Go to their Design/Client List, and you'll be taken to a page titled: "web design maui condo vacation rentals professional web hosting domain name registration" that's all about the "Maui vacation rental web sites" they host. I'll bet there's lots of cross linking too.
But that's not on the home page. There's no mention of 'maui vacation rentals' on the page which has been indexed.
There's plenty of sites on that SERP which are optimized for the keyword phrase 'maui vacation rentals' that are ranked lower than this site.
As I said, they don't have those keywords in the description or the title or the body text so why would Teoma rank them above hundreds of other pages that are optimized and no doubt have much higher link popularity?
There are a lot of very on-topic pages linking directly to them, all making generous use of the keywords, which are very relevant to the sites, and done in a very legitimate way. There are simply links back to the company giving credit. Not dodgy looking at all.
So it looks like the themes of the linking pages (there are a LOT of them) have an effect. Themes people are gonna LOVE Teoma if this is any indication at all.
Well, Teoma should take note that if they rely heavily on link popularity and don't take into account that the keywords in question aren't in the title, description and body text, they will sometimes get totally irrelevant results!
I agree that this site isn't spamming - it's Teoma's algorithm that is at fault!