Breakaway Agency Agreement

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AGENCY AGREEMENT

BETWEEN: LLOYDS TRAVEL & CRUISES LTD

Dba/BREAKAWAY VACATIONS (BC) LTD

300-1275 6th Street W, Vancouver, BC V6H 1A6

BC Reg. No. 186

Telephone: 604-872-5466 / Email: breakaway@lloydstravel.com (“Breakaway”)

AND

("Owner")
Home Address:*

WITH RESPECT TO this property which shall include all improvements and holdings thereon:

("Property address to be managed by Breakaway")

In exchange for the exclusive right to offer the Property to guests to rent, Breakaway shall provide the following services:

Advertise, promote and market the property, this shall include but not be limited to: access to online booking tools, marketing across several web sites, pay per click advertising, third party channel marketing companies, social media, blogs, email lists. Breakaway will also provide year-round reservation staff for fielding inbound calls, year-round guest services staff for fielding guest calls, owner access to their calendar for booking their own stays and provide cleaning services at the guest’s expense. Breakaway will provide a Guest Book with Rules, Instructions, Local Information and Bylaw’s pertinent to the Property. Breakaway will provide standard replacement light bulbs, toilet paper, hand and dish soap, and garbage bags. Breakaway will manage calls from guests and manage maintenance issues.

In exchange for the services provided by Breakaway, the Owner will ensure:

Proper utilities are made available; this includes but is not limited to Hydro, Gas, Water, Internet (Wi Fi), and Cable. Two sets of sheets per bed; two bath towels, face cloths and Hand Towels per Max Occupancy of the property as well as appropriate furniture, utensils, and cutlery (inventory required will be provided to Owner).

WHEREAS the Owner is the registered and beneficial Owner of the Property, and WHEREAS the Owner warrants and represents that he has the right to enter into this Agreement, THE PARTIES AGREE AS FOLLOWS:

  1. By their signatures upon this Agreement, the Owner and Breakaway have agreed that Breakaway shall act as the Owner’s agent with respect to the temporary use and occupancy of the Property by paying third parties (“Guests”) as detailed in this Agreement. The Owner appoints Breakaway to act as their agent to secure such Guests. The Owner authorizes Breakaway to advertise, obtain and confirm bookings (“Bookings”) and to enter into occupancy agreements (“Occupancy Agreements”) with Guests on behalf of the Owner. The Owner acknowledges that all Bookings and Occupancy Agreements with respect to the Property are made by Breakaway as agent for, and on behalf of the Owner.
    • 1.1) This Agreement gives Breakaway the exclusive right to offer the Property to guests (pre-arranged personal use by the Owner excepted).
    • 1.2) This Agreement shall continue in force until terminated on 90 days’ written notice from one party to the other. In the case of the breach of a material term of this Agreement by one party, this Agreement may, at the sole option of the other party, be dissolved by the other party by giving 10 days’ written notice of such intent. In either case, the Owner shall honour all confirmed bookings that may be in place at the time.
  2. Breakaway, in its normal course of business, will attempt to obtain Bookings for the Property and will advise each prospective Guest of any special conditions the Owner may stipulate with respect to the use and occupancy of the Property; however, Breakaway does not accept responsibility for non-compliance to such conditions by any Guest.
  3. Upon signing this Agreement and by December 1st of subsequent years, the Owner will advise Breakaway through the online reservation system of the dates on which the Owner does not want the Property made available to guests during the following calendar year. The Owner may use the Property during the time periods allocated to Breakaway without involving Breakaway, provided that the Owner shall immediately secure space through the online reservation system of such dates and provided always that if Breakaway has already made a Booking for that time period, the Owner will honour it.
  4. Breakaway will collect in advance from all guests the full rent and all taxes due and will forward payment by direct deposit or cheque (less taxes, credit card charges and Breakaway’s commission) to the Owner on the 15th of the following month.
    • 4.1) Departure Cleaning fees will be collected by Breakaway and charged to the Guests
  5. Breakaway, with input from the owner, sets the accommodation rates that will fluctuate with market conditions.
  6. Breakaway shall collect a pre-determined percentage based commission for reservations, net of credit card merchant fees, on each Booking, as noted below. Breakaway shall absorb all reservation system costs, bank charges and normal advertising costs.
Breakaway shall collect and properly remit GST and on Breakaway’s commission, hotel tax and local tax (if required). Breakaway shall also properly collect and remit additional taxes if required under 6.1 and 6.2 below.
  • 6.1) If the Owner notifies Breakaway that he is required to pay GST on rents received for the Property, Breakaway will collect same and remit it to the Owner.
  • 6.2) By initialing in the appropriate space, Owner warrants that for taxation purposes he is:
I am a:*

If a Non Resident Breakaway is required to withhold 25% of gross rents and properly remit same. Breakaway shall provide an annual statement of earnings on Form NR4 to the Owner at the appropriate time.

  1. Breakaway is authorized to deduct from the Owner’s (with their consent) return prior to payment to the owner, the following:
    • 7.1) Any time spent by Breakaway to resolve problems that arise that are not the fault of Breakaway (i.e. plugged toilet, replace media equipment etc.) (minimum of $50 plus parts and labour). Repairs up to the amount of $250 will not require approval from Owner
    • 7.2) Any cost associated with preparing a property for a rental and/or in order to meet the standards of the Owner’s Agreement.
    • 7.3) Any refund made back to the guest that arises out of terms of the Owner’s Agreement.
    • 7.4) Any credit card fees associated with the rental revenue.
  2. Breakaway shall secure a $750 Guest Deposit to cover damage (other than normal wear and tear), long distance telephone calls, and excessive cleaning costs (meaning additional costs incurred if the Guest fails to clean as required by the Occupancy Agreement).
  3. Breakaway will return the Security Deposit to the Guest, (unless the Owner gives Breakaway written instructions to the contrary) within fifteen days after each Guest departs. Any dispute regarding any claim on the Security Deposit or any claim in excess of the Security Deposit shall be settled by direct negotiation between the Owner and the Guest.

    Owner acknowledges that credit card companies’ rules may limit the amount Breakaway is able to charge against a Security Deposit, or may extinguish the claim altogether, and that these rules are beyond Breakaway’s control.

  4. The owner will maintain liability coverage of no less than $5,000,000 Canadian dollars. The owner agrees to ensure that all terms and conditions of their insurance policy are satisfied and that the bookings permitted by this agreement will not breach the terms of their insurance policy. Breakaway recommends that the Owner provide a copy of this agreement to their insurer for full revision of the circumstances presented in this agreement.

    Owner acknowledges that credit card companies’ rules may limit the amount Breakaway is able to charge against a Security Deposit, or may extinguish the claim altogether, and that these rules are beyond Breakaway’s control.

    If the property is a strata building, the owner shall provide to Breakaway, a copy of the strata by-laws showing that Rentals conform with the said bylaws. If required, Owner shall also provide necessary forms needed from the strata, to submit for rentals.

  5. The Owner agrees to honour all Bookings made by Breakaway under this Agreement. The Owner acknowledges that Breakaway’s integrity and success depend upon the Owner honouring their commitments and that the Owner’s failure to honour Bookings constitutes damage to Breakaway’s business reputation and the reputations of Breakaway’s owners.
  6. If the Owner sells the Property during the term of this Agreement, the Owner will ask the purchaser (“Purchaser”) to honour all existing Bookings.
  7. Should the Owner or Purchaser refuse to honour any Booking, the Owner shall pay Breakaway its normal commission (plus taxes), and costs incurred to find alternate accommodation for the Guest. This paragraph shall not in any way limit or substitute any other remedies Breakaway may have.
  8. Should the Property be rendered uninhabitable by fire, flood, or any other force beyond the Owners control, the Owner shall immediately inform Breakaway.
  9. Whenever possible, Breakaway will take photographs of the Property for display on Breakaway’s websites. The Owner acknowledges, warrants, and represents that all pictures and information provided to Breakaway are complete, true and not misleading. The Owner grants Breakaway the rights to use such pictures and information. The Owner shall inform Breakaway of any material changes to the Property.
  10. Should a Guest refuse to occupy the Property because it is in an uninhabitable condition, (“Uninhabitable condition” shall include missing or faulty essential appliances, pest infestation and similar problems not caused by the Guest). Breakaway shall make a reasonable effort to confirm the Guest’s complaints and remedy same, and the Owner will deem whether the complaint is valid and will come to a mutual agreement as to the course of action or refund.
  11. Should any Guest first introduced to the Property by Breakaway contact the Owner directly to arrange a paid visit to the Property, the Owner shall refer that Guest to Breakaway.
  12. The Owner shall indemnify and save harmless Breakaway from any obligation, responsibility or liability other than those expressly provided for in this Agreement. Without limiting the generality of the foregoing, the Owner shall indemnify and save harmless Breakaway from any obligation, responsibility or liability that may arise as a result of:
    • 18.1) Any damage, loss or injury of or to the Property and any improvements, amenities and chattel thereon caused by a Guest or persons invited on the Property by the Guest, or in any way relating to or arising from any Guest’s use and occupancy of the Property;
    • 18.2) A Guest or any other person failing to comply with the terms of the Occupancy Agreement;
  13. The Owner shall indemnify and save harmless Breakaway from and against all liability, actions, proceedings, costs, claims and demands whatsoever that may be lawfully brought against Breakaway by reason of anything done by the Owner, any Guest, or any member of the Guest’s party, their servants, agents, licensees, contractors and sub contractors or other persons authorized by any one of them in the exercise or purported exercise of the Occupancy Agreement, including, without limiting the generality of the foregoing, any claims, losses, damages, costs or expenses, and third party claims arising out of any injury, accident, death, damage, delay, inconvenience, loss of equipment, upset, disappointment, distress or frustration to the Guest or any other person.
  14. This Agreement shall be construed and governed by the laws of British Columbia. If any one or more of the provisions contained in this Agreement should be, or be later found, invalid, illegal or unenforceable in any respect in any jurisdiction, the validity, legibility, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby, unless this Agreement would fail in its essential purpose as a result of such determination.
  15. The singular of any term shall include the plural and vice versa, the use of any term shall be generally applicable to either gender or to a corporation.
  16. The term “in writing” or anything denoting written communication between the parties hereto shall include documents delivered by one party to the other by mail, courier, or e-mail addresses as each may provide to the other in writing from time to time.
  17. If at any time during the continuance of this Agreement the parties hereto shall deem it necessary or expedient to make any alteration in or addition to this Agreement, whether temporary or permanent, they may do so by a written Agreement between them which shall be supplemental hereto and form part hereof.
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Bruce Fougner, President & Owner