Document:

Agreement No.: ZMZ-2013-0031-11

 

Guarantee Agreement

 

(Applicable for guarantee
made by company)

 

[English Translation]

 

Agreement Date:
June 16, 2013

  

    	 

    	 

    

 

Table of Contents

 

	1	Secured Principal Debt	 	1
	 	 	 	 
	2	Scope of Guarantee	 	2
	 	 	 	 
	3	Manner of Guarantee	 	3
	 	 	 	 
	4	Period of Guarantee	 	4
	 	 	 	 
	5	Entire Guarantee Agreement	 	4
	 	 	 	 
	6	Commitment and Guarantee of Party B	 	4
	 	 	 	 
	7	Obligations of Party B	 	5
	 	 	 	 
	8	Undertaking of Guarantee Liability	 	6
	 	 	 	 
	9	Breach Liability	 	8
	 	 	 	 
	10	Disputes Resolution	 	8
	 	 	 	 
	11	Advice and Delivery	 	8
	 	 	 	 
	12	Effectiveness of Agreement	 	9
	 	 	 	 
	13	Other Terms	 	9
	 	 	 	 
	14	Other agreed Terms	 	9
	 	 	 	 
	Exhibit
One: Payment Advice (Format Text)	 	11

  

    	 

    	 

    

 

Guarantee Agreement

 

Agreement No.: ZMZ-2013-0031-11

 

Creditor: China National Foreign Trade
Financial & Leasing Co., LTD (hereinafter called “Party A”)

Address: Building #11 of Beijing Xiyuanfandian,
No.1, Sanlihe Road, Haidian District, Beijing

Post Code: 100044

Legal Representative: Jianping Ding

Tel: 010-68321866

Fax: 010-68322705

 

Guarantor: Baoding Shengde Paper Company
Limited (hereinafter called “Party B”)

Address: Juli Road, Xushui County, Baoding
City, Hebei Province

District, Beijing

Post Code: 072550

Legal Representative: Zhenyong Liu

Tel: 0312-8698192

Fax: 0312-8698191

 

In order to ensure the realization of Party
A’s rights as a creditor, Party B voluntarily provide guarantee to Party A. To specify both parties’ rights and liabilities,
Party A and Party B agree to enter into this Agreement according to the “Contract Law”, “Guarantee Law”
and other relevant law and regulations of the People’s Republic of China.

 

		1	Secured Principal Debt

 

		1.1	The secured principal debt is Party A’s right to Hebei Baoding Orient Paper Milling Company
Limited (hereinafter called “Lessee”) according to the “Financing & Lease Agreement” (hereinafter called
“Principal Agreement”) numbered ZMZ-2013-0031, which is entered by Party A and the Lessee on June 16, 2013.

 

    	1

    	 

    

  

		1.2	The amount and terms of the principal debt are subject to the “Actual Rent Payment Schedule,”
which is specified in the Principal Agreement. If any adjustment of People’s Bank of China benchmark lending rate occurs
during the term of the lease, the amount and terms shall be subject to changes according to the “Notice of Rent Adjustment.”

 

		1.3	If the Principal Agreement fails to take effect, becomes invalid in all or in part, is revoked
or canceled, the secured principal rights shall be the Lessee’s liabilities to Party A for returning property and reimbursement
for losses under the Principal Agreement.

 

		2	Scope of Guarantee

 

		2.1	The scope of guarantee includes the rent, penalty, damages, all expenses paid by Party A to reinforce
the creditor’s rights (including but not limited to litigation fees, arbitration fees, legal fees, travel expenses, and expenses
for auction and evaluation for retrieving leased property under the Principal Agreement) and all other fees attributable to the
Lessee. The scope of guarantee also includes any amounts arising from adjustments triggered by change in the interest rate according
to provisions under the Principal Agreement.

 

		3	Manner of Guarantee

 

		3.1	This Guarantee is an irrevocably joint and several liabilities Guarantee. Party B bears joint and
several liabilities to all debts of the Lessee under the Principal Agreement.

 

		3.2	If the Lessee fails to fulfill all debt obligations within the stipulated period according to the
Principal Agreement, Party A then has the right to demand Party B to perform the guarantee obligation.

 

		3.3	Regardless of Party A’s other security for its rights under the Principal Agreement (including
but not limited to other guarantees, collateral, mortgage, pledge and so on), regardless of when or whether the above mentioned
other security takes effect, regardless of Party A’s possible claim to other guarantor, regardless of any third party agreeing
to take all or partial debt obligation under the Principal Agreement, and regardless of whether other guarantee is provided by
the Lessee, the guarantee liability of Party B under this Agreement cannot be waived. Party A has the right to demand Party B to
bear the guarantee liability within the scope of guarantee according to this Agreement, and Party B shall not raise any objection.

 

    	2

    	 

    

 

		4	Period of Guarantee

 

		4.1	The period of guarantee for Party B’s joint and several liabilities to the guarantee is two
years from the date of complete fulfillment of the principal debt. If the debt is paid by installment, then the period of guarantee
is two years from the last debt payment. If Party A declares early maturity of debt pursuant to provisions of the principal Agreement,
then the early maturity date is the date of complete fulfillment of the debt.

 

		4.2	If Party A and the Lessee mutually agree to change the period of debt fulfillment in the Principal
Agreement without the written consent by Party B, then the period of guarantee is the same as the above mentioned in Section 4.1.

 

		5	Entire Guarantee Agreement

 

		5.1	This Agreement has an independent irrevocability. The effectiveness of the secured rights and debts
under this Agreement shall not affect the effectiveness of this Agreement. Even if the secured principal debt is invalid in all
or in part due to any reason, this Agreement is still valid.

 

		6	Commitment and Guarantee of Party B

 

		6.1	Party B is a legally established and validly subsisting legal entity and has the legal qualification
to sign this Agreement. Its agent signing this Agreement has received proper authorization.

 

		6.2	Party B guarantees that its guarantee under this Agreement has been approved with all necessary
internal resolutions, authorization and relevant government department’s approval (if necessary) subject to the procedure
and purview of company’s bylaw. Party B is responsible for all documents’ authenticity, legitimacy and integrity.

 

		6.3	Party B guarantees to timely repay any remaining amount of debt on behalf of the Lessee in the
event that the Lessee has not repaid any debt that becomes due.

 

    	3

    	 

    

 

		6.4	If one of the following events occurs, Party B shall continue to bear the guarantee responsibility
according to the Agreement without getting consent from Party B:

 

		(a)	Party A negotiates changes to the Principal Agreement with the Lessee, and the changes do not increase
the Lessee’s debt or extend the period of debt. Rent increased by Notice of Rent Adjustment delivered by Party A according
to Principal Agreement. Or rent payment date is adjusted by Party A after confirmation of lease commencement date according to
provisions under the Principal Agreement;

 

		(b)	The rent changes due to floating rent rate or rent adjustment after the confirmation of lease commencement
date;

 

		(c)	Party A transfers the principal debt to a third party;

 

		(d)	If China Orient Asset Management Corporation, Shijiazhuang Branch acquires the rights and obligations
under the Principal Agreement according to the Long Term Acquisition Commitment Letter.

 

		6.5	Party B promises that all of its taxes have been paid before signing of this Agreement, and it
has no record of any tax delinquency or tax evasion.

 

		6.6	Party B promises to obtain written consent from Party A or make satisfactory arrangement for its
guarantee liability under this Agreement in advance of any merger, demerger, reduction of registered capital, changes of equity,
transferring of significant asset and credit, significant investment, increase of debt financing or other action that may have
negative impact on Party A’s benefits, otherwise Party B is prohibited to take any of the above mentioned action.

 

		6.7	Party B promises that before Party A’s rights under the Principal Agreement has been fully
satisfied, Party B will not cause any damage to Party A’s interests and its claim of subrogation or recourse right to the
Lessee or other guarantors. Party B also agrees that any payment of debt under the Principal Agreement is in priority to realization
of its own subrogation or recourse right against the Lessee. Specifically, before the full payment of debt to Party A:

 

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		(a)	Party B agrees not to claim subrogation or recourse right to the Lessee or other guarantors. If
for any reason, Party B realizes the above right, Party B shall first pay off any unpaid balance of debt to Party A.

 

		(b)	If debt under the Principal Agreement is collateralized by any other property or right, Party B
agrees not to claim any right to the proceeds from the disposition of such other property or right in the grounds of excising subrogation
right or other rights. The proceeds from the above mentioned property or right disposition shall be first used to pay off the unpaid
balance of debt to Party A.

 

		(c)	If the Lessee or other guarantor provide counter-guarantee to Party B, Party B shall first use
the proceeds from such counter-guarantee to pay off any unpaid balance of debt to Party A.

 

		7	Obligations of Party B

 

		7.1	Party B has the liability to pay off debt on behalf of the Lessee according to this Agreement.

 

		7.2	During the guarantee period, Party A has the right to supervise Party B’s funds and property,
has the right to require Party B to provide its financial statements (including but not limited to Balance Sheets, Income Statements
and Cash Flows Statements, etc.) or other documents. Party B shall provide such documents in time.

 

		7.3	During the guarantee period, Party B shall provide an audited annual report to Party A within 90
days after its fiscal year end.

 

		7.4	During the guarantee period, Party B shall allow Party A to review its financial books and financial
conditions in Party B’s office and respective agencies or domicile at any time, and provide necessary conditions for review.

 

		7.5	During the guarantee period, Party B shall advise Party A for the following events within three
days of occurrence:

 

		(a)	Serious deterioration of operating or financial conditions;

 

		(b)	Party B has delinquent debts to Party A or other financial institutions;

 

    	5

    	 

    

  

		(c)	Party B, legal representative, or key management personnel of Party B is involved or will be involved
in criminal cases or other legal disputes; or Party B is involved in significant law suits, arbitration or administrative sanction,
or its key assets are taken in property preservation or other coercive measures.

 

		(d)	Party B suffers from situations such as production suspension, out of business, dissolution, suspension
for rectification, cancellation or revocation of its business license, applying for (or being brought to) bankruptcy, insolvency,
division, merger and so on, which causes losses or reduction of its capability for guarantee.

 

		7.6	Party B shall timely advise Party A of any of its changes in records at the government industrial
and commercial administrative departments, and shall provide photocopy of the original sealed document of such changes to Party
A.

 

		7.7	If Party B does not fulfill the payment liability on behalf of the Lessee according to this Agreement,
Party B shall waive the right to object to Party A’s application of payment order and enforcement from the appropriate jurisdiction
of the Peoples’ Court in the People’s Republic of China.

 

		8	Undertaking of Guarantee Liability

 

		8.1	If any of the following events occur, Party A has the right to directly demand Party B to pay off
all the amounts payable to Party A:

 

		(a)	The Lessee fails to pay any installment rent and other fees according to the Principal Agreement;

 

		(b)	The Lessee breaches the liability of the Principal Agreement, and Party A decides to terminate
the Principal Agreement before the expiration date;

 

		(c)	During the performance period of the Principal Agreement, the Lessee is brought to a bankruptcy
proceeding, out of business, dissolution, liquidation, suspension for rectification, cancellation or revocation of business license,
or is involved or will be involved in significant lawsuit, arbitration or other legal disputes;

 

		(d)	During the performance period of the Principal Agreement, the Lessee is involved in situations
such as merger, transfer, change of ownership equity, restructuring and so on, which has an impact on its ability to timely pay
rent and other fees according to the Principal Agreement.

 

    	6

    	 

    

 

		8.2	If any of the situations under Section 8.1 occurs, Party A has the right to send Payment Advice
(see attachment No. 1) to Party B.

 

		8.3	After receiving the Payment Advice from Party A, which requires Party B to perform the guarantee
liability, Party B shall unconditionally perform all guarantee liability according to the scope of guarantee within ten days.

 

		8.4	Party A is under no obligation to send Party B any advice or other documents sent by Party A to
the Lessee according to the Principal Agreement, including but not limited to Notice of Rent Adjustment. However, Party B shall
still bear the guarantee liability according to this Agreement.

 

		8.5	Payment to Party A from Party B shall be applied in the following sequence:

 

		(a)	Fees to assert the rights over the principal debt or guaranteed interests;

 

		(b)	Penalty attributable to Party B;

 

		(c)	Damages attributable to Party B;

 

		(d)	Penalty attributable to the Lessee;

 

		(e)	Damages attributable to the Lessee;

 

		(f)	The Lessee’s delinquent rent and other fees payable.

 

Party A has the right to adjust
the above sequence if necessary.

 

		8.6	Party B’s guarantee is in the same currency with the Lessee’s rent payable according
to Principal Agreement.

 

		8.7	Any new guarantee to the debt under the Principal Agreement set by Party A shall not imply any
reduction/waiver or change to Party B’s guarantee liability. Party B promises not to request Party A to reduce or waive its
guarantee liability for this reason.

 

		8.8	Party B promises not to request Party A to reduce or waive its guarantee liability for reasons
such as reduction or waiver of other parties’ guarantee liability under the Principal Agreement by Party A, or Party A’s
giving up of property collateral under this Agreement.

 

    	7

    	 

    

 

		9	Breach Liability

 

		9.1	If Party B fails to pay off all fees payable as per Party A’s requirement according to Section
8.3 of this Agreement, Party B shall pay penalty to Party A at a rate of 0.05% per day from the delinquent date to the full-payment
date.

 

		9.2	After this Agreement takes effect, both parties shall perform all obligations under this Agreement.
The party that breaches the Agreement but not performing the obligation to the fullest extent shall bear the relative breach liability
and indemnify the other party for the losses.

 

		10	Disputes Resolution

 

		10.1	If any dispute occurs for the interpretation and performance of this Agreement, both parties shall
resolve the disputes through friendly negotiation. If there is any dispute that cannot be resolved through friendly negotiation,
either party can submit a lawsuit to the People’s Court of the People’s Republic of China in Party A’s jurisdiction.

 

		10.2	In case there is any dispute between Party A and Party B, both parties shall continue to execute
the other sections which have no relationship with the disputes during the disputes resolution period.

 

		11	Advice and Delivery

 

		11.1	Except as otherwise agreed in this Agreement, any advice or other communication under this Agreement
shall be made in written form, and be delivered to the address specified in the first page of this Agreement by a designated person,
express courier, registered mail and fax.

 

		(a)	If delivered by a designated person, the delivery date for the material or advice shall be the
date of receipt;

 

		(b)	If delivered by an express courier, the delivery date for the material or advice shall be three
days after delivery to the express courier;

 

		(c)	If delivered by registered mail, the delivery date for the material or advice shall be five days
after delivery to the registered mail;

 

		(d)	If deliver by fax, the delivery date is the day of dispatch of fax.

 

    	8

    	 

    

 

		11.2	If the address of any party changes, the party shall notify the other party within seven days.
Otherwise, the party failing to give notice shall bear all liabilities and consequences.

 

		12	Effectiveness of Agreement

 

		12.1	This Agreement becomes effective after being signed and sealed by the legal representatives (or
authorized representative) of both parties.

 

		12.2	This Agreement is signed in four copies, with two copies retained by each party. The copies retained
by the parties have the same effect.

 

		13	Other Terms

 

		13.1	The invalidity of any section in this Agreement for any reason shall not affect the validity and
enforceability for the other sections of this Agreement, and both parties shall continue to fulfill the other sections.

 

		13.2	Any tolerance, grace period, preference or deferred exercise of right provided by Party A to Party
B shall not affect, prejudice or restrict any of Party A’s right according to this Agreement, and shall not be regarded as
waiver to the right and benefit or as waiver to any liability of Party B under this Agreement.

 

		13.3	This Agreement is signed as a result of negotiations between the two parties. Both parties have
reviewed all sections and have no dissent at the time of signing. Both parties have accurate understanding for the legal implication
of the sections regarding their respective rights and obligations.

 

		14	Other Agreed Terms

 

None.

 

If there is any conflict between a Chinese
language provision and the corresponding English language provision in this Agreement, the Chinese language provision will prevail.

 

    	9

    	 

    

 

Signature page for “Guarantee
Agreement” numbered ZMZ-2013-0031-11

 

Party A: China National Foreign Trade Financial
& Leasing Co., LTD

                 (Company
Seal)

 

Signature of Legal Representative (or authorized
representative):

/s/Jianping Ding

 

Party B: Baoding Shengde Paper Company
Limited

               (Company
Seal)

 

Signature of Legal Representative (or authorized
representative):

/s/Zhenyong Liu

 

    	10

    	 

    

 

Exhibit
One: payment advice (format text)

 

Payment Advice

 

TO:                           (Guarantor)

 

Re.: Guarantee liability
under “Guarantee Agreement” numbered  

 

According to the “Guarantee Agreement”
numbered             signed by our company and your company
dated         month      day,        year,
your company promise to bear joint liability guarantee to our principal credit on behalf of  (Lessee) according to
“Financing and Lease Agreement” numbered            signed
on month         day,         year.
Now the following events have occurred according to “Guarantee Agreement” (Please tick √ to the corresponding
events):

 

		 ̈	The Lessee fails to pay any installment rent and other fees according to Principal Agreement;

 

		 ̈	The Lessee breaches the liability of the Principal Agreement, Party A decides to terminate the
Principal Agreement before the expiration date;

 

		 ̈	During the performance period of the Principal Agreement, the Lessee is brought to a bankruptcy
proceeding, out of business, dissolution, liquidation, suspension for rectification, cancellation or revocation of business license,
or is involved or will be involved in significant lawsuit, arbitration or other legal disputes;

 

		 ̈	During the performance period of the Principal Agreement, the Lessee is involved in situations
such as merger, transfer, change of ownership equity, restructuring and so on, which has impact on its ability to timely pay rent
and other fees according to the Principal Agreement.

 

Your company is required to timely pay
off RMB               yuan to our company’s
bank account as below within Ten days after receiving this Advice:

 

Opening Bank:

 

Account Name:

 

Account Number:

 

Please pay your attention: If your company
fail to pay off all payable fess according to our requirement, your company shall pay penalty to us at a rate of 0.05% per day
from overdue date to payment date.

 

China National Foreign Trade Financial
& Leasing Co., LTD

 

Date:

 

    	11EXHIBIT
10.1

 

PROPERTY MANAGEMENT AGREEMENT

 

This
Property Management Agreement ("Agreement") is made and entered into effective as of June 17, 2013 ("Effective
Date") between and R & K INTERESTS, INC., a California Corporation doing business as INVESTORS' PROPERTY SERVICES
("MANAGER") and The InterGroup Corporation (“OWNER”).

 

RECITALS

 

A.OWNER
owns certain real properties and buildings, improvements and assets associated therewith more particularly described on Exhibit
A hereto (each a "Property" and if applicable collectively, the "Properties"). 

 

B.MANAGER
and its staff are experienced and capable in the management and operation of apartments that are similar in size and scope to the
Properties. 

 

C.OWNER
desires to engage MANAGER to furnish to OWNER, and MANAGER agrees to furnish to OWNER, in accordance with the terms herein, the
necessary technical, advertising, management and operating services described herein in order that the Properties will obtain the
benefits deriving from the experience and capabilities of MANAGER in said activities.

 

AGREEMENT

 

1.Appointment
and Acceptance. To the extent herein provided and subject to the terms and conditions set forth herein, OWNER appoints
MANAGER to manage, operate and maintain the Properties, and MANAGER accepts the appointment, subject to the terms and conditions
set forth in this Agreement. In the absence of an agreement in writing between OWNER and MANAGER, no other tract or parcel of real
property or the improvements thereon shall be subject to this Agreement. 

 

2.Term.
The term of this Agreement ("Term") shall commence on the Effective Date and shall terminate on the earlier to occur
of: (i) the sale of the Properties or any portion thereof (in which event only as to such portion of the Properties sold); (ii)
the termination of this Agreement pursuant to the terms hereof; or (iii) one (1) year from the Effective Date, provided that the
Term be shall automatically renewed for successive one (1) year terms unless either party, upon delivery of written notice to the
other party at least ninety (90) days prior to the expiration of the Term of its intention
not to renew the Term.

 

3.Approved
Budgets. Every year, on or prior to May 1st, MANAGER shall prepare and submit to OWNER, in the form required
by OWNER, an operating budget ("Operating Budget") and a capital budget ("Capital Budget" and together with
the Operating Budget, collectively referred to herein as the "Budgets") for the promotion, operation, repair and maintenance
of the Properties for the forthcoming fiscal year beginning July 1. For the first year of this Agreement, OWNER shall prepare and
submit to OWNER Budgets for fiscal year ending June 30, 2014, on or before October 15, 2013.

 

MANAGER
agrees to use diligence and to employ all reasonable efforts to ensure that the actual costs of maintaining and operating the Properties
shall not exceed the Budgets, either in total or in any one line item within the chart of accounts. All expenses shall be charged
to the proper line item contained within the chart of accounts and no expense may be classified or reclassified for the purpose
of avoiding an excess in the annual budgeted amount of an accounting category. MANAGER shall secure OWNER's prior written approval
for any expenditure, except for utilities charges, that will result in an excess of five percent (5%) or more in any one line item
within the chart of accounts of the Operating Budget; however, if said expenditure is cumulatively less than One Thousand Dollars
($1,000.00), no approval is necessary.

 

During
each calendar year, MANAGER agrees to promptly inform OWNER in writing of any capital expenditure or increase in costs and expenses
in excess of the amount budgeted for such items, and of decreases in revenue that were not foreseen during the budget preparation
period and thus were not reflected in the Budgets, and shall upon request of OWNER submit to OWNER for approval a revised Operating
Budget or Capital Budget, as the case may be, based upon said unforeseen costs and expenses.

 

    	 

    	 

    

  

4Capital
Expenditures. With respect to the purchase and installation of major items of new or replacement equipment (including,
without limitation, elevators, heating or air-conditioning equipment, furniture and furnishings, carpets or other floor coverings),
MANAGER shall recommend that OWNER purchase these items when MANAGER believes such purchase to be necessary or desirable. OWNER
may arrange to purchase and install the same itself or may authorize MANAGER in writing to do so subject to such supervision and
specification requirements and conditions as OWNER may prescribe in any such written approval. OWNER may pay for capital expenses
from its own resources or may authorize payment out of the Operating Account (as hereinafter defined). Unless OWNER specifically
waives such requirements in writing, all new or replacement equipment shall be awarded on the basis of competitive bidding, solicited
in the following manner:

 

4.1A
minimum of two written bids will be obtained for each purchase greater than One Thousand Dollars ($1,000) but less than Two Thousand
Five Hundred Dollars ($2,500). A minimum of three written bids will be obtained for each purchase in excess of Two Thousand Five
Hundred Dollars ($2,500) with bid bonds, if applicable or prudent. MANAGER shall be responsible to prudently select a provider
of goods and/or services for expenditures less than One Thousand Dollars ($1,000) in the aggregate for the goods and services to
be supplied.

 

4.2MANAGER
shall provide OWNER with all bid responses accompanied by MANAGER's recommendations as to the most acceptable bid. If MANAGER advises
acceptance of other than the lowest bidder, MANAGER shall adequately support, in writing, its recommendations.

 

4.3OWNER
will approve or disapprove any and all bids and will communicate to MANAGER, either verbally or in writing, of its approval or
disapproval of bids within five (5) business days. If OWNER does not communicate any response to MANAGER within fifteen (15) business
days, such bids shall be construed by MANAGER to be disapproved by OWNER.

 

5.Operating
Account. MANAGER shall deposit, or cause to be deposited, all Gross Income From Operations of the Properties in one (1)
or more depository accounts for the Properties at a reputable bank or financial institution ("Bank") which shall be maintained
by MANAGER for the benefit of Owners (such accounts, together with any interest earned thereon, shall collectively be referred
to herein as the "Operating Account"). "Gross Income From Operations" means all
income, computed in accordance with GAAP, derived from the ownership and operation of the Properties from whatever source, including
the rents, rent subsidies, housing assistance payments, utility charges, escalations, forfeited security deposits, interest on
credit accounts, service fees or charges, license fees, parking fees, rent concessions or credits, but excluding sales, use and
occupancy or other taxes on receipts required to be accounted for by Owners to any governmental authority, refunds and uncollectible
accounts, sales of furniture, fixtures and equipment, insurance proceeds (other than business interruption or other loss of income
insurance), any compensation paid by any governmental authority with respect to a partial or complete condemnation, unforfeited
security deposits, utility and other similar deposits and any disbursements to Owners from the Reserve Funds. MANAGER shall
maintain books and records of the funds deposited in and withdrawals from the Operating Account. From the Operating Account, MANAGER
shall pay the operating expenses of the Properties and any other payments relative to the Properties as required by this Agreement.

 

6.Security
Deposit Account. If applicable law or Lender requires a segregated account of Tenants' (as defined hereafter) security
deposits, MANAGER will open a separate account at a reputable bank or other financial institution. MANAGER may return such deposits
to any Tenant in the ordinary course of business in accordance with the terms of the applicable lease.

 

7.Access
to Account. As authorized by signature cards, representatives of MANAGER shall have access to and may draw upon all funds
in the accounts described in Sections 5 and 6 without the approval of OWNER or Owners. 

 

8.Additional
Operating Funds. In the event MANAGER determines that the funds generated by the Properties will be insufficient to meet
the cash expense requirements for the next month, MANAGER shall submit a written request to OWNER setting out the anticipated income
and expenses for the next month and the amount of additional funds necessary to operate the Properties.

 

    	2

    	 

    

  

9.Emergency
Funds. Except as provided in Section 16, in the event there is an emergency concerning the Properties which requires additional
funds, MANAGER shall submit a written request to OWNER and Owners setting out the facts concerning said emergency and the amount
of money necessary to cure said emergency.

 

10.Expense
of Owners. All obligations and expenses incurred hereunder shall be for the account of, on behalf of, and at the expense
of Owners. Except as provided in Section 14 below, Owners will not be obligated to reimburse MANAGER for any salaries of employees
of MANAGER. All payments to be made by MANAGER under this Agreement shall be paid from funds deposited in the Operating Account
pursuant to the terms of the Loan Agreement. MANAGER shall not be obligated to make any advance to or for the account of Owners
or to pay any sums, except out of funds held in the Operating Account, nor shall MANAGER be obligated to incur any liability or
obligation for the account of Owners without assurance that the necessary funds for the discharge thereof will be provided.

 

11.Legal
Proceedings. With OWNER's and the affected Owner's prior written consent, in each instance, MANAGER may initiate legal
proceedings such as, without limitation, collections, enforcement of contracts, labor and employment matters, and proceedings against
the Properties' tenants ("Tenants"), where the affected Owner shall have the right to participate in such proceedings.
MANAGER shall timely forward all claims arising out of the operation of the Properties which are covered in whole or in part by
insurance to the appropriate insurer and shall notify OWNER and the affected Owner of all claims in connection with the Properties
as to which it has knowledge. For this purpose, MANAGER is authorized to execute notices to vacate and bring actions for eviction
and judicial pleadings incident to such actions and follow such instructions as OWNER or the affected Owner may prescribe for the
conduct of any such action. Attorney's fees and other necessary costs incurred in connection with such actions will be paid out
of the Operating Account as the affected Property's expenses and in accordance with the Budgets. MANAGER shall not knowingly commit
any act, or fail to act, in any manner that would result in a default under this Agreement, and shall promptly notify OWNER and
the affected Owner in writing of any such default which comes to the attention of MANAGER. Additionally, MANAGER shall immediately
give written notice to OWNER of any legal action or other proceedings relating to the Properties (other than suits against Tenants
for rent, security deposits or evictions) and any other reports requested by OWNER. 

 

12.Leasing
Guidelines. As appropriate, MANAGER shall prepare written leasing and operating guidelines setting forth, without limitation,
the specific unit rents and terms MANAGER recommends using at the Properties which may be in the Budgets. These guidelines shall
be submitted to OWNER for written approval in such form and within a time frame acceptable to OWNER. MANAGER shall abide by only
those leasing and operating guidelines which have been approved in writing by OWNER (the "Leasing Guidelines"). MANAGER
shall make every reasonable effort to lease space now or hereafter becoming vacant in accordance with the Leasing Guidelines.

 

13.Marketing
and Advertising. MANAGER shall arrange and contract in the name and for the account of Owners all marketing and advertising
necessary for the purpose of promoting the name and business of the Properties consistent with the Budgets. Further, MANAGER shall
advertise and market the Properties, or portions thereof, prepare and secure advertising signs, space plans, circular matter and
other forms of advertising; provided, however, that MANAGER shall not use Owners' name in any advertising or promotional material
without Owners' express prior written approval in each instance; and provided further that advertising and promotional materials
shall be prepared and used in full compliance with federal, state and municipal laws, ordinances, regulations and orders. All costs
and expenses for reservation, marketing and advertising shall be made in accordance with the Budgets and shall be paid from the
Operating Account.

 

14.Employment
of Personnel. MANAGER shall investigate, hire, train, pay, supervise, and discharge the personnel necessary to be employed
in order to properly and adequately maintain and operate the Properties. This includes all designated personnel assigned solely
to the Properties (resident managers, leasing consultants, maintenance or porters). Such personnel shall in every instance be deemed
employees of MANAGER and not of any Owner, who shall have no right to supervise or direct such employees. MANAGER shall be bonded
with Owners listed as a payee on each of its respective reimbursement checks. MANAGER shall be responsible to OWNER and Owners
for all such employees. All matters pertaining to the employment, supervision, compensation, promotion and discharge of MANAGER's
employees and others engaged by MANAGER for the operation and/or maintenance of the Properties are the responsibility of MANAGER.
MANAGER shall fully comply with all applicable laws and regulations having to do with worker's compensation, social security, unemployment
insurance, hours of labor, wages, working conditions, and all other employer-employee related subjects. MANAGER's costs of salaries
and wages and its costs of insurance, processing, benefits and other compensation of those personnel employed by MANAGER hereunder
directly at the Properties, which personnel are working on or in connection with the Properties, shall be deemed to be reimbursable
expenses of MANAGER, as the same may be amended from time-to-time and approved by OWNER in writing. The costs for employment of
all such personnel shall have been approved by OWNER in writing if not otherwise reflected in the Budgets.

 

    	3

    	 

    

  

15.Service
Contracts. MANAGER shall negotiate and execute, in Owners' names and in accordance with the Operating Budget, contracts
for water, electricity, gas, telephone, vermin extermination, trash removal and other necessary services approved by OWNER in the
Operating Budget and deemed by MANAGER to be necessary or advisable for the operation of the Properties, and all such contracts
shall include a provision for cancellation by OWNER or MANAGER effective upon thirty (30) days written notice and for a term not
to exceed one (1) year; and shall require that all contractors provide evidence of sufficient liability and worker's compensation
insurance acceptable to OWNER. MANAGER shall also place orders in Owners' names for such equipment, tools, appliances, materials
and supplies as are approved by OWNER in the Operating Budget and are reasonable and necessary to maintain the Properties properly
and adequately. No such contracts will be recorded without the prior written consent of Owners.

 

16.Maintenance
and Repair of Properties. MANAGER shall maintain and operate the buildings, appurtenances and grounds of the Properties
(a) in accordance with federal, state and municipal laws, ordinances, regulations and orders; (b) in accordance with the rules,
regulations and orders of the local fire inspection department, the agency or board of casualty insurance underwriters or similar
body; and, (c) in accordance with standards acceptable to OWNER, including within such maintenance, without limitation thereof,
interior and exterior cleaning, painting and decorating, plumbing, carpentry, and such other normal maintenance and repair work
as may be necessary and/or desirable. The cost to accomplish such maintenance and repairs shall have been approved in, and fall
within, the Operating Budget, excepting, however, that emergency repairs immediately necessary to protect life and limb, reduce
the severity of loss, and secure any of the Properties may be made by MANAGER without the prior written approval of OWNER; provided,
however, that any such emergency situation shall be made known to OWNER and the affected Owner immediately by telephone (unless
the emergency situation arises at a time that OWNER or the affected Owner is not open for business, in which case notice by telephone
shall be given as soon as OWNER or the affected Owner is next open for business) and written notice shall be given to OWNER and
the affected Owner within forty-eight (48) hours of such occurrence. Disbursements for actual and reasonable expenses for such
maintenance and repair shall be made from the Operating Account.

 

17.Insurance
and Indemnity. 

 

17.1OWNER
shall cause to be placed and kept in force on the Properties all forms of property and liability insurance required by law and
the Loan Documents or needed to adequately protect Owners; such insurance may be under OWNER's or Owner's blanket insurance coverage.
All insurance coverage shall be placed with such companies, in such amounts, and with such beneficial interest appearing therein
as shall be acceptable to OWNER and otherwise be in conformity with the requirements of the Loan Documents, including any mortgages
on the Properties. MANAGER shall be included on OWNER's or Owners' general liability insurance policy as an additional insured.

 

17.2OWNER
and MANAGER hereby mutually waive their respective rights of recovery against each other for any loss insured by fire, extended
coverage, and other property insurance policies existing for the benefit of the respective parties; each party shall obtain any
special endorsements if required by their insurer to evidence compliance with the aforementioned waiver.

 

    	4

    	 

    

  

17.3Except
for MANAGER's, or its agents', gross negligence or willful misconduct, OWNER shall defend and indemnify MANAGER against all third
party claims, damages, liabilities, costs and attorney's fees arising out of MANAGER's actions taken within the scope of the agency
established by this Agreement.

 

17.4MANAGER
agrees to not permit the use of the Properties for any purpose which might void any policies of insurance relating to the Properties
or which might render any loss thereunder uncollectible, or which would be in violation of any law or governmental restriction.

 

17.5MANAGER
shall maintain in the name of MANAGER, and at MANAGER's expense, the following insurance policies with insurance companies acceptable
to OWNER or with a Best's Rating of A: IX or better, and which shall include a provision for thirty (30) days prior written notice
to SAPMC of cancellation or material change with no exceptions, and shall, prior to commencement of services, provide to OWNER
certificates of insurance evidencing the following coverages:

 

17.5.1
Comprehensive General Liability coverage for bodily injury and property damage liability, including broad-form comprehensive general
liability endorsement, or Commercial General Liability/occurrence-basis, written on forms acceptable to OWNER, for a combined single
limit of at least Two Million Dollars ($2,000,000) per occurrence. OWNER and Owners shall be named, by endorsement, as additional
insureds on such policy.

 

17.5.2
Automobile Liability covering MANAGER's owned, hired and non-owned autos, with a combined single limit in the amount of Two Million
Dollars ($2,000,000) per occurrence for bodily injury and property damage liability; and naming OWNER and Owners, by endorsement,
as additional insureds.

 

17.5.3
Worker's Compensation for statutory limits, and Employer's Liability coverage in an amount of not less than One Million Dollars
($1,000,000), for MANAGER's employees and including a waiver of carrier's right to subrogate against OWNER or Owners.

 

17.5.4
Fidelity Bond including Depositor's Forgery, in the amount of not less than One Hundred Thousand Dollars ($100,000) per occurrence.
Coverage shall include Owners' liability for funds collected on behalf of Owners.

 

18.Collection
of Monies. MANAGER shall collect all monies in accordance with this Agreement and the Leasing Guidelines or, when due,
all rent and other charges due from Tenants, lessees of other non-dwelling facilities on the Properties, concessionaires and otherwise
due Owners with respect to the Properties in the ordinary course of business. OWNER authorizes MANAGER to request, demand, collect,
receive and receipt for all such rent and other charges and, only with OWNER's prior written approval, to
institute legal proceedings in the name of the Owners under the provisions of Section 11 hereof. MANAGER will arrange for credit
card processing services as needed and the cost of discount fees and chargebacks shall be applied to the Operating Account. All
monies collected by MANAGER shall be forthwith deposited in the Operating Account. 

 

19.MANAGER
Disbursements. MANAGER shall cause to be disbursed from the Operating Account when due regularly and punctually (a) MANAGER's
compensation; and, (b) the operating expenses of the Properties. 

 

20.Records.
All statements, receipts, invoices, checks, receiving reports, leases, contracts, worksheets, financial statements, books and records,
and all other instruments and documents relating to or arising from the operation or management of the Properties shall be and
remain the property of OWNER and Owners. MANAGER shall prepare the same in a detailed manner acceptable to OWNER, and MANAGER shall
keep and maintain the same in a safe place for a period of five (5) years or until delivered to OWNER or Owners. OWNER and Owners
shall be entitled to inspect, review and audit such records at any time during normal business hours. All such records shall be
delivered to OWNER or Owners upon the termination of this Agreement.

 

21.Monthly
Reports. On or before the fifteenth (15th) day of each month during the Term, MANAGER shall deliver to OWNER
a statement of cash receipts and disbursements, a financial statement (cash or modified accrual basis as may be requested by OWNER)
and such other financial/management reports as may be reasonably required by OWNER, for the immediately proceeding fiscal month.
A "fiscal month" shall mean any current month, ending for financial statement purposes as of the last day of that month.

 

    	5

    	 

    

  

22.Returns
Required by Law. MANAGER shall execute and file punctually when due all forms, reports and returns required by law
relating to the employment of personnel. Owners shall be responsible for filing any income tax or other returns.

 

23.Compliance
with Legal Requirements. MANAGER shall take such action as may be necessary to comply with any and all orders or requirements
affecting the Properties by any federal, state, county or municipal authority having jurisdiction thereover, and orders of the
Board of Fire Underwriters or similar bodies, subject to the limitation contained in Section 16 in connection with the making of
alterations and repairs. MANAGER, however, shall not take any such action as long as OWNER is contesting, or has affirmed its intention
to contest and institutes proceedings contesting, any such order or requirement, except that if failure to comply promptly with
any such order or requirement would or might expose MANAGER to criminal liability, MANAGER shall notify OWNER and OWNER shall approve
such expenditure or make other arrangements to timely comply with such order in order that MANAGER shall not suffer any such liability.
MANAGER shall promptly, and in no event later than forty-eight (48) hours from the time of its receipt, notify OWNER in writing
of all such orders and notices or requirements.

 

24.Service
of Process. MANAGER is not authorized and shall not accept service of process or citation for violation of any code, ordinance,
regulation or law for OWNER. 

 

25.Disclosure.
MANAGER shall disclose to OWNER in advance in writing any and all relationships, and the nature and extent thereof, of MANAGER
to any other party with whom MANAGER contracts, for itself or on behalf of OWNER or Owners, in connection with the operation, maintenance
and repair of the Properties. Further, MANAGER may not contract for any services or supplies in connection with the operation,
maintenance and repair of the Properties with any affiliated agencies unless MANAGER demonstrates that the prices and terms (including
continuity, punctuality and reliability of contract performance) of such goods and services in connection with the operation, maintenance
and repair of the Properties are at least as favorable with the prices and terms of goods and services of equal quality available
from other reputable suppliers and contractors. 

 

26.Licenses
and Permits. MANAGER shall take all necessary steps for the procurement of all licenses and permits required for the operation
of the Properties and its related facilities, and MANAGER shall assist Owners in the application and processing of such licenses
and permits.

 

27.Inspection.
Within thirty (30) days following the date of this Agreement, MANAGER shall, if requested by OWNER, conduct a physical inspection
of the Properties and deliver to OWNER, for OWNER's review and approval, a complete inventory of the Properties.

 

28.Property
Management Fee. For the complete performance of the services described herein, MANAGER's compensation shall be the payment
by OWNER to MANAGER of two and 8 tenths percent (2.80%) of the Gross Income From Operations ("Property Management Fee").

 

29.Construction
Management Fee. If extraordinary repairs are made to the Properties and OWNER requires additional supervisory work from
MANAGER that is out of the ordinary scope of monthly management services (e.g., one (1) of the Properties is extensively reconstructed
or rehabbed, or the MANAGER is required to perform services not described herein), then MANAGER shall receive an additional construction
management fee of five percent (5%) of the rehabilitation costs. MANAGER and OWNER agree that prior to performing or arranging
any service or activity which would result in such additional compensation, MANAGER shall have given written notice thereof to
OWNER, and such performance, arrangement, and additional compensation shall first be authorized by OWNER in writing.

 

30.Closing
Management Fee. MANAGER shall receive a one month closing management fee per Property equal to the average of the last
three months of management fees incurred prior to termination of the agreement ("Closing Management Fee") as compensation
for services associated with the close of the management account following the sale of the Properties or noticed termination. MANAGER
shall not receive such fee if this Agreement is terminated because of a breach of contract by MANAGER .

 

    	6

    	 

    

  

31.Use
and Maintenance of Properties. It shall be the duty of the MANAGER at all times during the term of this Agreement to operate
and maintain the Properties according to the highest standards achievable consistent with the expressed plan of OWNER. MANAGER
shall use its best efforts to secure full compliance by the Tenants with the terms and conditions of their respective leases. MANAGER
shall be expected to perform such acts and deeds as are reasonable, necessary and proper in the discharge of its duties under this
Agreement.

 

32.Termination.
Notwithstanding anything to the contrary contained herein, (i) at any time during the Term, OWNER and MANAGER may terminate this
Agreement by giving thirty (30) days advance written notice to the other party; (ii) this Agreement shall automatically terminate
upon the sale of the Properties or any portion thereof (in which event only as to such portion of the Properties sold); (iii) OWNER
may terminate this Agreement immediately in the event of a breach of this Agreement by MANAGER or in the event of MANAGER's misconduct
by giving written notice of such termination to MANAGER, and upon such termination, in addition to all other rights and remedies
OWNER may have, MANAGER shall not be entitled to receive any further compensation as of the date of MANAGER's receipt of such written
notice of termination; and (iv) in the event OWNER is in default in the performance of any of its obligations hereunder, and such
default remains uncured for thirty (30) days following MANAGER's giving of written notice of such default to OWNER, MANAGER shall
have the right to terminate this Agreement upon thirty (30) days written notice to OWNER. Upon OWNER terminating this Agreement
pursuant to subsections (i), (ii) and (iv) of this Section 32, OWNER shall pay to MANAGER as its sole and exclusive compensation,
that portion of the Property Management Fee earned to the date of termination, less any amounts previously received by MANAGER.

 

33.Obligations
of Parties Upon Termination. Within thirty (30) days after any termination, MANAGER shall deliver to OWNER the written
report required by Section 21 herein for any period not covered by such a report at the time of termination, and within forty-five
(45) days after any such termination, MANAGER shall deliver to Owner, as required in Section 21 herein, the financial statement
for the fiscal year or portion thereof ending on the date of termination. All deposits and funds in the Operating Account or in
MANAGER's possession shall immediately be remitted to OWNER (or, if so directed by OWNER, to MANAGER's replacement). Immediately
upon termination of this Agreement for any reason, MANAGER shall deliver to OWNER all records, contacts, leases, receipts for deposits,
unpaid bills, a computer printout of all computerized records and all other papers or documents which are in MANAGER's possession
or under MANAGER's control and which relate to the Properties.

 

34.Assignment.
OWNER or Owners may assign its rights and obligations hereunder to any assignee of the Master Agreement. MANAGER may not assign
its rights and obligations hereunder without the advance written consent of Owner which consent may be withheld or granted by Owners
and Lender in their sole and absolute discretion.

 

35.Notices.
All notices, requests, demands or other communications under this Agreement shall be in writing. Notice shall be sufficiently given
for all purposes as follows: (a) when personally delivered to the recipient; notice is effective upon delivery; (b) when mailed
first class to the last address of the recipient known to the party giving notice; notice is effective three (3) mail delivery
days after deposit in a United States Postal Service office or mailbox; (c) when mailed certified mail, return receipt requested;
notice is effective upon receipt, if delivery is confirmed by a return receipt; (d) by overnight delivery using a nationally
recognized overnight courier, charges prepaid or charged to the sender’s account; notice is effective upon delivery, if delivery
is confirmed by the delivery service; or (e) when sent by telex or facsimile to the last telex or fax number of the recipient
known to the party giving notice; notice is effective upon receipt, provided that (i) a duplicate copy of the notice is promptly
given by first-class or certified mail or by overnight delivery, or (ii) the receiving party delivers a written confirmation
of receipt; any notice given by telex or facsimile shall be deemed received on the next business day if it is received after 5:00 PM
(recipient’s time) or on a nonbusiness day. Any correctly addressed notice that is refused, unclaimed, or undeliverable because
of an act or omission of the party to be notified shall be deemed effective as of the first date that said notice was refused,
unclaimed, or deemed undeliverable by the postal authorities, messenger or overnight delivery service. Any party may change its
address, telex or fax number by giving the other party notice of the change in any manner permitted by this Agreement. 

 

    	7

    	 

    

  

Addresses
for purposes of giving notice are as follows:

 

If
to OWNER,

		addressed to:	John Winfield

President
and Chairman

The
InterGroup Corporation

10940
Wilshire Blvd., Suite 2150

Los
Angeles, CA 90024

Phone:
310/889/2555

FAX:
310/440/0081

 

		With Copy to:	Michael G. Zybala

Asst.
Secretary & General Counsel

The
InterGroup Corporation

Phone:
310/466/7961

Email:
mzybala@intgla.com

FAX:
858/673/5406

 

If
to MANAGER

		Addressed to:	Investor's Property
Services

15707
Rockfield, Suite 225

Irvine,
CA 92618

Attention: Robert
C. Warren IIIPhone: 949/900-6160

FAX:
949/900-6601

 

 

36.Entire
Agreement. This Agreement contains the entire agreement between the parties hereto, and supersedes any prior written or
oral agreement between said parties concerning the subject matter contained herein. There are no representations, agreements, arrangements
or understandings, oral or written between and among the parties hereto, relating to the subject matter contained in this Agreement,
which are not fully expressed herein.

 

37.Governing
Law. The validity, interpretation, construction and performance of this Agreement shall be controlled by and construed
under the laws of the State of California, without giving effect to principles of conflict of law thereof. In the event of any
litigation arising out of any dispute in connection with this Agreement, the parties hereby consent to the jurisdiction of the
California courts.

 

38.Mediation
If a dispute, controversy or claim: (i) occurs, in law or in equity; (ii) involves any
of the Parties; and (iii) arises under, out of, in connection with, or in relation to this Agreement, any amendments to this Agreement
or a breach of this Agreement, the disputing Parties agree first to try in good faith to settle the dispute by mediation under
the mediation rules of JAMS or its successor organization before resorting to litigation. The disputing Parties agree that mediation
shall be completed within thirty (30) days of a notification of a dispute, unless otherwise agreed by such Parties in writing.

 

39.No
Recording. Unless required by Lender, this Agreement shall not be filed of record in the deed, deed of trust, real property
or other records in any county or office in any state. OWNER may file a copy of this Agreement with its reports to the Securities
and Exchange Commissions (“SEC”) to meet its public company reporting requirements with the SEC and NASDAQ.

 

40.MANAGER's
and OWNER's Liability. MANAGER shall be liable to OWNER for all losses, damages, liabilities, actions, proceedings, claims,
fines, penalties, costs and expenses, including without limitation attorney's fees and court costs, sustained or incurred by OWNER
by reason of or arising out of MANAGER's breach of the duties and obligations required by this Agreement. OWNER shall be liable
to MANAGER for all losses, damages, liabilities, actions, proceedings, claims, fines, penalties, costs and expenses, including
without limitation attorney's fees and court costs, sustained or incurred by MANAGER by reason of or arising out of OWNER's breach
of the duties and obligations required by this Agreement.

 

    	8

    	 

    

  

41.Sale
of Properties. If OWNER so requests, MANAGER shall cooperate with any and all brokers specified by OWNER to the end that
the respective activities of MANAGER and broker(s) may be carried on without friction and without interference with Tenants and
occupants. MANAGER will permit the broker to exhibit any of the Properties during reasonable business hours provided the broker
has notified MANAGER in advance. MANAGER agrees that failure on its part to extend cooperation to a broker(s) desiring to show
any of the Properties is a material default on its part under this Agreement and is a ground for termination of this Agreement
immediately upon written notice to MANAGER. MANAGER shall not be entitled to a commission or fee of any nature whatsoever with
respect to such sale.

 

42.Audits.
OWNER or Owners may examine or audit or cause to be examined or audited any and all books, records, computer software or other
materials maintained by MANAGER with respect to the operation, management, maintenance, or repair of the Properties, either at
the Properties or at any office of MANAGER.

 

43.Attorneys'
Fees. With regard to any action or proceeding between the parties arising from or relating to this Agreement or the enforcement
or interpretation hereof, the party prevailing in such action or proceeding shall be entitled to recover from the other party all
of its reasonable attorneys’ fees and other costs and expenses of the action or proceeding.

 

44.Applicability
of Agreement. It is understood and agreed that (a) the provisions of this Agreement shall apply to each of the Properties
described on Exhibit A as if each Property has a separate management agreement, and (b) the parties hereto may act in any
manner that is authorized by this Agreement with respect to any one (1) Property without affecting any of the other Properties.

 

45.Confidentiality.
MANAGER shall regard all information relating to the Properties and all information supplied to MANAGER by OWNER, lenders or any
of its employees or agents as confidential and proprietary information of OWNER and/or Owners, and shall not permit its release
to other parties without OWNER's prior written authorization.

 

46.Force
Majeure. Neither party shall be liable to the other in damages nor shall this Agreement be terminated nor a default be
deemed to have occurred because of any failure to perform hereunder caused by a "Force Majeure". In this Agreement, the
term "Force Majeure" shall mean an event, such as, but not limited to, fire, earthquake, flood, explosion, casualty,
strike, unavoidable accident, riot, insurrections, civil disturbance, act of public enemy, embargo, war, act of God, inability
to obtain labor, materials or supplies, any outbreak of disease, and any governmental regulation, restriction or prohibition, or
any other similar cause beyond the parties' control.

 

47.Standard
of Operation. MANAGER agrees to manage and operate the Properties in the name and for the account of Owners, in accordance
with the terms of this Agreement and in regular, continuous and substantial consultation with OWNER, and MANAGER hereby agrees
to furnish such management and operational skills in such a manner to protect, preserve, and enhance the financial return to Owners.
MANAGER shall operate the Properties considering the physical characteristics of the Properties and the quality level, marketing
mix and other matters set forth in the Budgets, and shall provide or cause to be provided all amenities in connection therewith
which are customary and usual to such an operation.

 

48.Meetings.
OWNER and MANAGER shall meet regularly upon OWNER's request, at mutually agreeable times and places, for the general purpose of
consultation and advisement as to Properties' operating plans for the balance of the fiscal year and all other material aspects
of Properties' performance, including without limitation, operations and management of all material policies and procedures affecting
all material phases of the conduct of business at the Properties. MANAGER shall consult with and seek advice from OWNER prior to
MANAGER effectuating any policies or procedures.

 

    	9

    	 

    

 

 

 

 

 

 

[Remainder
of Page Intentionally Left Blank; Signature Page Follows]

 

 

 

 

 

    	10

    	 

    

  

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written.

 

	"OWNER"	 	"MANAGER"
	 	 	 	 	 
	THE INTERGROUP CORPORATION	 	R & K INTERESTS, INC., a California Corporation doing business as INVESTORS' PROPERTY SERVICES
	 	 	 	 	 
	By:	/s/ John V. Winfield	 	By:	/s/ Robert C. Warren
	 	John
        V. Winfield	 	 	Robert
        C. Warren,
	 	President
        and Chairman	 	 	President

 

    	 

    	 

    

 

EXHIBIT
A

 

DESCRIPTION
OF PROPERTIES

 

	Property	Address	City	St	Units
	 	 	 	 	 
	Villas at Beaver Creek 	1000 Meadow Creek Dr  	Irving	TX	358
	Capitol Village	6855 U.S. 290  	Austin	TX	249
	Cross Keys	3209 Cross Keys Dr #2	Florissant	MO	264
	Meadowbrook	3579 Us Highway 46	Parsippany	NJ	151
	Pine Lake	101 Pinehurst Dr	Florence	KY	157

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