PROPERTY MANAGEMENT AGREEMENT Turco Real Estate & Property Management Services, Inc. Turco Real Estate & Property Management Inc. works in accordance with Federal and State Fair Housing Laws which prohibit discrimination against any person because of race, color, religion, national origin, sex, ancestry, age, marital status, physical or mental handicap, familial status, sexual orientation and/or preference, unfavorable discharge from the military service, order of protection status or any other class protected by the Illinois Human Rights Act.

This agreement is made and executed this 25th day of July 2013 and between John Smith (Owner) and Turco Real Estate and Property Management Services, Inc. (Property Manager). Owner is the fee owner of certain properties located in Kankakee County, IL. (See attached list of properties). Whereas, Owner desires that Property Manager perform certain rental and management services for the property as more particularly described herein; Whereas, Property Manager has the qualifications necessary to and will perform rental and management services for the Owner/s under the following terms and conditions: Contractual Employment of PROPERTY MANAGER. THE OWNER hereby employs and grants unto Property Manager the exclusive right to rent manage and collect rents/condo association fees on behalf of the Owner/s. TERM, This exclusive agreement shall be effective as of 8-1-2013 and continue subject to the terms and conditions hereof in full force and effect until 7-31-2014. This agreement shall continue in full force unless Owner or Property Manager notifies the other party in writing 30 days prior to date of termination, with or without specific cause. Owner shall have the right to cancel this agreement with a 30 day notice in the event the Property Manager fails to perform the assigned tasks as expected. In the event of the breach by either party of the terms of this agreement, the non-breaching party shall have the right to terminate this agreement upon 2 weeks notice unless the breaching party cures such breach within 2 weeks of receipt of notice of breach.

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PROPERTY MANAGER RESPONSIBILITES 1. Property Manager hereby agrees to accept the responsibilities of renting, managing, maintenance/repairs, utilities, and maintaining accurate record accounting for all bills and expenses related to the building. Will also handle all code/section 8 inspections and follow up with the necessary repairs. Property manager facilitates all code & sec 8 inspections. There is a charge of $35 for each code inspection by our company to facilitate the inspection. 2. The owner is responsible for the payment of their property taxes and insurance and can be set up to be paid by Turco Real Estate & Property Management Services, Inc. with available funds. 3. A walk through with the Owner and Property Manager will be scheduled upon signing this agreement to verify the Inventory list prepared by the Owner. 4. Owner/s hereby designates Property Manager as its agent representing Owner in arranging for contracts to provide any necessary building repairs, and housekeeping that are required for the building. Property Manager will inform the owner of any building emergency repairs required in excess of $500.00. Anytime the Property Manager acts on behalf of the Owner in performing maintenance and repairs, housekeeping and other general duties, expenses may be deducted from the Owner/s general account subject to the terms of this contract. 5. Property Manager shall maintain at all times all licenses and permits of hired maintenance and contractual services performing work to the building. 6. Property Manager will be available by cell phone 24/7 to receive emergency building calls or tenant issues. 7. Property Manager will provide owner with a detailed income/expense report on a monthly basis. 8. Turco Real Estate & Property Management Services, Inc. will charge 15% of the collected rents on a monthly basis. All tenant rents including Sec 8 will be sent to Turco Real Estate & Property Management Services, Inc. This amount will be deducted from the income and a check will be submitted to the owner for each building within 10 business days from the closing of the prior accounting month. Any tenant late fees will be credited to Turco Real Estate and Property Management Services, Inc.

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9. Upon execution of this contract the owners will send Turco Real Estate and Property Management Services, Inc. $300 to begin the management of the properties. In the event of multiple properties Turco Real Estate and Property Management Services, Inc. may require additional funds necessary to complete repairs/cleaning to get units rental ready if needed.

OWNER/S RESPONSIBILITES 1. Owner and Property Manager shall indemnify and hold harmless the other from all liability for damages for claims resulting from negligence, but not gross negligence or willful misconduct, against the Property Manager or Owner, or their agents, employees or licensees. The Owner agrees that the Property Manager shall not be liable for any losses or damages done to the Real Property or the Owners personal property by negligent, intentional acts done by renters or condominium owners. The Owner shall be responsible for insuring his interests, including the contents and furnishings of the property. Owner/s are required to have in force homeowners liability and contents insurance covering personal and rental users, and to deliver to the Property Manager a copy of such insurance including renewal or replacement of said policies. Liability insurance naming the Property Manager as an additional insured party. Inform your insurance company that you intend to rent this home and you want 100% replacement coverage and a loss of rents clause in the policy. 2. Upon signing this agreement the Property Manager shall conduct a full inventory of said property including but not limited to furnishings, appliances etc. 3. Owner shall notify the Property Manager in writing or email when the Property is listed for sale within 5 business days of the listing. 4. Property Manager will receive 100% of one month’s gross rent commission when renting an apartment or house for the owner. All associated fees of that rental which include background/credit checks, newspaper ads will be paid in advance and billed to the Owner of such rental. Prospective tenants will pay for their credit/background check. 5. Turco Real Estate and Property Management Services, Inc. shall collect all rental funds and security deposits as well as the monthly 3

assigned assessments and provide any necessary accounting services and receipts. All Security Deposits will be kept in a separate escrow account with Turco Real Estate and Property Management Services, Inc. in accordance to Illinois License Law. Deductions will be made for cleaning and or damages/repairs. Tenant will be reimbursed any portion of their security deposit upon insuring that the property is back in the same condition as they rented it in. Property Manager shall not be responsible for any insufficient funds on behalf of any owners/renters. In the event that there is a negative balance at the end of the month the owner will be notified to reimburse Turco Real Estate and Property Management Services, Inc. 6. In the event an owner desires Turco Real Estate & Property Management Services, Inc. to facilitate bids for capital repairs that goes beyond the normal repairs a 5% charge is assessed to review and monitor all the work to ensure it is completed in a satisfactory manner. We will insure that all completed capital repairs meets code regulations. In the event that the investor uses their own contractor they are responsible for coordination and facilitation of work and payment of services completed. 7. Yearly 1099’s for rents received are to be addressed as follows:

BINDING EFFECT: This agreement shall constitute a binding obligation to the contracting parties, their successors, heirs, and/or personal representatives. Any attempt of assignment without prior written agreement shall be considered a breach of contract and shall constitute a void able contract by the Property Manager.

GOVERNING LAW This agreement shall be governed by the laws of the state of Illinois. Independent contractor, Property Manager is an independent contractor under this Agreement. Nothing herein shall be construed as forming a partnership or joint venture among the Property Manager and Owner. Upon acceptance of this property management agreement the Owner will provide Turco Real Estate and Property Management Services, Inc. 4

a complete list of properties to be managed, names of all tenants, personal information such as applications, leases, etc. Also an inventory of equipment, appliances, and utilities to be given to Turco Real Estate and Property Management Services, Inc. per building. ( Have list of equipment from the last management contract which is in effect). Turco Real Estate and Property Management Services, Inc. PO Box 564 Manteno, IL. 60950 815-263-6326 – bus. 815-263-6360 - alt Fax: 815-468-2722 Email: [email protected] Robert V. Turco, Broker/President IN WITNESS WHEREOF, the parties have executed this agreement and signed the attached (Addendum A) inventory checklist as of the dates set forth below. OWNER/S__________________ ___________________________ ___________________________ DATE____________ __________________________________________DATE____________ Company name or LLC________________________________________ _____________________ # Owner’s Address_______________________ _____________________________________ Bus. Phone__________________ Fax: #______________________ Email address:_____________________________ Social Security #___________________________ Turco Real Estate and Prop.Management Serv, Inc. _______________________DATE____________ Robert V. Turco, Broker/President _______________________DATE_____________ Properties to be managed: 5