Document:

Exhibit 10.7

 

PARKING MANAGEMENT AGREEMENT

 

PARKING FACILITY MANAGEMENT AGREEMENT

 

THIS PARKING FACILITY MANAGEMENT
AGREEMENT (hereinafter referred to as the “Agreement”) is made and entered into as of the 12 day of July, 2019 by and between
1350 S Dixie LLC, a Delaware Limited Liability Company (hereinafter referred to as “Owner"), and Legacy Parking Company, LLC,
an Illinois Limited Liability Company (hereinafter referred to as "Manager").

 

R E C I T A L S:

 

A. Owner
is the owner of the parking facility located at 1350 S Dixie Hwy, Coral Gables, FL and identified as Paseo de La Riviera parking facility
in Coral Gables, Florida (hereinafter collectively referred to as the "Facility"), serving the Paseo de La Riviera mixed use
residential/commercial/hotel project (the “Project”).

 

B. Manager
is experienced in the management, supervision and operation of parking facilities.

 

C. Owner
desires to engage Manager to supervise, manage and otherwise cause to be performed the operation and maintenance of the Facility and Manager
desires to perform such services for Owner on the terms and conditions hereinafter specified.

 

NOW THEREFORE, in consideration
of the mutual covenants and promises contained herein, Owner and Manager hereby mutually agree as follows:

 

 Article 1. TERMS OF ENGAGEMENT - STANDARDS
OF PERFORMANCE. Owner hereby engages Manager as the sole and exclusive manager to supervise and direct the operation and management
of the Facility on the terms and conditions hereinafter set forth. Manager hereby accepts such engagement and agrees to manage the Facility
and to diligently perform and discharge the duties and responsibilities set forth herein.

 

 Article 2. RELATIONSHIP OF THE PARTIES.

 

2.01. Independent
Contractor. Owner and Manager are not to be considered joint ventures or partners, or one as the agent of the other. The relationship
of Manager to Owner is and at all times hereafter shall remain solely that of an independent contractor, and nothing herein shall be deemed
to create any other relationship between them. Neither party shall have the power to legally bind or obligate the other, nor shall either
party be liable for debts incurred by the other, except as may be specifically otherwise provided herein.

 

 Article 3. TERM. 

 

3.01. Term.
The Initial Term of this Agreement (hereinafter referred to as the “Term”) shall commence on the date that the Facility opens
to the public (estimated to be around January 1, 2020) (the “Commencement Date”) and shall expire on the day prior to the
third anniversary of the Commencement Date, unless sooner terminated as provided for herein. At the end of the Initial Term and any subsequent
renewal terms, this Agreement shall automatically renew for one (1) additional one (1) year term unless otherwise terminated as provided
for herein. Each twelve (12) consecutive month period beginning on the Commencement Date if it falls on the first day of a month or, if
not, the first day of the month following the Commencement Date shall be referred to as an “Operating Year.”

 

     

     

    

 

3.02. Termination.
Notwithstanding anything herein contained, Owner shall have the right to terminate this Agreement: (i) immediately, upon the damage or
destruction of the Facility by fire or other casualty which shall prohibit or materially impair the operation of the Facility, as determined
by Owner in its sole discretion; (ii) immediately, upon the sale of the Facility; (iii) upon not less than thirty (30) days' written notice
to Manager at any time in the sole discretion of Owner. Manager shall have the right to terminate this Agreement upon not less than sixty
(60) days’ written notice to Owner at any time in the sole discretion of Manager.

 

3.03. Payments Upon
Termination and Surrender of Possession. Promptly after the expiration or any prior termination of the Term, Owner shall
promptly pay to Manager the Management Fee and all other compensation or reimbursement due Manager hereunder, as of such date.
Promptly after the expiration or prior termination of the Term, Manager shall promptly: (i) surrender and deliver up to Owner the
Facility, including all equipment, signs, tools, supplies and other fixtures, materials and other personal property (hereinafter
referred to as the “Operating Assets”), except for Manager's trademark or logos and any signage on which such shall have
been incorporated); (ii) deliver to Owner a final Monthly Statement, as hereinafter defined, accounting for the operation of the
Facility; (iii) remit to Owner all monies, without any set-off or deduction whatsoever, representing Parking Revenues, as
hereinafter defined, received prior to any such expiration or termination minus Operating Expenses theretofore paid by Manager; and
(iv) deliver to Owner all records, contracts, leases, receipts for deposits, unpaid bills and other data and documents in possession
of Manager relating to the Facility. Any expiration or termination of this Agreement shall in no way affect or impair any rights or
obligations of either party hereto arising prior to such expiration or termination.

 

 Article 4. MANAGEMENT FEE. As compensation
for Manager's performance of its duties hereunder, Owner shall pay to Manager as a management fee the following:

 

4.01. Definitions.
As used herein, the following terms shall have the meanings set forth below.

 

A.  “Net
Operating Income” shall mean Parking Revenues less Operating Expenses.

 

B.  “Parking
Revenues” shall mean all receipts of every kind and nature, whether from daily or monthly contracts or any other source whatsoever,
received by Manager during the applicable periods during the Term plus the value (based on the rates currently being charged for parking
spaces on a monthly basis) of all free and discounted parking granted by Owner or Agent which arise out of the operation of and the parking
of vehicles in the Facility.

 

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C.  “Operating
Expenses” shall mean the following disbursements, costs and expenses incurred by Manager or Owner during the Term, in the ordinary
course of business and directly attributable to the management and operation of the Facility to the extent included in the Approved Budget:
(i) payments and deposits for Personnel Taxes, as hereinafter defined, disability benefits, and other similar expenses for on-site employees
directly engaged in the parking operation, but expressly excluding Manager's administrative or clerical staff not directly engaged in
the parking operation on-site at the Facility; (ii) payroll expenses, including, but not limited to, vacation pay, pension, and health
and welfare programs for on-site employees directly engaged in the parking operation at the Facility; (iii) payments to independent contractors
performing maintenance and repair services for the Facility in amounts from time to time approved by Owner; (iv) costs of procuring and
maintaining the insurance described in Article 8 hereof and losses covered by insurance or a risk retention plan provided by Manager under
the terms of this Agreement; (v) costs of purchasing supplies used in the operation and management of the Facility; (vi) actual costs
of laundry and uniforms of employees engaged in parking operations on site at the Facility; (vii) costs of printing parking tickets, forms
and other forms for use exclusively at the Facility; (viii) payment of uninsured damage claims, including amounts paid to satisfy the
deductible portion of any policy of insurance, but specifically excluding the amount of any claims not paid by insurance due to: (1) Manager's
failure to maintain insurance required hereunder; or (2) a defense to payment of such insurance due to the gross negligence or wrongful
misconduct of Manager, or its agents, contractors, servants, employees, sublessees, concessionaires, or licensees; (ix) reasonable legal
fees for processing and defending damage claims relating to the Facility and not resulting from damages indemnified by Manager under Section
11.01 of this Agreement, provided such fees shall be subject to the prior approval of Owner; (x) fees for licenses, permits and approvals
for operation of the Facility, but specifically excluding indirect licenses and permits necessary for Manager to do business generally;
(xi) on-site telephone charges only to the extent such charges are directly related to the operation of the Facility; (xii) Parking Tax,
as hereinafter defined, but specifically excluding taxes on the income of Manager and excluding any penalty; (xiii) the Management Fee,
as hereinafter defined; (xiv) bank charges, credit and debit card charges and postage; (xv) costs of repairs and maintenance required
of Manager under this Agreement including, without limitation, contracted maintenance for illuminated signs, cash registers and parking
equipment; (xvi) costs of compliance with Laws, as hereinafter defined; (xvii) accounts payable processing and computerized accounts receivable
service; (xviii) losses due to theft or robbery; (xix) costs of utilities related to the Facility; (xx) costs of gas, fuel, water, sewer,
elevator service and garbage disposal related to the Facility; (xxi) any other cost that is specifically approved by Owner; and (xxii)
amounts payable by the owner of the Facility under the Reciprocal easement and Operating Agreement affecting the Facility.

  

Notwithstanding anything contained in this Agreement
to the contrary, Operating Expenses shall not include and the Manager shall not be reimbursed for: (i) any portion of Manager's overhead
and general expense, including but not limited to, expenses or salaries of Manager's officers or employees whether employed in the main
or any branch office of Manager who are not on-site employees directly engaged in the parking operation at the Facility; (ii) any part
of fixed capital, including interest on Manager's capital, or on monies borrowed; (iii) costs to Manager of supervision activities both
at and away from the Facility; (iv) Manager's federal, state or municipal income and franchise taxes; (v) costs due to the gross negligence
or breach of this Agreement of Manager or its employees or officers; (vi) costs of all reports and accounting services provided by Manager;
(vii) political or charitable contributions; (viii) costs of travel; (ix) training expenses; and (x) Manager’s internal audits.

 

4.02. Management
Fee. Owner shall pay to Manager a management fee equal to Fifteen Thousand ($15,000.00) dollars annually ($1,250.00 monthly) (hereinafter
referred to as the “Management Fee”) during the Term.

 

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4.03. Incentive
Management Fee. In addition to the Management Fee, Owner shall pay to Manager an Incentive Management Fee (hereinafter referred to
as the “Incentive Management Fee”) in an amount equal to: (i) Nine and One Half Percent (9.5%) of the annual Net Operating
Income, as hereinafter defined, in excess of Five Hundred Thousand and no/100 Dollars ($500,000.00) (hereinafter referred to as the “Threshold”)
during each calendar year of the Term, provided however for any for any partial calendar year, the Threshold be reduced to the amount
calculated by: (i) dividing Threshold 365 days; and then (ii) multiplying the quotient so determined by the actual number of days this
Agreement was in effect during such year. An estimated payment of the Incentive Management Fee (hereinafter referred to as an “Incentive
Estimate”) shall be paid by Owner to Manager within thirty (30) days of the end of the first three calendar quarters of each calendar
year (March 31, June 30 and September 30) based upon annual Net Operating Income in excess of the Threshold , as applicable, for such
portions of the applicable calendar year as calculated based upon the above procedures for a partial calendar year. Each Incentive Estimate
shall be deemed an advance on the payment of any Incentive Management Fee due for such calendar year. In the event that the Incentive
Estimates paid to Manager for any calendar year exceed the Incentive Management Fee for such calendar year, the excess shall be deducted
from the next sums payable hereunder to Manager, provided however if at the time of payment of the Incentive Management Fee this Agreement
has been theretofore terminated, any excess payment of the Incentive Management Fee paid due to Incentive Estimates, shall be immediately
paid by Manager to Owner. The Incentive Management Fee shall be paid by Owner to Manager, after deducting any applicable Incentive Estimates,
within thirty (30) days of the delivery to Owner by Manager of an Annual Statement, as hereinafter defined, provided however if Owner
elects to perform an audit with respect to such Annual Statement, the Incentive Management Fee shall be paid by Owner to Manager upon
completion of such audit, but in no event later than ninety (90) days after delivery to Owner by Manager of an Annual Statement.

  

4.04. No Additional Compensation.
Except as provided in this Article 4, the Manager shall not be entitled to receive any extra compensation of any kind whatsoever, for
extra or additional service of any kind, unless the same was approved in writing by Owner in advance.

 

4.05 Fee Limitation.
Notwithstanding the foregoing, the Management Fee and the Incentive Management Fee shall in no event collectively exceed four percent
(4%) of Parking Revenues on an Operating Year basis.

 

Article 5. DUTIES AND RESPONSIBILITIES OF MANAGER. During the Term, Manager
shall have the following duties and responsibilities, except when performance thereof is prevented by strikes, fire, casualty or any
other event beyond its control:

 

5.01. Operation
and Management. Manager shall operate and manage the Facility for the parking and storage of passenger motor vehicles on a twenty-four
(24) hour, seven days per week, throughout the year, including Sundays and legal holidays, in a businesslike, first-class and efficient
manner. Manager shall at all times conform to the policies and programs established in writing by Owner so as to operate the Facility
in a faithful, diligent and efficient manner and shall comply with any written instructions, which may be given by Owner from time to
time. Manager shall devote all reasonable efforts consistent with first-class professional management as Manager of the Facility, and
shall perform its duties hereunder in conformity with the terms of this Agreement and in a diligent, careful and vigilant manner so as
to manage, operate, maintain and service the Facility as first-class parking facility. Manager shall timely pay all Operating Expenses.
Manager shall operate a valet service for the benefit of patrons and guests of the Project. The services of Manager hereunder are to be
of a scope and quality not less than those generally performed by professional parking managers of other similarly situated, first-class
parking garages. Manager shall make available to Owner the full benefit of the judgment, experience and advice of the members of Manager's
organization and staff with respect to the policies to be pursued by Owner in operating the Facility, and will perform such services as
may be requested by Owner in operating, maintaining, servicing and improving the Facility. Manager shall act as a fiduciary with respect
to the proper protection of and accounting for all Operating Assets. Manager shall commit a very experienced and well balanced team of
professionals, who will implement a highly organized and comprehensive operations and maintenance program for the Facility, and will cooperate
with Owner in establishing the highest quality level of professional services, with absolute control of costs and cost effectiveness.
Manager shall consult with the Owner and keep the Owner advised as to all major or extraordinary matters and decisions affecting the Facility,
including, without limitation, traffic flow, revenue control, capacity utilization, and hours and methods of operation, and shall endeavor
to produce the highest Parking Revenues and Net Operating Income possible consistent with the provisions of this Agreement.

 

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5.02. Employment
and Personnel. Manager shall employ, hire, supervise, direct and discharge all management supervisors and qualified personnel, including
managers, attendants, cashiers and maintenance personnel, necessary to operate the Facility in accordance with the terms of this Agreement.
All persons so employed shall be deemed to be employees of Manager and not of Owner, and they shall have no authority to act as the agent
of or to bind Owner. All employees shall be uniformed (uniforms to be reasonably approved by Owner) and neatly groomed and shall conduct
themselves in a courteous and professional manner. All employees shall, in every instance, be employees of Manager, and Manager shall
have total responsibility for and shall fully comply with all Laws respecting such employment, including without limitation, hours of
labor, wages and working conditions.

 

Manager will keep weekly payroll
records (or semi-monthly in the case of salaried employees) bearing explanation of the work performed by all employees, which records
shall be available for inspection by Owner at all times. Manager shall be responsible for complying with all Laws and collective bargaining
agreements affecting such employment. With respect to the Facility, Manager will be and will continue throughout the term of this Agreement
to be an equal opportunity employer, and Manager agrees not to discriminate against any applicant or employee because of age, race, religion,
color, handicap, height, sex, physical condition, developmental disability, sexual orientation or national origin in any of the following
or in any other regard: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates
of pay or other forms of compensation and selection for training. Manager hereby agrees to indemnify, defend and hold Owner harmless from
and against any and all claims, penalties and liabilities, to the extent the same are caused by Manager, which may be asserted by any
governmental body having authority or by any person claiming to be aggrieved by reason of any acts or failure to act by Manager in accordance
with or in violation of any such anti-discrimination Laws. In hiring employees, Manager shall include in its recruiting materials and
post in a conspicuous place, available for employees and applicants for employment, a notice setting forth the provisions of this nondiscrimination
clause.

 

5.03. Independent Contractors.
Upon Owner's prior written consent, Manager may enter into such service contracts with independent contractors as necessary to operate
the Facility. All persons so engaged as independent contractors shall be deemed to be independent contractors of Manager and not of Owner,
and they shall have no authority to act as the agent of or to bind Owner. A copy of any contract entered into by Manager pursuant to this
Section 5.03 shall promptly be provided to Owner (where necessary or desirable) Manager shall use its best efforts to enter into agreements
with independent contractors and let bids for necessary labor and materials at the lowest possible cost as in its judgment is consistent
with good quality, workmanship and service standard.

 

5.04. Insurance.
Manager shall obtain and maintain on behalf of Owner the policies of insurance specified in Article 8 hereof, the cost of which shall
be an Operating Expense.

 

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5.05. Laws.
Manager shall operate the Facility in compliance with any and all judicial decisions, orders, injunctions, writs, statutes, laws, rulings,
rules, codes, regulations, permits, certificates, or ordinances of any courts, boards, agencies, commissions, offices, or authorities
of any nature whatsoever of any governmental unit (federal, state, county, district, municipal, city, or otherwise) and any quasi-governmental
authorities, utility companies, fire underwriters and other agencies and organizations, whether now or hereafter in existence, which have
jurisdiction over all or any portion of the Facility and any and all insurance requirements, documents, or instruments relating to Owner,
Manager or the Facility (hereinafter referred to as the “Laws”). Manager shall also procure and maintain, at Owner's expense,
all licenses, permits and approvals of any governmental or quasi-governmental authority required in connection with the operation of the
Facility, including advertising sign permits, provided however Owner shall not be responsible for any licenses and permits required for
Manager to do business generally, and Manager shall obtain all such licenses and permits.

 

5.06. Taxes
and Returns. Manager shall timely prepare and file all necessary returns, reports and forms required by law in connection with unemployment
insurance, social security taxes, worker's compensation insurance, disability benefits, federal and state income tax withholding, actual
applicable payroll taxes, and other similar taxes and returns with respect to the personnel of Manager (hereinafter referred to as the
“Personnel Taxes”) and reports required by any federal, state or municipal authority which arise from the operation of the
Facility by Manager (other than income, use and personal or real property tax returns of Owner) and pay or make all deposits required
for Personnel Taxes. Manager agrees to collect from the users of the Facility, and shall be responsible for the payment of, any and all
taxes, fees and other charges due under any Laws with respect to parking at or the operation of the Facility (hereinafter collectively
referred to as the “Parking Tax”). Manager shall remit all applicable Parking Tax directly to the applicable taxing authorities
when due and will report to and account for any such payments to Owner monthly, in addition to disclosing Parking Revenues in each Monthly
Statement and each Annual Statement, as hereinafter defined.

 

5.07. Collection
of Parking Fees. Manager shall collect from users of the Facility all parking fees and other charges for use of the Facility, the
rates for which shall be determined by Manager but subject to prior written approval of Owner. Manager shall render monthly bills and
use reasonable efforts to collect fees for use of the Facility from monthly parkers provided, however, that Manager shall not under any
circumstances be liable for the non-payment of any amounts so billed and uncollected. Manager shall enforce the terms of all parking agreements,
licenses or other agreements for the use of any part of the Facility and, if required and upon obtaining the Owner's written consent,
retain attorneys or collection agencies for such purposes. Owner reserves the right to permit persons to use the Facility for no charge,
or reduced charges or to institute special promotions or other discounts with respect to certain users or all users of the Facility, provided
however, that the value of any such free or discounted parking will be calculated using the then-current posted parking rates and included
in the calculation of Manager's Incentive Management Fee, provided further that free parking granted for marketing purposes by Owner shall
not be so included in the calculation of Manager's Incentive Management Fee. Manager shall cooperate with Owner in coordinating the use
of the Facility by such persons without charge, or at reduced charges, or subject to such special promotions or discounts. The prices,
rates and fees charged for use of the parking space shall be subject to Owner's approval, which shall not be unreasonably withheld, conditioned
or delayed.

 

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5.08. Customer
Relations. Manager shall maintain courteous, businesslike relations with users of the Facility, and use its best efforts to expeditiously,
courteously and equitably resolve complaints of customers relating to the Facility. Manager shall promptly notify Owner of any material
complaint made by any user of the Facility.

 

5.09. Maintenance.
Manager shall cause the Facility to be maintained in a clean and orderly manner in compliance with all applicable Laws and in accordance
with reasonable standards prescribed by Owner, and shall supervise routine maintenance, repairs and improvements, and shall, with Owner's
prior written consent, enter into maintenance contracts required for the efficient operation of the Facility. Manager shall immediately
notify Owner if any portion of the Facility is in need of repair by other than the repair obligations to be performed by Manager pursuant
to this Agreement. Manager shall perform or cause to be performed all necessary or desirable maintenance, striping, signage, painting,
alterations, replacements and routine repairs and improvements in and to the Facility as: (i) are customarily made in the operation of
properties of the like-kind, size and quality of the Facility; and (ii) as may be required to fulfill Owner's obligations under Laws,
provided, however, that no alterations, repairs, additions or improvements the cost of which is not included in or reflected by the current
Approved Budget shall be made without the prior written approval of Owner. All such maintenance, striping, lighting, signage, painting,
alterations, replacements, repairs and improvements in and to the Facility shall be deemed an Operating Expense. Notwithstanding the foregoing,
emergency repairs for which prior approval by Owner cannot reasonably be obtained involving manifest danger to life or the Facility, or
immediately necessary for the preservation or the safety of the Facility, or for the safety of any users of the Facility, or required
to avoid the suspension of any necessary service to the Facility, or required by any judicial or governmental authority having jurisdiction,
shall be made by Manager without prior approval and irrespective of the cost limitation imposed hereunder, provided however Manager shall
notify Owner immediately of such emergency repairs for which prior approval is not required. Manager will not permit any mechanic's or
materialman's lien(s) or other liens to be placed upon the Facility and nothing in this Agreement shall be deemed or construed in any
way as constituting the consent or request of the Owner, express or implied, by inference or otherwise, to any person for the performance
of any labor or the furnishing of any materials to the Facility, or any part thereof, nor as giving Manager any right, power, or authority
to contract for or permit the rendering of any services or the furnishing of any materials that would give rise to any mechanic's, materialman's
or other liens against the Facility. In the event any such lien is attached to the Facility, Manager shall cause the same to be discharged
of record within twenty (20) days of the filing of same.

  

5.10. Consulting.
Manager shall make periodic visual inspections of the Facility and shall advise Owner, in writing, of any material defects in the Facility
or any part thereof observed by Manager, understanding that Manager is not an engineer or otherwise qualified to make such judgments,
immediately after ascertainment thereof by Manager, including, without limitation, material defects in all surfaces and walls of the Facility
and in the sewer, water, elevator, access, security, electrical, lighting, structural, plumbing, heating, ventilation and air conditioning
systems. Manager shall consult, advise and cooperate with Owner in the development and implementation of rules and regulations applicable
to the Facility, and, if appropriate, enforce such rules and regulations. Manager shall also advise and consult with Owner with respect
to potential changes to traffic control systems, safety and security matters, signage and/or any other matter that may substantially alter
the use and operations of the Facility, the implementation of which shall require Owner's written consent.

 

5.11. Notification
of Injury or Damage. Manager shall immediately notify Owner of any personal injury or property damage occurring to or claimed by any
user of the Facility or third party on or with respect to the Facility and shall, upon receipt, forward to Owner any summons, subpoena
or other like legal document served upon Manager relating to actual or alleged potential liability of Manager or Owner arising from the
Facility. Manager shall additionally notify Owner immediately of any fire, accident or other casualty, condemnation proceedings, rezoning
or other governmental order, lawsuit or threat thereof involving the Facility and any violations relative to the use, operation, repair
and maintenance of the Facility under Laws.

 

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5.12. Operating
Budget. Manager shall prepare and deliver to Owner for its approval, within thirty (30) days after the date hereof with respect to
the remainder of calendar year 2019 and prior to each August 1 during the Term with respect to each subsequent calendar year, a detailed
line item budget (hereinafter referred to as the “Budget”) which shall set forth, among other matters, anticipated Parking
Revenues, Parking Taxes, and Operating Expenses and reserves for such year. Upon Owner’s request, such budgets shall be prepared
on both an accrual basis and a cash basis showing a month by month projection of all items therein set forth. Each Budget shall be in
a form designated by Owner from time to time. Upon the receipt of the proposed Budget from Manager, Owner shall have sixty (60) days to
approve in writing the Budget. If Owner does not approve a Budget in writing within the aforesaid sixty (60) day period, then the submitted
Budget shall be deemed disapproved. A Budget or any revision thereof shall be deemed approved by Owner only if it is approved in writing
by Owner and same shall be deemed the Approved Budget hereunder. If such Budget is not approved by Owner, Manager shall operate the Facility
in accordance with the preceding year's Approved Budget until such time as a Budget for the then-current year is approved by Owner. Notwithstanding
anything to the contrary herein contained, Owner may at its option, at any time during the Term create its own Budget and such Budget
shall be deemed the Approved Budget. After approval by Owner of each Budget or submission to Manager by Owner of a Budget, same shall
be deemed the Approved Budget for that calendar year or portion thereof. Manager agrees to use diligence and to employ its best efforts
to ensure that the actual costs of operating the Facility do not exceed the Approved Budget. Owner shall have no obligation to fund or
reimburse any expense incurred by Manager which are greater than ten percent (10%) in excess of the amount set forth in the Approved Budget
for any expenditure, without Owner having first granted written permission to Manager for same, unless such expenses were incurred in
response to an emergency situation.

 

5.13. Statements
and Reports.

 

A.  Manager
shall, not later than eight (8) days after the end of each calendar month, render to Owner a monthly statement (hereinafter referred to
as a “Monthly Statement”) of the Parking Revenues, Operating Expenses and Net Operating Income derived from the operation
of the Facility for the month being reported upon and a cumulative statement for the applicable calendar year. Each of said reports shall
include a comparison to the prior year and such other information as Owner shall reasonably designate. Manager shall prepare such other
financial reports and perform bookkeeping services related to the Facility as requested by Owner from time to time. All accounting and
financial reports shall be submitted to Owner in such form and format as the Owner from time to time reasonably designates. Concurrently
with each Monthly Statement, Manager shall remit to Owner all Net Operating Income from the previous month.

 

B.  Within
sixty (60) days after the end of each calendar year, Manager will deliver or cause to be delivered to the Owner, an operating statement
in such form and format as the Owner from time to time designates, showing the Parking Revenues, Operating Expenses and Net Operating
Income derived from the operation of the Facility for the prior calendar year (hereinafter referred to as the “Annual Statement”)
and any Incentive Management Fee due to Manager for such prior calendar year, certified by an executive officer of Manager. The Annual
Statement shall include a comparison to the prior year and such other information as Owner shall reasonably designate. Owner shall have
the right, from time to time, to audit any and all Monthly Statements and Annual Statements and in connection with such audits to examine
all of Manager’s records (including all supporting data) of Parking Revenues, Operating Income and Net Operating Income and Manager
shall make all such records available at the office of Owner for such examination. If any such audit discloses that the actual Net Operating
Income reported by Manager is incorrect by more than Two Percent (2%), Manager shall pay all Owner’s cost of audit (not to exceed
$2500) and shall immediately pay to Owner any sums then due to Owner due to the error in such audit. If Manager shall fail to furnish
the Annual Statement within sixty (60) days after the end of any calendar year, then Owner shall have the right, at Manager’s expense,
in addition to all other remedies, to audit Manager’s records and prepare therefrom the Annual Statement, and Manager shall make
all records available for such examination.

 

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5.14. Deposit
of Parking Revenues. Manager shall promptly, on a daily basis, deposit all Parking Revenues into Manager's segregated bank account
as designated from time to time by Owner (hereinafter referred to as the "Account"). Within ten (10) days after the end of such
calendar month, any excess Parking Revenues (i.e., in excess of a reasonable reserve as agreed by Owner and manager) shall be transferred
from the Account to Owner, or as directed by Owner to satisfy lender(s) requirements, by deposit to a bank account opened and maintained
solely designated by Owner, provided the Manager shall not be required to make any such transfer if the transfer would reduce the balance
of the remaining funds below those funds reasonably required to pay ongoing or anticipated operating expenses and provide for recurring
expenses such as insurance premiums which may be due in large lump sum payments. All persons with access to the Account shall be approved
by Owner in its reasonable discretion.

 

 Article 6. OBLIGATIONS OF OWNER.
During the Term, Owner shall have the following duties and responsibilities:

 

6.01. Payments.
Owner agrees that Manager may pay Operating Expenses each month from the Account pursuant to the approved Budget or as otherwise approved
by Owner in writing.

 

6.02. Payment
of Management Fee. Each month, Manager may pay from the Account the Management Fee for such month pursuant to Article 4 hereof.

 

6.03. Deficit.
If the funds in the Account are at any time not sufficient to pay all such Operating Expenses and Management Fees when due, Owner shall,
within five (5) business days after receipt of written request from Manager, remit to Manager the amount of such deficiency.

 

6.04. Repair
and Restoration of Facility. Owner expressly acknowledges and agrees that except as provided in this Agreement, Manager shall have
no obligation to undertake any rehabilitation, repair or restoration of the Facility.

 

6.05. Taxes
and Utilities Deficiencies. Owner shall pay any and all personal property taxes, real estate taxes and other assessments levied by
any governmental authority with respect to the Facility (excluding the Parking Taxes and the Personnel Taxes).

 

6.06 Security.
Owner expressly acknowledges that Manager’s obligations in connection with the management, operation and promotion of the Facility,
and employment of persons in connection therewith, do not include the rendition of service, supervision, or furnishing of personnel in
connection with the personal safety and security of employees, tenants, customers, or other persons within and about the Facility. Manager
does not have knowledge or expertise as a guard or security service, and does not employ personnel for that purpose, nor do Manager’s
employees undertake the obligation to guard or protect customers against the intentional acts of third parties.

 

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 Article 7. BOOKS AND RECORDS. 

 

7.01. Preservation
and Inspection. Manager shall keep and preserve accurate books and records of all Parking Revenues collected and all disbursements
and Operating Expenses, including payment vouchers, bills and invoices, for not less than seven (7) years (except for parking tickets,
which shall be retained for a period expiring not less than six (6) months from the date of issue). Manager shall make all such books
and records available for inspection by Owner, its agents or accountants at reasonable times during normal business hours upon one (1)
days' prior written notice to Manager. Manager shall not discard any records at the end of the aforesaid seven (7) year period, without
thirty (30) days prior written notice to Owner, and shall permit Owner to retain such records. The forgoing provisions shall survive any
termination of this Agreement.

 

 7.02. Audit. Owner shall have
the right at all times to examine and audit all books and records pertaining to the management and operation of the Facility. In the event
any errors affecting the computation of the Management Fee are discovered in any statements delivered to the Owner by Manager, any amounts
paid or payable to Manager shall be adjusted accordingly and any overpayment or shortfall shall be paid to the party requesting same within
five (5) days after evidence of such error is delivered to the other party. If Manager fails to maintain records in the manner required
under this Agreement, or if an audit by Owner discloses any sum due Owner or any overpayment to Manager, Manager will promptly reimburse
Owner for any amounts due. If the variance in the aggregate of amounts as shown by the audit exceeds two percent (2.0%), Manager will
bear the cost of the audit.

 

 Article 8. INSURANCE. 

 

8.01. Required
Insurance. In accordance with the Approved Budget, Manager, as an Operating Expense, shall procure and maintain insurance as follows:

 

A. Worker's
compensation insurance in compliance with the Worker's Compensation Act of the State of Georgia, including employer's liability insurance
on all employees of the Facility not covered by the Worker's Compensation Act, for occupational accidents or disease, for limits of not
less than One Million Dollars and No Cents ($1,000,000.00) for any one occurrence and providing a waiver of subrogation in favor of the
Owner.

 

B. Commercial
general liability insurance for a combined single occurrence limit of not less than One Million Dollars and No Cents ($1,000,000.00) for
bodily injury or death and for property, subject to a deductible of not more than Twenty Five Thousand Dollars and No Cents ($25,000.00).

 

C. Garagekeepers
legal liability insurance covering fire, vandalism, riot and civil commotion with limits of liability of not less than One Million Dollars
and No Cents ($1,000,000.00) (excepting car theft and collision, the risk and liability for which shall be borne exclusively by Owner
without insurance), subject to a deductible of not more than Ten Thousand Dollars ($10,000.00).

 

D. Umbrella
public liability with limits of liability of not less than Three Million Dollars and No Cents ($3,000,000.00) in excess of underlying
commercial general liability and Garagekeepers legal liability insurance.

 

    10

     

    

 

E. Crime
insurance with a limit of not less than One Hundred Thousand Dollars and No Cents ($100,000.00), and depositor's forgery insurance with
a limit of not less than Two Thousand Five Hundred Dollars and No Cents ($2,500.00).

 

F. Such
other insurance as Owner may designate from time to time in writing to Manager.

 

8.02. Additional
Insureds. All insurance to be provided by Manager shall be endorsed to cover Manager, Owner, and any other person designated by Owner
and their respective employees, agents, directors and officers as additional insured related to Manager’s operations only as their
interests may appear.

 

8.03. Insurance
Companies. All such insurance shall be written by reputable, financially sound companies licensed to do business in the state in which
the Facility is located, and which have an A.M. Best rating of A-8, or better, reasonably satisfactory to Owner, and all such policies
shall provide that they may not be canceled without at least thirty (30) days' prior written notice to Owner and the commercial general
liability policies shall contain a severability of interest or separation of insured provision, affording defense and coverage for an
insured in the event of a claim brought by another insured. Manager shall deliver to Owner, within ten (10) days from the date hereof
and not less than fifteen (15) days prior to the expiration of any insurance policy, endorsements to the policies of insurance, or renewals
thereof, as applicable, evidencing coverage to be obtained by Manager in accordance with the terms of this Agreement and naming Owner
as an Additional Insured where applicable. Manager shall at all times comply with all requirements of the insurers issuing said policies.
All insurance required to be obtained by Manager shall be primary to any other valid and collectible insurance. The minimum limits of
insurance specified in this Article shall in no way limit or diminish Manager's liability under this Agreement. Any minimum amount of
coverage specified above shall be subject to increase at any time, and from time to time, after commencement of the second full year of
the Term if Owner shall reasonably deem same to be necessary for adequate protection and such coverage is generally maintained by managers
of comparable facilities. Within thirty (30) days after demand by Owner that the minimum amount of any coverage be so increased, Manager
shall furnish Owner with evidence of Manager's compliance with such demand.

 

8.04. Waiver
of Claims Covered by Insurance. Owner shall obtain and maintain “all risks” property insurance on the Facility and equipment
contained therein. Owner shall obtain and maintain liability insurance on elevators, if any, in the Facility and shall include Manager
as an additional insured. Owner and Manager hereby waive all claims for recovery from each other and their respective affiliates, employees,
agents, directors and officers, for loss or damage to property to the extent such damage may be covered by collectible insurance.

 

 Article 9. REPRESENTATIONS AND WARRANTIES.

 

9.01. Representations
and Warranties of Owner. As an inducement to Manager to enter into this Agreement and to perform its obligations hereunder, Owner
hereby represents to Manager that: (i) Owner has full right, power and authority to execute and deliver and perform this Agreement and
this Agreement has been executed and delivered by an authorized officer of Owner and is valid, binding and enforceable against Owner in
accordance with its terms; and (ii) neither the execution or delivery of this Agreement, nor the performance of Owner's obligations hereunder
will result in the breach of any of the terms or conditions of, or constitute a default under, any mortgage, note, bond, indenture, contract,
agreement or instrument to which Owner is a party.

 

    11

     

    

 

9.02. Representations
and Warranties of Manager. As an inducement to Owner to enter into this Agreement and to perform its obligations hereunder, Manager
hereby represents to Owner that:(i) Manager has full right, power and authority to execute and deliver this Agreement and this Agreement
has been executed and delivered by an authorized officer, manager or a general partner of Manager and is valid, binding and enforceable
against Manager in accordance with its terms; and (ii) neither the execution or delivery of this Agreement, nor the performance of its
obligations hereunder will result in the breach of any of the terms or conditions of, or constitute a default under, any mortgage, note,
bond, indenture, contract, agreement or instrument to which Manager is a party.

 

 Article 10. DEFAULT

 

10.01. Default
by Manager. The following events shall be a Default of Manager hereunder: (i) the event of Manager's fraud, gross negligence or willful
misconduct in the performance of its obligations hereunder; (ii) the event of a breach by Manager of any of its monetary obligations hereunder,
if such breach is not cured within five (5) days after written notice to Manager; (iii) the event of a breach by Manager of any of its
nonmonetary obligations hereunder, if such breach is not cured within such thirty (30) days after written notice to Manager provided,
if such breach cannot reasonably be cured within thirty (30) days, if Manager fails to commence the cure thereof within said thirty (30)
day period and thereafter fails to diligently pursue said cure or if Manager fails to complete said cure within ninety (90) days of such
breach; and (iv) if Manager shall file a petition seeking adjudication as a bankrupt or shall be adjudicated bankrupt or insolvent, or
shall become a party to any proceedings involving bankruptcy, insolvency, arrangement, reorganization, receivership or similar relief
against or with respect to Manager or any substantial portion of its property under any present or future law, whether voluntary or involuntary,
and, if involuntary, such proceedings shall not be stayed, dismissed or vacated within sixty (60) days after their inception.

 

10.02. Default
by Owner. The following events shall be a Default of Owner hereunder: (i) a breach by Owner of any of its monetary obligations hereunder,
if such breach is not cured within five (5) days after written notice to Owner; (ii) a breach by Owner of any of its nonmonetary obligations
hereunder, if such breach is not cured within such thirty (30) days after written notice to Owner provided, if such breach cannot reasonably
be cured within thirty (30) days, if Owner fails to commence the cure thereof within said thirty (30) day period and thereafter fails
to diligently pursue said cure or if Owner fails to complete said cure within six (6) months of such breach; and (iii) if Owner shall
file a petition seeking adjudication as a bankrupt or shall be adjudicated bankrupt or insolvent, or shall become a party to any proceedings
involving bankruptcy, insolvency, arrangement, reorganization, receivership or similar relief against or with respect to Owner or any
substantial portion of its property under any present or future law, whether voluntary or involuntary, and, if involuntary, such proceedings
shall not be stayed, dismissed or vacated within sixty (60) days after their inception.

 

10.03. Remedy.
Upon the occurrence of an event of Default by Manager or Owner under Sections 10.1 or 10.2 hereof, the non-defaulting party may terminate
this Agreement and may pursue any other remedy available at law or in equity. The rights and remedies of the parties hereto shall not
be mutually exclusive, and thus, the exercise of one or more of the provisions hereof shall not preclude the exercise of any other provision
hereof.

 

    12

     

    

 

 Article 11. INDEMNIFICATION.

 

11.01 Manager.
Manager agrees to indemnity, defend, and hold Owner and its employees, directors, partners, shareholders and lenders free and harmless
from any and all claims, demands, liability, loss, cost or expenses, including but not limited to reasonable fees of counsel and litigation
expenses, incurred by reason of negligent, willful or fraudulent act or omission by Manager or any of Manager's employees, independent
contractors or agents, provided however nothing herein contained shall be deemed to require Manager to indemnify Owner for liabilities
arising out of or in connection with: (i) any action taken by Manager in response to and in accordance with any written instructions given
or policies and programs established by Owner pursuant hereto; or (ii) the negligent actions or failure(s) to act of Owner, its employees
or agents. The foregoing provisions of this Section 11.01 shall survive the termination of this Agreement insofar as they relate to any
claim, which occurred during the Term, but this, shall not be construed to mean that Manager's liability survives as to other provisions
of this Agreement.

 

11.02 Owner.  Owner
agrees to indemnity, defend, and hold Manager and its employees, directors, partners, shareholders and lenders free and harmless from
any and all claims, demands, liability, loss, cost or expenses, including but not limited to reasonable fees of counsel and litigation
expenses, incurred by reason of negligent, willful or fraudulent act or omission by Owner or any of Owner's employees, independent contractors
or agents, provided however nothing herein contained shall be deemed to require Owner to indemnify Manager for liabilities arising out
of or in connection with: (i) any action taken by Owner in response to and in accordance with any written instructions given or policies
and programs established by Manager pursuant hereto; or (ii) the negligent actions or failure(s) to act of Manager, its employees or agents.
The foregoing provisions of this Section 11.02 shall survive the termination of this Agreement insofar as they relate to any claim, which
occurred during the Term, but this, shall not be construed to mean that Owner's liability survives as to other provisions of this Agreement.

 

 Article 12.  NOTICES. Any notice
pursuant to this Agreement shall be in writing and shall be sent by: (i) personal delivery; (ii) nationally recognized overnight courier
service; (iii) or by email, with a hard copy to follow by overnight courier service. A written notice shall be deemed to have been given
to the recipient party on the earlier of: (a) the date it shall be delivered to the address required by this Agreement; (b) the date delivery
shall have been refused at the address required by this Agreement; or (c) the date as of which the delivery service shall have indicated
such notice to be undeliverable at the address required by this Agreement, provided that email notices shall be deemed to have been given
when received by the recipient provided that a hard copy is received by the recipient on the next business day; provided that if any notice,
consent or other communication is received at the addressee's location on any business day after 5:00 p.m. (addressee's local time) or
on any day that is not a business day, such notice, consent or other communication shall be deemed to have been given on the next business
day. Unless changed in accordance with the preceding sentence, the addresses for notices given pursuant to this Agreement shall be as
follows:

 

	 	If to Manager:	Joe Wenderoth, Chief Executive Officer	 
	 	 	Legacy Parking Company, LLC	 
	 	 	NBC Tower, Suite 910	 
	 	 	455 N. Cityfront Plaza Drive	 
	 	 	Chicago, Illinois 60611	 
	 	 	 	 
	 	If to Owner:	1350 S Dixie LLC	 
	 	 	c/o NP International USA LLC	 
	 	 	2020 Ponce de Leon Blvd., Suite 1104	 
	 	 	Coral Gables, Florida 33134	 
	 	 	Attention:	 
	 	 	 	 
	 	 	 	 
	 	With copies to the following:	 	 
	 	 	Kathleen M. Martin, Esq.	 
	 	 	Malkerson Gunn Martin, LLP	 
	 	 	220 South Sixth Street, Suite 1900	 
	 	 	Minneapolis, MN 55402	 

 

or such other address(es) as may be furnished
in writing as aforesaid.

 

    13

     

    

 

 Article 13.  MISCELLANEOUS.

 

13.01. No
Joint Venture. This Agreement shall not be construed as effecting a partnership or joint venture between Owner and Manager. This Agreement
is not one of agency by Manager for Owner, but one with Manager engaged independently in the business of managing properties.

 

13.02. Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns, provided that Manager shall not be entitled to assign this Agreement or subcontract out its obligations hereunder without the
prior written consent of Owner.

 

13.03. Time.
Time is of the essence of this Agreement.

 

13.04. Attorneys'
Fees. If any party to this Agreement obtains a judgment against any other party by reason of breach hereunder or in connection with
a dispute arising under or in connection with this Agreement (whether in an action or through arbitration), such party shall be entitled
to recover its court (or arbitration) costs, and reasonable attorneys' fees and disbursements incurred in connection therewith and in
any appeal or enforcement proceeding thereafter, in addition to all other recoverable costs.

 

13.05. No
Waiver. No waiver by either party of any default of the other party or of any event, circumstance or condition permitting a party
to terminate this Agreement shall constitute a waiver of any other default of the other party or of any other event, circumstance or condition
permitting such termination, whether of the same or of any other nature or type and whether preceding, concurrent or succeeding; and no
failure on the part of either party to exercise any right it may have by the terms hereof or by law upon the default of the other party
and no delay in the exercise of such right shall prevent the exercise thereof by the non-defaulting party at any time when the other party
may continue to be so in default, and no such failure or delay and no waiver of default shall operate as a waiver of any other default,
or as a modification in any respect of the provisions of this Agreement. The subsequent acceptance of any payment or performance pursuant
to this Agreement shall not constitute a waiver of any preceding default by a defaulting party or of any preceding event, circumstance
or condition permitting termination hereunder, other than default in the payment of the particular payment or the performance of the particular
matter so accepted, regardless of the non-defaulting party's knowledge of the preceding default or the preceding event, circumstance or
condition, at the time of accepting such payment or performance, nor shall the non-defaulting party's acceptance of such payment or performance
after termination constitute a reinstatement, extension or renewal of this Agreement or revocation of any notice or other act by the non-defaulting
party. No waiver of any provision of this Agreement shall be effective unless signed by the party against whom the waiver is asserted.

 

    14

     

    

 

13.06. Integration;
Amendment. This Agreement, including any exhibits attached hereto, constitutes the entire agreement between the parties hereto relative
to the subject matter hereof. Any prior negotiations, representations, warranties, correspondence or understandings relative to the subject
matter hereof shall be deemed to be merged in this Agreement. This Agreement may not be amended or modified, except in writing, executed
by each of the parties hereto. If any term, covenant or condition of this Agreement or the application thereof to any person or circumstance
shall, to any extent, be held to be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant
or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby,
and each term, covenant or condition of this Agreement shall be valid and shall be enforced to the fullest extent permitted by law.

 

13.07. Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the state where the Facility is located.

 

13.08. Jury
Waiver. TO THE EXTENT PERMITTED BY LAW, IT IS MUTUALLY AGREED BY AND BETWEEN OWNER AND MANAGER THAT THE RESPECTIVE PARTIES HERETO
SHALL, AND THEY DO HEREBY, WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BETWEEN THE PARTIES HERETO OR THEIR SUCCESSORS
OR ASSIGNS ON ANY MATTERS ARISING OUT OF, OR IN ANY WAY CONNECTED WITH, THIS AGREEMENT AND THE RELATIONSHIP OF OWNER AND MANAGER.

 

13.09. Approvals
and Consents. Except as otherwise expressly provided herein, any approval or consent provided to be given by Owner hereunder may be
given or withheld in the sole and absolute discretion of Owner and must be contained in a writing signed by Owner in order to be effective.

 

13.10. Captions;
Number and Gender. The section and paragraph headings herein contained are for purposes of identification only and shall not be considered
in construing this Agreement. All terms and words used in this Agreement, regardless of the number or gender in which they are used, shall
be deemed to include any other number and any other gender as the context may require.

 

13.11. Limitation
of Liability. The liability of Owner under this Agreement or any amendment thereof, or any instrument or document executed in connection
with this Agreement, shall be limited to and enforceable solely against the assets of Owner constituting an interest in the Facility and
not other assets of Owner. No directors, officers, employees, managers, members, attorneys or shareholders of any corporation, partnership,
trust or limited liability company of Owner shall have any personal liability arising from or in connection with this Agreement.

 

13.12. Inspection
by Owner. Neither this Agreement nor anything contained herein shall be deemed to limit Owner's right to enter upon or inspect the
Facility or to perform any repair or maintenance or to do or perform any matter or thing required of Manager hereunder in the event of
Manager's failure to do so, and, without limitation on its other rights as the owner of the Facility, Owner shall have the right to do
any or all of the foregoing. Manager acknowledges and agrees that: (i) any inspections made by Owner shall be made for the sole benefit
of Owner and not for the benefit of Manager or any third party; and (ii) such inspections shall not constitute a waiver of any of the
provisions of this Agreement or any of the obligations of Manager hereunder.

 

    15

     

    

 

 13.13. Condemnation. In the event
that at any time or times prior to the termination of this Agreement, the Facility or any part thereof shall be condemned or shall be
voluntarily sold (Owner hereby expressly reserving the right and power to do so, notwithstanding any other provision hereof) for a purpose
for which the same could be acquired by the purchaser pursuant to eminent domain proceedings, then the interests of Manager hereunder
in the portion or portions of the same so condemned or sold shall forthwith terminate, and all compensation and damages awarded or paid
by reason of such condemnation or sale shall be paid and belong solely to Owner. In the event that less than all of the real property
then included in the Facility shall be so condemned or sold but such condemnation or sale shall injure the Facility to such extent that
the remaining portion thereof cannot be made effectively usable for a parking facility consistent with the terms hereof, then either party
may terminate this Agreement as to the Facility by written notice to the other party given within ten (10) days after the transfer of
title to the condemning authority.  

 

13.14. Software.
Any software owned by either party in connection with this Agreement shall: (i) remain the property of such party; (ii) be used only in
the manner authorized by such party from time to time; and (iii) be returned upon termination of this Agreement, or earlier as requested
by such party. Owner shall be the owner of any software purchased or paid for by Owner.

 

13.15. Confidentiality.
Manager shall keep the terms and conditions of this Agreement and of any other agreement in effect at the Facility, together with all
information and data obtained, possessed, or generated by Manager in connection therewith (collectively, "Privileged Information")
strictly confidential and not make any public announcements or any disclosure to any third parties, with respect to any Privileged Information
without the express written consent of Owner. Notwithstanding the foregoing, the restrictions imposed under this section shall not apply
to any Privileged Information required to be disclosed in order to comply with any law or judicial decree, or which, in Manager's reasonable
judgment, expressed to Owner in advance in writing, must otherwise be disclosed to relevant third parties, including accountants, attorneys,
and lenders in the course of reasonable and diligent management of the Facility. The obligation of confidentiality by Manager as set forth
above will not apply to any data and information with respect to the Facility which is a matter of public record. The provisions of this
Section 13.15 shall survive for five (5) years after the expiration or termination of this Agreement.

 

13.16. No
Rights of Third Parties. No creditor of Owner or Manager shall have any rights, whether as a third-party beneficiary or otherwise,
by reason of any of the provisions of this Agreement.

 

(Signature Page Follows)

 

    16

     

    

 

IN WITNESS WHEREOF,
Owner and Manager have caused this Agreement to be executed as of the day and year first above written.

 

	OWNER:	1350 S Dixie LLC
	 	 	 
	 	By:	/s/ Brent Reynolds
	 	Name:	Brent Reynolds
	 	Its:	Authorized Representative
	 	 	 
	MANAGER:	LEGACY PARKING COMPANY, LLC, an Illinois limited liability company
	 	 
	 	By:	/s/ Joseph Wenderoth
	 	Name:	Joseph Wenderoth
	 	Its:	Chief Executive Officer

 

 

17Exhibit 10.8

 

pROPERTY
mANAGEMENT aGREEMENT

 

PROPERTY/PROJECT: The Residential Component of
the Paseo de la Riviera Project located at 1350 South Dixie Highway, Coral Gables, Florida, to contain approximately 201,101 square feet
of rentable multifamily space.

 

EFFECTIVE DATE: July 1, 2019

 

OWNER: 1350 S. Dixie LLC

 

MANAGER: Gables Residential Services, Inc.

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	Section 1 DEFINITIONS	1
	1.01	AGREEMENT	1
	1.02	APPLICABLE LAW	1
	1.03	BUDGET	1
	1.04	CAPITAL IMPROVEMENTS MANAGEMENT FEE	1
	1.05	CAPITAL IMPROVEMENTS PROJECT	1
	1.06	CAPITAL IMPROVEMENTS MANAGEMENT SERVICES	1
	1.07	CLAIMS	1
	1.08	COMMENCEMENT DATE	1
	1.09	DEPOSITORY	1
	1.10	FAP SERVICES	2
	 	 	 
	As defined in the Addendum attached hereto.	2
	1.11	FEES	2
	1.12	FINAL MANAGEMENT FEE	2
	1.13	FISCAL YEAR	2
	1.14	GROSS RECEIPTS	2
	1.15	LEASING GUIDELINES	2
	1.16	MANAGEMENT FEE	3
	1.17	MANAGER	3
	1.18	MANAGER’S INDEMNITEES	3
	1.19	MANAGER’S LIABILITY INSURANCE	3
	1.20	MANAGER REPRESENTATIVE	3
	1.21	NON-RESIDENTIAL COMPONENT	3
	1.22	OWNER	3
	1.23	OWNER’S LIABILITY INSURANCE	3
	1.24	OWNER REPRESENTATIVE	3
	1.25	PRE-LEASE-UP MANAGEMENT FEE	3
	1.26	PROJECT and PROPERTY	3
	1.27	PROJECT EMPLOYEES	4
	1.28	STABILIZATION DATE	4
	 	 	 
	The date upon which ninety-three percent (93%) of the units within the Project are under lease.	4
	1.29	TERM	4
	1.30	UNIT INSPECTION FEE	4
	1.31	WORKING CAPITAL RESERVE	4
	 	 	
	Section 2 DUTIES AND RIGHTS OF MANAGER	4
	2.01	APPOINTMENT OF MANAGER	4
	2.02	GENERAL OPERATION	5
	2.03	BUDGET	6

 

    
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	 	 	Page
	 2.04	PROJECT EMPLOYEES AND OTHER PERSONNEL	6
	2.05	CONTRACTS AND SUPPLIES	7
	2.06	MANAGER’S SERVICES	7
	2.07	ALTERATIONS, REPAIRS AND MAINTENANCE	8
	2.08	LICENSES AND PERMITS	8
	2.09	LEGAL PROCEEDINGS	8
	2.10	DEBTS OF OWNER	8
	2.11	MEETINGS WITH THE MANAGER	8
	2.12	ENVIRONMENTAL MATTERS	8
	2.13	CAPITAL IMPROVEMENTS PROJECTS	9
	2.14	SPECIAL PROVISIONS NON-RESIDENTIAL COMPONENT	10
	 	 	
	Section 3 FEES	11
	3.01	MANAGEMENT FEE	11
	3.02	PRE-LEASE-UP MANAGEMENT FEE	12
	3.03	LEASE-UP UNIT ACCEPTANCE WALKS	12
	3.04	CAPITAL IMPROVEMENTS MANAGEMENT FEE	12
	3.05	PAST DUE AMOUNTS	12
	3.06	PLACE OF PAYMENT	13
	 	 	 
	Section 4 PROCEDURE FOR HANDLING RECEIPTS AND OPERATING CAPITAL	13
	4.01	BANK DEPOSITS	13
	4.02	SECURITY DEPOSIT ACCOUNT	13
	4.03	DISBURSEMENT OF DEPOSITS	13
	4.04	WORKING CAPITAL RESERVE	13
	4.05	EXCESS FUNDS	14
	4.06	AUTHORIZED SIGNATURES	14
	4.07	GENERAL COOPERATION	14
	 	 	 
	Section 5 ACCOUNTING	14
	5.01	BOOKS AND RECORDS	14
	5.02	PERIODIC STATEMENTS	15
	5.03	EXPENSES	16
	 	 	 
	Section 6 GENERAL COVENANTS OF OWNER AND MANAGER	16
	6.01	OPERATING EXPENSES	16
	6.02	OWNER’S RIGHT OF INSPECTION AND REVIEW	16
	6.03	INDEMNIFICATION AND HOLD HARMLESS BY OWNER	16
	6.04	INDEMNIFICATION BY MANAGER	17
	6.05	CERTAIN MATTERS RELATED TO INTELLECTUAL PROPERTY	17
	6.06	SURVIVAL OF OBLIGATIONS	17

 

    
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	 	Page
	
    Section 7 DEFAULTS AND TERMINATION RIGHTS
	17
	7.01	DEFAULT BY MANAGER	17
	7.02	REMEDIES OF OWNER	17
	7.03	DEFAULTS BY OWNER	18
	7.04	REMEDIES OF MANAGER	18
	7.05	EXPIRATION OF TERM	18
	7.06	TERMINATION WITHOUT CAUSE	18
	7.07	REMOVAL	18
	Section 8 INSURANCE AND WAIVERS	19
	8.01	PROPERTY INSURANCE	19
	8.02	OWNER’S LIABILITY INSURANCE	19
	8.03	MANAGER’S LIABILITY INSURANCE	19
	8.04	OWNER’S LIABILITY INSURANCE SHALL BE PRIMARY	20
	8.05	WAIVER OF SUBROGATION	20
	8.06	HANDLING CLAIMS	20
	8.07	WORKERS’ COMPENSATION INSURANCE	20
	8.08	DISHONESTY INSURANCE	20
	8.09	ENVIRONMENTAL INDEMNIFICATION	21
	 	 	 
	Section 9 MISCELLANEOUS PROVISIONS	21
	9.01	COMPLIANCE WITH APPLICABLE LAW	21
	9.02	NOTICES	21
	9.03	SEVERABILITY	21
	9.04	NO JOINT VENTURE OR PARTNERSHIP	22
	9.05	MODIFICATION TERMINATION	22
	9.06	ATTORNEYS’ FEES	22
	9.07	TOTAL AGREEMENT	22
	9.08	APPROVALS AND CONSENTS	22
	9.09	CASUALTY	22
	9.10	LIMITATIONS ON LIABILITY	23
	9.11	REPRESENTATIVES	23
	9.12	COMPETITIVE PROJECTS	24
	9.13	SUCCESSORS AND ASSIGNS	24
	9.14	ADDITIONAL COMPENSATION	24
	9.15	TERMINATION OF CONSULTING SERVICES AGREEMENT	24
	9.16	ASSIGNMENT	24
	Section 10 SIGNATURES	 

 

    
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Section
1 DEFINITIONS

 

As used in this Agreement, the following terms
shall have the following meanings:

 

		1.01	AGREEMENT

 

This Property Management Agreement, as
the same may be amended and modified in writing from time to time.

 

		1.02	APPLICABLE LAW

 

As defined in Section 9.01.

 

		1.03	BUDGET

 

A composite of the following: (i) an
operations budget, which shall be an estimate of receipts and expenditures for the operation of the Project during a Fiscal Year, including
a schedule of expected apartment rentals (excluding security deposits) for the Fiscal Year stated herein, a schedule of expected special
repairs and maintenance projects, and a schedule of expected payroll expenses, and (ii) a capital budget for such Fiscal Year and the
ensuing two (2) Fiscal Years; and (iii) the Leasing Guidelines in effect from time to time. The budget shall be in substantially
the format attached hereto as Exhibit C.

 

		1.04	CAPITAL IMPROVEMENTS MANAGEMENT FEE

 

As defined in Section 3.04.

 

		1.05	CAPITAL IMPROVEMENTS PROJECT

 

As defined in Section 2.13.

 

		1.06	CAPITAL IMPROVEMENTS MANAGEMENT SERVICES

 

As defined in Section 2.13.

 

		1.07	CLAIMS

 

As defined in Section 6.03.

 

		1.08	COMMENCEMENT DATE

 

The date which is one hundred twenty
(120) days prior to the date Owner anticipates making available the first unit in the Project for occupancy by a resident. Owner shall,
not more than ninety (90) and not less than thirty (30) days prior to the anticipated Commencement Date, provide Manager written notice
of the date upon which Owner expects the Commencement Date to occur. Owner and Manager agree to confirm the Commencement Date in writing
upon its occurrence.

 

		1.09	DEPOSITORY

 

An FDIC insured bank located in the United
States of America, designated by Manager and approved by Owner.

     

     

    

 

		1.10	FAP SERVICES

 

As defined in the
Addendum attached hereto.

 

		1.11	FEES

 

A collective reference to the Capital Improvements Management
Fee, the Final Management Fee, the Pre-Lease-Up Management Fee, Management Fee and the Unit Inspection Fee.

 

		1.12	FINAL MANAGEMENT FEE

 

As defined in Section 7.06.

 

		1.13	FISCAL YEAR

 

The year beginning JANUARY 1st and ending
DECEMBER 31st.

 

		1.14	GROSS RECEIPTS

 

The entire amount of all receipts
and revenue derived from the ownership or operation of the Project, determined on a cash basis for the period of time in question, including
but not limited to (a) tenant rentals collected pursuant to tenant leases for each month during the Term and utility reimbursement collections;
(b) parking rent/income over and above what is charged by the operator of the parking facility (for the avoidance of doubt, parking rent/income
includes only residential parking rent/income); (c) cleaning, tenant security and damage deposits forfeited by tenants in such period;
(d) laundry and vending machine income from laundry and vending machines for the exclusive use of the residential tenants; (e) any other
sums and charges collected in connection with termination of the tenant leases; (f) proceeds from rental interruption insurance; (g) Manager
provided special services to residents pursuant to programs established by Manager such as, by way of example and not limitation, dry
cleaning pick-up and delivery, pet care, and handling of deliveries of packages and goods to residents (collectively, “Manager
Special Services”), and (h) any and all other receipts from the operation of the Project. Gross Receipts do not include the
proceeds of (i) any security, damage or other deposits received from residents that have not been forfeited, (ii) any sale, exchange,
refinancing, condemnation, or other disposition of all or any part of the Project, (iii) any loans to the Owner whether or not secured
by all or any part of the Project, (iv) any capital contributions to the Owner, (v) interest on deposits of funds of Owner, (vi) sums
received by Owner for concierge services administered by Owner or third parties under contract with Owner that are paid to the providers
of the services arranged by the concierge (e.g., ticket prices) and that do not constitute Manager Special Services; and (vii) any insurance
proceeds (other than rental interruption or business interruption insurance, which shall be included in Gross Receipts) maintained with
regard to the Project.

 

		1.15	LEASING GUIDELINES

 

The guidelines setting forth the approved
terms for new leases, and renewals of existing leases, for the Project which are adopted from time to time by Owner in writing, upon advice
from and prior consultation with Manager. The initial Leasing Guidelines are attached hereto as Exhibit A. The form of lease has
been provided by Manager to Owner, and has been approved by Owner. Manager shall provide the Leasing Guidelines in the form that Manager
is, from time to time, generally utilizing (and has elected to use with regard to the Property), which guidelines shall also include a
description of Manager’s marketing plan. No modifications or amendments to the same shall be effective until the same have been
provided to Manager in writing by Owner. Manager agrees that at no time will rental rates be less than the minimum rentals set forth on
Exhibit B attached hereto unless Owner expressly agrees to the variation from such minimums in writing.

 

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		1.16	MANAGEMENT FEE

 

As defined in Section 3.01.

 

		1.17	MANAGER

 

Gables Residential Services, Inc., a
Texas corporation.

 

		1.18	MANAGER’S INDEMNITEES

 

As defined in Section 6.03.

 

		1.19	MANAGER’S LIABILITY INSURANCE

 

As defined in Section 8.03.

 

		1.20	MANAGER REPRESENTATIVE

 

As defined in Section 9.11.

 

		1.21	NON-RESIDENTIAL COMPONENT

 

The square feet of leasable area in the building in which
the Project is located which has been developed or designated by Owner for use for commercial, non-residential purposes, including, without
limitation the retail, hotel, parking facilities and any and all components which are shared amongst the various components (e.g., building
exterior, common entrances, lobbies and stairwells, common utility systems, etc.).

 

		1.22	OWNER

 

As defined in Section 10.

 

		1.23	OWNER’S LIABILITY INSURANCE

 

As defined in Section 8.02.

 

		1.24	OWNER REPRESENTATIVE

 

As defined in Section 9.11.

 

		1.25	PRE-LEASE-UP MANAGEMENT FEE

 

As defined in Section 3.02.

 

		1.26	PROJECT and PROPERTY

 

The Project is defined on page 1 of this
Agreement. The “Project” includes only the multifamily residential component of the mixed-use development being developed
by Owner on the property located at 1350 South Dixie Highway, Coral Gables, Florida. For clarity, the Project does not include the Non-Residential
Component. The term “Project” and “Property” are used interchangeably herein.

 

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		1.27	PROJECT EMPLOYEES

 

Those persons employed by Manager on-site
at the Project as a management staff: e.g., senior manager, manager, assistant managers, leasing agents, maintenance personnel, courtesy
officers, and other personnel necessary to be employed in order to maintain and operate the Project.

 

		1.28	STABILIZATION DATE

 

The date upon which
ninety-three percent (93%) of the units within the Project are under lease.

 

		1.29	TERM

 

The term of this Agreement which shall
commence on the Effective Date and shall, subject to the provisions hereof, terminate on the last day of the twelfth (12th) calendar month
following the month in which the Commencement Date occurs (e.g., if the Commencement Date is May 15, 2019, the initial one (1) year term
shall expire on May 31, 2020). The term of this Agreement will automatically renew on a year to year basis thereafter until and unless
terminated in accordance with the terms hereof.

 

		1.30	UNIT INSPECTION FEE

 

As defined in Section 3.03.

 

		1.31	WORKING CAPITAL RESERVE

 

An amount of $70,000.00 to be provided
by Owner and made available to Manager beginning on the Commencement Date and thereafter during the Term, to be used for the operation
of the Project in accordance with the terms hereof.

 

Section
2 DUTIES AND RIGHTS OF MANAGER

 

		2.01	APPOINTMENT OF MANAGER

 

This Agreement is effective as of the
Effective Date. Manager shall, for and in consideration of the compensation provided in Section 3, and Owner hereby grants to Manager
the sole and exclusive right, to supervise and direct the leasing, management, and operation of the Project pursuant to the terms of this
Agreement; provided, that while this Agreement is effective as of the Effective Date Manager’s leasing, management, and operations
duties hereunder shall not commence until the Commencement Date. In no event shall Manager have any responsibility in connection with
the completion of the development and construction of the Project by Owner. All services performed by Manager under this Agreement shall
be done as an independent contractor of Owner. All obligations or expenses incurred hereunder, including the pro rata portion used in
connection with, or for the benefit of the Project for all purchases, contracts, sales or services in bulk or volume which Manager may
obtain for discount or convenience in connection thereof shall be for the account of, on behalf of, and at the expense of, Owner except
as otherwise specifically provided. Unless incurred for the Project in accordance with the Budget or otherwise expressly provided for
herein to be reimbursed to Manager, Owner shall not be obligated to reimburse Manager for any of the following expenses incurred by Manager
in performing its services hereunder: office equipment; office supplies of Manager; duties performed on a supervisory level; services
rendered for other apartment projects; any overhead expenses of Manager incurred with respect to its general offices; or accounting services
performed hereunder. Owner will be obligated to pay governmental license fees for the Project and pay setup and third party annual license
fees for any applicable on-site software approved in the budget.

 

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		2.02	GENERAL OPERATION

 

Manager shall, following the Commencement
Date, lease, manage, operate and maintain the Project in the same manner as is customary and usual in the leasing, management, operation
and maintenance of first-class comparable facilities, and shall provide such services as are customarily provided by operators of first
class apartment projects of comparable class and standing consistent with the Project’s facilities and which are located in the same geographic
and market area as the Project, subject, however, in all events to the limitations of the Budget and the limitations on the authority
of Manager set forth in this Agreement. Manager agrees to perform its services and obligations under this Agreement in conformity with
the requirements of any covenants, conditions, restrictions and easements encumbering the Project of which Manager is notified by Owner,
provided that such agreements will not expand the services required of Manager under this Agreement. In addition to the other obligations
of Manager set forth herein, Manager shall render the following services and perform the following duties for Owner in a timely, faithful,
diligent and efficient manner: (a) coordinate the plans of tenants for moving their personal effects into the Project or out of it, in
a manner designed to minimize damage and disruption to the Project and the Non-Residential Component and with a view toward scheduling
such movements so that there shall be a minimum of inconvenience to other occupants of the Project and the Non-Residential Component;
(b) maintain businesslike relations with tenants whose service request shall be received, considered and recorded in systematic fashion
in order to show the action taken with respect to each; (c) use its commercially reasonable efforts to collect all monthly rents due from
tenants and rent for users or lessees in the Project, if any (e.g., storage lockers); request, demand, collect, receive and receipt for
any and all charges or rents which become due to Owner, and institute routine eviction proceedings pursuant to standards approved by Owner
to evict tenants delinquent in payment of monthly rental, other charges (security deposits, late charges, etc.); (d) prepare or cause
to be prepared for execution and filing by the Manager as an independent contractor all forms, reports and returns required by all federal,
state or local laws in connection with the unemployment insurance, workers’ compensation insurance, disability benefits, Social Security
and other similar taxes now in effect or hereafter imposed, and also cause all other requirements relating to the employment of personnel
to be met and satisfied by Manager; (e) use its commercially reasonable efforts at all times following the Commencement Date and during
the Term to operate and maintain the Project consistent with the operation of first-class comparable projects, taking into account the
limitations of the Budget and the limitations on the authority of Manager set forth in this Agreement; (f) supervise all maintenance,
construction, work and repairs, and, in accordance with Section 2.11 below, perform the Capital Improvements Management Services
as and when required thereby; (g) advertise when necessary, at Owner’s expense, the availability for rental for the Project units and
display “for rent” or other similar signs upon the Project, it being understood that Manager may install one or more signs on
or about the Project stating that same is under management of Manager and may use in a tasteful manner Manager’s name and logo in any
display advertising which may be done on behalf of the Project; (h) on behalf of and in the name of Owner, sign, renew and cancel tenant
leases for the Project, write apartment leases for terms which are in substantial conformance with the Leasing Guidelines and which utilize
only the Owner-approved form of lease document, subject, however, to the provisions of Section 2.04 regarding leases to Project Employees;
and (i) staff a front lobby during commercially reasonable business hours. Manager shall exercise its commercially reasonable efforts
to include the Project in signage advertising rentals available to be placed at the Project following the Commencement Date.

 

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		2.03	BUDGET

 

(a)
Manager shall submit a proposed budget for Owner’s approval no later than (x) ninety (90) days prior to the Commencement Date for
the year in which the Commencement Date occurs and (y) for each Fiscal Year thereafter, not later than ninety (90) days prior to the beginning
of such Fiscal Year. The Budget for the year in which the Commencement Date occurs shall be approved by Owner forty-five (45) days after
receipt (and subsequent Budget shall be approved by Owner forty-five (45) days after receipt), and in the event Owner fails to disapprove
all or part of the Budget within such period, the Budget shall be deemed to be approved. Such budget shall include a line item for the
Project’s proportionate share of costs owed by the Owner under any covenants, conditions, restrictions and easements encumbering
the Project. In the event Owner disapproves the Budget, in whole or in part, Owner and Manager shall jointly prepare the Budget as soon
as may be reasonably practicable. Until a complete new Budget is approved, Manager shall operate on the Budget or part thereof which is
approved and the disapproved items shall be governed by the like item approved for the prior Fiscal Year, with the exception of compensation
for Project Employees which compensation may be reasonably increased based on existing competitive conditions. The Budget shall contain
projections of rental rates for the ensuing year but Owner understands that such rental rates are projections only and that the Leasing
Guidelines are frequently revised to reflect market conditions. The Budget shall also contain costs for license fees incurred by Manager
with regard to the Accounting Management System (defined below). Except for variances in compliance with this Agreement, no expenses may
be incurred or commitments made by Manager in connection with the maintenance and operation of the Project which would be binding on Owner
and that are reasonably anticipated to exceed the amounts allocated to any particular operating expenses category (e.g., Payroll; Landscape;
Security; Redecorating; Maintenance; Marketing; Administrative; Capital) in the Budget, or paid to an affiliate of Manager, for the period
in question in the approved Budget by more than the greater of (x) $5,000 or (y) five percent (5%) without the prior consent of Owner;
provided, however, that the foregoing limitation with respect to incurring any expense in excess of the amount set forth in the Budget
shall not apply to expense relating to taxes, insurance or utilities, but notice of incurrence of such expenses shall be promptly given
to Owner. Manager makes no guaranty, warranty or representation whatsoever in connection with the Budgets or the operational results of
owning the Project, such being intended as estimates only. Manager will use its commercially reasonable efforts manage the Project in
accordance with the Budget.

 

(b)
In the event there is, for any calendar month, a variance of greater than ten percent (10%) between the results of operations for
such month and the estimated results of operations for such month as set forth in the Budget, Manager shall furnish to Owner, within twenty
(20) days after the expiration of such month, a written explanation as to reasons for such variance. If such a variance is reasonably
anticipated by Manager, Manager shall promptly notify Owner. If such a variance has occurred or is anticipated by Manager during the remainder
of any Fiscal Year, Manager shall prepare and submit to Owner a revised Budget covering the remainder of the Fiscal Year for Owner’s
approval which will not be unreasonably withheld, with an explanation for the revision. Upon Owner’s approval of any revised Budget,
such revised Budget shall thereafter be the Budget..

 

		2.04	PROJECT EMPLOYEES AND OTHER PERSONNEL

 

(a)
Manager shall investigate, hire, train, instruct, pay, promote, discharge and supervise the work of the Project Employees. Project
Employee training cost for specific industry and management training classes and certifications (to include class cost, meals and travel/transportation)
will be the responsibility of Owner to the extent set forth in the Budget. Manager shall supervise, through the Project Employees, the
firing, promotion, discharge and work of all other operating and service employees performing services in, for or about the Project, all
in the name of Manager. Manager shall be solely responsible for legal compliance concerning the foregoing activities and shall indemnify
and hold harmless Owner from employee claims, claims made by a governmental agency, and violations of law by Manager in respect to employment
matters.

 

(b)
 The Project Employees shall be employees of Manager. Owner shall reimburse Manager every other week, for the total aggregate compensation,
including salary, bonuses and fringe benefits, payable with respect to the Project employees and any temporary employees performing duties
at the Project. The term “fringe” benefits, as used herein, shall mean and include, but only to the extent approved in the Budget,
the employer’s contribution of FICA, unemployment compensation and other employment taxes, workers’ compensation, group life and accident
and health insurance premiums, and disability and other similar benefits paid or payable by Manager. The cost of such Project employees
shall be outlined and approved in the Budget.

 

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(c)
Owner recognizes that certain Project Employees are required to reside at the Project and be available on a full-time basis in
order to perform properly the duties of his/her employment. Owner agrees that, after the Stabilization Date up to three (3) of such Project
Employees (including his/her spouse and dependent children), in addition to his/her salary and fringe benefits, may receive up to a twenty
percent (20%) discount on the normal rental rates (but not on security deposits, utility pass-throughs, parking fees, association dues
and similar expenses) for any unit such employee is required to occupy. Additionally, prior to the Stabilization Date, Manager may lease
additional units to any of its employees (including his/her spouse and dependent children) at a 50% discount on the normal rental rates,
such leases to be on a month to month basis and identified as available for rent.

 

(d) Manager shall employ a property manager
(the “Property Manager”) as the senior Project Employee in charge of overseeing and implementing all on-site
management and administrative activities relating to the Project required of Manager under this Agreement. The Property Manger shall be
reasonably experienced in the management of properties which are comparable (in nature, size and use) to the Project, shall work from
the on-site management office and shall be subject to approval by Owner.

 

		2.05	CONTRACTS AND SUPPLIES

 

Subject to the Budget, Manager shall,
in the name of, on behalf of, and at the expense of Owner, do all of the following: negotiate arrangements and enter into contracts with
unrelated third party contractors to furnish to the Project electricity, gas, water, steam, telephone, cleaning, vermin exterminators,
furnace and air-conditioning maintenance, security protection, pest control, landscaping, and any other utilities, services and concessions
which are provided in connection with the maintenance and operation of apartment projects which are comparable to the Project and in accordance
with standards comparable to those prevailing in other comparable apartment projects; and place purchase orders for such equipment, tools,
appliances, materials and supplies as are reflected in the Budget and necessary to maintain the Project. Manager will make all contracts
with average costs in excess of $10,000.00 per month cancelable within thirty (30) days after written notice, and all contracts must be
assignable to mortgagee(s) of the Project unless otherwise agreed by owner on a case-by-case basis. Manager agrees to promptly deliver
to owner copies of all leases and other contracts entered into by Manager pursuant to this Agreement.

 

		2.06	MANAGER’S SERVICES

 

In the performance of its duties under
this Agreement, it is agreed that Manager may, upon Owner’s consent (which may be conditioned), enter into any contract on behalf
of Owner with subsidiaries and affiliates of Manager for the furnishing of services or supplies to the Project, including but not limited
to the purchasing of operating supplies, maintenance and advertising which are otherwise in accordance with the requirements of this Agreement,
provided that (i) the net cost to Owner therefor is no greater than the cost for such services or supplies, as applicable, if the same
had been provided by qualified, third party providers not affiliated with Manager and whose services or supplies are reasonably available
to the Project, and (ii) such contracts provide that the same automatically terminate upon the expiration or earlier termination of this
Agreement. Upon request by Owner, Manager shall provide reasonable evidence of third party market pricing on such services or supplies
which are provided by Manager’s subsidiaries or affiliates.

 

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		2.07	ALTERATIONS, REPAIRS AND MAINTENANCE

 

To the extent adequate
funds are made available to Manager by Owner for these purposes, Manager shall make or install, or cause to be made and installed, at
Owner’s expense, and in the name of Owner, all necessary or desirable repairs, interior and exterior cleaning, painting and decorating,
plumbing, alterations, replacements, improvements and other normal maintenance and repair work on and to the Project as are customarily
made by Manager in its operation of apartment projects on behalf of third parties; provided, however, that no unbudgeted capital expenditures
in excess of $5,000 per item, or a total of $20,000 annually, may be made for such purposes without the prior approval of Owner. Notwithstanding
any provision hereof to the contrary, after reasonable attempts to contact Owner have been made, Manager may make emergency repairs involving
manifest danger to life or property which are immediately necessary for the preservation of the safety of the Project, or for the safety
of the tenants or others, or are required to avoid the suspension of any necessary service to the Project, in which event such expenditures
may be made by the Manager without prior approval and irrespective of the cost limitations imposed by this Section 2.07. If Manager
makes any such emergency repairs, Manager shall promptly thereafter give notice thereof to Owner, which notice shall be accompanied by
the costs incurred (to the extent known by Manager) and a brief description of the nature of the emergency.

 

		2.08	LICENSES AND PERMITS

 

Subject to being provided funds adequate
to pay the costs thereof, Manager shall, in a timely manner, apply for, and thereafter use commercially reasonable efforts to obtain and
maintain in the name and at the expense of Owner all licenses and permits (including deposits and bonds) required of Owner or Manager
in connection with the management and operation of the Project. Owner agrees to execute and deliver any and all applications and other
documents and to otherwise cooperate with Manager in applying for, obtaining and maintaining such licenses and permits.

 

		2.09	LEGAL PROCEEDINGS

 

Manager shall recommend to Owner any
and all legal actions or proceedings which Manager deems reasonable to collect charges, rent or other income from the Project, or to dispossess
tenants or other persons in possession, or to cancel or terminate any lease, license or concessions agreement for the breach thereof,
or default thereunder by any tenant, licensee or concessionaire and upon Owner’s approval, Manager shall institute, in its own name
or in the name of Owner but in any event at the expense of Owner any such approved actions and proceedings..

 

		2.10	DEBTS OF OWNER

 

Except as otherwise expressly provided
herein, in the performance of its duties as Manager, Manager shall act solely as an independent contractor of the Owner. Except where
Manager is expressly acting herein as the agent for Owner, neither Manager nor Owner shall represent to any other person or entity that
Manager’s relationship to Owner hereunder is other than that of an independent contractor.

 

		2.11	MEETINGS WITH THE MANAGER

 

Manager shall cause the Property Manager
to schedule and attend regular monthly meetings at the Project with representatives of Owner, in order to review and discuss the operation
and management of the Project and Manager’s activities with respect to the same. Additional meetings shall be held when reasonably
requested by Owner or Manager. In addition to such regular meetings, representatives of Owners shall have the right at any time, and from
time to time, to meet with the Property Manager and any other employees of Manager that work on-site at the Project.

 

		2.12	ENVIRONMENTAL MATTERS

 

Manager shall assist Owner in connection
with the maintenance of LEED certification of the Project, including, if required and subject to the limits of the Budget, maintaining
an operations and maintenance program with respect to such certification as may be reasonably determined from time to time by Owner.

 

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		2.13	CAPITAL IMPROVEMENTS PROJECTS

 

As used herein, the term “Capital
Improvement Project” means a capital expenditure consisting of a material addition or structure that enhances the value
of the Property or a replacement or upgrade that extends the useful life of the Property including, by way of example, building or system
improvements, interior renovations, reconstruction, life cycle capital projects, and major repairs. For each Capital Improvement Project
as to which Owner requests Manager to perform and Manager agrees to perform, the following services (collectively, the “Construction
Management Services”), Owner shall pay Manager the fee described in Section 3.02:

 

(a) Advise Owner with respect to lines
of authority for the construction for the purpose of establishing a commercially reasonable process manner in which decisions, approvals
and other communications by Owner can be made, and develop procedures and report formats to establish the basis for communication between
Manager and Owner.

 

(b) At such frequency as may be reasonably
required to keep Owner generally apprised of the overall status of Capital Improvement Project, lead conference calls with the members
of the Owner to provide general status reports regarding the Capital Improvement Project.

 

(c) Advise and assist Owner to the extent
necessary in selecting contractors and any other persons and/or entities to perform surveying, engineering, environmental, landscaping,
interior design, space planning, cost management, cost estimating, purchasing, scheduling and other similar services for the Capital Improvement
Project (collectively, the “Consultants”); and make recommendations to Owner and negotiate on behalf of Owner
the form of the agreements with such contractors and the other Consultants with the view of achieving proper division of responsibility
and coordination by and among the various services to be performed by Manager, the contractors and Consultants and otherwise assist Owner
in retaining such contractors and Consultants.

 

(d) Assist Owner in administering contracts
with Consultants for the preparation of plans, drawings and written specifications for the Capital Improvement Project. Manager shall
use commercially reasonable efforts to cause the Consultants preparing the plans, drawings and specifications to deliver to same to Owner
for review, comment and a final decision by Owner. Manager shall coordinate the review and comment process by Owner and shall provide
its advice and counsel to Owner concerning questions raised or comments made during the review process.

 

(e) In consultation with and subject
to review and approval by Owner, prepare any required revisions to the budget for such Capital Improvement Project.

 

(f) In consultation with and subject
to review and approval by Owner, prepare any required revisions to the Owner’s schedule for the Capital Improvement Project and
advise Owner regarding compliance by the Consultants with such schedule.

 

(g) Advise Owner with regard to determinations
made by the contractors and Consultants regarding the requirements of all federal, state and local authorities having jurisdiction over
the Capital Improvement Project (including any agency, department, commission, board, bureau or instrumentality of any of them) (each,
a “Governmental Authority”) and determinations of the contractors and Consultants regarding the desirability
of, or the necessity for, special approvals and/or variances, if any, for the Capital Improvement Project.

 

(h) Assist the Owner in managing the
services of the contractors and the Consultants.

 

(i) Keep Owner reasonably informed as
to the efforts of the contractors and Consultants with regard to obtaining and maintaining in effect permits, variances, approvals and
other actions which under Applicable Law applicable to the work. All fees and permit charges for such permits, variances, approvals or
other consents that are required under Applicable Law shall, when known to Manager, be included in the budget for the Capital Improvement
Project.

 

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(j) Manager shall use commercially reasonable
efforts to cause the contractors to diligently pursue the Capital Improvement Project in a good and workmanlike manner, consistent with
the approved budget and in accordance in all material respects with the plans and specifications approved by Owner, the schedule for the
Capital Improvement Project, Applicable Law, authorizations, and any and all restrictions, easements, conditions, covenants and other
agreements applicable to the Capital Improvement Project.

 

(k) Manager shall (A) inspect, at regular
intervals, the progress of the Capital Improvement Project and (B) provide Owner advice regarding costs incurred at each stage of the
construction process and Manager’s opinion as to whether such costs are appropriate in light of the stage of construction of the
Capital Improvement Project.

 

(l) Periodically review with Owner the
approved budget for such Capital Improvement Project; consult with Owner regarding any recommended modifications to such budget; and update
the approved budget to reflect adjustments that have an impact on the budget or schedule for the Capital Improvement Project.

 

(m) Periodically review with Owner compliance
with the schedule for the Capital Improvement Project; identify and advise Owner regarding any material variation between actual progress
and the schedule for the Capital Improvement Project; and consult with Owner regarding any recommended modifications to the schedule for
the Capital Improvement Project.

 

(n) Review with Owner claims by any
contractor or Consultant for compensation for extra work allegedly performed or requested or required extensions to their respective construction
schedules.

 

		2.14	SPECIAL PROVISIONS NON-RESIDENTIAL COMPONENT

 

(a) The purpose of this Section 2.14
is to set forth certain understandings and agreements between Owner and Manager in regard to the Non-Residential Component and the relation
thereof to Manager’s obligations and duties under this Agreement.

 

(b) Owner shall be solely responsible
for managing and operating all aspects of the Non-Residential Component including, by way of example and not limitation, guest reservations;
guest check-in and check-out for any hotel component; leasing of all commercial areas; supervision of move-in and move-out of commercial
tenants; construction of interior finish work for commercial space; billing and collection of all guest fees; janitorial and housekeeping
services; parking charges; luggage delivery and retrieval; ground transportation services; concierge services; and collection and payment
of hotel occupancy taxes with regard to any hotel component; billing collection and accounting services with regard to all commercial
space.

 

(c) Notwithstanding any contrary provisions
of this Agreement:

 

(i) Manager
shall have no obligation to collect any fees or other charges due to Owner from guests or tenants of the Non-Residential Component. However,
to the extent the Operator (defined below) delivers to Manager sums collected from such guests, Manager shall deposit the same in the
accounts described in Section 4.01 hereof and include references to such revenue in the books and records maintained by Manager
pursuant to this Agreement.

 

(ii) Owner
shall be solely responsible for obtaining and maintaining all licenses, permits and approvals in order to operate and lawfully occupy
the Non-Residential Component, and Manager shall have no responsibility therefor.

 

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(iii) Manager’s
marketing or other materials with regard to its management activities including, without limitation, any links to Manager’s website(s)
used in connection with or that make reference to the Project, shall reference, in a manner reasonable acceptable to Owner, the Non-Residential
Component.

 

(iv) Manager
shall have no obligation to Owner or any tenant or guest of the Non-Residential Component to determine, or make inquiry or investigation
with regard to, the guest’s compliance with any of the documents, instruments or agreements executed, or deemed agreed to, by and between
Owner and any tenant or guest of the Non-Residential Component.

 

(v) Manager
shall have no obligation to investigate the background of any tenant or guest of the Non-Residential Component.

 

(vi) In
addition to and without limiting the provisions of Section 6.03 hereof, Owner agrees to shall indemnify, hold harmless, and defend
the Manager Indemnitees (as defined in Section 6.03), with counsel reasonably satisfactory to Manager, from and against any and
all Claims (as defined in Section 6.03) that in way arise out of or related to the operation or ownership of the Non-Residential
Component.

 

(d) Owner
shall either engage a third party to manage and operate the Non-Residential Component, or designate an employee or affiliate of Owner
to manage and operate the same (in either case, the “Operator”). Manager agrees to reasonably cooperate with Operator,
and Owner agrees to cause the Operator to reasonably cooperate with Manager, in the performance of their respective duties and obligations.

 

Section
3 FEES

 

		3.01	MANAGEMENT FEE

 

Commencing as of
the expiration of the Pre-Lease Up Period (defined in Section 3.02 below), Owner shall pay to Manager a monthly management fee (the “Management
Fee”) which shall be (i) prior to the Stabilization Date, the greater of (a) three percent (3%) of the Gross Receipts for
the current month or (b) $10,000.00, and (ii) after Stabilization, the greater of (a) three percent (3%) of the Gross Receipts for the
current month or (b) $12,000, but (subject to the following paragraphs of this Section 3.01), in no event more than four percent
(4%) of the Gross Receipts for current month. The Management Fee shall be paid no later than the tenth (10th) business day of the following
month provided, however that with respect to the Management Fee due for the last month of the Term, such Management Fee shall be payable
on the last day of such month.

 

Notwithstanding preceding paragraph of
this Section 3.01, if after the Stabilization Date, anything to the contrary herein, if all or a portion of the Project is damaged
or destroyed by fire or other casualty and such casualty causes one or more of the apartment units to be unavailable or otherwise unsuitable
for occupancy, in whole or in part, in the reasonable discretion of Manager (a “Casualty Disruption”), then for
each month during which a Casualty Disruption exists, then the Gross Receipts for such month will be increased by an amount equal to the
sum of the Casualty Disruption Adjustment for each of the Disrupted Units (defined below) during such month. The “Casualty
Disruption Adjustment’ for an apartment unit shall be the average monthly tenant rentals and related tenant charges payable on
such unit, calculated on the basis of the rentals and charges on the respective unit during the 3 months immediately prior to the month
of the Casualty Disruption. Units that were vacant at the time of the Casualty Disruption will not be subject to a Casualty Disruption
Adjustment. “Disrupted Units” are those Project units so affected by a Casualty Disruption and for which rentals
were not due and payable for all or a portion of the applicable month as a result of such casualty, but shall not include any such unit
where the tenant of same was relocated to another unit within the Project for the respective month and paid rentals for same. If a Project
unit only constitutes a Disrupted Unit for a portion of the month at issue, then its Casualty Disruption Adjustment will be the
pro-rata share of same properly allocable to such portion of the month. Any Casualty Disruption Adjustment is subject to Manager timely
and diligently proceeding with and completing all repairs and restoration necessary to make the subject unit(s) available and suitable
for occupancy as soon as reasonably possible, taking into account the limitations on Manager’s authority hereunder, obtaining any necessary
approvals from Owner, receipt of funds necessary to pay the costs of repair and restoration, and the time necessary to obtain all necessary
governmental approvals necessary therefor.

 

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		3.02	PRE-LEASE-UP MANAGEMENT FEE

 

Owner shall pay to Manager a pre-lease-up
management fee (the “Pre-Lease-Up Management Fee”) of $10,000.00 per month for a period (the “Pre-Lease
Up Period”) commencing on the Commencement Date and ending on the date when the first resident takes occupancy of a unit
pursuant to a lease.

 

		3.03	LEASE-UP UNIT ACCEPTANCE WALKS

 

If lease-up unit acceptance walks are
requested by Owner, Owner shall pay to Manager $45.00 per unit to conduct a fit and finish walk once the contractor has completed construction
and punch work, prior to occupancy (the “Unit Inspection Fee”). These unit inspections will include only the
following: a general, visual inspection of unit finishes; and general observation of the start-up or testing of the operation of appliances,
HVAC and plumbing. Conditions will be noted during the inspection and distributed to the Owner.

 

		3.04	CAPITAL IMPROVEMENTS MANAGEMENT FEE

 

In connection with Capital Improvement
Projects as to which Owner requests Manager to perform and Manager agrees to perform, Construction Management Services, Owner shall pay
Manager a fee (the “Capital Improvements Management Fee”) of seven percent (7%) of the total project cost for
each project, which include, without limitation, costs for contracts, sub-contracts, construction, engineering, design services, materials,
purchase orders, purchasing agreements and any other costs incurred in order to complete the project. Should Owner request Capital Improvements
Management Services with respect to a proposed Capital Improvements Project but elect not to implement such Capital Improvements Project
and, with regard thereto, the scope has been developed and pricing obtained by Manager, Manager will be entitled to, as the Capital Improvements
Management Fee for such project, a fee of $2,500 per month for the period of time that the pre-construction services were performed (with
credit to Owner for any interim payments made prior to the decision). The Capital Improvements Management Fee shall be paid to Manager
monthly as such construction project is being prosecuted, with the amount of the Capital Improvements Management Fee being based on costs
incurred during the preceding month. Within thirty (30) days following completion of a Capital Improvements Project, there shall be a
final adjustment between Owner and Manager so that Owner has paid, and Manager has received, the Capital Improvements Management Fee based
upon actual costs incurred for such Capital Improvements Project. Capital Improvement Projects which are completed, but not performed
by or under the supervisions of Manager, shall, for budget purposes, be a capital expenditure for the Project.

 

		3.05	PAST DUE AMOUNTS

 

Any of the fees or other sums due and payable by Owner to
Manager hereunder, or by Manager to Owner hereunder that are not paid when due will bear interest from the date due until paid at the
maximum non-usurious rate of interest permitted by applicable law, or if there is no such rate, at an annual rate equal to the prime rate
announced from time to time by JPMorgan Chase Bank plus four percent (4%).

 

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		3.06	PLACE OF PAYMENT

 

All sums payable by Owner to Manager
hereunder shall be payable to Manager at 225 N.E. Mizner Blvd., Suite 400, Boca Raton, Florida 33432, unless the Manager shall, from time
to time, specify a different address in writing.

 

Section
4 PROCEDURE FOR HANDLING RECEIPTS AND OPERATING CAPITAL

 

		4.01	BANK DEPOSITS

 

All monies received
by Manager for, or on behalf of, Owner shall be deposited by Manager with the Depository in one or more accounts under Owner’s name
(but with respect to each certain employees of Manager designated by Manager shall, in addition to Owner, have signature authority). Manager
shall maintain separate accounts for such funds consistent with the system of accounting of the Project and in accordance with any lender
requirements. All funds on deposit shall be managed by Manager subject to the terms hereof. All monies of Owner held by Manager pursuant
to the terms hereof shall be held by Manager in trust for the benefit of Owner to be held and disbursed as herein provided. In no event
shall Manager be responsible for any loss to amounts on deposit caused by the insolvency or other similar event or occurrence with respect
to the Depository.

 

		4.02	SECURITY DEPOSIT ACCOUNT

 

Manager shall cause
all security deposits paid by tenants to be deposited in a separate account with the Depository. All security deposit funds held by Manager
shall at all times be the property of Owner, subject to all applicable laws with respect thereto.

 

		4.03	DISBURSEMENT OF DEPOSITS

 

Manager shall disburse
and pay all funds on deposit on behalf of and in the name of Owner, in such amounts and at such times as the same are required in connection
with the ownership, maintenance and operation of the Project on account of all taxes, assessments and charges of every kind imposed by
any governmental authority having jurisdiction over the Project, and all costs and expenses of maintaining, operating and supervising
the operation of the Project, including, but not limited to, the Fees, salaries, fringe benefits and expenses of the Project Employees,
insurance premiums, debt service (but, with regard to debt service, only if Owner has requested Manager to do so in writing and provided
Manager the name and address where payments are to be made, a schedule of the date such payments are to be made, and a schedule reflecting
the amount of such payment) legal and accounting fees and the cost and expense of utilities, services, marketing, advertising and concessions,
all as incurred by Manager in fulfilling its obligations hereunder and only in accordance with the Budget and variances permitted by Section
2.04(b). To the extent there are insufficient funds to pay all of such costs and expenses, Manager shall promptly notify Owner that additional
funds are needed and the amount required, and pending receipt thereof by Manager, Manager shall have the right to pay such of the foregoing
items in the order and manner selected by Manager. Manager shall have the right to withdraw from such accounts and pay to itself the Fees
and any and all other sums due and payable to Manager pursuant to this Agreement.

 

		4.04	WORKING CAPITAL RESERVE

 

In addition to the
funds derived from the operation of the Project, Owner shall furnish and maintain the Working Capital Reserve and shall also provide such
other funds as may be necessary to pay the items which Manager is to pay as provided for in this Agreement pursuant to the Budget., including
meeting all payrolls, to pay the Fees, and satisfying, before delinquency, all accounts payable. Manager shall have no responsibility
or obligation with respect to the furnishing of such funds or any other funds necessary for the operation or ownership of the Project.

 

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		4.05	EXCESS FUNDS

 

Within ten (10)
days after the end of each calendar month, any excess operating funds (i.e., in excess of the Working Capital Reserve) shall be transferred
to Owner, or as directed by Owner to satisfy lender(s) requirements, by deposit to a bank account opened and maintained solely designated
by Owner, provided the Manager shall not be required to make any such transfer if the transfer would reduce the balance of operating funds
below those funds reasonably required to pay ongoing or anticipated operating expenses and provide for recurring expenses such as real
estate taxes and insurance premiums which may be due in large lump sum payments.

 

		4.06	AUTHORIZED SIGNATURES

 

Any persons from time to time designated
by Manager and who are employed by Manager or any affiliate of Manager shall be authorized signatories on all bank accounts established
by Manager hereunder, and each shall have authority to make disbursements from such accounts. Manager shall provide Owner the name(s)
of such persons, and the identify of such persons shall be subject to Owner’s approval (such approval not to be unreasonably withheld).
Funds may be withdrawn from any bank accounts established by Manager in Owner’s name only in accordance with this Section 4,
and only upon the signature of an authorized signatory. Owner may at any time and at Owner’s sole discretion direct Manager to withdraw
funds and make disbursements from such accounts but not so as to reduce the balance below the Working Capital Reserve.

 

		4.07	GENERAL COOPERATION

 

Manager agrees to work in good faith with
Owner in implementing procedures with regard to the handling and disbursement of funds that vary from the foregoing and that are required
by Owner’s lenders; provided, that, in so doing Manager shall not be obligated to incur any material, additional expenses, nor to implement
any procedure that imposes additional, material obligations upon Manager, subjects Manager to any additional, material liability or materially
obstructs Manager’s access to or use of the funds pursuant to this Agreement.

 

Section
5 ACCOUNTING

 

		5.01	BOOKS AND RECORDS

 

Manager shall keep on an accrual basis
on behalf of Owner and shall supervise and direct the keeping of a comprehensive system of records, books and accounts pertaining to the
Project using the accounting management system used from time to time by Manager (the “Accounting Management System”).
Owner may, from time to time, request that, in lieu of the Accounting Management System, Manager use an accounting management system preferred
by Owner (the “Owner’s Accounting Management System”). Manager shall have no obligation to use the Owner’s
Accounting Management System and shall not be considered to have agreed to do so unless Manager specifically agrees to do so in writing.
If Owner requests that Manager use the Owner’s Accounting Management System and Manager expressly agrees in writing to do so, then
the following shall apply:

 

(a) Owner
shall be responsible for obtaining and maintaining at Owner’s sole cost and expense, all licenses and authorizations required for
the use thereof by Manager and all consents to the use thereof by Manager. Without limiting the foregoing, Owner shall be responsible
for paying all royalty fees, usage fees, and other fees and charges assessed by the provider of such system and any other party that has
or holds rights thereto.

 

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(b) Owner
shall be responsible for providing, at Owner’s sole cost and expense and prior to Manager’s implementation of such system,
technical training of Manager’s employees and support with regard thereto in order to train such employees adequately in the use
and operation thereof. Additionally, if use thereof requires any computer hardware or software that Manager does not then own, Owner shall
provide the same at Owner’s sole cost and expense.

 

(c) Manager
shall in no event be responsible for any failure or defects in such system including, any inability to provide reporting required under
this Agreement by Manager by reason of the limitations in or deficiencies of such system, flaws, defects or failures of software with
regard thereto, of the lack of competent technical support with regard to such system. Furthermore, Owner understands that, despite technical
training, delays in providing, and inaccuracies in, reports to Owner by Manager are likely due to the inexperience of Manager’s
employees in utilizing such system.

 

(d) In
addition to and without limiting the provisions of Section 6.03 hereof, Owner agrees to shall indemnify, hold harmless, and defend the
Manager Indemnitees (as defined in Section 6.03), with counsel reasonably satisfactory to Manager, from and against any and all Claims
(as defined in Section 6.03) asserted against Manager by third parties alleging or relating to unauthorized use of such Owner’s
Accounting Management System or that relate to the payment of any fees or charges in regard thereto.

 

		5.02	PERIODIC STATEMENTS

 

		(a)	On or before the tenth (10th) day following the end of each calendar month following the Commencement
Date, Manager shall deliver, or cause to be delivered, to Owner (i) an income and expense statement showing the results of operation of
the Project for the preceding calendar month and the Fiscal Year to date; (ii) a comparison of income and expense statement showing the
results of operation of the Project for the preceding calendar month and the Fiscal Year to date; (iii) a comparison of income and expenses
to the Budget; and (iv) cash balances for all accounts established hereunder as of the last day of such month. Manager shall, at its option,
(i) preserve all invoices for a period of four (4) years or (ii) at the expiration of each Fiscal Year deliver all invoices to Owner.
Such statements and computations shall be prepared from the books on account of the Project.

 

		(b)	Within forty-five (45) days after the end of such Fiscal Year, Manager will deliver to the Owner, an income
and expense statement as of Fiscal Year end, and the results of operation of the Project during the preceding Fiscal Year (anything contained
herein to the contrary notwithstanding, however, Manager shall not be obligated to prepare any state or federal tax returns or other governmental
tax filings).

 

		(c)	In the event that Owner or Owner’s Mortgagee(s) requires an audit, the Manager shall cooperate with the
auditors.

 

		(d)	Owner may request, and Manager shall provide when available, such monthly, quarterly and/or annual leasing
and management reports that relate to the operations of the project as Manager customarily provides third-party owners of properties it
manages.

 

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		5.03	EXPENSES

 

All costs and expenses incurred in connection
with the preparation of any statements, budgets, schedules, computations and other reports required under this Section 5, shall
be borne by the Manager; provided, that, (a) as provided above, the license fees for the Accounting Management System that are, as reasonably
determined by Manager, allocable to the Project, shall be included in operating expenses to be paid by Owner up to (including, with respect
to fees accruing after the date of termination of this Agreement by Owner for a period of up to ninety (90) days in the case of termination
of this Agreement for any reason other than Manager’s default under this Agreement) and (b) if the hours expended by Manager’s
personnel in connection with any audit by Owner or any Lender exceed 16 hours, Manager shall be entitled to additional compensation of
$100 per hour unless the additional hours are the result of the auditors analyzing errors by Manager. Any costs and expenses incurred
in connection with the preparation of any statement or report not provided for under this Section 5, or any other provisions of
this Agreement, shall be borne by Owner.

 

Section
6 GENERAL COVENANTS OF OWNER AND MANAGER

 

		6.01	OPERATING EXPENSES

 

The Owner shall pay, or Manager shall
pay on Owner’s behalf, all costs and expenses of the operation and management of the Project, including, without limitation, the salaries
of all Project Employees and all fees assessed against Manager in respect to the payments to Manager hereunder, except as otherwise provided
in this Agreement. Owner covenants to pay all sums for operating expenses (including any Fees due hereunder) in excess of Gross Receipts
required to operate the Project upon written notice and demand from Manager within ten (10) days after receipt of written notice. Owner
further recognizes that the Project may be operated in conjunction with other projects managed by Manager and to the extent such costs
are in the Budget, costs may be allocated or shared between such projects on a more efficient and less expensive method of operation.
In such regard, Owner consents to the allocation of costs and/or the sharing of any expenses in an effort to save costs and operate the
Project in a more efficient manner to be allocated in a manner not prejudicial to Owner.

 

		6.02	OWNER’S RIGHT OF INSPECTION AND REVIEW

 

Owner, Owner’s lenders, and their
respective accountants, attorneys and agents have the right to enter upon any part of the Project at any reasonable time during the Term
upon reasonable prior notice to Manager for the purpose of examining or inspecting the Project or examining or making copies of books
and records of the Project. Any inspection shall be done with as little disruption to the business of the Project as possible. Books and
records of the Project shall be kept, as of the Commencement Date, at the Project or at the location where any central accounting and
bookkeeping services are performed by Manager and at all times shall be digitally accessible by Owner (and those to whom Owner desires
to provide such access).

  

		6.03	INDEMNIFICATION AND HOLD HARMLESS BY OWNER

 

Owner shall indemnify, hold harmless,
and defend Manager and Manager’s affiliates, and Manager’s and its affiliates respective partners, directors, shareholders, officers,
employees, and agents (collectively, “Manager Indemnitees”), with counsel reasonably satisfactory to Manager,
from and against any and all liabilities, claims, causes of action, fines, penalties, damages, suits, losses, demands and expenses whatsoever
including, but not limited to attorneys’ fees, paralegal expenses and costs (collectively, “Claims”) arising out
of or in the connection with the ownership, maintenance or operation of the Project or this Agreement or the performance of Manager’s
agreements hereunder, subject to the limitation set forth in the last sentence of this section. In all cases, Owner’s Liability Insurance,
as defined in Section 8.02 below, will be required to cover all actions of Manager such that the Owner’s insurer agrees to provide
Owner and Manager a defense (whether or not such defense is provided with a reservation of rights by the insurer). The indemnification
by Owner contained in this Section 6.03 is in addition to any other indemnification obligations of Owner contained in this Agreement,
and, except to the extent expressly provided for in the last sentence of this paragraph is not limited by or to Owner’s Liability Insurance.
IT IS INTENDED THAT OWNER INDEMNIFY, DEFEND AND HOLD THE MANAGER INDEMNITIES HARMLESS FROM ALL OF THE FOREGOING EVEN IF THE SAME ARE
SUFFERED OR INCURRED BY ANY MANAGER INDEMNITEE AS A CONSEQUENCE OF THEIR OWN NEGLIGENCE BUT NOT THEIR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
Notwithstanding the foregoing, Owner’s liability with regard to its obligation to indemnify Manager for Claims attributable to Manager’s
negligence shall, so long as Owner has obtained and maintained the commercial Owner’s Liability Insurance (and the same complies with
the provisions of Section 8.02 hereof and is endorsed as provided in and complies with Section 8.04 hereof) shall be limited
to the amount of Owner’s Liability Insurance.

 

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		6.04	INDEMNIFICATION BY MANAGER

 

Manager shall indemnify, hold harmless
and defend Owner and Owner’s affiliates, and Owner’s and its affiliates respective partners, directors, shareholders, officers,
employees and agents (collectively, the “Owner Indemnitees”), with counsel reasonably satisfactory to Owner,
from and against all Claims for bodily injury and property damage which (i) arise out of or are a result of the gross negligence or willful
misconduct of Manager and (ii) result in liability to any of the Owner Indemnitees, including but not limited to, liability to any of
the Owner Indemnitees that arise out of or are a result of the gross negligence or willful misconduct of Manager and are set forth in
a final adjudication or judgment on the merits by a court or arbitration proceeding or (in the case where Manager fails or refuses to
perform its defense obligations set forth in this Section 6.04) in a good faith settlement by Owner of such Claims. The indemnification
by Manager contained in this Section 6.04 is in addition to any other indemnification obligations of Manager contained in this
Agreement, and is not limited by Manager’s Liability Insurance (defined below).

 

		6.05	CERTAIN MATTERS RELATED TO INTELLECTUAL PROPERTY

 

Manager shall have the right and option
to use, in the management and operation of the Property, the name “Gables”, corporate logos associated and other intellectual
property that is proprietary to Manager (or Manager’s affiliates) including, by way of example and not limitation, the phrase “Taking
Care of the Way People Live” and computer software programs, and processes related thereto, with regard to management, leasing and
general operation of the Property (collectively, the “Intellectual Property”). In no event shall Owner have or claim, and
Owner hereby agrees that it shall not have nor claim, any right, title or interest in or to any of such proprietary Intellectual Property.
Owner hereby waives any and all rights or claims in or to the Intellectual Property and, without limiting the generality of the foregoing,
agrees that Owner has no and does not by reason of Manager’s management of the Property or otherwise acquire any rights in the name
“Gables”, any corporate logo associated therewith or in the phrase “Taking Care of the Way People Live”. References
to the name “Gables” in this paragraph shall refer to any stylized corporate logo of Manager and not to any other use of the
term “Gables”.

 

Manager shall have the right and option
to use, in the management and operation of the Project, the name “Paseo de la Riviera”, corporate logos of Owner associated
therewith and with the Project and other intellectual property that is proprietary to Owner. In no event shall Manager have or claim,
and Manager hereby agrees that it shall not have nor claim, any right, title or interest in or to any of such Owner’s intellectual
property. Manager hereby waives any and all rights or claims in or to Owner’s intellectual property and, without limiting the generality
of the foregoing, agrees that Manager has no and does not by reason of Manager’s management of the Project or otherwise acquire
any rights in the name “Paseo de la Riviera” or any corporate logo associated therewith.

 

		6.06	SURVIVAL OF OBLIGATIONS

 

The indemnification and hold harmless
obligations of the parties in Sections 6.03 and 6.04 shall survive the expiration or earlier termination of this Agreement.
The agreements and waivers of Owner set forth in Section 6.05 shall survive the expiration or earlier termination of this Agreement.

 

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Section
7 DEFAULTS AND TERMINATION RIGHTS

 

		7.01	DEFAULT BY MANAGER

 

Manager shall be deemed to be in default
hereunder in the event Manager shall fail to keep, observe or perform any covenant, agreement, term or provision of this Agreement to
be kept, observed or performed by Manager, or upon the gross negligence, malfeasance or willful misconduct of Manager, and such default
shall continue for a period of, in the case of any default which can be cured by the payment of a liquidated sum of money, ten (10) days
and, in the case of all other defaults, thirty (30) days after written notice thereof by Owner to Manager.

 

		7.02	REMEDIES OF OWNER

 

If an event of default by Manager as
specified in Section 7.01 hereof, Owner shall have the right to terminate this Agreement and pursue any remedy it may have at law
or in equity (provided that in no event shall Manager ever be liable to Owner for, and Owner hereby waives all rights to receive, punitive,
consequential or exemplary damages), it being expressly understood that although Owner has no further obligation to pay any Fees due hereunder,
Manager shall remain liable for any actual losses suffered as a result of Manager’s default. In addition, this Agreement shall be deemed
automatically terminated without notice or cure, at Owners option, if (i) an application for or consent to the appointment of a receiver,
trustee or liquidator for all or a substantial part of Manager’s assets is filed; (ii) Manager files a voluntary petition in bankruptcy;
(iii) Manager admits in writing in a legal proceeding Hs inability to pay its debts as they become due; (iv) Manager makes a general assignment
for the benefit of creditors; (v) Manager files a petition or answer seeking a reorganization, composition or arrangement under any bankruptcy
or insolvency laws; or (vi) Manager is adjudicated by any court of the Manager as a bankrupt or insolvent. Upon such termination, Manager
shall deliver to Owner any funds, books and records of Owner then in the possession or control of Manager and all accounts established
by Manager for security deposits and shall reasonably cooperate with Owner in transitioning to a new manager.

 

		7.03	DEFAULTS BY OWNER

 

Owner shall be deemed to be in default
hereunder in the event Owner shall fail to keep, observe or perform any material covenant, agreement, term or provision of this Agreement
to be kept, observed or performed by Owner, and such default shall continue for a period of, in the case of any default which can be cured
by the payment of a liquidated sum of money, ten (10) days and, in the case of all other defaults, thirty (30) days after written notice
thereof by Manager to Owner.

 

		7.04	REMEDIES OF MANAGER

 

If an event of default by Owner as specified
in Section 7.03 hereof exists, Manager shall be entitled to terminate this Agreement, and upon any such termination by Manager
pursuant to this Section 7.04, Manager shall have the right to pursue any remedy it may have at law or in equity (provided that
in no event shall Owner ever be liable to Manager for, and Manager hereby waives all rights to receive, punitive, consequential or exemplary
damages), except that Owner shall continue to be obligated to pay and perform all of its obligations which have accrued as of the date
of termination including, without limitation, all accrued but unpaid Fees. Additionally and notwithstanding the foregoing or any other
provision hereof to the contrary, should Owner default under this Agreement during the first sixty (60) days following the date hereof
or if Manager shall be removed from management during the first sixty (60) days following the date hereof due to a determination that
this Agreement is unenforceable or that Owner (or the party signing the same on behalf of Owner) did not have the right, power or authority
to enter into this Agreement, Owner (and its partners) shall nonetheless be responsible and liable to Manager for the termination fee
in the amount of $20,000.00.

 

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		7.05	EXPIRATION OF TERM

 

Upon the expiration of the Term hereof
pursuant to Section 1.28 hereof or the sooner termination of this Agreement (regardless of the cause thereof), Manager shall deliver
to Owner all funds, including tenant security deposits, books and records of Owner (in hard copy and digital formats) then in possession
or control of Manager (as well as all contracts, leases, documents, materials and supplies, keys, receipts, unpaid bills, and all other
papers and records pertaining to the operation of the Project as may then be in Manager’s possession or control, and shall transfer
control over and access to all accounts established by Manager hereunder), save and except such sums as are then due and owing to Manager
hereunder.

 

		7.06	TERMINATION WITHOUT CAUSE

 

This Agreement shall be terminable by
either party without cause upon thirty (30) days prior written notice to the other; provided, that no termination of this Agreement pursuant
to this Section 7.06 may be effective sooner than the thirtieth (30th) day following the Commencement Date. If this Agreement is
terminated by Owner without cause, then Owner shall be liable to Manager for a final management fee (the “Final Management
Fee”) in addition to fees payable under Section 3 equal to the sum of (a) if such termination by Owner is made prior
to the end of the sixth (6th) month following the Commencement Date, $20,000, and (b) $1,500, such $1,500 being compensation to Manager
for the month following the termination of this Agreement to provide for final monthly accounting and reporting activities.

 

		7.07	REMOVAL

 

Upon termination of this Agreement for
any reason or expiration of this Agreement, Manager shall have the right to remove all signs and other materials from the Project which
include, contain or reflect the name “Gables” (but only to the extent such reference is with respect to any stylized corporate
logo of Manger and not to any other use of the word “Gables”), the associated corporate logo or the phrase “Taking Care
of the Way People Live”, provided that Manager shall repair at its sole cost and expense any damage caused by such removal. The
provisions of this Section 7.07 shall expressly survive the termination or expiration of this Agreement.

 

Section
8 INSURANCE AND WAIVERS

 

		8.01	PROPERTY INSURANCE

 

Owner shall cause to be placed and kept
in force property damage insurance for the Project, and such other property damage insurance as Owner may elect, at Owner’s expense. Owner
shall furnish to Manager appropriate certificate of insurance.

 

		8.02	OWNER’S LIABILITY INSURANCE

 

During the Term, Owner, at Owner’s expense,
shall carry and maintain commercial general liability insurance, including blanket contractual liability coverage, on an “occurrence”
basis, with limits of not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate,
and umbrella/excess insurance with limits not less than Four Million Dollars ($4,000,000) (the “Owner’s Liability Insurance”).
The Owner’s Liability Insurance shall include coverage for losses arising from the ownership, management, and operation of the Property.
Owner’s Liability Insurance shall name Manager as additional insured by endorsement acceptable to Manager. Owner shall provide to
Manager a Certificate of Insurance evidencing such coverage from an insurance carrier reasonably acceptable to Manager (A.M. Best Rating
of A- VIII or higher) reflecting that the Owner’s Liability Insurance is effective in accordance with this section and that the Owner’s
Liability Insurance will not be canceled without at least thirty (30) days prior written notice to Manager.

 

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		8.03	MANAGER’S LIABILITY INSURANCE

 

During the Term, Manager shall carry
and maintain the following insurance (collectively, the “Manager’s Liability Insurance”) at the Manager’s
sole cost and expense.

 

(a) Worker’s
Compensation insurance as described in Section 8.07 below that shall be a property expense included in the Budget;

 

(b) Employer’s
Liability insurance in a minimum amount of $1,000,000 each accident; $1,000,000 disease; and $1,000,000 per employee;

 

(c) Commercial
general liability insurance with coverage in an amount of at least $1,000,000 per occurrence and $2,000,000 aggregate. Such policy to
be written on an occurrence basis, include contractual liability, property damage and bodily injury and completed operations coverage;

 

(d) Automobile
Liability insurance covering Owned (if any), Hired and Non-Owned vehicles with a combined single limit of $1,000,000 per accident; and

 

(e) Umbrella/Excess
Liability insurance in excess of primary liability limits for commercial general liability no less than $2,000,000 per occurrence and
in the annual aggregate on per location basis; and

 

(f) Fidelity
Insurance. Crime and fidelity insurance in the amount of $2,000,000.

 

At Owner’s request (made not more often
than semi-annually), Manager shall provide to Owner a Certificate of Insurance evidencing such coverage from an insurance carrier reasonably
acceptable to Owner (A.M. Best Rating of A- VIII or higher) reflecting that the Manager’s Liability Insurance is effective in accordance
with this section and that the Manager’s Liability Insurance will not be canceled without at least thirty (30) days prior written
notice to Owner. The certificates of insurance with respect to commercial general liability, automobile liability and the umbrella/excess
liability shall name Owner (and, if required, Owner’s lender) as additional insureds.

 

		8.04	OWNER’S LIABILITY INSURANCE SHALL BE PRIMARY

 

Notwithstanding any provision of this
Agreement to the contrary, in connection with claims by third parties, as between Owner’s Liability Insurance and Manager’s Liability
Insurance, Owner’s Liability Insurance shall for all purposes be deemed the primary coverage. No claim shall be made by Owner or its insurance
company under or with respect to any insurance maintained by Manager except in the event that Owner’s Liability Insurance is exhausted
(and then only to the extent Manager has liability for the Claim under Section 6.04). The Owner shall have its insurance carrier
accept and endorse these coverage requirements.

 

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		8.05	WAIVER OF SUBROGATION

 

Each insurance policy maintained by Owner
or by Manager with respect to the Property shall contain a waiver of subrogation clause, so that no insurers shall have any claim over
or against Owner or Manager, as the case may be, by way of subrogation or otherwise, with respect to any claims that are insured under
such policy. All insurance relating to the Property shall be only for the benefit of the party securing said insurance and all others
named as insureds. Notwithstanding any contrary provision of this Agreement, Owner and Manager hereby release each other from and waive
all rights of recovery and claims under or through subrogation or otherwise for any and all losses and damages to property to the extent
caused by a peril insured by the other or that is, regardless of whether insured, insurable under the policies of insurance required to
be maintained under this Agreement by the waiving party (and, for this purpose, it shall be assumed that Owner has obtained and maintains
a property damage insurance policy in the full replacement cost of the Project), REGARDLESS OF THE NEGLIGENCE OF OWNER OR MANAGER,
OR ANY OF THEIR RESPECTIVE AGENTS, CONTRACTORS OR EMPLOYEES, and agree that no insurer shall have a right to recover any amounts paid
with respect to any claim against Owner or Manager by subrogation, assignment or otherwise. The provisions of this Section 8.05
shall expressly survive the expiration or earlier termination of this Agreement.

 

		8.06	HANDLING CLAIMS

 

Manager shall report to Owner, within
a reasonable amount of time after obtaining actual knowledge of the same, all accidents and incidents occurring at the Property and that
involve material damage to property or substantial injury to persons and that, in either case, could reasonably be expected to result
in a claim against Owner. Manager and will assist Owner in Owner’s attempts to comply with all reporting and cooperation provisions in
all applicable insurance policies. Manager is authorized to settle on Owner’s behalf any and all claims against property insurers not
in excess of $1,000, which includes authority for the execution of proof of loss, the adjustment of losses, signing of receipts, and the
collection of money. If the claim is greater than $1,000, Manager shall act only with the prior written approval of Owner.

 

		8.07	WORKERS’ COMPENSATION INSURANCE

 

Manager shall cause to be placed and
kept in force workers’ compensation insurance in compliance with all applicable federal, state, and local laws and regulations covering
all employees of Manager and Manager shall furnish Owner certificates of same. Owner shall reimburse Manager for the expenses incurred
by Manager (as reasonably estimated by Manager based upon Manager’s current workers’ compensation rates and the payroll of the Project)
in respect thereto.

 

		8.08	DISHONESTY INSURANCE

 

Manager, at its expense which is not
reimbursable, shall furnish employee dishonesty insurance with limits of at least $2,000,000 per loss and in an amount sufficient to cover
all employees (whether on-site or off-site) employed by Manager who shall be responsible for handling any moneys belonging to Owner that
come under custody or control of Manager.

 

		8.09	ENVIRONMENTAL INDEMNIFICATION

 

Owner agrees to defend, indemnify, and
hold harmless Manager and Manager’s partners, directors, shareholders, officers, and agents, against and from any and all actions, administrative
proceedings, causes of action, charges, claims, commissions, costs, damages, decreed, demands, duties, expenses, fees, fines, judgments,
liabilities, losses, obligations, orders, penalties, recourses, remedies, responsibilities, rights, suits, and undertakings of every nature
and kind whatsoever, including, but not limited to, attorneys’ fees and litigation expenses, from the presence of Hazardous Substances
(as defined below) on, under or about the Project. Without limiting the generality of the foregoing, the indemnification provided by this
paragraph shall specifically cover costs incurred in connection with any investigation of site conditions or any remediation, removal
or restoration work required by any federal, state or local governmental agency because of the presence of Hazardous Substances in, on,
under or about the Property, except to the extent that the Hazardous Substances are present as a result of gross negligence, criminal
activity, or any willful misconduct of Manager or its employees, including Project Employees. For purposes of this section, “Hazardous
Substances” shall mean all substances defined as hazardous materials, hazardous wastes, hazardous substances, or extremely
hazardous waste under any federal, state or local law or regulation. The provisions of this Section 8.09 shall expressly survive
the expiration or sooner termination of this Agreement.

 

    21

     

    

 

Section
9 MISCELLANEOUS PROVISIONS

 

		9.01	COMPLIANCE WITH APPLICABLE LAW

 

Owner and Manager shall comply with Applicable
Law in the performance of their respective obligations under this Agreement. “Applicable Law” means all laws,
statutes, ordinances, applicable case law and court rulings, regulations, guidelines, orders and requirements now or hereafter enacted
by any governmental authority, board of fire underwriters, utility company or similar body, affecting the Property or this Agreement.
The validity, performance and enforcement of this Agreement shall be governed by the Applicable Law of the State of Florida, without regard
to conflicts of laws principles. All obligations under this Agreement shall be performable in Miami-Dade County, Florida, which shall
be venue for all legal actions. Owner and Manager will each promptly notify (or forward to) the other party any complaints, warnings,
notices or summonses relating to any non-compliance of any part of the Property with Applicable Law.

 

		9.02	NOTICES

 

Any notice or communication hereunder
must be in writing, and shall be deemed to have been duly given: (a) when delivered personally; (b) seventy-two (72) hours after being
mailed, registered or certified mail, return receipt requested, postage prepaid, to the respective addresses set forth below; (c) one
(1) business day after being delivered to a reputable overnight courier service, prepaid, marked for next day delivery, addressed to the
addressee at its address set forth below; or (d) on the business day of receipt, if delivered by portable document format (PDF) transmission
to the email address of the receiving party. Such notices or communications shall be given to the parties hereto at the addresses and
emails set forth opposite the names of the respective parties on the signature page hereof. Any party hereto may at any time by giving
ten (10) days written notice to the other party hereto designate any other address in substitution of the foregoing address to which such
notice or communication shall be given.

 

		9.03	SEVERABILITY

 

If any term, covenant or condition of
this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder
of this Agreement or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder
of this Agreement or such other documents, or the application of such term, covenant or condition to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term, covenant or condition of this Agreement
or such other documents shall be valid and shall be enforced to the fullest extent permitted by law.

 

		9.04	NO JOINT VENTURE OR PARTNERSHIP

 

Owner and Manager hereby agree that nothing
contained herein or in any document executed in connection herewith shall be construed as making Manager and Owner joint venturers or
partners.

 

		9.05	MODIFICATION TERMINATION

 

This Agreement may be modified or amended
only by a written document executed by Manager and Owner.

 

    22

     

    

 

		9.06	ATTORNEYS’ FEES

 

Should either party be required to employ
an attorney or attorneys to enforce any of the provisions hereof or to protect its interest in any manner arising under this Agreement,
or to recover damages for the breach of this Agreement, the non-prevailing party in any legal proceedings (the finality of which is not
legally contested) agrees to pay to the prevailing party all reasonable costs, damages and expenses, including attorneys’ fees, expended
or incurred in connection therewith. Each party is responsible for its own appellate fees and costs, if any.

 

		9.07	TOTAL AGREEMENT

 

This Agreement is a total and complete
integration of any and all undertakings existing between Manager and Owner relating to the subject matter hereof and supersedes any prior
oral or written agreements, promises or representations between them regarding the subject matter hereof.

 

		9.08	APPROVALS AND CONSENTS

 

If any provision hereof requires the
approval or consent of Owner or Manager, such approval or consent shall not be unreasonably withheld or delayed.

 

		9.09	CASUALTY

 

In the event that the Project, or any
portion thereof, is substantially or totally damaged or destroyed by fire, tornado, windstorm, flood or other casualty during the Term
of this Agreement, Manager or Owner may terminate this Agreement upon giving the other party written notice of termination on or before
the date which is thirty (30) days after the date of such casualty. In the event of termination pursuant to this Section 9.09,
neither party hereto shall have any further liability hereunder except that Manager shall be entitled to its Fees accrued through the
date of termination and to receive all reimbursements for all reimbursable expenses accrued through the date of termination.

 

		9.10	LIMITATIONS ON LIABILITY

 

		(a)	Notwithstanding Manager’s review of and recommendations in respect to capital repairs and replacements
for the Property or Manager’s performance of the Capital Improvements Management Services, Owner acknowledges that Manager is not
an architect or engineer, and that all capital repairs, replacements and other construction in the Property will be designed and performed
by independent architects, engineers and contractors. Accordingly, Manager does not guarantee or warrant that the construction documents
for such work will comply with Applicable Law or will be free from errors or omissions, nor that any such work will be free from defects,
and Owner agrees that Manager will have no liability therefor. In the event of such errors, omissions, or defects, Manager will use reasonable
efforts to cooperate in any action Owner desires to bring against such parties. Similarly, Manager makes no representations or warranties
regarding the creditworthiness of any tenant, or proposed tenant, of the Property and shall be in no way responsible for, or liable to
Owner for, a tenant’s failure to perform such tenant’s lease obligations. Similarly, any estimates by Manager or reports provided
by Manager which described any financial activity to occur in the future are necessarily estimates and projections, and Manager does not
in any manner or respect, warrant, guaranty or make an representations in regard to the same; Owner recognizes that by their very nature
projections are estimates and are dependent upon a number of factors that cannot be predicted with any certainty and are outside the control
of Manager. Notwithstanding any contrary provision hereof, Owner agrees that no agent, director, member, officer, shareholder, employee
or affiliate of Manager shall be personally liable to Owner or anyone claiming by, through or under Owner, by reason of any default by
Manager under this Agreement, any obligation of Manager to Owner, or for any amount that may become due to Owner by Manager under the
terms of this Agreement otherwise and Owner agrees not to make any claim therefor against any of such persons. Further, notwithstanding
any contrary provision of this Agreement, the liability of Manager hereunder shall be limited to, in the aggregate, the lesser of (x)
a sum equal to the fees paid to Manager hereunder for the twenty-four (24) month period immediately prior to the date of demand made hereunder
by Owner against Manager asserting liability and (y) a sum equal to the actual amount of fees received by Manager hereunder as of the
date when such liability is finally determined, less (in either case) the aggregate amount of claims theretofore asserted against Manager
hereunder; provided, however, the limitation on liability of Manager set forth in this sentence shall not apply to any claims by Owner
made pursuant to Section 6.04.

 

    23

     

    

 

		(b)	Similarly, the liability of Owner hereunder is limited to Owner’s interest in the Project and the insurance
required to be maintained hereunder by Owner and in no event shall Owner or any agent, director, member, officer, shareholder, employee
or affiliate of have any personal liability to Manager hereunder, Manager agreeing to look solely to Owner’s interest in the Property
and the insurance in recovering any judgment rendered against Owner hereunder (which judgment Manager may seek and obtain).

 

		9.11	REPRESENTATIVES

 

		(a)	Whenever any consent, approval, decision, determination or other action of Owner is required or permitted
hereunder, such consent, approval, decision or determination or other action shall be effective as to Owner only if given or taken by
the representative of the Owner identified beneath the signature of the Owner herein below (such person, and the person(s) [whether one
or more] designated pursuant to the this paragraph as the replacement for such person in such capacity being herein called the “Owner
Representative”). Manager shall have the right to rely upon the authority of each Owner Representative. Owner may, at any
time and from time to time, change the identity of any one or more of the persons who constitute the Owner Representative by notice to
Manager, with such change becoming effective no sooner than ten (10) days after the date such notice is received by Manager.

  

		(b)	Whenever any consent, approval, decision, determination or other action of Manager is required or permitted
hereunder, such consent, approval, decision or determination or other action shall be effective as to Manager only if given or taken by
the representative of the Manager identified beneath the signature of the Manager herein below (such person, and the person(s) [whether
one or more] designated pursuant to the this paragraph as the replacement for such person in such capacity being herein called the “Manager
Representative”). Owner shall have the right to rely upon the authority of each Manager Representative. Manager may, at
any time and from time to time, change the identity of any one or more of the persons who constitute the Manager Representative by notice
to Owner, with such change becoming effective no sooner than ten (10) days after the date such notice is received by Owner.

 

		9.12	COMPETITIVE PROJECTS

 

Manager may, individually or with others,
provide management and other services in regard to, and possess ownership and other interests in, any other projects and ventures of every
nature and description, including, but not limited to, the ownership, financing, leasing, operation, management, brokerage, development
and sale of real property and apartment projects other than the Project, whether or not such other ventures or projects are competitive
with the Project. Owner shall not have any right to the income or profits derived therefrom and Manger shall not be in default of this
Agreement by reason thereof.

 

		9.13	SUCCESSORS AND ASSIGNS

 

Neither Manager nor Owner may assign
this Agreement without obtaining the prior written consent of the other; provided, that Owner may collaterally assign this Agreement to
institutional lenders providing loans to Owner secured by liens against the Property. Subject to the provisions of the preceding sentence,
this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their permitted successors and assigns.
..

 

    24

     

    

 

		9.14	ADDITIONAL COMPENSATION

 

If Owner requests services from Manager not outlined herein,
Manager shall have no obligation to perform the same unless and until Owner agrees to pay Manager for such additional services under terms
and conditions to be agreed upon by the parties.

 

		9.15	TERMINATION OF CONSULTING SERVICES AGREEMENT

 

Manager and Owner hereby terminate that
certain Consulting Services Agreement executed between Manager and Owner and dated May 13, 2016 and Manager acknowledges that it has been
paid all monies, fees and reimbursements to which it is entitled pursuant to said Consulting Services Agreement. Such termination shall
be with the same force and effect as of the term of said Consulting Services Agreement had been terminated without cause.

 

		9.16	ASSIGNMENT

 

Manager acknowledges that Owner will
collaterally assign this Agreement to one or more of its lenders and Manager agrees to execute and deliver upon request a consent to such
assignment in the respective forms attached as Exhibit D (for any serious lender) and Exhibit D-1 (for any mezzanine lender)
or such other form of assignment as may be requested by Owner that is approved by Manager (such approval not to be unreasonably withheld).

 

[end of page; signature page follows]

 

    25

     

    

 

Section
10 SIGNATURES

 

The parties hereto have executed this Agreement
effective as of the Effective Date. This Agreement may be executed in one or more counterparts, each such counterpart being an original
hereof and all such counterparts taken together constituting but one and the same instrument and agreement.

 

	 	OWNER:
	 	 	 
	 	1350 S. DIXIE LLC
	 	 	 
	 	By:	/s/ Brent Reynolds
	 	Name: 	Brent Reynolds
	 	Title:	Authorized Representative

 

	 	Owner’s Representative:	                        

 

	 	Address
	 	 	 
	 	c/o NP International USA LLC
	 	2020 Ponce de Leon Blvd., Suite 1104
	 	Coral Gables, Florida 33134
	 	Attention: Property Manager
	 	Email: 	                       

 

	 	With Copy To:
	 	 
	 	Malkerson Gunn Martin LLP
	 	220 South Sixth Street, Suite 1900
	 	Minneapolis, MN 55402
	 	Attention: Kathleen M. Martin, Esq.
	 	Email:  	[***]

 

	 	MANAGER:
	 	 	 
	 	Gables Residential Services, Inc.,
	 	a Texas corporation
	 	 	 
	 	By:	/s/ F. Gregory Gasior
	 	Name: 	F. Gregory Gasior
	 	Title:	VP Operations

 

	 	Address
	 	 	 
	 	c/o Lion Gables Realty Limited Partnership
	 	3399 Peachtree Road, N.E., Suite 600
	 	Atlanta, Georgia 30326
	 	Attention: 	President

 

	 	Manager’s Representative:	                                          

 

    26

     

    

 

EXHIBIT A

 

Leasing Guidelines

 

LRO

 

Gables Residential currently utilizes Rainmaker
LRO as a revenue management optimization software. LRO will work with the on-site property management software to adjust rental rates
daily based on market competitors and lease term exposure, provided that such rates may never be less than the minimum rentals set forth
on Exhibit B attached hereto.

 

The community is assigned a Pricing Analyst who
monitors new lease pricing. The pricing analyst monitors submarket performance based on the onsite team’s data entry into LRO and
market prognosticators reports. The Pricing Analysist conducts biweekly pricing calls with each of their assigned communities to ensure
that the tool is used in conjunction with our regional operational team.

 

Bi-Weekly Pricing Calls

 

On each call, the following
items are discussed with the Vice President, Regional Manager, Community Manager, and Pricing Analyst:

 

		●	Current occupancy and occupancy trends relative to budget

 

		●	Current LRO pricing methodology down to each floorplan grouping

 

		●	Current market trends based on latest competitor data

 

		●	Current traffic and leasing velocity down to each floorplan grouping

 

		●	Current lease trades on new leases

 

		●	Current, 30, 60, and 90 day renewal performance, both retention and rent growth

 

Lease Expiration Management

 

By using LRO for new lease and renewal pricing,
the system monitors monthly expirations by unit grouping and matches historic demand patterns in order to closely match expirations to
periods of highest demand. Lease terms are changed as necessary to help ensure that supply does not exceed demand year-over-year.

 

Renewal Pricing

 

A renewal worksheet will be utilized in conjunction
with LRO to maximize renewal increases while managing the lease expiration pattern. Renewal parameters are established by operational
leadership prior to publishing. Once renewal letters are published, the Community Manager and Regional Manager are provided with negotiating
limits in order to secure renewal leases.

 

    A-1

     

    

 

EXHIBIT B

 

Minimum Rental Rates

 

Rent changes and concessions require Owner written approval. Should
the Property utilize a revenue management system, Owner understand that rents will fluctuate with availability and market conditions.
Owner has the option to participate in pricing calls and influence rent strategies and software settings.

 

	Unit Type	 	Unit SF	 	 	Unit Count	 	 	Min. Monthly Rent	 	 	PSF (Month	 	 	Total Annual	 
	Studio	 	 	532	 	 	 	52	 	 	$	1,850	 	 	$	3.48	 	 	$	22,200	 
	lBR	 	 	802	 	 	 	63	 	 	$	2,350	 	 	$	2.93	 	 	$	28,200	 
	2BR	 	 	1,186	 	 	 	42	 	 	 	$3,200.	 	 	$	2.70	 	 	$	38,400	 
	3BR	 	 	1,504	 	 	 	47	 	 	$	4,100	 	 	$	2.73	 	 	$	49,200	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	974	 	 	 	204	 	 	 	2,801	 	 	$	2.88	 	 	 	 	 

 

The requirements above are for 12-month leases, net of concessions.
Leases for a term shorter than 12 months will not require Owner approval, provided total rental payments under the lease satisfy the Total
Annual threshold outlined above (e.g., minimum monthly rental for a 9-month !BR lease is $3,133.33 per month).

 

    B-1

     

    

 

EXHIBIT C

 

Budget Format

 

    C-1

     

    

 

EXHIBIT D

 

Form of Collateral Assignment – Senior Lender

 

 

D-2

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