**MANAGEMENT AGREEMENT**

 

THIS AGREEMENT is entered into this lst day of July, 1996, by and between Sunwood Village Joint Venture, L.P. a Nevada Limited Partnership acting herein by and through James R. Hoyt, authorized general partner, (“OWNER”) and SPECS, Inc., a Kansas Corporation (“MANAGER) with reference to the following facts:

 

|   | **A.** | Owner is the owner of the real property commonly known as Sunwood Village Apartments legally described in Schedule A attached hereto and made a part hereof and the improvements located thereon (the “Property”). |
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|   | B. | The Owner desires uniform and continuous management of such property by a single qualified organization. |
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|   | C. | Manager has the experience and staff necessary for the management and operation of real estate properties in Nevada, and desires to undertake the management and operation of such property of Owner. |
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|   | D. | Manager is an “independent contractor”, as that term is defined in the Regulations issued under Part 11, Subchapter M, Chapter 1, of the Internal Revenue Code of 1954, as amended, and is qualified to render the management service required. |
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THEREFORE, in consideration of mutual promises and covenants set forth herein, the parties hereto agree as follows:

 

|   | 1. | Employment of Manager. Owner hereby designates Manager, and Manager hereby accepts the same, to manage and operate the Property for the purpose of the advancement, protection and preservation of the interests of the Owner in and to such Property. |
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|   | 2. | Duties of Manager. Subject to the conditions or limitations set forth herein, to such written instructions as may from time to time be imposed or given by Owner, and to the requirements of any law or administrative enactment applicable to the Property, Manager shall perform the following: |
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|   | a. | Use its best efforts to lease and keep leased to desirable tenants, at best possible rentals and terms, all space held for lease. Manager shall abide by the provisions of any deed of trust, lease, or other agreements, now, or hereafter affecting such property (copies of all such documents shall be provided Manager). |
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