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current rates. ARTICLE II-APPOINTMENT City hereby appoints Manager as the manager for the Property as of the Effective Date,and for the term stated in Section 1.2. City hereby authorizes Manager to exercise such powers and to take such actions with respect to the Property as may be necessary for the performance of Manager's obligations under this Agreement. Manager hereby accepts such appointment on the terms and conditions hereinafter set forth. ARTICLE III-DUTIES OF MANAGER 3.1 General Duties. (a) Manager,on behalf of City,shall use diligent efforts to manage and operate the Property. Manager shall comply with other instructions of City as set forth herein or as may from time to time be provided in writing by City to Manager. Manager shall perform its services in a professional and diligent manner and shall manage,operate,repair,maintain and service the Property consistent with industry standards in the locale where the Property is located. In particular,Manager shall have the duties and obligations set forth hereafter in this Article III. (b) Manager shall use its own technicians to perform routine inspections and on site facility maintenance of the Property based upon a mutually agreed schedule with City. 3.2 Utility and Service Contracts. All contracts for gas,electricity,water,trash collection,sewer,landscaping, snow removal,janitorial service, security service and such other services shall be in the name of the City and negotiated by City or Manager as directed by City. 3.3 Employment of Personnel. (a) All persons employed in connection with the operation and maintenance of the Property shall be employees of Manager and shall not be employees of City. Manager shall employ,pay, supervise, direct and discharge all employees necessary for the operation and maintenance of the Property, and shall use reasonable care in the supervision of such employees. Manager shall be responsible for complying with all laws,regulations and agreements affecting such employment,including without limitation payment of all expenses,taxes and other obligations regarding such employment. (b) City may not, directly or indirectly,during the term of this Agreement and for a period of one year following the date of expiration or earlier termination of this Agreement, solicit for employment any individual then employed by Manager with whom City had contact in connection with this Agreement prior to the date of expiration or earlier termination. City acknowledges and agrees that a breach of the provisions of this Section 3.3(b)could not adequately be compensated by money damages, and,therefore,Manager shall be entitled, in addition to any other right and remedy available to it,to an injunction restraining any breach or threatened breach,and Manager shall not be required to post a bond in any proceeding brought for such purpose. City further acknowledges and agrees that the provisions of this Section 3.3(b)are necessary and reasonable to protect Manager in the conduct of its business. Nothing herein shall be construed as prohibiting Manager from pursuing any other remedies,at law or in equity, for any such breach or threatened breach. 3.4 Maintenance and Repairs. (a) Manager shall perform, or cause to be performed under contracts with vendors, suppliers, Page 2 of 8