The agent, _________, will maintain a professional staff who have management capabilities; all of which will receive formal training at the institute of real estate management. In addition, the agent shall employ secretaries and accountants who have real estate background.

Upon execution of the management agreement, the agent will assign one of its property managers to assume direct responsibility for hiring a resident manager. The property manager and resident manager will be responsible for hiring a maintenance man and project secretary. The resident manager will be an employee of the agent and will receive salaries and fringe benefits according to contracts executed between the agent and employee. The resident manager will be paid out of the fee collected by the agent from owner. (The compensation paid the maintenance man will be paid out of the rent receipts). All compensation paid maintenance man will be borne by the owner.

All hiring of resident managers and maintenance men done by the agent will be consistent with the agent's general hiring policies: Prospective employees are hired solely on the basis of skill or the promise to develop skill, and hiring takes place without regard to race, color, sex or national origin. To date, all persons employed by the agent, with the exception of the legal advisor, are minority employees.

The day-to-day management of the project will be handled in the following manner: The agent's property manager will delegate most of the authority given to the agent in the management agreement to the resident manager. The resident manager will be responsible for renting the units; collecting all rental income; lease preparation; coordinating tenant move-ins; maintaining adequate files and records, paying all bills for the owner including principal, interest, taxes and insurance, operating expenses, etc.; supervising all maintenance activities—including inspections, responding to tenant requests, ordinary supplies and materials, and negotiating contract maintenance services; and the social services for the project.

The agent expects to hire a resident manager for a salary of $_____ per year, plus the free use of a unit in the project. The maintenance man's salary will be negotiated at the time a contract is signed.

Project residents will assist in the management functions through a tenant's advisory board, which will be appointed by the tenants council. As needed, residents will be considered for project positions as they become available. Maintenance and ground personnel as well as secretarial positions will be available to residents as the management progresses.

As personnel is hired, the new employees will receive training from _________ staff, professional agencies involved in management training, and participation in management workshops when sponsored in the state of _________.

Fringe benefits provided to management personnel are as follows: hospitalization, social security, life insurance, unemployment compensation and workmen's compensation.

Employee grievances will be handled by the resident manager if at all possible. If an employee cannot receive a satisfactory solution to his grievance through the resident manager, the grievance will be referred to the agent's property manager. If no satisfaction is obtained, the grievance may be referred to the owner. The agent/property manager and the owner will attempt to arrive at an acceptable solution.