property, Owner shall provide:

   • Civic address and postal code;

   • Legal land description;

   • Property type (house, townhouse, condominium, apartment, or commercial unit);

   • Number of units or rentable spaces;

   • Current tenant names and contact information;

   • Lease terms, rent roll, and any arrears;

   • Any known hazards, warranties, or special conditions.

4. Representation by Owner
   Owner represents and warrants that it has full authority to include each Covered Property under this Agreement, whether by ownership, corporate control, or agency authority.

SCHEDULE B – FEE SCHEDULE

1. Management Fee
   (a) Seven to ten percent (7–10%) of Gross Rent for each Covered Property.
   (b) The exact percentage applicable shall be confirmed in writing by Manager via email at the commencement of Services.
   (c) Fees are payable whether or not Owner successfully collects rent from tenants.

2. Leasing Fee
   (a) No leasing fee is charged at present.
   (b) Manager reserves the right to introduce a leasing fee in the future upon thirty (30) days’ written notice to Owner.

3. Disbursements
   Owner shall reimburse Manager for:

   • Listing and advertising costs;

   • Photography, videography, and virtual tour expenses;

   • Travel and mileage related to oversight of Covered Properties;

   • Vendor invoices, contractor payments, and third-party services;

   • Printing, courier, software, and administrative extras.

4. Inspections
   CAD $100 per scheduled inspection, inclusive of written report.

5. Late Fees
   (a) If Owner’s payment method is declined, a service charge of CAD $75 applies.
   (b) Interest accrues at 2% per month (24% per annum) on overdue balances.

6. Payment Timing
   (a) Fees are automatically billed on the twenty-first (21st) of each month.
   (b) All payments are processed through Stripe. Manager does not store card data.

7. Right to Modify Fees
   Manager may revise Fee levels upon sixty (60) days’ written notice.

SCHEDULE C – SERVICES LIST

Manager may, in its discretion, provide the following Services. Owner acknowledges that Services are administrative and supportive only, and do not relieve Owner of legal obligations.

1. Leasing & Tenant Support

1. Market rent analysis and pricing recommendations.

2. Weekly “hold or drop” rental rate reports.

3. Creation of rental listings with professional copy.

4. Syndication of listings to rental platforms.

5. Coordination of photography and media.

6. Tenant inquiry handling (email, SMS, phone).

7. Showing scheduling, confirmations, and reminders.

8. Application intake, formatting, and delivery to Owner.

9. Preliminary income and employment verification reports.

10. Risk profile preparation for Owner approval.

11. Lease drafting assistance using Owner-provided templates.

12. Facilitation of e-signature platforms.

2. Property Oversight & Maintenance

13. 24/7 tenant maintenance request intake (if activated).

14. Vendor coordination and scheduling.

15. Preventive maintenance scheduling (HVAC, plumbing, etc.).

16. Seasonal maintenance reminders (snow, lawn, gutter).

17. Warranty and deficiency tracking for new builds.

18. Emergency repair authorization without Owner approval.

19. Non-emergency repair authority up to CAD $300.

20. Inspections and written reports.

21. Review of vendor invoices for accuracy.

22. Coordination of multi-trade projects.

3. Owner Reporting & Administration

23. Monthly summary of Services performed.

24. Fee breakdowns with receipts.

25. Annual tax-friendly summaries.

26. Ad hoc reporting upon request.

27. Secure digital document storage.

28. Communications log with tenants and vendors.

4. Marketing & Branding

29. Photography and staging coordination.

30. Drone videography (third-party cost).

31. Social media campaigns.

32. Neighborhood and community integration campaigns.

33. Owner-branded brochures and floorplans.

34. Event coordination for realtor or investor showings.

5. Compliance Support (Non-Legal)

35. Calendar reminders for municipal licensing deadlines.

36. Alerts regarding new bylaws or provincial changes.

37. Referrals to legal and accounting professionals.

6. Optional Premium Services

38. Staging recommendations and vendor referrals.

39. Virtual 3D tours.

40. Custom websites for larger portfolios.

41. Investor newsletter preparation.

42. Reputation monitoring and review management.

Manager reserves the right to refuse or withdraw Services at its discretion.

SCHEDULE D – STRIPE BILLING AUTHORIZATION

1. Authorization
   By accepting this Agreement, Owner authorizes Manager to charge Owner’s designated credit card via Stripe on a recurring basis for all Fees and Disbursements under this Agreement.

2. Automatic Billing
   (a) Charges occur on the twenty-first (21st) of each month.
   (b) Manager may process interim charges for one-time reimbursements.

3. Declined Payments
   (a) If payment is declined, Owner shall pay a CAD $75 service charge.
   (b) Interest accrues at 2% per month until settled.

4. Waiver of Chargebacks
   Owner waives the right to dispute charges except in cases of fraud or error.

5. Security
   Payments are processed through Stripe; Manager does not retain credit card information.

SCHEDULE E – OWNER COMPLIANCE CHECKLIST

By accepting this Agreement, Owner acknowledges and agrees to the following:

1. Trust Accounts

• All deposits and prepaid rents shall be held by Owner in a compliant trust account.

• Manager does not handle tenant funds.

• Owner is responsible for issuing receipts and managing deposit returns.

2. Insurance

• Maintain landlord and liability insurance.

• Provide proof upon request.

• Name Manager as additional insured.

3. Licensing & Legal Compliance

• Obtain municipal rental licenses as required.

• Comply with building, safety, and health codes.

• File all tax returns and remit applicable GST/HST.

4. Funding & Reserves

• Maintain sufficient reserves for emergencies.

• Reimburse Manager promptly for Disbursements.

• Failure to maintain reserves is a material breach.

5. Tenant Relations

• Execute leases directly with tenants.

• Collect rents and deposits directly.

• Serve all statutory notices directly.

6. Cooperation with Manager

• Provide accurate and timely information.

• Approve non-emergency repair requests above CAD $300 within 48 hours. If the repair request is an emergency, as determined by Alforis, Alforis may carry out the repair prior to owner approval and charge the full costs back to the owner automatically.

• Refrain from interfering with Manager’s authorized Services.

7. Enforcement & Remedies

• Breach of any item in this checklist constitutes a material breach of the Agreement.

• Manager may suspend or terminate Services upon breach.