Document:

2012 Long-Term Incentive Plan

 Exhibit 10.1 
 ATLAS RESOURCE PARTNERS, L.P. 
 2012 LONG-TERM INCENTIVE PLAN

  

	SECTION 1:	PURPOSE OF THE PLAN. 

 The Atlas Resource Partners, L.P. 2012 Long-Term Incentive Plan (the “Plan”) is intended to promote the interests of Atlas Resource Partners, L.P., a Delaware limited partnership (the
“Partnership”), by providing to officers, employees and managing board members of Atlas Resource Partners GP, LLC, a Delaware limited liability company (the “Company”), and employees of its Affiliates, consultants
and joint venture partners who perform services for the Company or the Partnership, incentive awards for superior performance that are based on common units of limited partner interest of the Partnership (“Units”). It is also
contemplated that the Plan will enhance the ability of the Company and its Affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Company or the Partnership and to encourage them to
devote their best efforts to the business of the Company or the Partnership, thereby advancing the interests of the Company and the Partnership. 
  

	SECTION 2:	DEFINITIONS. 

 As
used in the Plan, the following terms shall have the meanings set forth below: 
 “Affiliate” means, with
respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Award” means an Option, Phantom Unit, or Restricted Unit granted under the Plan, and shall include any tandem DERs
granted with respect to a Phantom Unit. 
 “Award Agreement” means a written agreement setting forth the terms
and conditions of a specific Award. 
 “Board” means the board of directors of the Company. 

“Cause” means Cause (or a term of similar import) as defined in the employment, consulting, or similar agreement to
which a Participant is party, or, if there is no such agreement, “Cause” means the Participant’s: (i) commission of a felony or a crime of moral turpitude; (ii) commission of any act of malfeasance or wrongdoing against the
Partnership, the Company or any Affiliate; (iii) a material breach of the Company’s or any Affiliate’s applicable policies or procedures; (iv) willful and continued failure to perform the Participant’s material duties;
(v) willful misconduct that causes material harm to the Partnership, the Company or any Affiliate or their respective business reputations, including due to any adverse publicity; or (vi) material breach of the Participant’s
obligations under any agreement (including any covenant not to compete) entered into between the Participant and the Company or any Affiliate. Notwithstanding Section 3(a) of the Plan, following a Change in Control, any determination by the
Committee as to whether “Cause” exists shall be subject to de novo review. 

 “Change in Control” means the occurrence of any of the following:

 (a) neither the Company nor any of its Affiliates is the general partner of the Partnership; 

(b) a merger, consolidation, share exchange, division or other reorganization or transaction of the Partnership, the
general partner of Atlas Energy, L.P., Atlas Energy, L.P., or the Company with any entity, other than such a transaction that would result in the voting securities of the Partnership, the general partner of Atlas Energy, L.P., Atlas Energy, L.P., or
the Company, as appropriate, outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 60% of the combined voting power immediately
after such transaction of the surviving entity’s outstanding securities or, in the case of a division, the outstanding securities of each entity resulting from the division; 

(c) the equity holders of the Partnership, the Company, Atlas Energy, L.P., or the general partner of Atlas Energy, L.P.
approve a plan of complete liquidation or winding-up of, as appropriate, the Partnership, the Company, Atlas Energy, L.P., or the general partner of Atlas Energy, L.P.; 

(d) a sale or disposition (in one transaction or a series of transactions) of all or substantially all of the assets of
the Partnership, the Company, Atlas Energy, L.P., or the general partner of Atlas Energy, L.P.; 
 (e) during any
period of 24 consecutive months, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election or appointment was approved by a vote of at least 2/3 of
the directors then still in office who were directors at the beginning of such period) cease for any reason to constitute at least a majority of the Board; or 
 (f) any other sale of assets or restructuring transaction that has the effect of the enumerated transactions or events described in any of clauses (a) through (e) above. 

Notwithstanding the foregoing, with respect to any Award that is subject to Section 409A of the Code, Change in Control shall mean a “change of
control event,” as defined in the regulations and guidance issued under Section 409A of the Code. In addition, notwithstanding the foregoing, the Committee may specify a more limited definition of Change in Control for a particular Award,
as the Committee deems appropriate. 
 “Code” means the Internal Revenue Code of 1986, as amended, or any
successor thereto, and the regulations promulgated thereunder. 
 “Committee” means the Board or such committee
of the Board or the board (or committee of the board) of an Affiliate of the Partnership appointed by the Board to administer the Plan. 

  
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 “DER” means a right, granted in tandem with a specific Phantom Unit, to
receive an amount in cash, securities, or property equal to, and at the same time as, the cash distributions or other distributions of securities or property made by the Partnership with respect to a Unit during the period such Phantom Unit is
outstanding. 
 “Disability” means, unless provided otherwise in an Award Agreement,
(i) “Disability” as defined in any individual employment agreement to which the Participant is a party, or (ii) if there is no such individual employment agreement or it does not define “Disability,” “permanent and
total disability” as defined in Section 22(e)(3) of the Code. Notwithstanding the above, with respect to any Award, to the extent necessary to avoid accelerated taxation or tax penalties under Section 409A of the Code, Disability
shall mean “disability” within the meaning of Section 409A of the Code. 
 “Employee” means any
officer or employee of the Company, its Affiliates, consultants or joint venture partners who performs services for the Company, the Partnership, or an Affiliate of the Company or the Partnership or in furtherance of the Company’s or the
Partnership’s business. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “Fair Market Value” means the closing sales price of a Unit on the applicable date (or if there is no
trading in the Units on such date, the closing sales price on the last date Units were traded). In the event Units are not publicly traded at the time a determination of fair market value is required to be made hereunder, the determination of fair
market value shall be made in good faith by the Committee in a manner which, if necessary to avoid accelerated taxation or tax penalties pursuant to Section 409A of the Code, meets the requirements of Section 409A of the Code. 

“Director” means a “non-employee director” of the Company as defined in Rule 16b-3 under the Exchange Act.

 “Option” means an option to purchase Units granted under the Plan. 

“Participant” means any Employee or Director granted an Award under the Plan. 

“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust,
unincorporated organization, association, government agency or political subdivision thereof or other entity. 

“Phantom Unit” means a phantom (notional) unit granted under the Plan that, upon vesting, entitles the Participant to
receive a Unit or its then-Fair Market Value in cash or other securities or property, as determined by the Committee. 

“Restricted Period” means the period established by the Committee with respect to an Award during which the Award
remains subject to forfeiture or is not exercisable by the Participant. 
 “Restricted Unit” means an Award
granted under Section 6(c). 

  
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 “Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange
Act, or any successor rule or regulation thereto as in effect from time to time. 
 “SEC” means the Securities
and Exchange Commission, or any successor thereto. 
 “Securities Act” means the Securities Act of 1933, as
amended. 
  

	SECTION 3:	ADMINISTRATION. 

 (a) General Authority and Determinations. The Plan shall be administered by the Committee. A majority of the Committee shall constitute a quorum, and the acts of a majority of the members of
the Committee who are present at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in writing, shall be the acts of the Committee. Subject to the following and any applicable law, the
Committee, in its sole discretion, may delegate any or all of its powers and duties under the Plan, including the power to grant Awards under the Plan, to the Chief Executive Officer of the Company, subject to such limitations on such delegated
powers and duties as the Committee may impose, if any; provided, however, that such delegation shall not limit the Chief Executive Officer’s right to receive Awards under the Plan, and the Chief Executive Officer may not grant
Awards to, or take any action with respect to any Award previously granted to, himself or a Person who is an Employee or Director subject to Rule 16b-3. Subject to the terms of the Plan and applicable law, and in addition to other express powers and
authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the
terms and conditions of any Award; (iv) determine whether, to what extent, and under what circumstances Awards may be settled, exercised, canceled, or forfeited; (v) interpret and administer the Plan and any instrument or agreement
relating to an Award made under the Plan; (vi) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (vii) accelerate the vesting or
lapse of restrictions of any outstanding Award, in each case based on such considerations as the Committee in its sole discretion determines; and (viii) make any other determination and take any other action that the Committee deems necessary
or desirable for the administration of the Plan. The Committee shall have full power and express discretionary authority to make factual determinations and to adopt or amend such rules, regulations, agreements and instruments for implementing the
Plan and for the conduct of its business as it deems necessary or advisable, in its sole discretion. Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the
Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any Affiliate, any Participant, and any beneficiary
of any Award. All powers of the Committee shall be executed in the best interests of the Company, not as a fiduciary, in keeping with the objectives of the Plan, and need not be uniform as to similarly situated Participants. 

(b) Award Agreements. All Awards under the Plan shall be made conditional on the Participant’s entering into
an Award Agreement, and a Participant shall have no rights under the Plan until an Award Agreement is entered into by the Participant and the Company. 

  
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The terms and conditions of each Award, as determined by the Committee, shall be set forth in an Award Agreement, which shall be delivered to the Participant receiving such Award upon, or as
promptly as is reasonably practicable following, the grant of such Award. All Awards under the Plan shall be made conditional upon the Participant’s acknowledgement, in writing or by acceptance of the Award, that all decisions and
determinations of the Committee shall be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest in such Award. Awards made under a particular Section of the Plan need not be uniform as
among Participants. 
  

	SECTION 4:	UNITS. 

 (a) Units Available. Subject to adjustment as provided in Section 4(c), the number of Units with respect to which Phantom Units, Options, and Restricted Units may be granted under the Plan is
2,900,000. If any Option, Phantom Unit, or Restricted Unit is forfeited or otherwise terminates or is canceled or paid without the delivery of Units, then the Units covered by such Award, to the extent of such forfeiture, termination, payment or
cancellation, shall again be Units with respect to which Awards may be granted. Units surrendered in payment of the Exercise Price of an Option, and Units withheld or surrendered for payment of taxes, shall not be available for re-issuance under the
Plan. 
 (b) Sources of Units Deliverable under Awards. Any Units delivered pursuant to an Award shall
consist, in whole or in part, of Units newly issued by the Partnership, Units acquired in the open market or from any Affiliate of the Partnership or the Company, or any other Person, or any combination of the foregoing, as determined by the
Committee in its discretion. 
 (c) Adjustments. In the event that any distribution (whether in the form
of cash, Units, other securities or other property), recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Partnership, issuance of
warrants or other rights to purchase Units or other securities of the Partnership, or other similar transaction or event affects the Units such that an adjustment is necessary in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, then the Committee shall equitably adjust (i) the number and type of Units (or other securities or property) with respect to which Awards may be granted, (ii) the number and type of
Units (or other securities or property, including cash) subject to outstanding Awards, and (iii) the grant or exercise price with respect to any Award; provided, however, that the number of Units subject to any Award shall always
be a whole number. The Committee may make provision for a cash payment to the holder of an outstanding Award in connection with any event listed in this Section 4(c). 

 

	SECTION 5:	ELIGIBILITY. 

 Any
Employee or Director shall be eligible to be designated a Participant and receive an Award under the Plan. 

  
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	SECTION 6:	AWARDS. 

 (a) Options. The Committee shall have the authority to determine the Employees and Directors to whom Options shall be granted, the number of Units to be covered by each Option, the exercise price
therefor, the Restricted Period and the conditions and limitations applicable to the exercise of the Option, as the Committee shall determine, that are not inconsistent with the provisions of the Plan. 

(i) Exercise Price. The exercise price per Unit purchasable under an Option shall be determined by the Committee at
the time the Option is granted and may not be less than Fair Market Value as of the date of grant. 
 (ii)
Restrictions on Exercise and Method of Exercise. The Committee shall determine the Restricted Period and the method or methods by which payment of the exercise price may be made or deemed to have been made, which may include, without
limitation, cash, check acceptable to the Board, a tender of Units by the Participant having a Fair Market Value on the date of exercise equal to the exercise price, a “cashless-broker”–assisted exercise in accordance with procedures
permitted by Regulation T of the Federal Reserve Board or through procedures approved by the Board, a recourse note from the Participant in a form acceptable to the Board and which does not violate the Sarbanes-Oxley Act of 2002, a “net
exercise” that permits the Partnership to withhold a number of Units that otherwise would be issued to the Participant pursuant to the exercise of the Option having a Fair Market Value on the date of exercise equal to the exercise price, or any
combination thereof. 
 (b) Phantom Units. The Committee shall have the authority to determine the
Employees and Directors to whom Phantom Units shall be granted, the number of Phantom Units to be granted to each such Participant, the Restricted Period, the conditions under which the Phantom Units may become vested or forfeited, whether DERs are
granted with respect to an Award of Phantom Units and such other terms and conditions, as the Committee may determine, that are not inconsistent with the provisions of the Plan. 

(i) Payment With Respect to Phantom Units. Payment with respect to Phantom Units shall be made in cash, in Units,
or in a combination of cash and Units, as determined by the Committee. The Award Agreement shall specify the maximum number of Units that can be issued pursuant to the Award of Phantom Units. 

(ii) DERs. The Committee may grant DERs in connection with an Award of Phantom Units, under such terms and
conditions as the Committee deems appropriate. DERs may be paid to Participants currently or may be deferred, as reflected in the applicable Award Agreement. All DERs that are not paid currently shall be credited to bookkeeping accounts on the
Company’s records for purposes of the Plan. DERs may be accrued as a cash obligation or may be converted to additional Phantom Units for the Participant, and deferred DERs may accrue interest, in each case as determined by the Committee. The
Committee may provide that DERs shall be payable based on the achievement of specific performance goals. DERs may be payable in cash or Units or in a combination of cash and Units, as determined by the Committee. 

  
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 (c) Restricted Units. Restricted Units are actual Units issued to a
Participant that are subject to vesting restrictions and evidenced in such manner as the Committee may deem appropriate, including book-entry registration or issuance of one or more unit certificates. Any certificate issued in respect of Restricted
Units shall be registered in the name of the applicable Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Units. The Committee may require that the certificates
evidencing such Units be held in custody by the Company until the restrictions thereon shall have lapsed and that, as a condition of any Award of Restricted Units, the applicable Participant shall have endorsed the certificates in blank, relating to
the Units covered by such Award. 
 (i) Terms and Conditions. Restricted Units shall be subject to the
following terms and conditions: 
 (A) The Committee shall have the authority to determine the Employees and Directors to whom
Restricted Units shall be granted, the number of Units to be granted to each such Participant, the Restricted Period, the conditions under which the Restricted Units may become vested or forfeited, and such other terms and conditions, as the
Committee may determine, that are not inconsistent with the provisions of the Plan. The conditions for grant, vesting or transferability and the other provisions of Restricted Units (including without limitation any performance goals) need not be
the same with respect to each Participant. The Committee may at any time, in its sole discretion, accelerate or waive, in whole or in part, any of the foregoing restrictions. 
 (B) Subject to the provisions of the Plan and the applicable Award Agreement, during the Restricted Period, the Participant shall not be permitted to sell, assign, transfer, pledge or otherwise encumber
Restricted Units. 
 (C) Except as provided in this Section 6 and in an applicable Award Agreement, the applicable
Participant shall have, with respect to the Restricted Units, all of the rights of holders of Units, including the right to vote the Units. If so determined by the Committee in the applicable Award Agreement, (i) cash dividends on the Units
that are the subject of the Restricted Unit Award shall be automatically deferred and/or reinvested in additional Restricted Units and held subject to the vesting of the underlying Restricted Units, and (ii) subject to any adjustment pursuant
to the terms of Section 4(c) of the Plan, dividends payable in Units shall be paid in the form of Restricted Units of the same class as the Units with which such dividend was paid, held subject to the vesting of the underlying Restricted Units.

 (D) If and when the applicable performance goals, if any, are determined by the Committee to be satisfied and the Restricted
Period expires without a prior forfeiture of the Restricted Units for which legended certificates have been issued, unlegended certificates for such Units shall be delivered to the Participant upon surrender of the legended certificates. 

  
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 (d) General. 

(i) Forfeiture. Except as otherwise provided in the terms of an Award Agreement, upon termination of a
Participant’s employment with the Company or its Affiliates or membership on the Board during the applicable Restricted Period, all unvested Options, Phantom Units, and Restricted Units shall be forfeited by the Participant; provided,
however, that if the reason for the termination is the Participant’s death or Disability, all Options awarded to the Participant shall become exercisable and all Phantom Units and Restricted Units shall vest automatically. The Committee
may, in its discretion, waive in whole or in part any forfeiture. 
 (ii) Awards May Be Granted Separately or
Together. Awards may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any
Affiliate. 
 (iii) Limits on Transfer of Awards. 

(A) Except as provided in (C) below, each Option shall be exercisable only by the Participant during the Participant’s
lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution. 

(B) Except as provided in (C) below, no Award and no right under any such Award may be assigned, alienated, pledged, attached, sold
or otherwise transferred or encumbered by a Participant and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Partnership, the Company or any Affiliate thereof.

 (C) To the extent specifically provided by the Committee with respect to an Option grant, an Option may be transferred by a
Participant without consideration to immediate family members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish. In addition, Awards may be transferred
by will and the laws of descent and distribution. 
 (iv) Unit Certificates. All certificates for Units or
other securities of the Partnership delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules,
regulations, and other requirements of the SEC, any stock exchange upon which such Units or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions. 
 (v) Delivery of Units or Other Securities
and Payment by Participant of Consideration. Notwithstanding anything in the Plan or any grant agreement to the contrary, delivery of Units pursuant to the exercise or vesting of an Award may be deferred for any period during which, in the good
faith determination of the Committee, the Partnership is not reasonably able to obtain or issue Units pursuant to such Award without violating the rules or regulations of any applicable law or securities exchange. No Units or other securities shall
be delivered pursuant to any Award until payment in 

  
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full of any amount required to be paid pursuant to the Plan or the applicable Award grant agreement (including, without limitation, any exercise price or tax withholding) is received by the
Partnership. With respect to any Award that is subject to Section 409A of the Code, any delay under this paragraph is intended to apply only if no accelerated taxation or tax penalties under Section 409A of the Code would apply.

 (vi) Rule 16b-3. It is intended that the Plan and any Award made to a Participant subject to
Section 16 of the Exchange Act meet all of the requirements of Rule 16b-3. If any provision of the Plan or any such Award would disqualify the Plan or such Award under, or would otherwise not comply with, Rule 16b-3, such provision or Award
shall be construed or deemed amended to conform to Rule 16b-3. 
 (vii) Status of Original Issue Units.
The Partnership intends, but shall not be obligated, to register for sale under the Securities Act the Units acquirable pursuant to Awards, and to keep such registration effective throughout the period any Awards are in effect. In the absence of
such effective registration or an available exemption from registration under the Securities Act, delivery of Units acquirable pursuant to Awards shall be delayed until registration of such Units is effective or an exemption from registration under
the Securities Act is available. In the event exemption from registration under the Securities Act is available, a Participant (or a Participant’s estate or personal representative in the event of the Participant’s death or incapacity), if
requested by the Partnership to do so, will execute and deliver to the Partnership in writing an agreement containing such provisions as the Partnership may require to assure compliance with applicable securities laws. No sale or disposition of
Units acquired pursuant to an Award by a Participant shall be made in the absence of an effective registration statement under the Securities Act with respect to such Units unless an opinion of counsel satisfactory to the Partnership that such sale
or disposition will not constitute a violation of the Securities Act or any other applicable securities laws is first obtained. With respect to any Award that is subject to Section 409A of the Code, any delay under this paragraph is intended to
apply only if no accelerated taxation or tax penalties under Section 409A of the Code would apply. 
 (viii)
Change in Control. 
 (A) General Authority. In connection with any Change in Control, the Committee may,
in its sole and absolute discretion and authority and without obtaining the approval or consent of the Partnership’s unitholders or any Participant with respect to such Participant’s outstanding Awards, subject to the terms of any Award
Agreements or employment agreements between the Company or any Affiliate and any Participant, take one or more of the following actions (with respect to any or all of the Awards, and with discretion to differentiate between individual Participants
and Awards for any reason): 
 (1) Cause Awards to be assumed or a substantially equivalent award to be substituted by the
surviving or successor entity or a parent, subsidiary, or affiliate of such successor entity; 

  
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 (2) Accelerate the vesting of Awards as of immediately prior to the consummation of the
transaction that constitutes such Change in Control so that Awards shall vest (and, to the extent applicable, become exercisable) as to the Units that otherwise would have been unvested, in a manner which allows the resulting Units to participate in
such transaction; 
 (3) Arrange or otherwise provide for the payment of cash or other consideration to Participants in exchange
for the cancellation of outstanding Awards (with the Committee determining the amount payable to each Participant based on, in the case of an Award of Phantom Units or Restricted Units being cancelled, the Fair Market Value, on the date of the
Change in Control, of the Units subject to such Award and, in the case of an Award of Options, the excess, if any, of the Fair Market Value on the date of the Change in Control of the Units issuable with respect to such Options less the aggregate
exercise price of such Options); 
 (4) Terminate all or some Awards upon the consummation of the transaction that constitutes a
Change in Control, provided that the Committee shall provide for vesting of such Awards in full as of immediately prior to the consummation of the transaction that constitutes such Change in Control (to the extent that, where applicable, an Award is
not exercised prior to consummation of such a transaction in which the Award is not being assumed or substituted, such Award shall terminate upon such consummation); and 
 (5) Make such other modifications, adjustments, or amendments to outstanding Awards or this Plan as the Committee deems necessary or appropriate. 

(B) Vesting in Connection With a Change in Control. Upon a Change in Control, all Awards held by Directors shall, to the
extent previously unvested, immediately vest in full. In the case of Participants who are Employees, upon the Participant’s termination of employment by the Company without “Cause” (as defined herein), or upon any other type of
termination specified in the applicable Award Agreement, in any case following a Change in Control, any unvested portion of an Award shall immediately vest in full and, in the case of Options, become exercisable for the one-year period following the
date of termination of employment, but in any case not later than the end of the original term of the Option. 
  

	SECTION 7:	AMENDMENT AND TERMINATION. 

 Except to the extent prohibited by applicable law: 
 (a)
Amendments to the Plan. Except as required by the rules of the principal securities exchange on which the Units are traded and subject to Section 7(b) below, the Board or the Committee may amend, alter, suspend, discontinue, or terminate
the Plan in any manner without the consent of any partner, Participant, other holder or beneficiary of an Award, or other Person. 
 (b) Amendments to Awards. Subject to Sections 6(d)(viii) and 7(a), the Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided
no change, other than pursuant to Sections 6(d)(viii) or 7(c), to any Award shall materially reduce the benefit to a Participant without the consent of such Participant. 

  
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 (c) Adjustment of Awards upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee is hereby authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events
described in Section 4(c) of the Plan) affecting the Partnership or the financial statements of the Partnership, or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 
  

	SECTION 8:	GENERAL PROVISIONS. 

 (a) No Rights to Award. No Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants. The terms and conditions of
Awards need not be the same with respect to each Participant. 
 (b) Withholding. All Awards under the
Plan shall be subject to applicable federal (including FICA), state and local tax withholding requirements. The Company may require that the Participant or other person receiving or exercising Awards pay to the Company the amount of any federal,
state or local taxes that the Company is required to withhold with respect to such Awards, or the Company may deduct from other wages paid by the Company the amount of any withholding taxes due with respect to such Awards. The Company may require
forfeiture of any Award for which the Participant does not timely pay the applicable withholding taxes. If the Committee so permits, Units may be withheld to satisfy the Company’s tax withholding obligation with respect to Awards paid in Units,
at the time such Awards become subject to employment taxes and tax withholding, as applicable, up to an amount that does not exceed the minimum required withholding for federal (including FICA), state and local tax liabilities. 

(c) No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be
retained in the employ of the Company or any Affiliate or to remain on the Board. Further, the Company or an Affiliate may at any time dismiss a Participant from employment, free from any liability or any claim under the Plan, unless otherwise
expressly provided in the Plan or in any Award agreement. 
 (d) Governing Law. The validity,
construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware (without regard to any choice of law provision that might refer interpretation of the
Plan to the substantive law of another jurisdiction) and applicable federal law. 
 (e) Severability. If
any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee,
such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such
provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect. 

  
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 (f) Compliance with Other Laws. The Committee may refuse to issue or
transfer any Units or other consideration under an Award if, in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal
securities exchange on which the Units are then traded, or entitle the Partnership or an Affiliate to recovery of “short swing profits” under Section 16(b) of the Exchange Act, and any payment tendered to the Partnership by a
Participant, other holder or beneficiary in connection with the exercise of such Award, shall be promptly refunded to the relevant Participant, holder or beneficiary. It is intended that, to the extent applicable, Awards made under the Plan comply
with the requirements of Section 409A of the Code and the regulations thereunder so as to avoid any accelerated income tax or tax penalty imposed under Section 409A of the Code, and the Plan and Award Agreements shall be interpreted
consistently with this intent. 
 (g) No Trust or Fund Created. Neither the Plan nor any Award shall
create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Partnership, the Company or any participating Affiliate and a Participant or any other Person. 

(h) No Fractional Units. No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and
the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise
eliminated. 
 (i) Headings. Headings are given to the sections and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision thereof. 

(j) Facility of Payment. Any amounts payable hereunder to any Person under legal disability or who, in the judgment
of the Committee, is unable to properly manage his financial affairs, may be paid to the legal representative of such Person, or may be applied for the benefit of such Person in any manner which the Committee may select, and the Company shall be
relieved of any further liability for payment of such amounts. 
  

	SECTION 9:	TERM OF THE PLAN. 

The Plan shall be effective on the date of its approval by the Unit holders and shall continue until the date terminated by the Board or
Units are no longer available for the grant of Awards under the Plan, whichever occurs first. However, unless otherwise expressly provided in the Plan or in an applicable Award agreement, any Award granted prior to such termination, and the
authority of the Board or the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date. 

  
 12AIA Document A101-2007 Standard Contract for Construction

 Exhibit 10.1 

 
 

 
 Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum
 

 

 AGREEMENT made as of the Twelfth day of March in the year Two Thousand Twelve 

(In words, indicate day, month and year) 

BETWEEN the Owner: 
 (Name, legal
status, address and other information) 
 Peerless Manufacturing Company 
 14651 North Dallas Parkway 
 Suite 500 
 Dallas, TX 75254 
 Telephone Number: 214-353-5545 

Fax Number: 214-351-0194 
 And the Contractor:

 (Name, legal status, address and other information) 
 Schwob Building Company, Ltd. 
 2349 Glenda Lane 

Dallas, Texas 75229 
 Telephone Number:
972-243-7674 
 Fax Number: 972-243-7710 
 For the following Project: 
 (Name, location and detailed description) 

New Facility – Peerless Manufacturing Company 
 7000 Block of Dakota Lane 
 Denton, TX 
 The Architect: 
 (Name, legal status, address and other information) 

Alliance Architects, Inc. 
 1600 N. Collins Blvd
Suite 1000 
 Richardson, TX 75080 

Telephone Number: 972-233-0400 
 Fax Number:
972-233-2259 
 The Owner and Contractor agree as follows.

 ADDITIONS AND DELETIONS: 
 The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that
notes added information as well as revisions to the standard form text is available from the author and should be reviewed. A vertical line in the left margin of this document indicates where the author has added necessary information and where the
author has added to or deleted from the original AIA text. 
 This document has important legal consequences. Consultation with an attorney is
encouraged with respect to its completion or modification. 
 AIA Document A201TM–2007, 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.

 

  

			
		
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	 	AIA Document A101TM – 2007. Copyright © 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by
The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the
maximum extent possible under the law. This document was produced by AIA software at 10:38:33 on 03/09/2012 under Order No.9216233540_1 which expires on 08/01/2012, and is not for resale.

 

			
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 TABLE OF ARTICLES 
  

	1	THE CONTRACT DOCUMENTS 

  

	2	THE WORK OF THIS CONTRACT 

  

	3	DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION 

  

	4	CONTRACT SUM 

  

	5	PAYMENTS 

  

	6	DISPUTE RESOLUTION 

  

	7	TERMINATION OR SUSPENSION 

  

	8	MISCELLANEOUS PROVISIONS 

  

	9	ENUMERATION OF CONTRACT DOCUMENTS 

  

	10	INSURANCE AND BONDS 

 ARTICLE 1
    THE CONTRACT DOCUMENTS 
 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, all of which 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 a Modification, appears in Article 9. 
 ARTICLE  2
    THE WORK OF THIS CONTRACT 
 The Contractor shall fully execute the Work described in the Contract Documents, except
as specifically indicated in the Contract Documents to be the responsibility of others. 
 ARTICLE  3     DATE OF
COMMENCEMENT AND SUBSTANTIAL COMPLETION 
 § 3.1 The date of commencement of the Work shall be the date of this Agreement 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.) 

Ten (10) business days after receipt of all construction permits and fully executed Prime Contract. 

If, prior to the commencement of the Work, the Owner requires time to file mortgages and other security interests, the Owner’s time requirement
shall be as follows: 
 N/A 

§ 3.2 The Contract Time shall be measured from the date of commencement. 
 § 3.3 The Contractor shall achieve Substantial Completion of the entire Work not later than Three Hundred Thirty Six (336) days from the date of commencement, or as follows: 

(Insert number of calendar days. Alternatively, a calendar date may be used when coordinated with the date of commencement. If appropriate, insert
requirements for earlier Substantial Completion of certain portions of the Work.) 

  

			
		
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The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the
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	 Portion of Work
	  	Substantial Completion Date	  	

 , subject to adjustments of this Contract Time as provided in the Contract Documents. 

(Insert provisions, if any, for liquidated damages relating to failure to achieve Substantial Completion on time or for bonus payments for early
completion of the Work.) 
  

	ARTICLE 4	    CONTRACT SUM 

§ 4.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor’s performance of the Contract. The Contract
Sum shall be Nine Million Eight Hundred Thirty-nine Thousand Five Hundred Seventy-two Dollars and Zero Cents ($9,839,572.00), subject to additions and deductions as provided in the Contract Documents. 

§ 4.2 The Contract Sum 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. If the bidding or proposal documents permit the Owner to
accept other alternates subsequent to the execution of this Agreement, attach a schedule of such other alternates showing the amount for each and the date when that amount expires.) 
 Potential changes to the Crane 7 for magnet application. 
 § 4.3 Unit prices, if any:

 (Identify and state the unit price; state quantity limitations, if any, to which the unit price will be applicable.) 

 

					
	            Item	  	Units and Limitations	  	Price Per Unit ($ 0.00)

 §
4.4 Allowances included in the Contract Sum, if any: 
 (Identify allowance and state exclusions, if any, from the allowance price.)

  

					
	Item	  	Price	 
	 Residential Appliances
	  	$	10,000.00	  
	 Welding Gas System
	  	$	70,000.00	  

 ARTICLE 5     PAYMENTS 
 § 5.1 PROGRESS PAYMENTS 
 § 5.1.1 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.

 § 5.1.2 The period covered by each Application for Payment shall be one calendar month ending on the last day of the month, or as
follows: 
 The 25th of each month 
 § 5.1.3 Provided that an Application for Payment is received by the Owner not later than the 25th day of a month, the Owner shall make payment of the certified amount to the Contractor not
later than the 25th day of the following 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 Thirty (30) days after the Owner receives the
Application for Payment. 
 (Federal, state or local laws may require payment within a certain period of time.) 

§ 5.1.4 Each Application for Payment shall be based on the most recent schedule of values submitted by the Contractor in accordance with the
Contract Documents. The schedule of values shall allocate the entire Contract Sum among the various portions of the Work. The schedule of values shall be prepared in such form and supported by such data to substantiate its accuracy as the Owner may
require. This schedule, unless objected to by the Owner, shall be used as a basis for reviewing the Contractor’s Applications for Payment. 

  

			
		
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The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the
maximum extent possible under the law. This document was produced by AIA software at 10:38:33 on 03/09/2012 under Order No.9216233540_1 which expires on 08/01/2012, and is not for resale.

 

			
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 § 5.1.5 Applications for Payment shall show the percentage of completion of each portion of the
Work as of the end of the period covered by the Application for Payment. 
 § 5.1.6 Subject to other provisions of the Contract
Documents, the amount of each progress payment shall be computed as follows: 
  

	 	.1	Take that portion of the Contract Sum properly allocable to completed Work as determined by multiplying the percentage completion of each portion of the Work by the
share of the Contract Sum allocated to that portion of the Work in the schedule of values, less retainage of Ten percent (10%). Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute shall be included as
provided in Section 7.3.9 of AIA Document A201TM–2007, General Conditions of the Contract for Construction;  

  

	 	.2	Add that portion of the Contract Sum properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the
completed construction (or, if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing), less retainage of Ten percent (10%); 

 

	 	.3	Subtract the aggregate of previous payments made by the Owner; and 

  

	 	.4	Subtract amounts, if any, for which the Architect has withheld or nullified a Certificate for Payment as provided in Section 9.5 of AIA Document A201–2007.

 § 5.1.7 The progress payment amount determined in accordance with Section 5.1.6 shall be further modified
under the following circumstances:  
  

	 	.1	Add, upon Substantial Completion of the Work, a sum sufficient to increase the total payments to the full amount of the Contract Sum, less such amounts as the Architect
shall determine for incomplete Work, retainage applicable to such work and unsettled claims; and 

 (Section
9.8.5 of AIA Document A201–2007 requires release of applicable retainage upon Substantial Completion of Work with consent of surety, if any.) 
  

	 	.2	Add, if final completion of the Work is thereafter materially delayed through no fault of the Contractor, any additional amounts payable in accordance with
Section 9.10.3 of AIA Document A201–2007. 

 § 5.1.8 Reduction or limitation of retainage, if any, shall be
as follows: 
 (If it is intended, prior to Substantial Completion of the entire Work, to reduce or limit the retainage resulting from the
percentages inserted in Sections 5.1.6.1 and 5.1.6.2 above, and this is not explained elsewhere in the Contract Documents, insert here provisions for such reduction or limitation.) 
 § 5.1.9 Except with the Owner’s prior approval, the Contractor shall not make advance payments to suppliers for materials or equipment which have not been delivered and stored at the
site. 
 § 5.2 FINAL PAYMENT 
 § 5.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Contractor when 

 

	 	.1	the Contractor has fully performed the Contract except for the Contractor’s responsibility to correct Work as provided in Section 12.2.2 of AIA Document
A201–2007, and to satisfy other requirements, if any, which extend beyond final payment; and 

  

	 	.2	A final Certificate for Payment has been issued by the Architect. 

 § 5.2.2 The Owner’s final payment to the Contractor shall be made no later than 30 days after the issuance of the Municipalities Certificate of Occupancy, or as follows: 

ARTICLE 6     DISPUTE RESOLUTION 
 § 6.2 BINDING DISPUTE RESOLUTION 
 For any Claim subject to, but not resolved by,
mediation pursuant to Section 15.3 of AIA Document A201–2007, the method of binding dispute resolution shall be as follows: 

  

			
		
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	 	AIA Document A101TM – 2007. Copyright © 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by
The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the
maximum extent possible under the law. This document was produced by AIA software at 10:38:33 on 03/09/2012 under Order No.9216233540_1 which expires on 08/01/2012, and is not for resale.

 

			
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 (Check the appropriate box. If the Owner and Contractor do not select a method of binding dispute
resolution below, or do not subsequently agree in writing to a binding dispute resolution method other than litigation, Claims will be resolved by litigation in a court of competent jurisdiction.) 

[ X ] Arbitration pursuant to Section 15.4 of AIA Document A201–2007 

[      ] Litigation in a court of competent jurisdiction 

[      ] Other (Specify) 
 ARTICLE  7     TERMINATION OR SUSPENSION 
 § 7.1 The
Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document A201–2007. 
 § 7.2 The
Work may be suspended by the Owner as provided in Article 14 of AIA Document A201–2007. 
 ARTICLE  8    
MISCELLANEOUS PROVISIONS 
 § 8.1 Where reference is made in this Agreement to a provision of AIA Document A201–2007 or
another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents. 

§ 8.2 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.) 
 Eight percent (8%) Per Annum 
 § 8.3 The Owner’s representative: 
 (Name, address and other information)

 Vincent Hanlon 
 14651 North
Dallas Parkway, Suite 500 
 Dallas, TX 75254 
 Telephone Number: 214-353-5545 
 Fax Number: 214-351-0194 

Email Address: vhanlon@peerlessmfg.com 

§ 8.4 The Contractor’s representative: 
 (Name, address and other information) 
 Jim Corry 

2349 Glenda Lane 
 Dallas, TX 75229 

Phone 972-243-7674 
 Fax 972-243-7710 

Email Address: jcorry@schwob.com 
 § 8.5
Neither the Owner’s nor the Contractor’s representative shall be changed without ten days written notice to the other party. 

§ 8.6 Other provisions: 

ARTICLE  9     ENUMERATION OF CONTRACT DOCUMENTS 
 § 9.1 The Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated in the sections below. 
 § 9.1.1 The Agreement is this executed AIA Document A101–2007, Standard Form of Agreement Between Owner and Contractor. 

  

			
		
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The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the
maximum extent possible under the law. This document was produced by AIA software at 10:38:33 on 03/09/2012 under Order No.9216233540_1 which expires on 08/01/2012, and is not for resale.

 

			
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 § 9.1.2 The General Conditions are AIA Document A201–2007, General Conditions of the
Contract for Construction. 
 § 9.1.3 The Supplementary and other Conditions of the Contract: 

 

							
	Document	  	Title	  	Date	  	Pages
	 Construction Proposal (Exhibit “A”)
	  	Revised Construction Cost Proposal	  	March 8, 2012	  	4

 § 9.1.4 The Specifications: 
 (Either list the Specifications here or refer to an exhibit attached to this Agreement.) 

Exhibit “B” 
  

							
	Section	  	Title	  	Date	  	Pages

 § 9.1.5 The
Drawings: 
 (Either list the Drawings here or refer to an exhibit attached to this Agreement.) 

Exhibit “C” 
  

					
	Number	  	Title	  	Date

 § 9.1.6 The
Addenda, if any: 
  

					
	Number	  	Date	  	Pages
	 SBC Addendum #1 (Exhibit “D”)
	  	April 29, 2011	  	15

 Portions of Addenda relating to bidding requirements are not part of the Contract Documents unless the bidding
requirements are also enumerated in this Article 9. 
 § 9.1.7 Additional documents, if any, forming part of the Contract Documents:

 .1 AIA Document E201TM–2007, Digital Data Protocol Exhibit, if completed by the parties, or
the following: 
 N/A 
 .2 Other documents, if any, listed below: 
 (List here any additional
documents that are intended to form part of the Contract Documents. AIA Document A201–2007 provides 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.) 
 N/A 
 ARTICLE  10     INSURANCE AND BONDS 

The Contractor shall purchase and maintain insurance and provide bonds as set forth in Article 11 of AIA Document A201–2007. 

(State bonding requirements, if any, and limits of liability for insurance required in Article 11 of AIA Document A201–2007.) 

 

			
	Type of insurance or bond	  	Limit of liability or bond amount ($ 0.00)

  

			
		
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	 	AIA Document A101TM – 2007. Copyright © 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by
The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the
maximum extent possible under the law. This document was produced by AIA software at 10:38:33 on 03/09/2012 under Order No.9216233540_1 which expires on 08/01/2012, and is not for resale.

 

			
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 This Agreement entered into as of the day and year first written above. 

 

							
	OWNER (Signature)	 		 		 	CONTRACTOR (Signature)
				
		 		 		 	Andrew Erickson, Vice President, Schwob
	 Ron McCrummen, CFO
	 		 		 	Corporation General Partner
	 (Printed name and title)
	 		 		 	(Printed name and title)

  

			
		
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	 	AIA Document A101TM – 2007. Copyright © 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1967, 1974, 1977, 1987, 1991, 1997 and 2007 by
The American Institute of Architects. All rights reserved. WARNING: This AIA® Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA® Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the
maximum extent possible under the law. This document was produced by AIA software at 10:38:33 on 03/09/2012 under Order No.9216233540_1 which expires on 08/01/2012, and is not for resale.

 

			
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	2349 Glenda Lane	 	

	Dallas, Texas 75229	 	
	972.243.7674 Phone	 	
	972.243.7710 Fax	 	
	972.692.0129 Alt. Fax	 
	www.schwob.com	 

 Items in italics have been revised 
 Revision 4 – March 8, 2012 
 Mr. Peter Burlage 

Peerless Manufacturing Company 
 14651 North
Dallas Parkway 
 Suite 500 
 Dallas,
Texas 75254 
  

	RE:	NEW FACILITY – PEERLESS MANUFACTURING COMPANY 

 7000 Block of Dakota Lane, Denton, Texas 
 SUBJECT: Revised Construction Cost Proposal

 Dear Mr. Burlage: 
 We propose
to construct the new Peerless Manufacturing Company facility in Denton, Texas per the following scope and clarifications for the lump sum amount of Nine Million Eight Hundred Eleven Thousand Eight Hundred Eighty and 00/100 Dollars 

($ 9,811,880.00).  
 This construction
cost proposal is based on local City and State code requirements, a Geotechnical Investigation by Reed Engineering Group (dated 02/18/11), and Design Documents and Specifications provided by Alliance Architects (dated 04/08/11). See the attached
Index of Drawings for revision dates. 
 COST SUMMARY: 

 

									
	 Construction Proposal (05-19-11)
	  	$	9,499,512.00	  	  			
			
	 Cost Escalations
	  	$	118,441.00	  	  			
	 Scope modifications by Owner
	  	$	193,927.00	  	  			
		  	  
	  
	 	  			
	 Revised Construction Proposal Amount
	  				  	$	9,811,880.00	  

 SCOPE MODIFICATIONS BY OWNER: 

 

							
	 1.
	  	Piping for welding gases - (ALLOWANCE)	  	$	70,000.00	  
	 2.
	  	Overhead crane revisions	  			
		  	 a.      Change cranes 1 and 4 from 2 each 20 ton cranes to
a total of 4 each 10 ton cranes
	  	$	51,540.00	  
		  	 b.      Cranes 2 and 5 to remain 40 ton each
	  	 	no change	  
		  	 c.      Change cranes 3 and 6 from 2 each 20 ton cranes to a total of 3 each 10 ton
cranes
	  	$	11,858.00	  

 Mr. Peter Burlage 
 Peerless Manufacturing Company 

	RE:	NEW FACILITY – PEERLESS MANUFACTURING COMPANY 

 7000 Block of Dakota Lane, Denton, Texas 

	SUBJECT:	Revised Construction Cost Proposal 

Revised March 3, 2012 
 Page 2 

 

 SCOPE MODIFICATIONS BY OWNER (continued): 

 

							
	 3.
	  	Add water and sewer piping stub-up at the northwest corner of 136 Spot Welding at column grid J7 for future acid basin to be provided and installed by the
Owner	  	$	 2,000.00	  
	 4.
	  	Increase Compressor Shed to 25’-0” x 15’-0” x 10’-0”	  	$	2,288.00	  
	 5.
	  	Add electrical and piping for welding gases at 3 additional welding workspaces to be located between column grid B3 and D3	  	$	14,825.00	  
	 6.
	  	Foundation revisions for 500 ton press at room 146	  	 	to be determined	  
	 7.
	  	Design costs for the future Paint and Blast Booth Building	  	$	25,000.00	  
	 8.
	  	Schwob overhead and fee on scope modifications	  	$	16,416.00	  

 MAJOR COST ESCALATIONS: 
 The following major scopes of work have incurred cost increases for their materials and/or labor since the initial pricing proposal was submitted in May 2011. 

 

					
	 •    Miscellaneous steel material
	  	$	 19,669.00	  
	 •    Drywall
	  	 	no change	  
	 •    PEMB materials
	  	$	31,810.00	  
	 •    PEMB Insulation
	  	<$	3,118.00>	  
	 •    Overhead cranes
	  	$	25,333.00	  
	 •    Overhead cranes (material sales taxes left out of original bid)
	  	$	35,747.00	  
	 •    Plumbing
	  	$	10,000.00	  
	 •    HVAC
	  	 	no change	  
	 •    Electrical
	  	<$	1,000.00>	  
	 •    Schwob overhead and fee
	  	 	no change	  

 CLARIFICATIONS: 
  

	 	1.	Owner and Contractor each agree that following the execution of the Construction Contract, no on-site construction or development work, other than such work required
by separate instrument per the development agreement, may begin or occur on the Owner’s property until Contractor receives a written authorization from Owner to proceed with such work. Contractor agrees that Owner will not be liable for any
liens placed on the property or in connection with the construction of any structures on the property unless Owner has given its prior written authorization for such work. Notwithstanding the foregoing, Owner agrees that Contractor may place orders
for materials related to the project and that Owner will be responsible for costs incurred by Contractor for such orders. 

  

	 	2.	This proposal is based on reaching mutually acceptable contract terms. 

  

	 	3.	We have included builder’s risk insurance. 

  

	 	4.	We have included the building permit and plan review fees. 

  

	 	5.	We have included the bond costs for the on-site public utility improvements. 

 Mr. Peter Burlage 
 Peerless Manufacturing Company 

	RE:	NEW FACILITY – PEERLESS MANUFACTURING COMPANY 

 7000 Block of Dakota Lane, Denton, Texas 

	SUBJECT:	Revised Construction Cost Proposal 

Revised March 3, 2012 
 Page 3 

 

	 	6.	Due to a lack of ground water concerns, we have not included casing piers in our proposal. However, we may need to case all or some of the piers due to water injecting
the building pad. This will be handled on a per unit rate if required. 

  

	 	7.	We have provided building pad preparation as follows: 

  

	 	•	 	 Excavate to 5’-0” below building sub grade to a distance 5’-0” outside the building perimeter (10’-0” at all entrances).

  

	 	•	 	 Water injection stabilization to a depth of 20’-0” below excavated grade (5 passes included). Additional passes will be handled on a per unit
rate if required. 

  

	 	•	 	 Moisture condition and re-compact excavated soils. 

  

	 	•	 	 Stabilize compacted soil with a mixture of 6% lime to a depth of 6” below grade. 

 

	 	8.	We have included chain link fences as 6’-0” tall in lieu of 8’-0” tall where shown. 

 

	 	9.	We have included vinyl privacy slats at the fence along the north and west sides of the gravel lay down yard. 

 

	 	10.	We have included V-groove rolling ornamental gates in lieu of cantilever gates due to the width of the proposed openings. 

 

	 	11.	We have included manually operated gates. 

  

	 	12.	We have included liner panels in the manufacturing space to 10’-0” AFF with exposed vinyl-faced batt insulation above. 

 

	 	13.	Specification 41 1213 does not identify the capacity required for the parts lift at the mezzanine. We have included an Auto-Quip VRC with the following specifications:

  

	 	•	 	 Capacity: 6,000 lbs. 

  

	 	•	 	 Platform size: 8’-0” x 12’-0” 

  

	 	•	 	 Vertical rise: 15’-0” 

  

	 	•	 	 Load height: 10’-0” 

  

	 	•	 	 Upper and lower gates with safety interlocks 

  

	 	14.	We have included the compressed air loop and drops. All air compressors, dryers, gas tanks, gas loops and gas drops shall be provided and installed by the owner. We
have provided a $70,000 ALLOWANCE to be approved by the Owner under the “SCOPE MODIFICATIONS BY OWNER” heading above. 

  

	 	15.	Per Vince Hanlon’s directions, we have eliminated all scope and costs associated with FOCR #155 (Conditioned Workspace). 

 

	 	16.	We have made structural accommodations for the Owner provided and installed jib cranes. 

 

	 	17.	This proposal is valid for a period of thirty (30) calendar days from the date first indicated above. However, due to the volatility of the steel and copper
markets, Schwob Building Company reserves the right to review, withdraw, and/or amend this proposal after this time. 

  

	 	18.	The Construction Schedule is an estimated 336 calendar days (approximately 48 weeks). This duration is based on a Commencement Date of 10 days after receipt of all
applicable permits from the local governing authorities and an executed Owner/Contractor Agreement, whichever is greater. 

 Mr. Peter Burlage 
 Peerless Manufacturing Company 

	RE:	NEW FACILITY – PEERLESS MANUFACTURING COMPANY 

 7000 Block of Dakota Lane, Denton, Texas 

	SUBJECT:	Revised Construction Cost Proposal 

Revised March 3, 2012 
 Page 4 

 

 EXCLUSIONS: 

 

	 	1.	Design and preconstruction services (under separate contract). 

  

	 	2.	Off-site road improvements and public sidewalks (under separate contract). 

 

	 	3.	Off-site drainage and utility improvements (under separate contract). 

  

	 	4.	Material testing laboratory services (by Owner). 

  

	 	5.	Material escalation costs. 

  

	 	6.	Payment and performance bond costs. 

  

	 	7.	Costs for the Payment and Performance Bond on any accepted alternates or unit prices. 

 

	 	8.	Water and sewer impact fee and water meter fee costs from the City of Denton. 

 

	 	9.	Charges, fees, or assessments from the local utility providers. 

  

	 	10.	Certifications or fees for compliance with the International Energy Conservation Code. 

 

	 	11.	We assume any rock excavation can be easily performed with normal excavation equipment. 

 

	 	12.	Costs associated with unforeseen subsurface conditions. 

  

	 	13.	Concrete curb and gutter at the 5-acre gravel storage area. 

  

	 	14.	Fireproofing of structural steel. 

  

	 	15.	Epoxy grout at tile finishes. 

  

	 	16.	Exterior signage (by Owner). 

  

	 	17.	Jib cranes (by Owner). 

  

	 	18.	Air compressors and dryers (by Owner). 

  

	 	19.	Gas tanks, loops and drops (by Owner). 

  

	 	20.	Security system (by Owner). 

  

	 	21.	Phone and data cabling (by Owner). 

  

	 	22.	Final connections to owner-provided manufacturing equipment. 

  

	 	23.	Lightning protection system. 

 Mr. Peter Burlage 
 Peerless Manufacturing Company 

	RE:	NEW FACILITY – PEERLESS MANUFACTURING COMPANY 

 7000 Block of Dakota Lane, Denton, Texas 

	SUBJECT:	Revised Construction Cost Proposal 

Revised March 3, 2012 
 Page 5 

 

 ALLOWANCES: 

 

																			
	 1.
	 		  	Residential appliances	  	$	10,000.00	  

 We look forward to working with you on this project. If I can be of further assistance, please contact me at
972-243-7674. 
 Sincerely, 
 Schwob
Building Company, Ltd. 
  
 

 
 Charles G. Rachuig CPE 
 Chief Estimator 
  

			
	 Attachments
	 	 Index of Drawings
 Index of
Specifications
 Alliance Architects Addendum #1
 Schwob Clarification to Subcontractors #1

	

 xc: E211027

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