Document:

EX-10.8

 Exhibit 10.8 

AIA® Document A133TM - 2009 

Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a
Guaranteed Maximum Price 
  

			
	 AGREEMENT made as of the 5 day of February in the year 2013 (in words, indicate day, month and year.)

 
 BETWEEN the Owner:

Mercury Payment Systems, LLC
 Tech Center Plaza

10 Burnett Court
 Suite #300

Durango, Colorado 81301
 (970) 247-5557

 
 and the Construction Manager:

Okland Construction Co., Inc.
 182 Girard Street

Unit #B
 Durango, Colorado 81303

(970) 247-0477
	  	 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 AlA 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 tine 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.

		
	 for the following Project:
 (Paragraph
deleted)
 Mercury Headquarter Building
 The
Architect:
 Dekker Perich Sabatini
 7601 Jefferson NE, Suite
#100
 Albuquerque, NM 87109
 (505) 761-9700
	  	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.
		
	 The Owner’s Designated Representative:

(Paragraph deleted)
 Charles Suh, LEED® AP
 Studley

19100 Von Karmen Avenue
 10th Floor

Irvine, CA 92612
 t 949.660.3554

f 949.660.3556
	  	
		
	 The Construction Manager’s Designated Representative:

Christopher Sill — Project Director
 Okland Construction
Company, Inc.
 182 Girard Street, Unit #B
 Durango, Colorado
81303
	  	
		
	 The Architect’s Designated Representative;

Steven Perish
 Dekker Perich Sabatini

7601 Jefferson NE, Suite #100
 Albuquerque, NM 87109

(505) 761-9700
	  	

 The Owner and Construction Manager agree as follows, 

  
 1 

 TABLE OF ARTICLES 
  

					
			
	1	  	GENERAL PROVISIONS	  	
			
	2	  	CONSTRUCTION MANAGER’S RESPONSIBILITIES	  	
			
	3	  	OWNER’S RESPONSIBILITIES	  	
			
	4	  	COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES	  	
			
	5	  	COMPENSATION FOR CONSTRUCTION PHASE SERVICES	  	
			
	6	  	COST OF THE WORK FOR CONSTRUCTION PHASE	  	
			
	7	  	PAYMENTS FOR CONSTRUCTION PHASE SERVICES	  	
			
	8	  	INSURANCE AND BONDS	  	
			
	9	  	DISPUTE RESOLUTION	  	
			
	10	  	TERMINATION OR SUSPENSION	  	
			
	11	  	MISCELLANEOUS PROVISIONS	  	
			
	12	  	SCOPE OF THE AGREEMENT	  	

 ARTICLE 1 GENERAL PROVISIONS 

§ 1.1 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 the 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. Upon the Owner’s acceptance of the Construction Manager’s Guaranteed
Maximum Price proposal, the Contract Documents will also include the documents described in Section 2.2.3 and identified in the Guaranteed Maximum Price Amendment and revisions prepared by the Architect and furnished by the Owner as described
in Section 2.2.8. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral. If anything in the other Contract Documents,
other than a Modification, is inconsistent with this Agreement, this Agreement shall govern. 
 § 1.2 Relationship of the Parties 

The Construction Manager accepts the relationship of trust and confidence established by this Agreement and covenants with the Owner to cooperate with the
Architect and exercise the Construction Manager’s skill and judgment in furthering the interests of the Owner; to furnish efficient construction administration, management services and supervision; to furnish at all times an adequate supply of
workers and materials; and to perform the Work in an expeditious and economical manner consistent with the Owner’s interests. The Owner agrees to furnish or approve, in a timely manner, information required by the Construction Manager and to
make payments to the Construction Manager in accordance with the requirements of the Contract Documents. 
 § 1.3 General Conditions 

For the Preconstruction Phase, AIA Document A201TM-2007, General Conditions of the Contract for Construction, shall
apply only as specifically provided in this Agreement. For the Construction Phase, the general conditions of the contract shall be as set forth in A201-2007, which document is incorporated herein by reference.
The term “Contractor” as used in A201-2007 shall mean the Construction Manager. 
 ARTICLE 2
CONSTRUCTION MANAGER’S RESPONSIBILITIES 
 The Construction Manager’s Preconstruction Phase responsibilities are set forth in Sections 2.1 and
2.2. The Construction Manager’s Construction Phase responsibilities are set forth in Section 2.3. The Owner and Construction Manager may agree, in consultation with the Architect, for the Construction Phase to commence prior to completion
of the Preconstruction Phase, in which case, both phases will proceed concurrently. The Construction Manager shall identify a representative authorized to act on behalf of the Construction Manager with respect to the Project. 

  
 2 

 § 2.1 Preconstruction Phase 

§ 2.1.1 The Construction Manager shall provide a preliminary evaluation of the Owner’s program, schedule and construction budget requirements,
each in terms of the other. 
 § 2.1.2 Consultation 

The Construction Manager shall schedule and conduct meetings with the Architect and Owner to discuss such matters as procedures, progress, coordination, and
scheduling of the Work. The Construction Manager shall advise the Owner and the Architect on proposed site use and improvements, selection of materials, and building systems and equipment. The Construction Manager shall also provide recommendations
consistent with the Project requirements to the Owner and Architect on constructability; availability of materials and labor; time requirements for procurement, installation and construction; and factors related to construction cost including, but
not limited to, costs of alternative designs or materials, preliminary budgets, life-cycle data, and possible cost reductions. 
 § 2.1.3 When
Project requirements in Section 3.1.1 have been sufficiently identified, the Construction Manager shall prepare and periodically update a Project schedule for the Architect’s review and the Owner’s acceptance. The Construction Manager
shall obtain the Architect’s approval for the portion of the Project schedule relating to the performance of the Architect’s services. The Project schedule shall coordinate and integrate the Construction Manager’s services, the
Architect’s services, other Owner consultants’ services, and the Owner’s responsibilities and identify items that could affect the Project’s timely completion. The updated Project schedule shall include the following: submission
of the Guaranteed Maximum Price proposal; components of the Work; times of commencement and completion required of each Subcontractor; ordering and delivery of products, including those that must be ordered well in advance of construction; and the
occupancy requirements of the Owner. 
 § 2.1.4 Phased Construction 

The Construction Manager shall provide recommendations with regard to accelerated or fast-track scheduling, procurement, or phased construction. The
Construction Manager shall take into consideration cost reductions, cost information, constructability, provisions for temporary facilities and procurement and construction scheduling issues. 

§ 2.1.5 Preliminary Cost Estimates 
 §
2.1.5.1 Based on the preliminary design and other design criteria prepared by the Architect, the Construction Manager shall prepare preliminary estimates of the Cost of the Work or the cost of program requirements using area, volume or similar
conceptual estimating techniques for the Architect’s review and Owner’s approval. If the Architect or Construction Manager suggest alternative materials and systems, the Construction Manager shall provide cost evaluations of those
alternative materials and systems. 
 § 2.1.5.2 As the Architect progresses with the preparation of the Schematic Design, Design
Development, 50% Construction Documents and Final Construction Documents, the Construction Manager shall prepare and update, at appropriate intervals agreed to by the Owner, Construction Manager and Architect, estimates of the Cost of the Work of
increasing detail and refinement and allowing for the further development of the design until such time as the Owner and Construction Manager agree on a Guaranteed Maximum Price for the Work. Such estimates shall be provided for the Architect’s
review and the Owner’s approval. The Construction Manager shall inform the Owner and Architect when estimates of the Cost of the Work exceed the latest approved Project budget and make recommendations for corrective action. 

§ 2.1.6 Subcontractors and Suppliers 
 The
Construction Manager shall develop bidders’ interest in the Project. 
 § 2.1.7 The Construction Manager shall prepare, for the
Architect’s review and the Owner’s acceptance, a procurement schedule for items that must be ordered well in advance of construction. The Construction Manager shall expedite and coordinate the ordering and delivery of materials that must
be ordered well in advance of construction. If the Owner agrees to procure any items prior to the establishment of the Guaranteed Maximum Price, the Owner shall procure the items on terms and conditions acceptable to the Construction Manager. Upon
the establishment of the Guaranteed Maximum Price, the Owner shall assign all contracts for these items to the Construction Manager and the Construction Manager shall thereafter accept responsibility for them. 

  
 3 

 § 2.1.8 Extent of Responsibility 

The Construction Manager shall exercise reasonable care in preparing schedules and estimates. The Construction Manager, however, does not warrant or guarantee
estimates and schedules except as may be included as part of the Guaranteed Maximum Price. The Construction Manager is not required to ascertain that the Drawings and Specifications are in accordance with applicable laws, statutes, ordinances,
codes, rules and regulations, or lawful orders of public authorities, but the Construction Manager shall promptly report to the Architect and Owner any nonconformity discovered by or made known to the Construction Manager as a request for
information in such form as the Architect may require and additionally in the form of an email to the Owner. 
 § 2.1.9 Notices and Compliance with
Laws 
 The Construction Manager shall comply with applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public
authorities applicable to its performance under this Contract, and with equal employment opportunity programs, and other programs as may be required by governmental and quasi governmental authorities for inclusion in the Contract Documents. 

§ 2.2 Guaranteed Maximum Price Proposal and Contract Time 

§ 2.2.1 At a time to be mutually agreed upon by the Owner and the Construction Manager, but in no event later than December 31, 2012 and in
consultation with the Architect, the Construction Manager shall prepare a Guaranteed Maximum Price proposal for the Owner’s review and acceptance. The Guaranteed Maximum Price in the proposal shall be the sum of the Construction Manager’s
estimate of the Cost of the Work, including contingencies described in Section 2.2.4, and the Construction Manager’s Fee. 
 § 2.2.2
To the extent that the Drawings and Specifications are anticipated to require further development by the Architect, the Construction Manager shall provide in the Guaranteed Maximum Price for such further development consistent with the Contract
Documents and reasonably inferable therefrom. Such further development does not include such things as changes in scope, systems, kinds and quality of materials, finishes or equipment, all of which, if required, shall be incorporated by Change
Order. 
 § 2.2.3 The Construction Manager shall include with the Guaranteed Maximum Price proposal a written statement of its basis, which
shall include the following: 
  

	 	.1	A list of the Drawings and Specifications, including all Addenda thereto, and the Conditions of the Contract; 

  

	 	.2	A list of the clarifications and assumptions made by the Construction Manager in the preparation of the Guaranteed Maximum Price proposal, including assumptions under Section 2.2.2, to supplement the information
provided by the Owner and contained in the Drawings and Specifications; 

  

	 	.3	A statement of the proposed Guaranteed Maximum Price, including a statement of the estimated Cost of the Work organized by trade categories and systems, allowances, contingency, and the Construction Manager’s Fee;

  

	 	.4	The anticipated date of Substantial Completion upon which the proposed Guaranteed Maximum Price is based; and 

  

	 	.5	A date by which the Owner must accept the Guaranteed Maximum Price. 

 § 2.2.4 In preparing the
Construction Manager’s Guaranteed Maximum Price proposal, the Construction Manager shall include its contingency for the Construction Manager’s exclusive use to cover those costs considered reimbursable as the Cost of the Work but not
included in a Change Order. 
 § 2.2.5 The Construction Manager shall meet with the Owner and Architect to review the Guaranteed Maximum Price
proposal. In the event that the Owner and Architect discover any inconsistencies or inaccuracies in the information presented, which Owner shall not be obligated to discover, they shall promptly notify the Construction Manager, who shall make
appropriate adjustments to the Guaranteed Maximum Price proposal, its basis, or both. 

  
 4 

 § 2.2.6 If the Owner notifies the Construction Manager that the Owner has accepted the Guaranteed
Maximum Price proposal in writing before the date specified in the Guaranteed Maximum Price proposal, the Guaranteed Maximum Price proposal shall be deemed effective without further acceptance from the Construction Manager. Following acceptance of a
Guaranteed Maximum Price, the Owner and Construction Manager shall execute the Guaranteed Maximum Price Amendment amending this Agreement, a copy of which the Owner shall provide to the Architect. The Guaranteed Maximum Price Amendment shall set
forth the agreed upon Guaranteed Maximum Price with the information and assumptions upon which it is based. 
 § 2.2.7 The Construction Manager
shall not incur any cost to be reimbursed as part of the Cost of the Work prior to the commencement of the Construction Phase, unless the Owner provides prior written authorization for such costs. 

§ 2.2.8 The Owner shall authorize the Architect to provide the revisions to the Drawings and Specifications to incorporate the agreed-upon
assumptions and clarifications contained in the Guaranteed Maximum Price Amendment, if any. The Owner shall promptly furnish those revised Drawings and Specifications to the Construction Manager as they are revised. The Construction Manager shall
notify the Owner and Architect of any inconsistencies between the Guaranteed Maximum Price Amendment and the revised Drawings and Specifications. 

§ 2.2.9 The Construction Manager shall include in the Guaranteed Maximum Price all sales, consumer, use and similar taxes for the Work provided by
the Construction Manager that are legally enacted, whether or not yet effective, at the time the Guaranteed Maximum Price Amendment is executed. 

§ 2.3 Construction Phase 
 § 2.3.1 General

 § 2.3.1.1 For purposes of Section 8.1.2 of A201-2007, the date of commencement of the Work
shall mean the date of commencement of the Construction Phase. 
 § 2.3.1.2 The Construction Phase shall commence upon the Owner’s
acceptance of the Construction Manager’s Guaranteed Maximum Price proposal or the Owner’s issuance of a Notice to Proceed, whichever occurs earlier. 

§ 2.3.2 Administration 
 § 2.3.2.1 Those
portions of the Work that the Construction Manager does not customarily perform with the Construction Manager’s own personnel shall be performed under subcontracts or by other appropriate agreements with the Construction Manager. The Owner may
designate specific persons from whom, or entities from which, the Construction Manager shall obtain bids. The Construction Manager 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 shall then determine, with the advice of the Construction Manager and the Architect, which bids will be accepted. The Construction Manager shall not be required to contract with anyone to whom
the Construction Manager has reasonable objection. 
 § 2.3.2.2 If the Guaranteed Maximum Price has been established and when a specific bidder
(1) is recommended to the Owner by the Construction Manager, (2) is qualified to perform that portion of the Work, and (3) has submitted a bid that conforms to the requirements of the Contract Documents without reservations or
exceptions, but the Owner requires that another bid be accepted, then the Construction Manager may require that a Change Order be issued to adjust the Contract Time and the Guaranteed Maximum Price by the difference between the bid of the person or
entity recommended to the Owner by the Construction Manager and the amount and time requirement of the subcontract or other agreement actually signed with the person or entity designated by the Owner. 

§ 2.3.2.3 Subcontracts or other agreements shall conform to the applicable payment provisions of this Agreement, and shall not be awarded on the
basis of cost plus a fee without the prior consent of the Owner. If the Subcontract is awarded on a cost-plus a fee basis, the Construction Manager shall provide in the Subcontract for the Owner to receive the same audit rights with regard to the
Subcontractor as the Owner receives with regard to the Construction Manager in Section 6.11 below and if such cost plus contracts are implemented by the Construction Manager, the Construction Manager shall indemnify the Owner against costs in
excess of those anticipated for the subcontractor’s work in the construction budget, and shall not increase the Guaranteed Maximum Price. 
 §
2.3.2.4 If the Construction Manager recommends a specific bidder that may be considered a “related party” according to Section 6.10, then the Construction Manager shall promptly notify the Owner in writing of such relationship and
notify the Owner of the specific nature of the contemplated transaction, according to Section 6.10.2. 

  
 5 

 § 2.3.2.5 The Construction Manager shall schedule and conduct meetings to discuss such matters as
procedures, progress, coordination, scheduling, and status of the Work. The Construction Manager shall prepare and promptly distribute minutes to the Owner and Architect. 

§ 2.3.2.6 Upon the execution of the Guaranteed Maximum Price Amendment, the Construction Manager shall prepare and submit to the Owner and
Architect a construction schedule for the Work and submittal schedule in accordance with Section 3.10 of A201-2007. 

§ 2.3.2.7 The Construction Manager shall record the progress of the Project. On a monthly basis, or otherwise as agreed to by the Owner, the
Construction Manager shall submit written progress reports to the Owner and Architect, showing percentages of completion and other information required by the Owner. The Construction Manager shall also keep, and make available to the Owner and
Architect, a daily log containing a record for each day of weather, portions of the Work in progress, number of workers on site, identification of equipment on site, problems that might affect progress of the work, accidents, injuries, and other
information required by the Owner. 
 § 2.3.2.8 The Construction Manager shall develop a system of cost control for the Work, including
regular monitoring of actual costs for activities in progress and estimates for uncompleted tasks and proposed changes. The Construction Manager shall identify variances between actual and estimated costs and report the variances to the Owner and
Architect and shall provide this information in its monthly reports to the Owner and Architect, in accordance with Section 2.3.2.7 above. 

§ 2.4 Professional Servicee 
 Section 3.12.10 of
A201-2007 shall apply to both the Preconstruction and Construction Phases. 
 § 2.5 Hazardous Materials

 Section 10.3 of A201-2007 shall apply to both the Preconstruction and Construction Phases. 

ARTICLE 3 OWNER’S RESPONSIBILITIES 
 § 3.1
Information and Services Required of the Owner 
 § 3.1.1 The Owner shall provide information with reasonable promptness, regarding
requirements for and limitations on the Project, including a written program which shall set forth the Owner’s objectives, constraints, and criteria, including schedule, space requirements and relationships, flexibility and expandability,
special equipment, systems sustainability and site requirements. 
 § 3.1.2 Prior to the execution of the Guaranteed Maximum Price Amendment,
the Construction Manager may request in writing that the Owner provide reasonable evidence that the Owner has made financial arrangements to fulfill the Owner’s obligations under the Contract. Thereafter, the Construction Manager may only
request such evidence if (1) the Owner fails to make payments to the Construction Manager as the Contract Documents require, (2) a change in the Work materially changes the Contract Sum, or (3) the Construction Manager identifies in
writing a reasonable concern regarding the Owner’s ability to make payment when due. The Owner shall furnish such evidence as a condition precedent to commencement or continuation of the Work or the portion of the Work affected by a material
change. 
 § 3.1.3 The Owner shall establish and periodically update the Owner’s budget for the Project, including (1) the budget for
the Cost of the Work as defined in Section 6.1.1, (2) the Owner’s other costs, and (3) reasonable contingencies related to all of these costs. If the Owner significantly increases or decreases the Owner’s budget for the Cost
of the Work, the Owner shall notify the Construction Manager and Architect. The Owner and the Architect, in consultation with the Construction Manager, shall thereafter agree to a corresponding change in the Project’s scope and quality, 

§ 3.1.4 Structural and Environmental Tests, Surveys and Reports. During the Preconstruction Phase, the Owner shall furnish the following
information or services with reasonable promptness. The Owner shall also furnish other reasonably necessary information or services under the Owner’s control and relevant to the Construction Manager’s performance of the Work with
reasonable promptness after receiving the Construction Manager’s written request for such information or services. The Construction Manager shall be entitled to rely on the accuracy of information and services furnished by the Owner but shall
exercise proper precautions relating to the safe performance of the Work. 

  
 6 

 § 3.1.4.1 The Owner shall furnish tests, inspections and reports required by law and as otherwise
agreed to by the parties, such as structural, mechanical, and chemical tests, tests for air and water pollution, and tests for hazardous materials. Construction Manager will notify Owner of any required testing, inspections and reports. 

§ 3.1.4.2 The Owner shall furnish surveys describing physical characteristics, legal limitations and utility locations for the site of the
Project, and a legal description of the site. The surveys and legal information shall include, as applicable, grades and lines of streets, alleys, pavements and adjoining property and structures; designated wetlands; adjacent drainage;
rights-of-way, restrictions, easements, encroachments, zoning, deed restrictions, boundaries and contours of the site; locations, dimensions and necessary data with respect to existing buildings, other improvements and trees; and information
concerning available utility services and lines, both public and private, above and below grade, including inverts and depths. All the information on the survey shall be referenced to a Project benchmark. 

§ 3.1.4.3 The Owner, when such services are requested, shall furnish services of geotechnical engineers, which may include but are not limited to
test borings, test pits, determinations of soil bearing values, percolation tests, evaluations of hazardous materials, seismic evaluation, ground corrosion tests and resistivity tests, including necessary operations for anticipating subsoil
conditions, with written reports and appropriate recommendations. 
 § 3.1.4.4 During the Construction Phase, the Owner shall furnish
information or services required of the Owner by the Contract Documents with reasonable promptness. The Owner shall also furnish any other information or services under the Owner’s control and relevant to the Construction Manager’s
performance of the Work with reasonable promptness after receiving the Construction Manager’s written request for such information or services. 

§ 3.2 Owner’s Designated Representative 
 The
Owner shall identify a representative authorized to act on behalf of the Owner with respect to the Project. The Owner’s representative shall render decisions promptly and furnish information expeditiously, so as to avoid unreasonable delay in
the services or Work of the Construction Manager. Except as otherwise provided in Section 4.2.1 of A201-2007, the Architect does not have such authority. The term “Owner” means the Owner or the
Owner’s authorized representative. 
 § 3.2.1 Legal Requirements. The Owner shall furnish all legal, insurance and accounting services,
including auditing services, that may be reasonably necessary at any time for the Project to meet the Owner’s needs and interests. 
 §
3.3 Architect 
 The Owner shall retain an Architect to provide services, duties and responsibilities as described in AIA Document B101TM-2007, Standard Form of Agreement Between Owner and Architect, including any additional services requested by the Construction Manager that are necessary for the Preconstruction and Construction Phase
services under this Agreement. The Owner shall provide the Construction Manager a copy of the executed agreement between the Owner and the Architect, and any further modifications to the agreement. 

ARTICLE 4 COMPENSATION AND PAYMENTS FOR PRECONSTRUCTION PHASE SERVICES 

§ 4.1 Compensation 
 § 4.1.1 For the
Construction Manager’s Preconstruction Phase services, the Owner shall compensate the Construction Manager as follows: 
 § 4.1.2 For the
Construction Manager’s Preconstruction Phase services described in Sections 2.1 and 2.2: 
 (Insert amount of, or basis for, compensation and
include a list of reimbursable cost items, as applicable.) 
 The preconstruction services are part of the fee as long as the preconstruction portion of
the project is completed prior to end of September 2012. Additional fees may be negotiated if the preconstruction / design period extend beyond this date. 

§ 4.1.3 If the Preconstruction Phase services covered by this Agreement have not been completed within Six ( 6 ) months of the date of this
Agreement, through no fault of the Construction Manager, the Construction Manager’s compensation for Preconstruction Phase services shall be equitably adjusted. 

§ 4.1.4 Compensation based on Direct Personnel Expense includes the direct salaries of the Construction Manager’s personnel providing
Preconstruction Phase services on the Project and the Construction Manager’s costs for the mandatory and customary contributions and benefits related thereto, such as employment taxes and other statutory employee benefits, insurance, sick
leave, holidays, vacations, employee retirement plans and similar contributions. 

  
 7 

 § 4.2 PAYMENTS 

§ 4.2.1 Unless otherwise agreed, payments for services shall be made monthly in proportion to services performed. 

§ 4.2.2 Payments are due and payable upon presentation of the Construction Manager’s invoice. Amounts unpaid thirty ( 30 ) days after the
invoice date shall bear interest at the rate entered below, or in the absence thereof at the legal rate prevailing from time to time at the principal place of business of the Construction Manager. 

(Insert rate of monthly or annual interest agreed upon.) 

6 % six percent per annum 
 ARTICLE 5 COMPENSATION FOR
CONSTRUCTION PHASE SERVICES 
 § 5.1 For the Construction Manager’s performance of the Work as described in Section 2.3, the Owner
shall pay the Construction Manager the Contract Sum in current funds for the Construction Manager’s performance of the Contract. The Contract Sum is the Cost of the Work as defined in Section 6.1.1 plus the Construction Manager’s
Fee. 
 § 5.1.1 The Construction Manager’s Fee: 

(State a lump sum, percentage of Cost of the Work or other provision for determining the Construction Manager’s Fee.) 

4% (percent) of the Cost of the Work 
 Concrete, carpentry, and
miscellaneous installation work will be self-performed by the Construction Manager’s own forces on a lump sum basis. 
 § 5.1.2 The method
of adjustment of the Construction Manager’s Fee for changes in the Work: 
 4% (percent) of the amount of the changes in the Work 

§ 5.1.3 Limitations, if any, on a Subcontractor’s overhead and profit for increases in the cost of its portion of the Work: 

none 
 (Table deleted) 

(Paragraphs deleted) 
 § 5.2 Guaranteed Maximum
Price 
 § 5.2.1 The Construction Manager guarantees that the Contract Sum shall not exceed the Guaranteed Maximum Price set forth in the
Guaranteed Maximum Price Amendment, as it is amended from time to time. To the extent the Cost of the Work exceeds the Guaranteed Maximum Price, the Construction Manager shall bear such costs in excess of the Guaranteed Maximum Price without
reimbursement or additional compensation from the Owner. 
 (Insert specific provisions if the Construction Manager is to participate in any, savings.)

 In the event the sum of the actual Cost of the Work plus the Contractor’s Fee shall he less than the Guaranteed Maximum Price, then the
difference (herein called “Savings”) shall be shared Seventy-Five percent (75%) to Owner and Twenty-Five percent (25%) to Contractor. Savings shall be paid at the time of Final Payment on the Contract. 

The Guaranteed Maximum Price includes a budgeted contingency as identified in the specific Amendments to this Agreement. The Construction Manager is
authorized to use the contingency as follows: 
  

	 	1.	To carry out the full original intent of the documents, including Architect’s Supplemental Instructions, RFI responses, or other design coordination that may generate extra costs from time to time. This would not
include any change in scope or other items that the Construction Manager could not have reasonably inferred from the Contract Documents. 

  
 8 

	 	2.	Pay for performance of work within the scope of the contract including work that was unallocated or not included in the scope of the subcontracts. 

 

	 	3.	Unforeseen delays. 

  

	 	4.	Weather protection and repairing damaged done by weather. 

  

	 	5.	Other Cost of the Work included in Article 6.1 that has not been included as a specific item in the GMP. 

  

	 	6.	Other unforeseen costs related to the project. 

 Any savings in line items will be added to the Contingency
line item. Any shortfalls in line items will be deducted from the Contingency line item in accordance with the guidelines above. Any use of the contingency shall be submitted and approved through the change order process. All allowances shall be
reconciled and approved through the change order process. 
 Any balance remaining in the Contingency line item will be used in the calculation in Savings
as outlined in Article 5.2.1 along with any other line item savings. 
 § 5.2.2 The Guaranteed Maximum Price is subject to additions and
deductions by Change Order as provided in the Contract Documents and the Date of Substantial Completion shall be subject to adjustment as provided in the Contract Documents. 

§ 5.3 Changes in the Work 
 § 5.3.1 The
Owner may, without invalidating the Contract, order changes in the Work within the general scope of the Contract consisting of additions, deletions or other revisions. The Owner shall issue such changes in writing. The Architect may make minor
changes in the Work as provided in Section 7.4 of AIA Document A201-2007, General Conditions of the Contract for Construction. The Construction Manager shall be entitled to an equitable adjustment in the
Contract Time as a result of changes in the Work. 
 § 5.3.2 Adjustments to the Guaranteed Maximum Price on account of changes in the Work
subsequent to the execution of the Guaranteed Maximum Price Amendment may be determined by any of the methods listed in Section 7.3.3 of AIA Document A201-2007, General Conditions of the Contract for
Construction. 
 § 5.3.3 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 Section 7.3.3.3 of AIA Document A201-2007 and the term “costs” as used in Section 7.3.7 of AIA Document A201-2007 shall have the meanings assigned to them in AIA Document A201-2007 and shall not be modified by Sections 5.1 and 5.2, Sections 6.1 through 6.7, and Section 6.8
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. 

§ 5.3.4 In calculating adjustments to the Guaranteed Maximum Price, the terms “cost” and “costs” as used in the
above-referenced provisions of AlA Document A201-2007 shall mean the Cost of the Work as defined in Sections 6.1 to 6.7 of this Agreement and the term “fee” shall mean the Construction Manager’s
Fee as defined in Section 5.1 of this Agreement. 
 (Paragraph deleted) 

ARTICLE 6 COST OF THE WORK FOR CONSTRUCTION PHASE 

§ 6.1 Costs To Be Reimbursed 
 § 6.1.1 The
term Cost of the Work shall mean costs necessarily incurred by the Construction Manager 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 the prior consent
of the Owner. The Cost of the Work shall include only the items set forth in Sections 6.1 through 6.7. 
 § 6.1.2 Where any cost is subject to
the Owner’s prior approval, the Construction Manager shall obtain this approval prior to incurring the cost. The parties shall endeavor to identify any such costs prior to executing Guaranteed Maximum Price Amendment. 

  
 9 

 § 6.2 Labor Code 
  

	 	.1	Wages of construction workers employed by the Construction Manager to perform the construction of the Work at the site or at off-site workshops per the attached wage rate schedule (EXHIBIT A). 

 

	 	.2	Wages or salaries of the Construction Manager’s supervisory and administrative personnel whether or not they are stationed at the site but only for the time they actually spend related to this Project per the
attached wage rate schedule (EXHIBIT A). 

  

	 	.3	Wages and salaries of the Construction Manager’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 as per the attached wage rate schedule (EXHIBIT A). 

  

	 	.4	Costs paid or incurred by the Construction Manager 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, retirement plans, training costs, and safety incentives are included in the wages shown in the attached wage rate schedule (EXHIBIT A). 

 

	 	.5	Performance accrual for project management employees only, foreman level and above at 8% of wage rate as shown on the attached wage rate schedule (EXHIBIT A)). The performance accrual actually charged to this project
and paid by the Owner (if any) will be deducted from the Cost of the Work if the Substantial Completion Date as adjusted by Change Order is not achieved. 

(Paragraphs deleted) 
 § 6.3 Subcontract Costs

 Payments made by the Construction Manager to Subcontractors in accordance with the requirements of the subcontracts plus, in lieu of subcontractor or
Construction Manager Payment and Performance bonds, SubGuard Subcontractor Default Insurance at a premium rate of 1.05% of gross subcontract values. Construction Manager and Owner shall mutually agree on which specific subcontractors require
SubGuard Insurance. 
 § 6.4 Costs of Materials and Equipment Incorporated in the Completed Construction 

§ 6.4.1 Costs, including transportation and storage, of materials and equipment incorporated or to be incorporated in the completed construction.

 § 6.4.2 Costs of materials described in the preceding Section 6.4.1 in excess of those actually installed to allow for reasonable waste
and spoilage. Unused excess materials, if any, shall become the Owner’s property at the completion of the Work or, at the Owner’s option, shall be sold by the Construction Manager. Any amounts realized from such sales shall be credited to
the Owner as a deduction from the Cost of the Work. 
 § 6.5 Costs of Other Materials and Equipment, Temporary Facilities and Related Items 

§ 6.5.1 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 purchased for the Work by the Construction Manager and fully consumed in the perfortnauce of the Work. If such purchased items are not fully consumed
the cost will be calculated based upon the purchase cost less salvage value, whether sold to others or retained by the Construction Manager. Cost for items previously used by the Construction Manager that are being purchased for the Work shall mean
fair market value. 
 § 6.5.2 Rental charges for temporary facilities, machinery, equipment and hand tools not customarily owned by the
construction workers (Equipment), which are provided by the Construction Manager at the site, whether rented from the Construction Manager or others, and in addition to the rental charges; costs of fuel, maintenance, transportation, installation,
sales/use tax, personal property tax, licenses, fees, registration, damage insurance, minor repairs and replacements, dismantling and removal thereof. Rental charges of Equipment rented from the Construction Manager shall be as specified in Exhibit
B which is incorporated into this Agreement. The rental charges shall be 80% or less than the rental charges in the local market. Rental charges for Equipment provided by others shall be included as a Cost of the Work at the invoiced cost. Equipment
damage insurance will be billed at a fixed rate of 8% of the invoiced rental rate for all equipment provided by the Construction Manager or others. 

  
 10 

 § 6.5.3 Costs of removal of debris from the site of the Work and its proper and legal disposal. 

§ 6.5.4 Costs of document reproductions, facsimile transmissions and long-distance telephone calls, postage and parcel delivery charges, telephone
service at the site and reasonable petty cash expenses of the site office. 
 § 6.5.5 That portion of the reasonable expenses of the
Construction Manager’s supervisory or administrative personnel incurred while traveling in discharge of duties connected with the Work. 
 §
6.5.6 Costs of materials and equipment suitably stored off the site at a mutually acceptable location, subject to the Owner’s prior approval. 

§ 6.6 Miscellaneous Costs 
 § 6.6.1 That
portion directly attributable to this Contract of premiums for insurance and bonds. 
  

	 	.1	Commercial General Liability Insurance 

 The Owner agrees to pay the Construction Manager a
fixed percentage of the Total Guaranteed Maximum Price for commercial liability insurance coverage as specified in this Agreement and in the General Conditions to this Agreement. The commercial liability insurance fixed percentage rate as of the
date of this agreement is 0.80% (eighty hundredths of one percent) of the total Guaranteed Maximum Price as established by Amendment No. 1 and any subsequent changes to this agreement. 

 

	 	.2	Payment and Performance Bonds 

 Not required due to the inclusion of SubGuard Subcontractor
Default Insurance 
 § 6.6.2 Sales, use or similar taxes imposed by a governmental authority that are related to the Work and for which the
Construction Manager is liable. 
 § 6.6.3 Fees and assessments for the building permit and for other permits, licenses and inspections for
which the Construction Manager is required by the Contract Documents to pay. The building permit fees are to be paid by the Owner outside of this contract. 

§ 6.6.4 Fees of laboratories for tests required by the Contract Documents, except those related to defective or nonconforming Work for which
reimbursement is excluded by Section 13.5.3 of AIA Document A201-2007 or by other provisions of the Contract Documents, and which do not fall within the scope of Section 6.7.3. 

§ 6.6.5 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 of the Contract Documents; and payments made in accordance with legal judgments against the Construction Manager resulting from such suits or claims and
payments of settlements made with the Owner’s consent. However, such costs of legal defenses, judgments and settlements shall not be included in the calculation of the Construction Manager’s Fee or subject to the Guaranteed Maximum Price.
If such royalties, fees and costs are excluded by the last sentence of Section 3.17 of AIA Document A201-2007 or other provisions of the Contract Documents, then they shall not be included in the Cost of
the Work. Construction Manager warrants that no designs, processes or products requiring royalties and/or licenses shall be incorporated into the project without the prior consent of the Owner and Architect. 

§ 6.6.6 Costs for electronic equipment and software, directly related to the Work charged at a rate of $1.81 per employee hour billed to this
Project of those employees identified in Article 6.2,2 and 6.2.3 above. 
 § 6.6.7 Deposits lost for causes other than the Construction
Manager’s negligence or failure to fulfill a specific responsibility in the Contract Documents. 
 § 6.6.8 Legal, mediation and arbitration
costs, including attorneys’ fees, other than those arising from disputes between the Owner and Construction Manager, reasonably incurred by the Construction Manager after the execution of this Agreement in the performance of the Work and with
the Owner’s prior approval, which shall not be unreasonably withheld. 
 § 6.6.9 Subject to the Owner’s prior approval, expenses
incurred in accordance with the Construction Manager’s standard written personnel policy for relocation and temporary living allowances of the Construction Manager’s personnel required for the Work. 

  
 11 

 § 6.7 Other Costs and Emergencies 

§ 6.7.1 Other costs incurred in the performance of the Work if, and to the extent, approved in advance in writing by the Owner. 

§ 6.7.2 Costs incurred 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 Section 10.4 of AIA Document A201-2007. 
 § 6.7.3 Costs of repairing or
correcting damaged or nonconforming Work executed by the Construction Manager, Subcontractors or suppliers, provided that such damaged or nonconforming Work was not caused by negligence or failure to fulfill a specific responsibility of the
Construction Manager and only to the extent that the cost of repair or correction is not recovered by the Construction Manager from insurance, sureties, Subcontractors, suppliers, or others. 

§ 6.7.4 The costs described in Sections 6.1 through 6.7 shall be included in the Cost of the Work, notwithstanding any provision of AIA Document A201-2007 or other Conditions of the Contract which may require the Construction Manager to pay such costs, unless such costs are excluded by the provisions of Section 6.8. 

§ 6.8 Costs Not To Be Reimbursed 
 §
6.8.1 The Cost of the Work shall not include the items listed below: 
  

	 	.1	Salaries and other compensation off the Construction Manager’s personnel stationed at the Construction Manager’s principal office or offices other than the site office, except as specifically provided in
Section 6.2, or as may be provided in Article 11; 

  

	 	.2	Expenses of the Construction Manager’s principal office and offices other than the site office; 

  

	 	.3	Overhead and general expenses, except as may be expressly included in Sections 6.1 to 6.7; 

  

	 	.4	The Construction Manager’s capital expenses, including interest on the Construction Manager’s capital employed for the Work; 

 

	 	.5	Except as provided in Section 6.7.3 of this Agreement, costs due to the negligence or failure of the Construction Manager, Subcontractors and suppliers or anyone directly or indirectly employed by any of them or
for whose acts any of them may be liable to fulfill a specific responsibility of the Contract; 

  

	 	.6	Any cost not specifically and expressly described in Sections 6.1 to 6.7; 

  

	 	.7	Costs, other than costs included in Change Orders approved by the Owner, that would cause the Guaranteed Maximum Price to be exceeded; and 

 

	 	.8	Costs for services incurred during the Preconstruction Phase. 

 § 6.9 Discounts, Rebates and Refunds

 § 6.9.1 Cash discounts obtained on payments made by the Construction Manager shall accrue to the Owner if (1) before making the
payment, the Construction Manager included them in an Application for Payment and received payment from the Owner, or (2) the Owner has deposited funds with the Construction Manager with which to make payments; otherwise, cash discounts shall
accrue to the Construction Manager. Trade discounts, rebates, refunds and amounts received from sales of surplus materials and equipment shall accrue to the Owner, and the Construction Manager shall make provisions so that they can be obtained. 

§ 6.9.2 Amounts that accrue to the Owner in accordance with the provisions of Section 6.9.1 shall be credited to the Owner as a deduction
from the Cost of the Work. 
 § 6.10 Related Party Transactions 

§ 6.10.1 For purposes of Section 6.10, the term “related party” shall mean a parent, subsidiary, affiliate or other entity having
common ownership or management with the Construction Manager; any entity in which any stockholder in, or management employee of, the Construction Manager owns any interest in excess of ten percent in the aggregate; or any person or entity which has
the right to control the business or affairs of the Construction Manager. The term “related party” includes any member of the immediate family of any person identified above. 

§ 6.10.2 If any of the costs to be reimbursed arise from a transaction between the Construction Manager and a related party, the Construction
Manager shall notify the Owner of the specific nature of the contemplated transaction, including the identity of the related party and the anticipated cost to be incurred, before any such 

  
 12 

 
transaction is consummated or cost incurred. If the Owner, after such notification, authorizes the proposed transaction, then the cost incurred shall be included as a cost to be reimbursed, and
the Construction Manager shall procure the Work, equipment, goods or service from the related party, as a Subcontractor, according to the terms of Sections 2.3.2.1, 2.3.2.2 and 2.3.2.3. If the Owner fails to authorize the transaction, the
Construction Manager shall procure the Work, equipment, goods or service from some person or entity other than a related party according to the terms of Sections 2.3.2.1, 2.3.2.2 and 2.3.2.3. 

§ 6.11 Accounting Records 
 The Construction Manager
shall keep full and detailed records and accounts related to the cost of the Work and exercise such controls as may be necessary for proper financial management under this Contract and to substantiate all costs incurred. The accounting and control
systems shall be satisfactory to the Owner. The Owner and the Owner’s auditors shall, during regular business hours and upon reasonable notice, be afforded access to, and shall be permitted to audit and copy, the Construction Manager’s
records and accounts, including complete documentation supporting accounting entries, books, correspondence, instructions, drawings, receipts, subcontracts, Subcontractor’s proposals, purchase orders, vouchers, memoranda and other data relating
to this Contract. The Construction Manager shall preserve these records for a period of three years after final payment, or for such longer period as may be required by law. 

ARTICLE 7 PAYMENTS FOR CONSTRUCTION PHASE SERVICES 

§ 7.1 Progress Payments 
 § 7.1.1 Based
upon Applications for Payment submitted to the Architect by the Construction Manager and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Construction Manager as provided
below and elsewhere in the Contract Documents. 
 § 7.1.2 The period covered by each Application for Payment shall be one calendar month ending
on tho last day of the month, 
 (Paragraphs deleted) 

§ 7.1.3 Provided that an Application for Payment is received by the Architect not later than the 5th day of a following month, the Owner shall
make payment of the certified amount to the Construction Manager not later than the 5th 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 30 ( 30 ) days after the Architect receives the Application for Payment. 
 (Federal, state or local laws may require payment within a
certain period of time.) 
 § 7.1.4 Each Application for Payment shall be submitted in (3) hard copies as follows: 

 

	 	•	 	Application for Payment Continuation sheet shall itemize the project costs to show sufficient line item detail as required by the Owner or Architect. 

 

	 	•	 	Each Subcontractor shall be shown as a separate line item. 

  

	 	•	 	Allowances, Contingency and Contractor’s Fee shall be shown as separate line items. 

  

	 	•	 	The Original Contract Amount (GMP) shall not be altered. Change Orders shall be shown as a separate column. Any adjustments to individual line item budgets shall be shown in a separate column. 

 

	 	•	 	Billings for stored material must include proper certification that the material is being stored in a secured location and that the material is clearly identified as going to the Project. 

§ 7.1.5 Each Application for Payment shall be based on the most recent schedule of values submitted by the Construction Manager 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 Construction Manager’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 Construction Manager’s
Applications for Payment. 

  
 13 

 § 7.1.6 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. The percentage of 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 that has actually been incurred by the Construction Manager on account of that portion of the Work for which the Construction Manager 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. 
 § 7.1.7 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 Guaranteed Maximum Price properly allocable to completed Work as determined by multiplying the percentage of 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 shall be included as provided in Section 7.3.9 of AIA Document A201-2007; 

  

	 	.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; 

  

	 	.3	Add the Construction Manager’s Fee, less retainage of five percent (5 %). The Construction Manager’s Fee shall be computed upon the Cost of the Work at the rate stated in Section 5.1 or, if the
Construction Manager’s Fee is stated as a fixed sum in that Section, shall be an amount that bears the same ratio to that fixed-sum fee as the Cost of the Work bears to a reasonable estimate of the probable Cost of the Work upon its completion;

  

	 	.4	Subtract retainage of five percent (5 %) from that portion of the Work that the Construction Manager self-performs; 

  

	 	.5	Subtract the aggregate of previous payments made by the Owner; 

  

	 	.6	Subtract the shortfall, if any, indicated by the Construction Manager in the documentation required by Section 7.1.4 to substantiate prior Applications for Payment, or resulting from errors subsequently discovered
by the Owner’s auditors in such documentation; and 

  

	 	.7	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. 

§ 7.1.8 The Owner and Construction Manager shall agree upon (1) a mutually acceptable procedure for review and approval of payments to
Subcontractors and (2) the percentage of retainage held on Subcontracts, and the Construction Manager shall execute subcontracts in accordance with those agreements. 

§ 7.1.9 Except with the Owner’s prior approval, the Construction Manager shall not make advance payments to suppliers for materials or
equipment which have not been delivered and stored at the site. 
 § 7.1.10 In taking action on the Construction Manager’s Applications for
Payment, the Architect shall be entitled to rely on the accuracy and completeness of the information furnished by the Construction Manager and shall not be deemed to represent that the Architect has made a detailed examination, audit or arithmetic
verification of the documentation submitted in accordance with Section 7.1.4 or other supporting data; that the Architect has made exhaustive or continuous on-site inspections; or that the Architect has made examinations to ascertain how or for
what purposes the Construction Manager has used amounts previously paid on account of the Contract. Such examinations, audits and verifications, if required by the Owner, will be performed by the Owner’s auditors acting in the sole interest of
the Owner. 
 § 7.2 Final Paymant 
 §
7.2.1 Final payment, constituting the entire unpaid balance of the Contract Sum, shall be made by the Owner to the Construction Manager when 
  

	 	.1	the Construction Manager has fully performed the Contract except for the Construction Manager’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; 

  
 14 

	 	.2	the Construction Manager has submitted a final accounting for the Cost of the Work and a final Application for Payment; and 

  

	 	.3	a final Certificate for Payment has been issued by the Architect. 

 The Owner’s final payment to the
Construction Manager shall be made no later than 30 days after the issuance of the Architect’s final Certificate for Payment, 
 § 7.2.2
The Owner’s auditors will review and report in writing on the Construction Manager’s final accounting within 30 days after delivery of the final accounting to the Architect by the Construction Manager. Based upon such Cost of the Work as
the Owner’s auditors report to be substantiated by the Construction Manager’s final accounting, and provided the other conditions of Section 7.2.1 have been met, the Architect will, within seven days after receipt of the written
report of the Owner’s auditors, either issue to the Owner a final Certificate for Payment with a copy to the Construction Manager, or notify the Construction Manager and Owner in writing of the Architect’s reasons for withholding a
certificate as provided in Section 9.5.1 of the AIA Document A201-2007. The time periods stated in this Section supersede those stated in Section 9.4.1 of the AIA Document A201-2007. The Architect is not responsible for verifying the accuracy of the Construction Manager’s final accounting. 

§ 7.2.3 If the Owner’s auditors report the Cost of the Work as substantiated by the Construction Manager’s final accounting to be less
than claimed by the Construction Manager, the Construction Manager shall be entitled to request mediation of the disputed amount without seeking an initial decision pursuant to Section 15.2 of A201-2007.
A request for mediation shall be made by the Construction Manager within 30 days after the Construction Manager’s receipt of a copy of the Architect’s final Certificate for Payment. Failure to request mediation within this 30-day period
shall result in the substantiated amount reported by the Owner’s auditors becoming binding on the Construction Manager. Pending a final resolution of the disputed amount, the Owner shall pay the Construction Manager the amount certified in the
Architect’s final Certificate for Payment. 
 § 7.2.4 If, subsequent to final payment and at the Owner’s request, the Construction
Manager incurs costs described in Section 6.1.1 and not excluded by Section 6.8 to correct defective or nonconforming Work, the Owner shall reimburse the Construction Manager such costs and the Construction Manager’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 the Construction Manager has participated in savings as provided in Section 5.2.1, 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 Construction Manager. 

ARTICLE 8 INSURANCE AND BONDS 
 For all phases of
the Project, the Construction Manager and the Owner shall purchase and maintain insurance, and the Construction Manager shall 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.) 
 Insurance Coverage and Limits as specified below: 

The Contractor agrees to provide and maintain statutory workmen’s compensation insurance including employers liability insurance with a minimum limit of
$1,000,000, and State Disability Benefits Insurance covering all persons employed in connection with the performance of any construction work. 
 The
Contractor agrees to carry comprehensive liability and property damage insurance, as listed below, and name the Owner as an additional insured on all insurance certificates. 
  

	A.	Commercial General Liability Insurance - ISO Form CG 00 01 (11/85) or equivalent, Occurrence Policy, with – 

  

	 	a)	Limits of not less than – 

  

							
	 (1)
	  	 General Aggregate
	  	$	2,000,000.00	  
	 (2)
	  	 Products - Comp/OPS Aggregate
	  	$	2,000,000.00	  
	 (3)
	  	 Personal and Advertising Injury
	  	$	2,000,000.00	  
	 (4)
	  	 Each Occurrence Limit
	  	$	2,000,000.00	  
	 (5)
	  	 Fire Damage (any one fire)
	  	$	50,000.00	  
	 (6)
	  	 Medical Expense (any one person)
	  	$	5,000.00	  

  
 15 

	B.	Automobile Liability Insurance, with – 

  

	 	a)	Limits of not less than $1,000,000.00 Combined Single Limit per accident. 

  

	 	b)	Coverage applying to Any Auto. 

  

	C.	Coverage is included by the Construction Manager for Builder’s Risk Property Insurance. The Contractor will provide Builder’s Risk Property Insurance coverage, including fire and theft, equal to the amounts
per below and shall name the Owner as additional insured. 

 Builders Risk Limit: $18,000,000 

Soft Costs Limit: $800,000 

Transit Limit: $1,000,000 

Temporary Storage Limit: $1,000,000 

Deductible: $5,000 
 Policy
Period: 05-24-12 to 09-24-13 
 Named Insured will include both Okland Construction Company, Inc. and Mercury 

Waiver of Subrogation: Waiver isn’t needed because subs are Additional Insured’s and Owner is a Named Insured. 

 

	D.	Coverage is NOT Included by the Construction Manager for Owner equipment, materials, existing structures, or FF&E that is not part of this Agreement. These coverages are to be provided by the Owner.

 All other insurance coverage not identified above in relation to the performance of the work outlined in this agreement is to be provided
by the Owner. 
 PERFORMANCE BOND AND PAYMENT BOND: Not required due to the inclusion in this Agreement of SubGuard Subcontractor Default Insurance. 

ARTICLE 9 DISPUTE RESOLUTION 
 § 9.1 Any Claim
between the Owner and Construction Manager shall be resolved in accordance with the provisions set forth in this Article 9 and Article 15 of A201-2007. However, for Claims arising from or relating to the
Construction Manager’s Preconstruction Phase services, no decision by the Initial Decision Maker shall be required as a condition precedent to mediation or binding dispute resolution, and Section 9.3 of this Agreement shalt not apply. 

§ 9.2 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: 
 (Check the appropriate box. If the
Owner and Construction Manager 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) 

  
 16 

 § 9.3 Initial Decision Maker 

The Architect will serve as the Initial Decision Maker pursuant to Section 15.2 of AIA Document A201-2007 for
Claims arising from or relating to the Construction Manager’s Construction Phase services, unless the parties appoint below another individual, not a party to the Agreement, to serve as the Initial Decision Maker. 

(If the parties mutually agree, insert the name, address and other contact information of the Initial Decision Maker, if other than the Architect.)

 Charles Suh, LEED® AP 

Studley 
 19100 Von Kerman Avenue 

10th Floor 
 Irvine, CA 92612 

t 949.660.3554 
 f 949.660.3556 

ARTICLE 10 TERMINATION OR SUSPENSION 
 § 10.1
Termination Prior to Establishment of the Guaranteed Maximum Price 
 § 10.1.1 Prior to the execution of the Guaranteed Maximum Price
Amendment, the Owner may terminate this Agreement upon not less than seven days’ written notice to the Construction Manager for the Owner’s convenience and without cause, and the Construction Manager may terminate this Agreement, upon not
less than seven days’ written notice to the Owner, for the reasons set forth in Section 14.1.1 of A201-2007. 

§ 10.1.2 In the event of termination of this Agreement pursuant to Section 10.1.1, the Construction Manager shall be equitably compensated
for Preconstruction Phase services performed prior to receipt of a notice of termination. In no event shall the Construction Manager’s compensation under this Section exceed the compensation set forth in Section 4.1. 

§ 10.1.3 If the Owner terminates the Contract pursuant to Section 10.1.1 after the commencement of the Construction Phase but prior to the
execution of the Guaranteed Maximum Price Amendment, the Owner shall pay to the Construction Manager an amount calculated as follows, which amount shall be in addition to any compensation paid to the Construction Manager under Section 10.1.2:

  

	 	.1	Take the Cost of the Work incurred by the Construction Manager to the date of termination; 

  

	 	.2	Add the Construction Manager’s Fee computed upon the Cost of the Work to the date of termination at the rate stated in Section 5.1 or, if the Construction Manager’s Fee is stated as a fixed sum in that
Section, an amount that bears the same ratio to that fixed-sum Fee as the Cost of the Work at the time of termination bears to a reasonable estimate of the probable Cost of the Work upon its completion; and 

 

	 	.3	Subtract the aggregate of previous payments made by the Owner for Construction Phase services. 

 The Owner
shall also pay the Construction Manager fair compensation, either by purchase or rental at the election of the Owner, for any equipment owned by the Construction Manager which the Owner elects to retain and which is not otherwise included in the
Cost of the Work under Section 10.1.3.1. To the extent that the Owner elects to take legal assignment of subcontracts and purchase orders (including rental agreements), the Construction Manager shall, as a condition of receiving the payments
referred to in this Article 10, execute and deliver all such papers and take all such steps, including the legal assignment of such subcontracts and other contractual rights of the Construction Manager, as the Owner may require for the purpose of
fully vesting in the Owner the rights and benefits of the Construction Manager under such subcontracts or purchase orders. All Subcontracts, purchase orders and rental agreements entered into by the Construction Manager will contain provisions
allowing for assignment to the Owner as described above. 
 If the Owner accepts assignment of subcontracts, purchase orders or rental agreements as
described above, the Owner will reimburse or indemnify the Construction Manager for all costs arising under the subcontract, purchase order or rental agreement, if those costs would have been reimbursable as Cost of the Work if the contract had not
been terminated. If the Owner chooses not to accept assignment of any subcontract, purchase order or rental agreement that would have constituted a Cost of the Work had this agreement not been terminated, the Construction Manager will terminate the
subcontract, purchase order or rental agreement and the Owner will pay the Construction Manager the reasonable costs necessarily incurred by the Construction Manager because of such termination. 

  
 17 

 § 10.2 Termination Subsequent to Establishing Guaranteed Maximum Price 

Following execution of the Guaranteed Maximum Price Amendment and subject to the provisions of Section 10.2.1 and 10.2.2 below, the Contract may be
terminated as provided in Article 14 of AIA Document A201-2007. 
 § 10.2.1 If the Owner terminates the
Contract after execution of the Guaranteed Price Amendment, the amount payable to the Construction Manager pursuant to Sections 14.2 and 14.4 of A201-2007 shall not exceed the amount the Construction Manager
would otherwise have received pursuant to Sections 10.1.2 and 10.1.3 of this Agreement. 
 § 10.2.2 If the Construction Manager terminates the
Contract after execution of the Guaranteed Maximum Price Amendment, the amount payable to the Construction Manager under Section 14.1.3 of A201-2007 shall not exceed the amount the Construction Manager
would otherwise have received under Sections 10.1.2 and 10.1.3 above, except that the Construction Manager’s Fee shall be calculated as if the Work had been fully completed by the Construction Manager, utilizing as necessary a reasonable
estimate of the Cost of the Work for Work not actually completed but this shall only apply in the event Construction Manager’s termination is a direct result of the actual existence of one or more of the causes described in Section 14.1.1
or 14.1.2 of A201-2007. 
 § 10.3 Suspension 

The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201-2007. In such case, the
Guaranteed Maximum Price and Contract Time shall be increased as provided in Section 14.3.2 of AIA. Document A201-2007, except that the term “profit” shall be understood to mean the Construction
Manager’s Fee as described in Sections 5.1 and 5.3.5 of this Agreement. 
 ARTICLE 11 MISCELLANEOUS PROVISIONS 

§ 11.1 Terms in this Agreement shall have the same meaning as those in A201-2007. 

§ 11.2 Ownership and Use of Documents 

Section 1.5 of A201-2007 shall apply to both the Preconstruction and Construction Phases. 

§ 11.3 Governing Law 
 Section 13.1 of A201-2007 shall apply to both the Preconstruction and Construction Phases. 
 § 11.4 Assignment 

The Owner and Construction Manager, respectively, bind themselves, their agents, successors, assigns and legal representatives to this Agreement. Neither the
Owner nor the Construction Manager shall assign this Agreement without the written consent of the other, except that the Owner may: (a) assign this Agreement to a lender providing financing for the Project and/or (b) assign or transfer
this Agreement and/or its rights hereunder to a successor-in-interest as a result of a merger, consolidation or corporate restructuring or to a purchaser of all or substantially all or part of the business of Owner, provided any such assignment
shall require the assignee to assume the duties and obligations contained in this Agreement if the assignee agrees to assume the Owner’s rights and obligations under this Agreement. Except as provided in Section 13.2.2 of A201-2007, neither party to the Contract shall assign the Contract as a whole without written consent of the other. If either party attempts to make such an assignment without such consent, that party shall
nevertheless remain legally responsible for all obligations under the Contract. 
 § 11.5 Other provisions: 

The Owner and Construction Manager acknowledge that in order to construct the Work the Contractor will, on a best efforts basis, provide additional information
on a timely basis, including Shop Drawings, Product Data, Samples and other similar submittals. 
 ARTICLE 12 SCOPE OF THE AGREEMENT 

§ 12.1 This Agreement represents the entire and integrated agreement between the Owner and the Construction Manager and supersedes all prior
negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both Owner and Construction Manager. 

  
 18 

 § 12.2 The following documents comprise the Agreement: 

 

	 	.1	AIA Document A133-2009, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a
Guaranteed Maximum Price 

  

	 	.2	AIA Document A201-2007, General Conditions of the Contract for Construction 

(Paragraphs deleted) 
  

	 	.5	Other documents: 

 (List other documents, if any, forming part of the Agreement.) 

  
 19 

 EXHIBIT A 

STANDARD LABOR RATES 
 These Rates EXCLUDE vehicles, cell
phones, subsistence, and travel unless specified otherwise below. 
 These Rates INCLUDE 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, retirement plans, training costs, and safety incentives. 

 

													
	 TITLE
	  	per week	 	  	per hour	 	  	overtime	 
	 Project Manager DIRECTOR
	  	$	5,000	  	  	 	125.00	  	  	 	na	  
	 Project Manager SENIOR
	  	$	4,800	  	  	 	120.00	  	  	 	na	  
	 Project Manager
	  	$	3,800	  	  	 	95.00	  	  	 	na	  
	 Project Manager JR/ASST
	  	$	3,000	  	  	 	75.00	  	  	 	na	  
	 Project Superintend SENIOR
	  	$	4,400	  	  	 	110.00	  	  	 	na	  
	 Project Superintend
	  	$	3,800	  	  	 	95.00	  	  	 	na	  
	 Project Superintend JR/ASST
	  	$	3,200	  	  	 	80.00	  	  	 	na	  
	 Project Engineer SENIOR
	  	$	2,600	  	  	 	65.00	  	  	 	na	  
	 Project Engineer
	  	$	2,200	  	  	 	55.00	  	  	 	na	  
	 Project Scheduler
	  	$	3,400	  	  	 	85.00	  	  	 	na	  
	 Project Quality Control
	  	$	3,200	  	  	 	80.00	  	  	 	na	  
	 Project MIS Support*
	  	$	3,200	  	  	 	80.00	  	  	 	na	  
	 Corporate MIS Support*
	  	$	6,400	  	  	 	160.00	  	  	 	na	  
	 *    Rate includes cell phone, specialized MIS
equipment
	  				  				  			
				
	 Project Safety SENIOR
	  	$	3,400	  	  	 	85.00	  	  	 	na	  
	 Project Safety
	  	$	2,800	  	  	 	70.00	  	  	 	na	  
	 Corporate Safety*
	  	$	5,000	  	  	 	125.00	  	  	 	na	  
	 *    Rate includes vehicle and cell phone
	  				  				  			
				
	 Project Accountant
	  	$	2,320	  	  	 	58.00	  	  	 	na	  
	 Project Estimator SENIOR
	  	$	4,400	  	  	 	110.00	  	  	 	na	  
	 Project Estimator
	  	$	3,200	  	  	 	80.00	  	  	 	na	  
	 Project Clerk - Assistant/Intern
	  	$	1,800	  	  	 	45.00	  	  	 	65.00	  
	 Project General Foreman
	  	$	2,600	  	  	 	65.00	  	  	 	94.00	  
	 Carpenter General Foreman
	  	 	Hourly	  	  	 	43.85	  	  	 	63.58	  
	 Carpenter Foreman
	  	 	Hourly	  	  	 	40.95	  	  	 	59.38	  
	 Carpenter
	  	 	Hourly	  	  	 	38.85	  	  	 	56.33	  
	 Laborer Foreman
	  	 	Hourly	  	  	 	28.35	  	  	 	41.11	  
	 Laborer
	  	 	Hourly	  	  	 	26.25	  	  	 	38.06	  
	 Cmnt Mason Superintendent*
	  	$	3,400	  	  	 	85.00	  	  	 	na	  
	 *    Rate includes Truck, Cell Phone
	  				  				  			
				
	 Cmnt Mason General Foreman
	  	 	Hourly	  	  	 	43.85	  	  	 	63.58	  
	 Cmnt Mason Foreman
	  	 	Hourly	  	  	 	40.95	  	  	 	59.38	  
	 Cmnt Mason
	  	 	Hourly	  	  	 	38.85	  	  	 	56.33	  
	 Operator
	  	 	Hourly	  	  	 	47.25	  	  	 	68.51	  
	 Mechanic - Crane/Heavy Equipment*
	  	 	Hourly	  	  	 	95.00	  	  	 	137.75	  
	 *    Rate includes Mechanic Truck, Tools, Cell Phone
	  				  				  			
				
	 Mechanic - Service*
	  	 	Hourly	  	  	 	80.00	  	  	 	116.00	  
	 *    Rate includes Service Truck, Tools, Cell Phone
	  				  				  			
				
	 Transport Driver*
	  	 	Hourly	  	  	 	70.00	  	  	 	101.50	  
	 *    Rate includes Transport Truck and Cell Phone
	  				  				  			
				
	 Delivery Driver*
	  	 	Hourly	  	  	 	55.00	  	  	 	79.75	  
	 *    Rate includes Flatbed Truck and Cell Phone
	  				  				  			

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

 

					
	 /s/ Karsten Voermann
	 		 	 /s/ Christopher Sill

	OWNER (Signature)	 		 	CONSTRUCTION MANAGER (Signature)
			
	 CFO
	 		 	 Christopher Sill V.P.

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

  
 20EX-10.16

 Exhibit 10.16 

 
 PERSONAL & CONFIDENTIAL 

January 11, 2013 
 Mr. Randy Clark 

Dear Randy, 
 Congratulations! Mercury Payment Systems is
pleased to offer you the position of SVP, Marketing, reporting to Matt Taylor, Chief Executive Officer. Subject to the background and employment verifications noted below, your employment with Mercury is anticipated to commence on February 25,
2013. While you will not be resident in our Durango or Denver offices, your commitment to spend agreed amounts of time in these offices is a critical expectation of your role. 

This letter describes our general understanding concerning the terms of your employment with Mercury. 

COMPENSATION AND BENEFITS 
 Base Pay 

Your starting salary will be $9,791.66 (gross) per semi-monthly pay period. This is the equivalent of $235,000.00 per year. Your salary will be paid in
accordance with the regular payroll practices of Mercury, subject to customary taxes and withholdings. Currently, pay day is twice a month, on the 10th and 25th. 
 Bonus Opportunity 

In addition to your salary, you will also be eligible for an annual performance bonus. In your position as Chief Marketing Officer, your annual target bonus
will be up to $100,000.00 for calendar year 2013, prorated for your actual period of employment. Your actual payout will be based upon your completion of specific objectives agreed upon by you and Matt Taylor. 

Stock Option Incentives 
 We will recommend to the Board
of Directors that they, at an upcoming regularly scheduled Board meeting, subject to the terms and conditions of the Mercury Payment Systems, LLC 2010 Unit Incentive Plan, approve an option agreement to be entered into approximately 90 days after
the commencement of your employment with the company that will grant to you the right and option to purchase up to the unit equivalent of 30 basis points based on the current number of 

  
 10 Burnett Court, Suite
300 — Durango, Colorado, 81301 — (800) 846-4472 — Fax (970) 385-2722 — www.MercuryPay.com 

 
units and options on units outstanding and subject to dilution for future issuances) in Mercury’s non-voting Class C member units at a strike price equal to the fair market value of Mercury
on the date of grant. These options vest over time and in accordance with returns achieved by Mercury’s equity holders. That means you will not own the options or be able to exercise them until they are vested. You understand and agree that you
are responsible for any tax consequences and tax liability for the options and any resulting membership units issued. The objective of issuing options is to optimize the profitability and growth of Mercury through incentives which are consistent
with Mercury’s goals and which link and align the personal interests of employees to those of Mercury and to provide employees with an incentive for excellence in individual performance. The actual terms of your options will be governed solely
by the option agreement issued to you following approval by the Board of Directors. We will additionally recommend to the Board of Directors that they authorize us (i) to extend the sixty (60) day option exercise period referenced in
section 4(a) of the standard Option Agreement (following termination without cause) to twelve (12) months; and (ii) to extend the period in Section 7 of the Option Agreement during which termination without cause following a Change of
Control (as defined in the Option Agreement) triggers acceleration of vesting from twelve (12) to eighteen (18) months. 
 You understand and
agree that you are responsible for any tax consequences and tax liability for the options and any resulting membership units issued. The objective of issuing options is to optimize the profitability and growth of Mercury through incentives which are
consistent with Mercury’s goals and which link and align the personal interests of employees to those of Mercury’s and to provide employees with an incentive for excellence in individual performance. 

Termination Benefits 
 In the event you are terminated by
Mercury without “Cause” or in the event you resign for “Good Reason”, you shall be entitled to receive: 
  

	1.	Severance. 6 months of your then current annual base salary as cash severance payable in a lump sum, subject to applicable taxes and withholdings. 

 

	2.	Acceleration of Vesting. An additional two (2) quarters of vesting on any unvested time based options held by you, subject to formal authorization by the Board of Directors, which authorization we will
recommend. 

 The above termination benefits will be subject and pre-conditioned on your entering into and not revoking a standard form of
waiver and release of claims in substantially the form provided by Mercury, which agreement shall include (without limitation) a mutual nondisparagement clause and a one year nonsolicit with respect to Mercury. 

Bonus for Vehicle Purchase 
 In addition to your base
salary, you will receive a one-time bonus of $15,000 to be applied toward the acquisition of a vehicle for use in Durango. 

  
 2 

 Housing Allowance 

You will be reimbursed for expenses for hotel rooms in Durango for your first two months following your commencement of employment. Thereafter, you will be
reimbursed for up to $1,600 per month for rent expenses. 
 Travel 

Performing your job requirements will require substantial time spent in both the company’s Durango and Denver offices. The specific amount of time will be
agreed by you and Matt Taylor and reset every 6 months following your commencement of employment. Initial requirements will be at least twelve (12) business days per month. To address such requirements, the company will pay directly for coach
fare for flights from your home to Denver and Durango to allow for such time in the respective offices. 
 Other Benefits 

Mercury also offers a competitive benefits package, which currently includes medical, dental and vision coverage, life insurance, and disability coverage, for
which you will be eligible on the first day of the month following 60 days of employment. Mercury also provides paid vacation and sick time for eligible employees. Members of the Executive Team do not accrue vacation or sick time but may take time
off when and as needed in balance with their workload and needs of Mercury. 
 COBRA Reimbursement 

Mercury will reimburse your monthly COBRA premium expense up to $1,008.00 for up to two months prior to your eligibility to join the Mercury medical plan. This
amount is equal to the cost Mercury pays for medical benefits for Mercury employees. 
 At-Will Employment 

Your employment with Mercury will at all times be “at-will.” This means that notwithstanding anything previously stated to you or in any writing
provided to you, you or Mercury can terminate your employment at any time, without notice, procedure or formality, and without cause. 
 Conditions of
Employment 
 This offer of employment and the other commitments made in this letter are conditioned on your successful completion of background and
credit verifications, and your ability to satisfactorily provide proof of your right to work in the United States. 
 When you arrive on your first day,
please park in a visitor spot until we are able to get you a parking pass. Please bring appropriate identification with you on your first day so that HR may complete the required I-9 form (which proves your eligibility to work in the U.S.). Most
common I.D. is a drivers license and social security card or birth certificate OR a passport. HR has a complete list of accepted forms of I.D. for your use. 

  
 3 

 Randy, we hope that you are as excited as we are about the prospect of your new role at Mercury Payment Systems.
We believe that you will find working at Mercury to be a fun, challenging and rewarding experience. 
  

	
	Welcome to Mercury!
	
	Sincerely,
	
	MERCURY PAYMENT SYSTEMS, LLC
	
	 /s/ Matt Taylor

	Matt Taylor
	Chief Executive Officer

 I, /s/ Randall Clark, accept the terms of this offer with Mercury Payment Systems. 

   (Your signature) 
  

	
	 February 25, 2013

	Date

  
 4 

 Definitions 

For all purposes of this offer letter, “Cause” shall have the meaning given to such term in your option agreement. 

For all purposes of this offer letter, “Good Reason” shall mean any of the following without Employee’s consent except if resulting from a
Cause event: 
  

	1.	Greater than 10% reduction in the Employee’s Base Salary as in effect immediately prior to such reduction unless such reduction occurs in connection with an across-the-board reduction in base salaries of other
similarly situated employees; or 

  

	2.	A material diminution of Executive’s authority, duties or responsibilities with the Company, provided, however, that a change in duties during the normal course of business that in and of itself does not adversely
impact Executive’s status as an executive at the Company shall not be a “material diminution”; or 

  

	3.	Material uncured breach by Mercury of the terms of the offer letter received by Employee from Mercury; or 

  

	4.	Failure of Mercury to obtain the agreement of a successor company to assume the terms of Employee’s offer letter. 

Employee shall give Mercury written notice describing the Good Reason event in reasonable detail within ten (10) days of his actual knowledge of the
occurrence of the Good Reason event. Mercury shall have thirty (30) days after its receipt of written notice to reasonably cure the event or condition cited in the written notice so that Good Reason will have not formally occurred as a result
of the event in question until such cure period has expired. A termination of employment due to Good Reason shall occur no later than ten (10) days after the expiration of such cure period or on notification by Mercury that it does not intend
to cure, whichever is earlier. For purposes of notice under this paragraph, if Employee’s authority, responsibility or duties are materially diminished incrementally over a period of time (not to exceed twelve months), the “event”
shall be deemed to occur when such reduction, in the aggregate, becomes material. 

  
 5

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