Exhibit 10.18



 Exhibit 10.18 
 

 
  

 AIA Document A111 
 Standard Form of Agreement 
 Between Owner and Contractor 
 where
the basis of payment is the 
 COST OF THE WORK PLUS A FEE 
 with or without a Guaranteed Maximum Price 
 1987 EDITION 
 THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES; CONSULTATION WITH 
 AN ATTORNEY IS ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. 
 The 1987 Edition of AIA
Document A201, General Conditions of the Contract for Construction, is adopted 
 in this document by reference. Do not use with other
general conditions unless this document is modified. 
 This document has been approved and endorsed by The Associated General Contractors
of America. 
  

 AGREEMENT

 made as of the Twenty-Fifth day of October in the year of Two Thousand Seven. 
  

			
	 BETWEEN the Owner:
 (Name and
address)
	  	 Heritage Bank
 3500 Virginia Beach Blvd.
 Suite 110, Little Neck Towers
 Virginia Beach, VA 23452

		
	 and the Contractor:
 (Name and address)

	  	 Meredith Construction Co., Inc.
 P. O. Box
11265
 Norfolk, VA 23517

		
	 the Project is:
 (Name and
address)
	  	 Heritage Bank - Hilltop
 1756 Laskin Road
 Virginia Beach, VA

		
	 the Architect is:
 (Name and
address)
	  	 Tymoff & Moff Architects
 512 Botetourt
Street
 Norfolk, VA 23510


 The Owner and Contractor agree as set forth below. 
  

 Copyright 1920, 1925, 1951, 1958, 196l, 1963, 1967, 1974, 1978, ©1987 by The American Institute of Architects, 1735 New York Avenue, N.W., Washington, D.C.
20006. Reproduction of the material herein or substantial quotation of its provisions without written permission of the AIA violates the copyright laws of the United States and will be subject to legal prosecution. 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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 ARTICLE 1 
 THE CONTRACT DOCUMENTS 
 1.1 The Contract Documents consist of this Agreement, Conditions of the Contract
(General, Supplementary and other Conditions), Drawings, Specifications, addenda issued prior to execution of this Agreement, other documents listed in this Agreement and Modifications issued after execution of this Agreement; these form the
Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or
agreements, either written or oral. An enumeration of the Contract Documents, other than Modifications, appears in Article 16. If anything in the other Contract Documents is inconsistent with this Agreement, this Agreement shall govern. 

ARTICLE 2 
 THE WORK OF
THIS CONTRACT 
 2.1 The Contractor shall execute the entire Work described in the Contract Documents, except to the extent specifically indicated
in the Contract Documents to be the responsibility of others, or as follows: 
 Construction of 5,640 SF Branch Bank & Loan Office 
 ARTICLE 3 
 RELATIONSHIP OF
THE PARTIES 
 3.1 The Contractor accepts the relationship of trust and confidence established by this Agreement and covenants with the Owner to
cooperate with the Architect and utilize the Contractor’s best skill, efforts and judgment in furthering the interests of the Owner; to furnish efficient business administration and supervision; to make best efforts to furnish at all times an
adequate supply of workers and materials; and to perform the Work in the best way and most expeditious and economical manner consistent with the interests of the Owner. The Owner agrees to exercise best efforts to enable the Contractor to perform
the Work in the best way and most expeditious manner by furnishing and approving in a timely way information required by the Contractor and making payments to the Contractor in accordance with requirements of the Contract Documents. 
 ARTICLE 4 
 DATE OF
COMMENCEMENT AND SUBSTANTIAL COMPLETION 
 4.1 The date of commencement is the date from which the Contract Time of Subparagraph 4.2 is measured;
it shall be the date of this Agreement, as first written above, unless a different date is stated below or provision is made for the date to be fixed in a notice to proceed issued by the Owner. 
 (Insert the date of commencement, if it differs from the date of this Agreement or, if applicable, state that the date will be fixed in a notice to proceed.) 

 October 15, 2007 
 Unless the date of
commencement is established by a notice to proceed issued by the Owner, the Contractor shall notify the Owner in writing not less than five days before commencing the Work to permit the timely filing of mortgages, mechanic’s liens and other
security interests. 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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 4.2 The Contractor shall achieve Substantial Completion of the entire Work not later than 
 (Insert the calendar date or number of calendar days after the date of commencement. Also insert any requirements for earlier Substantial Completion of certain
portions of the Work, if not stated elsewhere in the Contract Documents.) 
 As close to December 31, 2008. 
 , subject to adjustments of this Contract Time as provided in the Contract Documents. 
 (Insert provisions, if any, for liquidated damages relating to failure to complete on time.) 
 ARTICLE 5 
 CONTRACT SUM 
 5.1 The Owner shall pay the Contractor in current funds for the Contractor’s performance of the Contract the Contract Sum consisting of the Cost of the Work as defined in Article 7 and the Contractor’s Fee determined as
follows: 
 (State a lump sum, percentage of Cost of the Work or other provision for determining the Contractor’s Fee, and explain how the
Contractor’s Fee is to be adjusted for changes in the Work.) 
 The guaranteed maximum cost is based on the original plans and specifications. The
final billing will be based on the actual cost of the work plus the contractor’s fee not to exceed the guaranteed maximum cost as modified by change orders. 
 The guaranteed maximum cost includes the contractor’s fee for home office overhead and profit of $ 207,913.00. 10% will be added to all change orders as the contractor’s fee. 
 5.2 GUARANTEED MAXIMUM PRICE (IF APPLICABLE) 
 5.2.1 The sum of
the Cost of the Work and the Contractor’s Fee is guaranteed by the Contractor not to exceed Two Million Two Hundred Eighty-Seven Thousand Thirty Eight Dollars and 00/ Dollars ($ 2,287,038.00), subject to additions and deductions by Change Order
as provided in the Contract Documents. Such maximum sum is referred to in the Contract Documents as the Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Contractor without
reimbursement by the Owner. 
 (Insert specific provisions if the Contractor is to participate in any savings.) 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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 5.2.2 The Guaranteed Maximum Price is based upon the following alternates, if any, which are described in the
Contract Documents and are hereby accepted by the Owner: 
 (State the numbers or other identification of accepted alternates, but only if a Guaranteed
Maximum Price is inserted in Subparagraph 5.2.1. If decisions on other alternates are to be made by the Owner subsequent to the execution of this Agreement, attach a schedule of such other alternates showing the amount for each and the date until
which that amount is valid.) 
 5.2.3 The amounts agreed to for unit prices, if any, are as follows: 
 (State unit prices only if a Guaranteed Maximum Price is inserted in Subparagraph 5.2.1.) 
 ARTICLE 6 
 CHANGES IN THE WORK 
 6.1 CONTRACTS WITH A GUARANTEED MAXIMUM PRICE 
 6.1.1
Adjustments to the Guaranteed Maximum Price on account of changes in the Work may be determined by any of the methods listed in Subparagraph 7.3.3 of the General Conditions. 
 6.1.2 In calculating adjustments to subcontracts (except those awarded with the Owner’s prior consent on the basis of cost plus a fee), the terms “cost” and “fee” as used in Clause
7.3.3.3 of the General Conditions and the terms “costs” and “a reasonable allowance for overhead and profit” as used in Subparagraph 7.3.6 of the General Conditions shall have the meanings assigned to them in the General
Conditions and shall not be modified by Articles 5, 7 and 8 of this Agreement. Adjustments to subcontracts awarded with the Owner’s prior consent on the basis of cost plus a fee shall be calculated in accordance with the terms of those
subcontracts. 
 6.1.3 In calculating adjustments to this Contract, the terms “cost” and “costs” as used in the above-referenced
provisions of the General Conditions shall mean the Cost of the Work as defined in Article 7 of this Agreement and the terms “fee” and “a reasonable allowance for overhead and profit” shall mean the Contractor’s Fee as
defined in Paragraph 5.1 of this Agreement. 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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 6.2 CONTRACTS WITHOUT A GUARANTEED MAXIMUM PRICE 
 6.2.1 Increased costs for the items set forth in Article 7 which result from changes in the Work shall become part of the Cost of the Work, and the Contractor’s Fee shall be adjusted as provided in
Paragraph 5.1. 
 6.3 ALL CONTRACTS 
 6.3.1 If no
specific provision is made in Paragraph 5.1 for adjustment of the Contractor’s Fee in the case of changes in the Work, or if the extent of such changes is such, in the aggregate, that application of the adjustment provisions of Paragraph 5.1
will cause substantial inequity to the Owner or Contractor, the Contractor’s Fee shall be equitably adjusted on the basis of the Fee established for the original Work. 
 ARTICLE 7 
 COSTS TO BE REIMBURSED 
 7.1 The term Cost of the Work shall mean costs necessarily incurred by the Contractor in the proper performance of the Work. Such costs shall be at rates not
higher than the standard paid at the place of the Project except with prior consent of the Owner. The Cost of the Work shall include only the items set forth in this Article 7. 
 7.1.1 LABOR COSTS 
 7.1.1.1 Wages of construction workers directly employed by the Contractor to perform the
construction of the Work at the site or, with the Owner’s agreement, at off-site workshops. 
 7.1.1.2 Wages or salaries of the Contractor’s
supervisory and administrative personnel when stationed at the site. 
 (If it is intended that the wages of salaries of certain personnel stationed at
the Contractor’s principal or other offices shall be included in the Cost of the Work, identify in Article 14 the personnel to be included and whether for all or only part of their time.) 
 7.1.1.3 Wages and salaries of the Contractor’s supervisory or administrative personnel engaged, at factories, workshops or on the road, in expediting the
production or transportation of materials or equipment required for the Work, but only for that portion of their time required for the Work. 
 7.1.1.4 Costs paid or incurred by the Contractor for taxes, insurance, contributions, assessments and benefits required by law or collective bargaining agreements and, for personnel not covered by such agreements, customary benefits
such as sick leave, medical and health benefits, holidays, vacations and pensions, provided such costs are based on wages and salaries included in the Cost of the Work under Clauses 7.1.1.1 through 7.1.1.3. 
 7.1.2 SUBCONTRACT COSTS 
 Payments made by the Contractor to
Subcontractors in accordance with the requirements of the subcontracts. 
 7.1.3 COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED
CONSTRUCTION 
 7.1.3.1 Costs, including transportation, of materials and equipment incorporated or to be incorporated in the completed
construction. 
 7.1.3.2 Costs of materials described in the preceding Clause 7.1.3.1 in excess of those actually installed but required to provide
reasonable allowance for waste and for spoilage. Unused excess materials, if any, shall be handed over to the Owner at the completion of the Work or, at the Owner’s option, shall be sold by the Contractor; amounts realized, if any, from such
sales shall be credited to the Owner as a deduction from the Cost of the Work. 
 7.1.4 COSTS OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY FACILITIES AND
RELATED ITEMS 
 7.1.4.1 Costs, including transportation, installation, maintenance, dismantling and removal of materials, supplies, temporary
facilities, machinery, equipment, and hand tools not customarily owned by the construction workers, which are provided by the Contractor at the site and fully consumed in the performance of the Work; and cost less salvage value on such items if not
fully consumed, whether sold to others or retained by the Contractor. Cost for items previously used by the Contractor shall mean fair market value. 
 7.1.4.2 Rental charges for temporary facilities, machinery, equipment, and hand tools not customarily owned by the construction workers, which are provided by the Contractor at the site, whether rented from the Contractor or others,
and costs of transportation, installation, minor repairs and replacements, dismantling and removal thereof. Rates and quantities of equipment rented shall be subject to the Owner’s prior approval. 
 7.1.4.3 Costs of removal of debris from the site. 
 7.1.4.4
Costs of telegrams and long-distance telephone calls, postage and parcel delivery charges, telephone service at the site and reasonable petty cash expenses of the site office. 
 7.1.4.5 That portion of the reasonable travel and subsistence expenses of the Contractor’s personnel incurred while traveling in discharge of duties connected with the Work. 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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 7.1.5 MISCELLANEOUS COSTS 
 7.1.5.1 That portion directly attributable to this Contract of premiums for insurance and bonds. 
 7.1.5.2 Sales, use or similar
taxes imposed by a governmental authority which are related to the Work and for which the Contractor is liable. 
 7.1.5.3 Fees and assessments for
the building permit and for other permits, licenses and inspections for which the Contractor is required by the Contract Documents to pay. 
 7.1.5.4
Fees of testing laboratories for tests required by the Contract Documents, except those related to defective or nonconforming Work for which reimbursement is excluded by Subparagraph 13.5.3 of the General Conditions or other provisions of the
Contract Documents and which do not fall within the scope of Subparagraphs 7.2.2 through 7.2.4 below. 
 7.1.5.5 Royalties and license fees paid for
the use of a particular design, process or product required by the Contract Documents; the cost of defending suits or claims for infringement of patent rights arising from such requirement by the Contract Documents; payments made in accordance with
legal judgments against the Contractor resulting from such suits or claims and payments of settlements made with the Owner’s consent; provided, however, that such costs of legal defenses, judgment and settlements shall not be included in the
calculation of the Contractor’s Fee or of a Guaranteed Maximum Price, if any, and provided that such royalties, fees and costs are not excluded by the last sentence of Subparagraph 3.17.1 of the General Conditions or other provisions of the
Contract Documents. 
 7.1.5.6 Deposits lost for causes other than the Contractor’s fault or negligence. 
 7.1.6 OTHER COSTS 
 7.1.6.1 Other costs incurred in the
performance of the Work if and to the extent approved in advance in writing by the Owner. 
 7.2 EMERGENCIES: REPAIRS TO DAMAGED, DEFECTIVE OR
NONCONFORMING WORK 
 The Cost of the Work shall also include costs described in Paragraph 7.1 which are incurred by the Contractor: 
 7.2.1 In taking action to prevent threatened damage, injury or loss in case of an emergency affecting the safety of persons and property, as provided in Paragraph
10.3 of the General Conditions. 
 7.2.2 In repairing or correcting Work damaged or improperly executed by construction workers in the employ of the
Contractor, provided such damage or improper execution did not result from the fault or negligence of the Contractor or the Contractor’s foremen, engineers or superintendents, or other supervisory, administrative or managerial personnel of the
Contractor. 
 7.2.3 In repairing damaged Work other than that described in Subparagraph 7.2.2, provided such damage did not result from the fault or
negligence of the Contractor or the Contractor’s personnel, and only to the extent that the cost of such repairs is not recoverable by the Contractor from others and the Contractor is not compensated therefor by insurance or otherwise.

 7.2.4 In correcting defective or nonconforming Work performed or supplied by a Subcontractor or material supplier and not corrected by them,
provided such defective or nonconforming Work did not result from the fault or neglect of the Contractor or the Contractor’s personnel adequately to supervise and direct the Work of the Subcontractor or material supplier, and only to the extent
that the cost of correcting the defective or nonconforming Work is not recoverable by the Contractor from the Subcontractor or material supplier. 
 ARTICLE 8 
 COSTS NOT TO BE REIMBURSED 
 8.1 The Cost of the Work shall not include: 
 8.1.1 Salaries and other compensation of the Contractor’s
personnel stationed at the Contractor’s principal office or offices other than the site office, except as specifically provided in Clauses 7.1.1.2 and 7.1.1.3 or as may be provided in Article 14. 
 8.1.2 Expenses of the Contractor’s principal office and offices other than the site office. 
 8.1.3 Overhead and general expenses, except as may be expressly included in Article 7. 
 8.1.4 The
Contractor’s capital expenses, including interest on the Contractor’s capital employed for the Work. 
 8.1.5 Rental costs of machinery and
equipment, except as specifically provided in Clause 7.1.4.2. 
 8.1.6 Except as provided in Subparagraphs 7.2.2 through 7.2.4 and Paragraph 13.5 of
this Agreement, costs due to the fault or negligence of the Contractor, Subcontractors, anyone directly or indirectly employed by any of them, or for whose acts any of them may be liable, including but not limited to costs for the correction of
damaged, defective or nonconforming Work, disposal and replacement of materials and equipment incorrectly ordered or supplied, and making good damage to property not forming part of the Work. 
 8.1.7 Any cost not specifically and expressly described in Article 7. 
 8.1.8 Costs which would cause the Guaranteed Maximum Price, if any, to be exceeded. 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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 ARTICLE 9 
 DISCOUNTS, REBATES AND REFUNDS 
 9.1 Cash discounts obtained on payments made by the Contractor shall accrue
to the Owner if (1) before making the payment, the Contractor included them in an Application for Payment and received payment therefor from the Owner, or (2) the Owner has deposited funds with the Contractor with which to make payments;
otherwise, cash discounts shall accrue to the Contractor. Trade discounts, rebates, refunds and amounts received from sales of surplus materials and equipment shall accrue to the Owner, and the Contractor shall make provisions so that they can be
secured. 
 9.2 Amounts which accrue to the Owner in accordance with the provisions of Paragraph 9.1 shall be credited to the Owner as a deduction
from the Cost of the Work. 
 ARTICLE 10 
 SUBCONTRACTS AND OTHER AGREEMENTS 
 10.1 Those portions of the Work that the Contractor does not customarily
perform with the Contractor’s own personnel shall be performed under subcontracts or by other appropriate agreements with the Contractor. The Contractor shall obtain bids from Subcontractors and from suppliers of materials or equipment
fabricated especially for the Work and shall deliver such bids to the Architect. The Owner will then determine, with the advice of the Contractor and subject to the reasonable objection of the Architect, which bids will be accepted. The Owner may
designate specific persons or entities from whom the Contractor shall obtain bids; however, if a Guaranteed Maximum Price has been established, the Owner may not prohibit the Contractor from obtaining bids from others. The Contractor shall not be
required to contract with anyone to whom the Contractor has reasonable objection. 
 10.2 If a Guaranteed Maximum Price has been established and a
specific bidder among those whose bids are delivered by the Contractor to the Architect (1) is recommended to the Owner by the Contractor; (2) is qualified to perform that portion of the Work; and (3) has submitted a bid which
conforms to the requirements of the Contract Documents without reservations or exceptions, but the Owner requires that another bid be accepted; then the Contractor may require that a Change Order be issued to adjust the Guaranteed Maximum Price by
the difference between the bid of the person or entity recommended to the Owner by the Contractor and the amount of the subcontract or other agreement actually signed with the person or entity designated by the Owner. 
 10.3 Subcontracts or other agreements shall conform to the payment provisions of Paragraphs 12.7 and 12.8, and shall not be awarded on the basis of cost plus a
fee without the prior consent of the Owner. 
 ARTICLE 11 
 ACCOUNTING RECORDS 
 11.1 The Contractor shall keep full and detailed accounts and
exercise such controls as may be necessary for proper financial management under this Contract; the accounting and control systems shall be satisfactory to the Owner. The Owner and the Owner’s accountants shall be afforded access to the
Contractor’s records, books, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Contract, and the Contractor shall preserve these for a period of three years
after final payment, or for such longer period as may be required by law. 
 ARTICLE 12 
 PROGRESS PAYMENTS 
 12.1 Based upon Applications
for Payment submitted to the Architect by the Contractor and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract
Documents. 
 12.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as follows:

 12.3 Provided an Application for Payment is received by the Architect not later than the Last day day of a month, the Owner shall make payment to
the Contractor not later than the tenth day of the month. If an Application for Payment is received by the Architect after the application date fixed above, payment shall be made by the Owner not later than ten days after the Architect receives the
Application for Payment. 
 12.4 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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 12.5 CONTRACTS WITH A GUARANTEED MAXIMUM PRICE 
 12.5.1 Each Application for Payment shall be based upon the most recent schedule of values submitted by the Contractor in accordance with the Contract Documents. The schedule of values shall allocate the entire
Guaranteed Maximum Price among the various portions of the Work, except that the Contractor’s Fee shall be shown as a single separate item. The schedule of values shall be prepared in such form and supported by such data to substantiate its
accuracy as the Architect may require. This schedule, unless objected to by the Architect, shall be used as a basis for reviewing the Contractor’s Applications for Payment. 
 12.5.2 Applications for Payment shall show the percentage completion of each portion of the Work as of the end of the period covered by the Application for Payment. The percentage completion shall be the lesser
of (1) the percentage of that portion of the Work which has actually been completed or (2) the percentage obtained by dividing (a) the expense which has actually been incurred by the Contractor on account of that portion of the Work
for which the Contractor has made or intends to make actual payment prior to the next Application for Payment by (b) the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. 
 12.5.3 Subject to other provisions of the Contract Documents, the amount of each progress payment shall be computed as follows: 
 12.5.3.1 Take that portion of the Guaranteed Maximum Price properly allocable to completed Work as determined by multiplying the percentage completion of each
portion of the Work by the share of the Guaranteed Maximum Price allocated to that portion of the Work in the schedule of values. Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute may be included as
provided in Subparagraph 7.3.7 of the General Conditions, even though the Guaranteed Maximum Price has not yet been adjusted by Change Order. 
 12.5.3.2 Add that portion of the Guaranteed Maximum Price properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work or, if approved in advance by the Owner,
suitably stored off the site at a location agreed upon in writing. 
 12.5.3.3 
 12.5.3.4 Subtract the aggregate of previous payments made by the Owner. 
 12.5.3.5 Subtract the shortfall, if
any, indicated by the Contractor in the documentation required by Paragraph 12.4 to substantiate prior Applications for Payment, or resulting from errors subsequently discovered by the Owner’s accountants in such documentation. 
 12.5.3.6 Subtract amounts, if any, for which the Architect has withheld or nullified a Certificate for Payment as provided in Paragraph 9.5 of the General
Conditions. 
 12.5.4 Additional retainage, if any, shall be as follows: 
 (If it is intended to retain additional amounts from progress payments to the Contractor beyond (1) the retainage from the Contractor’s Fee provides in Clause 12.5.3.3, (2) the retainage from
Subcontractors provided in Paragraph 12.7 below, and (3) the retainage, if any, provided by other provisions of the Contract, insert provision for such additional retainage here. Such provision, if made, should also describe any arrangement for
limiting or reducing the amount retained after the Work reaches a certain state of completion.) 
 12.6 CONTRACTS WITHOUT A GUARANTEED MAXIMUM PRICE

 12.6.1 
 12.6.2 
 12.6.2.1 
 12.6.2.2 
 12.6.2.3 
 12.6.2.4 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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 12.6.2.5 
 12.6.3

 12.7 
 12.7.1 
 12.7.2 
 12.7.3 
 12.7.4 
 12.7.5 
 12.8 
 12.9 
 ARTICLE 13 
 FINAL PAYMENT

 13.1 Final payment shall be made by the Owner to the Contractor when (1) the Contract has been fully performed by the Contractor except
for the Contractor’s responsibility to correct defective or nonconforming Work, as provided in Subparagraph 12.2.2 of the General Conditions, and to satisfy other requirements, if any, which necessarily survive final payment; (2) a final
Application for Payment 

  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

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and a final accounting for the Cost of the Work have been submitted by the Contractor and reviewed by the Owner’s accountants; and (3) a final
Certificate for Payment has then been issued by the Architect; such final payment shall be made by the Owner not more than 30 days after the issuance of the Architect’s final Certificate for Payment, or as follows: 
 13.2 The amount of the final payment shall be calculated as follows: 
 13.2.1 Take the sum of the Cost of the Work substantiated by the Contractor’s final accounting and the Contractor’s Fee; but not more than the Guaranteed Maximum Price, if any. 
 13.2.2 Subtract amounts, if any, for which the Architect withholds, in whole or in part, a final Certificate for Payment as provided in Subparagraph 9.5.1 of the
General Conditions or other provisions of the Contract Documents. 
 13.2.3 Subtract the aggregate of previous payments made by the Owner. 

If the aggregate of previous payments made by the Owner exceeds the amount due the Contractor, the Contractor shall reimburse the difference to the Owner. 

13.3 
 13.4 
 13.5 If, subsequent to final payment and at the Owner’s request, the Contractor incurs costs described in Article 7 and not excluded by Article 8 to correct
defective or nonconforming Work, the Owner shall reimburse the Contractor such costs and the Contractor’s Fee applicable thereto on the same basis as if such costs had been incurred prior to final payment, but not in excess of the Guaranteed
Maximum Price, if any. If the Contractor has participated in savings as provided in Paragraph 5.2, the amount of such savings shall be recalculated and appropriate credit given to the Owner in determining the net amount to be paid by the Owner to
the Contractor. 
 ARTICLE 14 
 MISCELLANEOUS PROVISIONS 
 14.1 Where reference is made in this Agreement to a provision of the General
Conditions or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. 
 14.2 Payments due and unpaid under the Contract shall bear interest from the date payment is due at the rate stated below, or in the absence thereof, at the legal rate prevailing from time to time at the place where the Project is
located. 
 (Insert rate of interest agreed upon, if any.) 
 (Usury laws and requirements under the Federal Truth in Lending Act, similar state and local consumer credit laws and other regulations at the Owner’s and Contractor‘s principal places of business, the location of the Project
and elsewhere may affect the validity of this provision. Legal advice should be obtained with respect to deletions or modifications, and also regarding requirements such as written disclosures or waivers.) 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

 WARNING: Unlicensed photocopying violates U.S. copyright laws and is subject to legal
prosecution. 
  


 10 








 14.3 Other provisions: 
 ARTICLE 15 
 TERMINATION OR SUSPENSION 
 15.1 
 15.2 
 15.3 
 15.3.1 
 15.3.2 
 15.3.3 
 15.4 
 ARTICLE 16 
 ENUMERATION OF CONTRACT DOCUMENTS 
 16.1 The
Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated as follows: 
 16.1.1 The Agreement is this
executed Standard Form of Agreement Between Owner and Contractor, AIA Document A111, 1987 Edition. 
 16.1.2 The General Conditions are the General
Conditions of the Contract for Construction, AIA Document A20I, 1987 Edition. 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

 WARNING: Unlicensed photocopying violates U.S. copyright laws and is subject to legal
prosecution. 
  


 11 








 16.1.3 The Supplementary and other Conditions of the Contract are those contained in the Project Manual dated
                    , and are as follows: 
  

					
	 Document
	  	 Title
	  	 Pages

	 Specifications
	  	 Project Specifications
 July 13, 2007
	  	1-24

 16.1.4 The Specifications are those contained in the Project Manual dated as in Paragraph 16.1.3, and are
as follows: 
 (Either list the Specifications here or refer to an exhibit attached to this Agreement.) 
  

					
	 Section
	  	 Title
	  	 Pages


  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

 WARNING: Unlicensed photocopying violates U.S. copyright laws and is subject to legal
prosecution. 
  


 12 








 16.1.5 The Drawings are as follows, and are dated
                     unless a different date is shown below: 
 (Either list the Drawings here or refer to an exhibit attached to this Agreement.) 
  

					
	 Number
	  	 Title
	  	 Date

	 C1.0 - C6.5
	  	Site Plans	  	August 22, 2007
	 T-1
	  	Title Sheet	  	July 13, 2007
	 A1.0 - A9.3
	  	Architectural Sheets	  	July 13, 2007
	 S1.0 - S5.0
	  	Structural	  	July 13, 2007
	 L1.0 - L2.0
	  	Landscaping Plans	  	August 22, 2007

 16.1.6 The addenda, if any, are as follows: 
  

					
	 Number
	 	 Date
	 	 Pages


 Portions of Addenda relating to bidding requirements are not part of the Contract Documents unless the bidding
requirements are also enumerated in this Article 16. 
  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

 WARNING: Unlicensed photocopying violates U.S. copyright laws and is subject to legal
prosecution. 
  


 13 








 16.1.7 Other Documents, if any, forming part of the Contract Documents are as follows: 
 (List here any additional documents which are intended to form part of the Contract Documents. The General Conditions provide that bidding requirements such as
advertisement or invitation to bid, Instructions to Bidders, sample forms and the Contractor’s bid are not part of the Contract Documents unless enumerated in this Agreement. They should be listed here only if intended to be part of the
Contract Documents.) 
 This Agreement is entered into as of the day and year first written above and is executed in at least three original copies of
which one is to be delivered to the Contractor, one to the Architect for use in the administration of the Contract, and the remainder to the Owner. 
  

			
	OWNER Heritage Bank	    	CONTRACTOR Meredith Construction, Co., Inc.
		
	 /s/ Michael S. Ives
	    	 /s/ Peter M. Meredith, Jr.

	(Signature)	    	(Signature)
		
	 Michael S. Ives, President & CEO
	    	 Peter M. Meredith, Jr., CEO/Chairman

	(Printed name and title)	    	(Printed name and title)

  

			
	

	  	CAUTION: You should sign an original AIA document which has this caution printed in red. An original assures that changes will not be obscured as may occur when documents are
reproduced.

  



			
	AIA DOCUMENT A111 • OWNER-CONTRACTOR AGREEMENT • TENTH EDITION • AIA® • © 1987 • THE	  	
	AMERICAN INSTITUTE OF ARCHITECTS, 1735 NEW YORK AVENUE, N.W., WASHINGTON, D.C. 20006	  	A111-1987

 WARNING: Unlicensed photocopying violates U.S. copyright laws and is subject to legal
prosecution. 
  


 14