General Terms

HEARTH PROPERTY SERVICES AGREEMENT

1. Introduction

This agreement sets out the terms and conditions upon which we will provide vacation rental management services to you in relation to your property that you wish to let out through various homestay booking websites.

1.1 Definitions

In this agreement, we use some terms regularly. These are capitalized and are defined as follows:

“Availability Period” means the period for which the Property is available for receiving Guests. “STR” means Short-term rental.

“Excluded Services” means the services that we do not provide as part of this

agreement. This includes Co-ordinating structural or major repairs or maintenance works on the Property, External window washing, painting of walls, Furniture Treatment, Mold and/or bio-hazardous substance removal, Industrial cleaning, Extermination Services (insects etc.)

“Extra Maintenance Services” means services such as carpet shampoo, mold removal, pest control, external window/balcony cleaning, wall painting, work at dangerous heights, serious plumbing, electrical or gas works, and anything that is not covered by our Services.

“Emergency” = Manager’s good-faith discretion, a condition where delay risks guest safety, prevents continuation of stay, materially damages the Property, or jeopardizes booked revenue.

“Guest” means a guest who is renting the Property through one of the Homestay Websites.

“Homestay Website” means a short-stay rental marketplace including but not limited to Airbnb, VRBO, Booking.com, and such other websites.

“Services” means the short-let management services described below.

“Rental Proceeds” shall mean the total amount paid by the Guest for a booking less any Cleaning Fee, Credit Card processing fees, pet fees, etc., and taxes levied by Hearth and/or any relevant Homestay Website.

“Property” refers to the property stated above.

“Manager” refers to the Hearth Property.

2. Services

2.1 Startup Services

The following services are included in the Startup Fee, which is a one-time fee covering the setup and preparation of your property for short-term rental:

2.1.1 Professional Interior Designer Staging & Real Estate Photography:

We will provide professional interior design & staging to ensure your property looks its best, followed by real estate photography and photoshop editing for high-quality images.

2.1.2 Drone Photography & 3D Floorplans:

We will capture aerial drone photography and create floorplans to give potential guests a comprehensive view of your property.

2.1.3 Listing Creation on Major Platforms:

We will create optimized listings for your property on major platforms such as Airbnb, Vrbo, Booking.com, and other Homestay Websites, ensuring maximum visibility.

2.1.4 Digital Marketing Setup & SEO Optimization:

We will set up digital marketing strategies and optimize your listing for search engines (SEO) to drive more traffic and bookings.

2.1.5 Staging & Property Setup:

We will ensure the property is fully prepared for successful short‑term rentals. This includes staging the space for professional photography, installing any necessary smart‑home technology (e.g., smart locks, noise meters, cameras, Wi‑Fi routers, fire/CO detectors), taking stock of required materials, and ordering or installing any additional appliances, supplies, or toiletries needed for guest comfort. The goal is to have every detail in place so guests can enjoy a seamless, hotel‑quality experience upon arrival.

2.1.6 Property Maintenance & Deep Clean:

We will conduct a thorough deep clean of the property and handle any maintenance deemed necessary before listing it.

2.2 Management Services

The following services are included in the ongoing Management Fee, which covers the day-to-day operations of managing your property:

2.2.1 Comprehensive Property Management:

We manage all aspects of the property, including 24/7 guest communication and support. This includes handling inquiries, managing the seamless check-in and check-out process, conducting regular property inspections, and managing any necessary maintenance. We also provide housekeeping services and restock essentials after each guest’s stay.

2.2.2 Financial Management:

Manager will provide a detailed monthly owner statement and remit Owner’s share of earnings with the Monthly Sweep described in §6.3. Any prior language suggesting per-booking payouts is superseded by §6.

2.2.3 Enhanced Guest Experience:

We elevate the guest experience through personalized local recommendations from our private concierge. Upon request, we can arrange for private chef services and create custom itineraries for guests. We ensure that the property is stocked with high-quality amenities such as fast internet and luxury toiletries. Additionally, we manage guest reviews to maintain a high level of feedback and ratings.

2.2.4 Ongoing Dynamic Pricing Strategies:

We continuously manage the pricing of your property using dynamic pricing strategies and software to maximize occupancy and revenue based on market demand and trends.

2.2.5 Advanced Technology Integration:

We monitor and maintain the smart home technology systems installed in your property to ensure security and convenience for guests. You will also have access to real-time performance tracking via our owner portal.

3. Host Obligations

To allow us to provide the Services set out in this agreement you agree that you will:

3.1 Provide us with complete, accurate and timely information about the Property.

This includes basic property information concerning the property running as a rental and any other information reasonably requested by us. It is your responsibility to ensure that we have all the information needed to operate and maintain the property and look after the safety of each Guest.

3.2 Maintain the property at all times which includes doing repairs as soon as possible.

Ensuring a positive guest experience requires urgent attention to maintenance requirements. Manager will seek Owner approval before hiring maintenance or repairs; provided, in an Emergency, Manager may proceed without prior approval up to $500 per incident, with prompt notice to Owner. Costs are treated under the elected tier: Core = at cost; Premium = included if ≤ $200 per incident, otherwise at cost.

3.3 Comply with all legal requirements applicable to a landlord in Specified State

This includes but is not limited to fire safety regulations, gas and electrical safety, licensing requirements, etc.

3.4 Grant of Exclusive Marketing Rights

You hereby grant Hearth the exclusive right, for the duration of this Agreement, to advertise, market, and list the Property on all applicable Short-Term Rental (STR), Medium-Term Rental (MTR), and Long-Term Rental (LTR) platforms, including but not limited to Zillow, Airbnb, Furnished Finder, Craigslist, and any other channels deemed appropriate by Hearth. You further covenant and agree that you shall not, during the term of this Agreement, list, market, or otherwise advertise the Property, nor authorize any other person or entity to do so, without the prior written consent of Hearth.

4. Availability Period and Minimum Agreement

FOR FIXED-TERM CONTRACT

4.1 The minimum Availability Period is twelve (12) months from the signature date of this agreement (the “Initial Availability Period”).

4.2 Upon termination, we shall return your keys/codes on the last day of the notice period or such other date as agreed. We shall also remove all listing associated with the property.

5. Cancellation or Refunds of Bookings

5.1. If you cancel or cause a Guest to cancel any Booking or if we are required to refund a part of a Booking, you shall be required to pay the following charges:

(a) the Homestay Website’s cancellation charges, if applicable;

(b) Any charges levied by payment processing sites for refunds, if applicable; and

(c) Hearth’s Fee for that Booking in its entirety as outlined in section 6.1(c) below.

Please note that cancellation of a booking will negatively impact the profitability of the property and reduce the amount of bookings received moving forward.

6. Fee and Payment

6.1 Management Fee Election.

Upon execution, Owner shall elect one (1) tier by initialing on the signature page:

(a) Core (15%) — Manager’s fee is 15% of Gross Booking Revenue per calendar month. Owner is billed at cost for consumables, linens/laundry, and all maintenance/repairs. Manager will obtain Owner’s approval before hiring maintenance or repairs, except in an Emergency. In an Emergency, Manager may proceed without prior approval up to $500 per incident, with prompt notice to Owner.

(b) Premium (20%) — Manager’s fee is 20% of Gross Booking Revenue per calendar month. Manager, at its own expense, covers standard guest turnover consumables, all cleanings, repairs/maintenance ≤ $200 per incident, and routine linen replacement (normal attrition). Exclusions (billed to Owner at cost): repairs/maintenance over $200, damages or missing items, specialty inventory, and capital upgrades. Emergency actions may proceed without prior approval with prompt notice to Owner.

6.2 Launch Fee — Payment Election.

Core: $250.00 per month × 12 through a BNPL provider (e.g., Klarna), or Pay Now in a single payment equal to twelve (12) monthly installments (same total price).

Premium: $208.33 per month × 12 through a BNPL provider, or Pay Now in a single payment equal to twelve (12) monthly installments (same total price).

Pre-Existing STR: $0 per month x 12 through a BNPL provider, or Pay Now in a single payment equal to twelve (12) monthly installments (same total price).

Funding & Conversion. The conversion period begins upon Manager’s receipt of BNPL funds or settlement of the Pay-Now payment (the “Funding Date”). If the BNPL provider declines to fund, reverses funding, or fails to disburse, Owner remains directly liable to Manager for the Launch Fee, due upon notice. (Provider may round cents; the final installment may vary by a few cents—the total price does not change.)

Premium commitment / downgrade. Owner selecting Premium receives a $500 Premium Launch Credit (relative to Core) in exchange for a twelve (12)-month Premium term. If Owner downgrades to Core or terminates for convenience before twelve (12) months, the $500 credit is immediately due and will be added to the next Monthly Sweep.

6.2A Scope of Launch Fee (What You Get).

In exchange for the Launch Fee, Manager will procure, deliver, install, and configure a Launch Kit sized to the Property’s bed/bath count and guest capacity, consisting of: access and security (smart lock, installed and programmed; Ring camera, exterior only, installed and configured; cleaner lock; first-aid kit); textiles (two complete sheet sets per bed and new towel sets sized to guest capacity); consumables/supplies starter pack (toilet paper, paper towel, Kleenex, shampoo, conditioner, body wash, hand soap, laundry pods, stain remover, dish pods, sponge, multi-surface cleaner, bathroom trash bags, kitchen trash bags, coffee pods, sugar, tea, cooking oil, salt & pepper, AA batteries, and a shampoo/conditioner dispenser); and professional services (professional photography, permitting facilitation, and one deep clean as reasonably required for launch readiness).

6.2B Substitutions; Pre-Existing Items; Discretionary Omission & Price Adjustment.

Manager may substitute substantially equivalent brands/models due to availability. If any Launch Kit item or service is already present and meets Manager’s launch standards (in Manager’s sole discretion, acting reasonably and in good faith)—including professional photography—Manager may omit that item/service and either (i) apply a discretionary Launch Reduction Credit to reduce the Launch Fee or (ii) reallocate its value within the Launch Kit to complete readiness. If BNPL is used, Manager may submit an adjusted principal amount to the provider; if a reduction is determined after funding, Manager will issue a credit memo and apply it as an offset on the next Monthly Sweep; no cash refunds.

6.2C Competitive Readiness (Why These Items Are Required).

To compete in the current short-term rental market and meet ordinary guest expectations and platform standards, the Property must launch with reliable access, safety, cleanliness, and presentation. The Launch Kit ensures secure access and required disclosures (smart lock and Ring), a consistent guest experience (fresh textiles and full consumables), listing quality (professional photography), and readiness/compliance (first-aid, permitting facilitation, and a deep clean). Without these items, the Property is more likely to experience cancellations, poor reviews, reduced search visibility, and delayed go-live. The Launch Kit is required unless Owner elects “Existing Airbnb — No Launch Fee” and Manager verifies the Property meets or exceeds the Launch Kit standard under §6.2B and §6.6.

6.3 Billing & Monthly Sweep.

Owner authorizes Manager to securely store and charge Owner’s designated payment method(s) off-session for the Management Fee and any billable pass-throughs. On or about the first (1st) business day of each month, Manager will charge amounts incurred in the prior month and deliver an itemized statement with receipts (the “Monthly Sweep”). Manager will remit Owner’s share of earnings concurrently with the monthly statement.

6.4 Processing Fees.

ACH has no fee. Credit card payments may include a small Stripe processing fee. Klarna/BNPL is the same total price; Owner pays over time through the provider.

6.5 Cleaning Fee Handling.

Guest-paid cleaning fees are not included in Gross Booking Revenue. Manager may retain and apply such fees to pay cleaning providers and related costs; any remainder is treated under this Agreement and reflected on the monthly statement.

6.6 Existing Airbnb — No Launch Fee (Owner must initial if elected).

Owner represents that, as of Go-Live, the Property is guest-ready and already meets Manager’s Launch Kit standard (§6.2A), subject to Manager’s verification. Verification & gaps: Manager will intake the Property against the Launch Kit standard. If gaps exist, Manager may (i) remedy per the elected tier (Core = at cost with prior approval; Premium = included if within the per-incident threshold, otherwise at cost), or (ii) allow Owner to elect the Launch Kit under §6.2 at then-current pricing, with omissions/reallocations per §6.2B. If this option is selected and verified, §6.2 does not apply. No cash credit is owed. Manager may temporarily block the calendar until deficiencies are remedied. Tier rules in §6.1 continue to apply.

6.7 Offsets; Late/Failed Payments; Suspension.

Amounts not paid when due may be offset against Owner payouts and may accrue interest at 1.5% per month (or the maximum allowed by law). If any balance remains unpaid five (5) days after notice of failure, Manager may suspend non-critical services until cured.

6.8 Taxes.

Unless otherwise specified in writing or required by law, Manager will not collect or remit Owner’s income/excise taxes. For Homestay Website bookings, the platform may collect and remit certain occupancy-type taxes (e.g., TOT) per local rules. For direct bookings handled by Manager, Manager may collect and remit applicable occupancy-type taxes as required and report them on the monthly statement. Owner remains responsible for Owner’s income taxes and any taxes not collected/remitted by platforms or Manager.

DEFINITION OF RENTAL PROCEEDS.

For purposes of this Agreement, “Rental Proceeds” means:

A. Rental Proceeds for Hearth. For reservations booked on the hearthproperty.com website, websites of other brands owned by Hearth, or by phone through Hearth’s reservation agents, the “Rental Proceeds” for each reservation shall be the total rent paid for the period during which the Home was occupied according to the reservation.

B. Rental Proceeds for Homestay Website Bookings. For reservations booked through a Homestay Website, the “Rental Proceeds” for each reservation shall be the total rent paid for the period during which the Home was occupied according to the reservation, less fees, charges, or commissions imposed by the website, if any.

C. Rental Proceeds Limited to Rent.

For purposes of clarity, Rental Proceeds do not include lodging, sales, or other applicable taxes, cleaning fees, other guest or third-party fees, or any other fixed or variable charges, fees or amounts other than rent, except as the parties may agree in writing.

6.7 Taxes

Unless otherwise specified in writing or required by law, Hearth will not collect applicable taxes from guests on the owner’s behalf, file excise tax returns, or make excise tax payments on the Owner’s profit. For greater certainty, if Hearth is not required by law to be registered to collect excise tax, as applicable, pursuant to the excise tax, then the Owner is wholly responsible for collecting and remitting excise tax, as applicable. Hearth Property utilizes “Homestay Websites,” including Airbnb and Vrbo, which collect and remit applicable taxes, such as Transient Occupancy Tax, in compliance with local regulations.

7. Extra Charges

7.1 In addition to the Fee stated above, the only other extra charges that will apply are as follows:

7.2 The Owner has the right to use the Home so long as the Owner reserves the dates of use in advance with Hearth. The Owner may not schedule an Owner stay for any period for which an Existing Reservation is in place unless approved by Hearth. Owner stays are not subject to Hearth’s standard check-in and checkout times for the Home. Unless the parties agree otherwise in writing, Hearth shall clean the Home after each Owner’s stay and charge the Owner the then-current cleaning fee for the Home.

8. Property Maintenance and Expenses

8.1 You agree that you shall be primarily responsible for the maintenance and physical upkeep of the Property initially and shall ensure that the Property is in a good condition for Guests’ use. You also agree and acknowledge that there will be some amount of normal wear and tear of the Property due to Guest use.

8.2 Emergency Authority. Manager may incur emergency repairs or maintenance up to $500 per incident without prior approval where delay risks guest safety, prevents continuation of stay, materially damages the Property, or jeopardizes booked revenue, with prompt notice to Owner.

8.3 Non-Emergency Work. Except for Emergency actions, Manager will obtain Owner’s approval before significant repairs or maintenance. Costs are treated per the elected tier (Core at cost; Premium included if ≤ $200 per incident, otherwise at cost).

9. Liability and other

9.1 We will list your business license number on Airbnb and other Short Term Rental websites and ensure that it is correctly displayed. So long as we correctly display the license number you provided to us on Airbnb and any other Short Term Rental websites we list on, we will not be responsible should any fines arise related to licensing issues from the city or state the property exists in.

9.2 We agree to abide by the Strata by-laws for your building. We are not responsible for any fines issued against you by your building. This is only applicable to non-single-family homes.

9.3 You understand and agree that Hearth does not act as a primary insurer and that you shall obtain the appropriate insurance for the Property and its contents in the event of natural disasters.

9.4 Whilst we will use reasonable skill in attracting bookings, we cannot guarantee that you will make income of any particular amount on a monthly basis and we will not be responsible for lost opportunity cost or loss of earnings if you don’t get any bookings for whatever reason. Nor are we liable for the suitability of the Guests given that we rely upon the verification standards of the Homestay Website and the relevant profile pages to assess suitability.

9.5 Whilst we will use reasonable care to identify any issues that are readily apparent from our inspection of the Property, we will not be responsible for the condition, safety, or security of the Property. You, as the Host, are solely responsible for such conditions, safety and security, and compliance with all laws, rules, and regulations applicable to the Property.

9.6 You agree to indemnify and hold us harmless from and against any claims, liabilities, damages, losses and expenses including (without limitation) reasonable legal fees, arising out of, or in connection with, any breach by you of this agreement or the terms of any agreement you may have in place with the Homestay Website from time to time.

9.7 You will contract directly with a Guest and we will not be liable in respect of any matter arising which relates to a booking between you, as Host, and a Guest which includes the breakage of any items at the Property caused by the Guest or due to reasons beyond our reasonable control.

9.8 We will not be liable for the provision of services by third parties (any “Third Party Supplier”) including those who provide the Extra Maintenance Services or any other maintenance or repair services that we book on your behalf. However, we will ensure that we take reasonable care and skill in selecting such Third-Party Suppliers. Repairs will be brought to your attention for approval, but Hearth has the discretion to expense up to $500 for any urgent repairs that arise if we cannot get ahold of you for approval.

9.9 We will not be liable to you or be deemed to be in breach of this agreement by reason of any delay in performing, or any failure to perform, any of our obligations, if the delay or failure was due to any cause beyond our reasonable control such as shortages, severe weather, power or other utility cut-off, burglary, natural disaster, strikes, governmental action, terrorism, war, civil unrest or other similar occurrences.

9.10 In no event shall we be liable for exemplary, incidental, indirect, special or consequential damages or for any business, financial or economic loss such as lost reputation, lost bargain, lost profit or loss of anticipated savings arising out of or resulting from this agreement (even if we have been advised of the possibility thereof or we are asked by the Host to act against what we believe to be their best interests) and whether such loss arises as a result of negligence, breach of contract, tort or otherwise by us or any agent, employee or third party providing services on our behalf (including a Third Party Supplier) except to the extent the foregoing limitation is prohibited by applicable law.

9.12 Notwithstanding anything to the contrary herein, subject to any exceptions outlined in applicable law, our liability for all losses, damages, and other liabilities relating to or arising out of this agreement and the Services provided hereunder (including, without limitation, concerning property damage, damage to valuable or fragile items at the Property, personal injury and death) will be limited to the cost of obtaining replacement services or the average one month’s Fee for our Services, whichever is the higher amount.

10. Force Majeure

10.1 Definition of Force Majeure. “Force Majeure” is any event or condition beyond the control of the parties, including but not limited to acts of God; natural disasters such as earthquakes, fires, floods, volcanic eruptions, and storms; civil or military disturbances, riots, acts of terrorism, and acts of war (whether declared or not); sabotage; epidemic; economic recession or depression; accident; voluntary or involuntary compliance with any regulation, law, order or declaration of any government or civil or military authority, including a declaration of emergency or an evacuation, quarantine, or stay at home order; strike, lock-out, or other labor dispute; interruption, loss or malfunction of utility, transportation, internet or telephone communication service; and inability to obtain labor, material, equipment or transportation.

10.2 Effect of Force Majeure. Each party shall be excused from a failure to perform any of its obligations under this Agreement, and shall not be liable to the other party for any costs or damages due to delay in performance or failure to perform, to the extent that the performance is prevented or made economically prohibitive by Force Majeure. Excuse from performance and liability shall continue so long as the Force Majeure continues. The party whose performance is affected by Force Majeure shall promptly notify the other party of the failure, shall advise the other party of the anticipated duration of the Force Majeure and any actions being taken to minimize its effect, and where possible shall take reasonable efforts to remove the event or condition constituting Force Majeure.

11. Miscellaneous

11.1 Both parties warrant that they have the power to enter into this agreement and have obtained all necessary approvals to do so.

11.2 The relationship between you and us is that of an independent contractor. We are not your agents, employees, or partner of you. No partnership, joint venture, association, alliance, or other fiduciary, employee/employer, principal/agent or other relationship other than that of the independent contractor shall be created by this agreement, express or implied.

11.3 Each party acknowledges that this contract and any documents referred to therein (each as amended from time to time) contain the whole agreement between the parties hereto and that it has not relied upon any oral or written representations made to it by the other or its employees or agents. Nothing in this clause shall limit or exclude any liability for fraud.

11.4 The parties agree that this agreement is fair and reasonable. However, if any provision of this agreement is held not to be valid by a court of competent jurisdiction but would be valid if part of the wording was deleted, then such provision shall apply with such deletions as may be necessary to make it valid and the remaining provisions shall remain in full force and effect and this agreement shall be enforced in such manner as carried out as closely as possible the intent of the parties hereto.

11.5 No failure or delay by us in exercising any right or remedy provided by law or under this agreement and no single or partial exercise of any such right or remedy shall impair the right or remedy, or operate as a waiver or variation of it, or preclude its exercise at any subsequent time.

11.6 This agreement and any non-contractual rights or obligations arising from or in connection with this agreement shall be governed by and construed in accordance with the laws of California. We both are to submit to the exclusive jurisdiction of California’s courts.