CONTRACT FOR SERVICES RENDERED     ref.nº 000-REN between:

First party:             Property owner

Second PARTY:        Rental algarve – Ricola Algarvia Med. Imob. Unipessoal Ldª  

Subject:                  The administration and management of a property

Property object:       Algarve

OBJECTS:

·         The ADMINISTRATION of a property owned by the first party through the services of the second party.

·         The LETTING and MARKETING of the property if and when this has been agreed between the parties.

1. ADMINISTRATION.

·         This contract will be for the period of 1 year, automatically to be renewed, except in case it has been renounced by one of the parties, at least 3 months in advance. The contract starts on the 1^st. of January 2007 and terminates on the31th.  of December 2007.

·         This contract gives the second party the power to act on behalf of the owner in his absence and signing any document necessary related to the administration of the property. (An official Portuguese Power of Attorney will preferably do this, unless this has been given already to another person based in the Algarve).

·         The second party has the duty to check the property whenever necessary, but at least 1 (one) visit a week will take place.

·         This contract gives the second party the power to carry out payments of all daily, monthly and yearly expenses related to the property;

For example: electricity, water, gas, telephone, rates, insurances, maid, gardener, pool   man etc.

·         It also gives the second party the power to pay invoices as a result of small or bigger repair- and maintenance jobs; necessary to keep the property in good condition or done at the request of the owner.

       For example:  plumber, painter, electrician etc.

·         All invoices and bills related to the property will be kept for a period of 5 years and shown to the first party at his request or will be available to view in our office in Lagos.

·         A statement of account showing expenses paid, income received and the balance of his account will be sent to the first party, at least every two months or whenever requested.

·         The second party will try to contact the owner for his approval prior to carrying out repair jobs in excess of € 500,00; unless an urgent decision had to be made and it was not possible to contact the owner.

·         Upon request the property will always be available to be ready to let within 24 hours (between Monday and Saturday) after being notified.

·         The second party will be responsible to keep the property in a good state of maintenance.

RENUMERATION:

·         For the above-mentioned services, Ricola Algarvia Ldª will receive a monthly fee as described in the attached price list, which is an integral part of this contract. The account of the client will be debited at the end of each month.

·         On amounts paid by the second party in order to keep the property in a good condition and on purchases made at the request of the first party, the second party is allowed to receive a handling fee according to the price list attached. The account of the first party will be debited with the amount due at the end of each quarter.

·         Any other service rendered by the administration will be paid as an extra according to the attached price list or if not mentioned in accordance with the workload involved on an hourly basis plus expenses.

·         This applies for example to the obtaining of a certificate from authorities to legally let the property; the obtaining of a gas certificate in order to proof that the property is safe; laundry expenses and declarations to the inland revenue (IRS or IRC) regarding income received from letting. It also applies to assistance given or visits made to clients occupying the object of the first party, who are not considered clients of the second party.

·       The cost incurred in writing extra letters, making telephone calls or sending faxes and e-mails related to issues considered to be outside the normal management activities according to the attached price list.

·       The first party will always see that the balance in his account with the second party is and stays positive and he will be held responsible for the payments of all bills as a result of jobs carried out to maintain his property.

·       The second party will receive in advance from the first party a cash flow equal to the estimated cost of 3 months maintenance of the property, unless agreed differently. The second party is not obliged to make any payments is the account is negative or entitled to a legal interest as set by the law.

·       Both parties may dissolve this contract in case it has been proven that the obligations as described above and agreed upon by either party have not been fulfilled.

 LETTING and MARKETING:

Terms & Duties & Remuneration:

·       The first party empowers with this contract the second party to promote their property with the objective to arrange rental clients on a weekly base, or for a longer or shorter period if and when agreed.

·       The first party has the obligation to arrange the necessary licenses in order for the second party to be legally in a position to let the property according to Portuguese legislation in effect. This means that a license has to be applied for and issued by the local town council that the property complies with all legal and safety measurements for letting to tourists                             (moradia turística)

·       Without a valid license Ricola Algarvia Ldª will not and is not allowed to rent out your property or to make publicity but other options are in that case available.

·       The second party will have the   or non-exclusive right to promote the property for the period described unless agreed differently.

·       All expenses to promote the property will be carried by the second party unless agreed differently.

·       Upon arrival of paying guests it will be the duty of the second party, to introduce them to the property during office hours (Monday – Friday between 09.30 a.m. and 18.00 pm. and Saturday between 09.00 a.m. – 13.00 p.m.)  in case a full Management contract is in place and giving them a basic instruction unless other arrangements are made.

·       For arrivals outside these hours’ different arrangements to get the key can/will be made between the second party and the arriving guests, we use for example safe key-boxes.

·       The second party will see that there is a house manual describing most important matters related to the house in more detail.

·       When the letting is not arranged by the second party, he still will be entitled to receive a fee as described in the attached price list.  This fee will be based on the prices as promoted by the first party on the property owners web site http://www.previsao.biz

·       In case the villa will be made available to friends and/or family free of charge, the first party will inform the second party well in advance. In case assistance by those guests is needed this will be charged for on an hourly basis plus expenses according to the attached pricelist. If not settled by the tenants, the account of the first party will be debited for the amount due.

·       Any other service rendered by the second party will be paid for as an extra according to the attached price list or if not mentioned and in accordance with the workload involved.

·       When the second party will arrange the letting, the account of the first party will be credited with the amounts agreed between parties prior at least 7 days in advance, unless we deal with last minute bookings.

·       Including in the rental price during the peak – high and mid season, and to the account of the first party will be the cost for; water, electricity, gas, linen, maid service, garden, pool maintenance, and any further expenses the first party may have.

·       Prior to the letting season the first party will provide the second party with a complete inventory list of all items in the property.

·       The second party shall receive a bond of €150 from their clients to cover any damage or breakages caused to the property. An inspection of the property will be carried out by a representative of the second party prior to the departure of their client.

·       It is the full responsibility of the first party or their fiscal or legal representative to declare the rental income to the local Tax Authorities, although if required and agreed this can de done by the second party.

·       If rental clients want to make use of the telephone they will be charged according to the price list attached. In case a telephone counter has been installed the fees charged will be according to the attached pricelist.

·       The second party will in case they are also responsible for the management, take care that the property is and will remain in good condition and that the clients / guests, are comfortable.

Signed in Lagos, on Friday, June 15, 2007

The first party: ---------------------------------------------------------------------------------------

The second party: ------------------------------------------------------------------------------------

AGREED RENTAL PRICES TO FIRST PARTY FOR THE 2006 RENTAL SEASON