Document:

exv10w18

 

Exhibit 10.18

LONG TERM INCENTIVE PLAN

UNIT VESTING AGREEMENT

Under the Midlantic Office Trust, Inc.

2005 Equity Compensation Plan

(Officers and Employees)

	 	 	 
	Name of Grantee:
	 	__________________________________
	No. of LTIP Units:

	 	__________________________________
	Grant Date:

	 	______________________________, 200_
	Final Acceptance Date:

	 	__________________________________

     Pursuant to the Midlantic Office Trust, Inc. 2005 Equity Compensation Plan (the “Plan”) as
amended through the date hereof and the First Amended and Restated Agreement of Limited
Partnership, to be dated as of the Closing Date (as defined below) (the “Partnership Agreement”),
of Midlantic Partnership, LP, a Delaware limited partnership (the “Partnership”), Midlantic Office
Trust, Inc., a Maryland corporation (the “Company”), through its wholly owned subsidiary Midlantic
Office Properties, LLC, a Delaware limited liability company and the general partner of the
Partnership, and for the provision of services to or for the benefit of the Partnership in a
partner capacity or in anticipation of being a partner, hereby grants to the Grantee named above an
Award in the form of, and by causing the Partnership to issue to the Grantee named above, a
Partnership Interest (as defined in the Partnership Agreement, as amended) having the rights,
voting powers, restrictions, limitations as to distributions, qualifications and terms and
conditions of redemption and conversion set forth herein and in the Partnership Agreement, such
Partnership Interest to be expressed as a number of Partnership Units (as defined in the
Partnership Agreement) which shall be referred to as Long Term Incentive Plan Units (“LTIP Units”).
Upon acceptance of this Long Term Incentive Plan (“LTIP”) Unit Vesting Agreement (this
“Agreement”), the Grantee shall receive, effective as of the Closing Date, the number of LTIP Units
specified above, subject to the restrictions and conditions set forth herein and in the Partnership
Agreement.

     1.       Acceptance of Agreement. The Grantee shall have no rights with respect to this
Agreement unless he or she shall have accepted this Agreement prior to the close of business on the
Final Acceptance Date specified above by (i) signing and delivering to the Partnership a copy of
this Agreement and (ii) unless the Grantee is already a Limited Partner (as defined in the
Partnership Agreement), signing, as a Limited Partner, and delivering to the Partnership a
counterpart signature page to the Partnership Agreement (attached hereto as Annex A). Upon
acceptance of this Agreement by the Grantee, the Partnership Agreement shall be amended to reflect
the issuance to the Grantee of the LTIP Units so accepted, effective as of the Closing Date.
Thereupon, the Grantee shall have all the rights of a Limited Partner of the Partnership

 

 

with respect to the number of LTIP Units specified above, as set forth in the Partnership
Agreement, subject, however, to the restrictions and conditions specified in Section 2
below.

     2.       Restrictions and Conditions.

          (a)       The records of the Partnership evidencing the LTIP Units granted herein shall bear an
appropriate legend, as determined by the Partnership in its sole discretion, to the effect that
such LTIP Units are subject to restrictions as set forth herein and in the Partnership Agreement.

          (b)       LTIP Units granted herein may not be sold, assigned, transferred, pledged or otherwise
encumbered or disposed of by the Grantee prior to vesting.

          (c)       If the Grantee’s employment is terminated prior to vesting of the LTIP Units granted
herein (i) by the Company for Cause (as defined in the Employment Agreement dated as of August ___,
2005, by and between the Company and the Grantee (the “Employment Agreement”)), or (ii) by the
Grantee and the termination is not for Good Reason (as defined in the Employment Agreement), the
Partnership shall have the right, at the discretion of the Committee, to forfeit such LTIP Units
from the Grantee or the Grantee’s legal representative. The Partnership must exercise such right
of forfeiture by written notice to the Grantee or the Grantee’s legal representative not later than
90 days following such termination of employment.

          (d)       If, within approximately nine months after the Closing Date (the “Capital Investment
Date”), the Partnership has not (i) deployed the capital raised in its initial public offering, on
an up to 65% leveraged basis and (ii) acquired additional commercial office properties that offer
an average yield commensurate with the average initial yield expected to be generated by the
initial properties acquired by the Partnership, assuming market rates
of debt, the Partnership shall have the right, at the
discretion of the Committee, to forfeit the LTIP Units granted herein from the Grantee or the
Grantee’s legal representative. The Partnership must exercise such right of forfeiture by written
notice to the Grantee or the Grantee’s representative not later than 90 days following the Capital
Investment Date.

     3.       Vesting of LTIP Units. The restrictions and conditions in Section 2 of this
Agreement shall lapse on the Vesting Date or Dates specified in the following schedule, so long as
the Grantee remains an employee of the Company or an affiliate of the Company from the Closing Date
until such Vesting Date or Dates. If a series of Vesting Dates is specified, then the restrictions
and conditions in Section 2 shall lapse only with respect to the percentage of LTIP Units
accepted by the Grantee hereunder that is specified as vested on such date.

	 	 	 
	Fraction of	 	 
	LTIP Units Vested	 	Vesting Date
	 	 	 
	1/3
	 	______ ___, 200_
	1/3
	 	______ ___, 200_
	1/3
	 	______ ___, 200_

 

 

Subsequent to such Vesting Date or Dates, the LTIP Units on which all restrictions and conditions
have lapsed shall no longer be deemed restricted.

     4.       Acceleration of Vesting in Special Circumstances. If (i) the Grantee ceases to be an
employee of the Company or an affiliate of the Company by reason of death or disability (as
described in the Employment Agreement), (ii) the Company terminates the Grantee’s employment and
the termination is not for Cause (as defined in the Employment Agreement), (iii) the Grantee
terminates his employment with the Company and the termination is for Good Reason (as defined in
the Employment Agreement), (iv) the Grantee receives from the Company any notice of non-renewal (as
described in the Employment Agreement), or (v) a Change of Control (as defined in the Employment
Agreement) occurs, any restrictions and conditions on all LTIP Units subject to this Award shall be
deemed waived by the Committee and all LTIP Units granted hereby shall automatically become fully
vested; provided, however, that none of these events shall result in accelerated vesting of
the LTIP Units unless the capital investment goals in Section 2(d) above have been met.

     5.      Merger-Related Action. In contemplation of and subject to the consummation of a
consolidation or merger or sale of all or substantially all of the assets of the Company in which
outstanding shares of common stock are exchanged for securities, cash, or other property of an
unrelated corporation or business entity or in the event of a liquidation of the Company (in each
case, a “Transaction”), the Board of Directors of the Company, or the board of directors of any
corporation assuming the obligations of the Company (the “Acquiror”), may, in its discretion, take
any one or more of the following actions, as to the outstanding LTIP Units subject to this Award:
(i) provide that such LTIP Units shall be assumed or equivalent awards shall be substituted, by the
acquiring or succeeding corporation (or an affiliate thereof), and/or (ii) upon prior written
notice to the LTIP Unitholders (as defined in the Partnership Agreement) of not less than 30 days,
provide that such LTIP Units shall terminate immediately prior to the consummation of the
Transaction. The right to take such actions (each, a “Merger-Related Action”) shall be subject to
the following limitations and qualifications:

          (a) if all LTIP Units awarded to the Grantee hereunder are eligible, as of the time of the
Merger-Related Action (and giving effect to the anticipated consummation of the OP Unit Transaction
as provided in Section 4.05 of the Partnership Agreement), for conversion into OP Units (as
defined in the Partnership Agreement) and the Grantee is afforded the opportunity to effect such
conversion and receive, in consideration for the OP Units into which his or her LTIP Units shall
have been converted, the same kind and amount of consideration as other holders of OP Units in
connection with the Transaction, then Merger-Related Action of the kind specified in (i) or (ii)
above shall be permitted and available to the Company and the Acquiror;

          (b) if some or all of the LTIP Units awarded to the Grantee hereunder are not, as of the time
of the Merger-Related Action, so eligible for conversion into OP Units, and the acquiring or
succeeding entity is itself, or has a subsidiary which is organized as a partnership or limited
liability company (consisting of a so-called “UPREIT” or other structure substantially similar in
purpose or effect to that of the Company and the Partnership), then Merger-Related Action of the
kind specified in (i) above must be taken by the Acquiror with respect to all LTIP Units subject to
this Award which are not so convertible at the time, whereby all such LTIP

 

 

Units covered by this Award shall be assumed by the acquiring or succeeding entity, or equivalent
awards shall be substituted by the acquiring or succeeding entity, and the acquiring or succeeding
entity shall preserve with respect to the assumed LTIP Units or any securities to be substituted
for such LTIP Units, as far as reasonably possible under the circumstances, the distribution,
special allocation, conversion and other rights set forth in the Partnership Agreement for the
benefit of the holders of LTIP Units; and

          (c) if some or all of the LTIP Units awarded to the Grantee hereunder are not, as of the time
of the Merger-Related Action, so eligible for conversion into OP Units, and after exercise of
reasonable commercial efforts the Company or the Acquiror is unable to treat the LTIP Units in
accordance with Section 5(b), then Merger-Related Action of the kind specified in (ii)
above must be taken by the Company or the Acquiror, in which case such action shall be subject to a
provision that the settlement of the terminated award of LTIP Units which are not convertible into
OP Units requires a payment of the same kind and amount of consideration payable in connection with
the Transaction to a holder of the number of OP Units into which the LTIP Units to be terminated
could be converted (including the right to make elections as to the type of consideration) if the
Transaction were of a nature that permitted a revaluation of the Grantee’s capital account balance
under the terms of the Partnership Agreement, as determined by the Committee in good faith in
accordance with the Plan.

     6.       Distributions. Distributions on the LTIP Units shall be paid currently to the Grantee
in accordance with the terms of the Partnership Agreement. The right to distributions set forth in
this Section 6 shall be deemed a Dividend Equivalent Right for purposes of the Plan.

     7.       Incorporation of Plan. Notwithstanding anything herein to the contrary, this Agreement
shall be subject to and governed by all the terms and conditions of the Plan. Capitalized terms
used in this Agreement shall have the meaning specified in the Plan, unless a different meaning is
specified herein.

     8.       Covenants. The Grantee hereby covenants as follows:

          (a) So long as the Grantee holds any LTIP Units, the Grantee shall disclose to the
Partnership in writing such information as may be reasonably requested with respect to ownership of
LTIP Units as the Partnership may deem reasonably necessary to ascertain and to establish
compliance with provisions of the Internal Revenue Code of 1986, as amended (the “Code”),
applicable to the Partnership or to comply with requirements of any other appropriate taxing
authority.

          (b) The Grantee hereby agrees to make an election under Section 83(b) of the Code with
respect to the LTIP Units awarded hereunder, and has delivered with this Agreement a completed,
executed copy of the election form attached hereto as Annex B. The Grantee agrees to file
the election (or to permit the Partnership to file such election on the Grantee’s behalf) within
thirty (30) days after the Closing Date with the IRS Service Center at which such Grantee files his
or her personal income tax returns, and to file a copy of such election with the Grantee’s U.S.
federal income tax return for the taxable year in which the LTIP Units are awarded to the Grantee.

 

 

          (c) The Grantee hereby agrees not to dispose of the LTIP Units subject to this Award within
two years of receipt of such LTIP Units. The Partnership and the Grantee hereby agree to treat the
Grantee as the owner of the LTIP Units from the Grant Date. The Grantee hereby agrees to take into
account the distributive share of Partnership income, gain, loss, deduction, and credit associated
with the LTIP Units in computing the Grantee’s income tax liability for the entire period during
which the Grantee has the LTIP Units.

          (d) The Grantee hereby recognizes that the IRS has proposed regulations under Sections 83 and
704 of the Internal Revenue Code that may affect the proper treatment of the LTIP Units for federal
tax purposes. In the event that those proposed regulations are finalized, the Grantee hereby
agrees to cooperate with the Partnership in amending this Agreement and the Partnership Agreement,
and to take such other action as may be required, to conform to such regulations.

     9.       Transferability. This Agreement is personal to the Grantee, is non-assignable and is
not transferable in any manner, by operation of law or otherwise, other than by will or the laws of
descent and distribution.

     10.       Amendment. The Grantee acknowledges that the Plan may be amended or terminated in
accordance with Article XV thereof and that this Agreement may be amended or canceled by
the Committee, on behalf of the Partnership, for the purpose of satisfying changes in law or for
any other lawful purpose, provided that no such action shall adversely affect the Grantee’s rights
under this Agreement without the Grantee’s written consent. The provisions of Section 5 of
this Agreement applicable to the termination of the LTIP Units covered by this Award in connection
with a Transaction (as defined in Section 5 of this Agreement) shall apply, mutatis mutandi
to amendments, discontinuance or cancellation pursuant to this Section 10 or Article
XV of the Plan.

     11.       No Obligation to Continue Employment. Neither the Company nor any affiliate of the
Company is obligated by or as a result of the Plan or this Agreement to continue the Grantee in
employment and neither the Plan nor this Agreement shall interfere in any way with the right of the
Company or any affiliate of the Company to terminate the employment of the Grantee at any time
subject to the terms of the Employment Agreement.

     12.       Notices. Notices hereunder shall be mailed or delivered to the Partnership at its
principal place of business and shall be mailed or delivered to the Grantee at the address on file
with the Partnership or, in either case, at such other address as one party may subsequently
furnish to the other party in writing.

     13.       Governing Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Maryland, applied without regard to conflict of law principles. The
parties agree that any action or proceeding arising directly, indirectly or otherwise in connection
with, out of , related to or from this Agreement, any breach hereof or any action covered hereby,
shall be resolved within the State of Maryland and the parties hereto consent and submit to the
jurisdiction of the federal and state courts located within the State of

 

 

Maryland. The parties hereto further agree that any such action or proceeding brought by either
party to enforce any right, assert any claim, obtain any relief whatsoever in connection with this
Agreement shall be brought by such party exclusively in federal or state courts located within the
State of Maryland.

     14.       Closing Date. As used herein, “Closing Date” shall mean the date of closing of the
initial public offering of common stock of Midlantic Office Trust, Inc.

[Remainder of page left blank intentionally]

 

 

	 	 	 	 	 
	 	MIDLANTIC OFFICE TRUST, INC.

      a Maryland corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:
Date: 	 
	 

	 	 	 	 	 
	 	MIDLANTIC PARTNERSHIP, LP

      a Delaware limited partnership

 	 
	 	By:  	 	 
	 	 	Name
Title:
Date:  
	 

 

 

     The foregoing agreement is hereby accepted and the terms and conditions thereof hereby agreed to by
the Grantee.

	 	 	 	 	 
	Date:

	 	__________________
	 	___________________________
	 

	 	 	 	Grantee’s Signature
	 

	 	 	 	
 
Grantee’s name and address:
 
	 

	 	 	 	___________________________
 

	 

	 	 	 	___________________________
	 

	 	 	 	
___________________________
	 

	 	
 
 	 	
___________________________

 

 

ANNEX A

FORM OF LIMITED PARTNER SIGNATURE PAGE

The Grantee desiring to become one of the within named Limited Partners of Midlantic Partnership,
LP (the “Partnership”), hereby becomes a party to the First Amended and Restated Agreement of
Limited Partnership of Midlantic Partnership, LP by and among Midlantic Office Properties, LLC (the
“General Partner”), and such Limited Partners, effective as of the Closing Date (as defined in the
Long Term Incentive Plan Unit Vesting Agreement, dated ___, 2005, among the Grantee, the
Partnership and Midlantic Office Trust, Inc. The Grantee agrees that this signature page may be
attached to, and hereby authorizes the General Partner to attach this signature page to, any
counterpart of said Agreement of Limited Partnership.

	 	 	 	 	 
	Date:

	 	__________________
	 	___________________________
	 

	 	 	 	Signature of Limited Partner
	 

	 	 	 	
 
Limited Partners’s name and address:
 
	 

	 	 	 	___________________________
 

	 

	 	 	 	___________________________
	 

	 	 	 	
___________________________
	 

	 	
 
 	 	
___________________________

 

 

ANNEX B

ELECTION TO INCLUDE IN GROSS INCOME IN YEAR OF

TRANSFER OF PROPERTY PURSUANT TO SECTION 83(b)

OF THE INTERNAL REVENUE CODE

The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code
with respect to the property described below and supplies the following information in accordance
with the regulations promulgated thereunder:

	 	1.	 	The name, address and taxpayer identification number of the undersigned are:
	 
	 	 	 	Name: ________________________(the “Taxpayer”)
	 
	 	 	 	Address: _________________________________
	 
	 	 	 	_________________________________
	 
	 	 	 	_________________________________
	 
	 	 	 	_________________________________
	 
	 	 	 	Social security number: ______________________

	2.	 	Description of property with respect to which the election is being made:
	 
	 	 	The election is being made with respect to ___LTIP Units in Midlantic
Partnership, LP (the “Partnership”).
	 
	3.	 	The date on which the LTIP Units were transferred is ___, 2005. The taxable
year to which this election relates is calendar year 2005.
	 
	4.	 	Nature of restrictions to which the LTIP Units are subject:

	 	(a)	 	Until the LTIP Units vest, the Taxpayer may not transfer in any manner any
portion of the LTIP Units without the consent of the Partnership.
	 
	 	(b)	 	The Taxpayer’s LTIP Units vest in accordance with the vesting
provisions described in the Schedule attached hereto. Unvested LTIP Units are
subject to forfeiture in accordance with the vesting provisions described in
the Schedule attached hereto.

	 	5.	 	The fair market value at the time of transfer (determined without regard to any
restrictions other than restrictions which by their terms will never lapse) of the LTIP
Units with respect to which this election is being made was $0 per LTIP Unit.
	 
	 	6.	 	The amount paid by the Taxpayer for the LTIP Units was $0 per LTIP Unit.

 

 

	 	7.	 	A copy of this statement has been furnished to the Partnership, its general partner
Midlantic Office Properties, LLC, and Midlantic Office Trust, Inc.

	 	 	 	 	 
	Date:

	 	__________________
	 	___________________________
	 

	 	 	 	Signature of Taxpayer
	 

	 	 	 	
 
Taxpayer’s name and address:
 
	 

	 	 	 	___________________________
 

	 

	 	 	 	___________________________
	 

	 	 	 	
___________________________
	 

	 	
 
 	 	
___________________________

 

 

Schedule to Section 83(b) Election-Vesting Provisions of LTIP Units

The LTIP Units are subject to time-based vesting with 1/3 vesting on _________, 200___, 1/3
vesting on _________, 200___, and 1/3 vesting on ___200___. The LTIP Units are
subject to accelerated vesting in the event of (i) certain extraordinary transactions or (ii)
certain terminations of the Taxpayer’s employment. Unvested LTIP Units are subject to forfeiture
in the event of (i) certain terminations of the Taxpayer’s employment with Midlantic Office Trust,
Inc. or (ii) the failure of the Partnership to meet its initial capital investment goals.exv10w20

 

EXHIBIT 10.20

AGREEMENT made as of the 14th day of April 2005 in the year.

(In words, indicate day, month and year)

BETWEEN the Owner:

(Name, address and other information)

Pointer Ridge Office Investments, LLC

c/o Mr. Greg Wilby

6166196 Oxon Hill Road

Suite 340

Oxon Hill, MD 20745

and the Contractor:

(Name, address and other information)

Waverly Construction & Management Company Inc.

1515 Sulphur Springs Rd

Baltimore, MD 21227

The Project is:

(Name and location)

Pointer Ridge Office Building

1525 Pointer Ridge Road

Bowie, Md.

The Architect is:

(Name, address and other information)

Beery-Rio Architecture & Interiors

8001 Braddock Road

4th Floor

Springfield, VA 22151

The Owner and Contractor agree as follows.

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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; these form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral. An enumeration of the Contract Documents, other than Modifications, appears in Article 8.

ARTICLE 2 THE WORK OF THIS CONTRACT

The Contractor shall fully execute the Work described in the Contract Documents, except to the extent 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)

Within seven (7) calendar days of the Receipt of: 1) Notice to Proceed; 2) Grading Permit; 3) Building Permit; 4) Fully Executed Contract, 5) Written Verification of Funding for the Project being in place.

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

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 210 Calendar Days + 44 weather days = 254 calendar 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. Unless stated elsewhere in the Contract Documents, insert any requirements for earlier Substantial Completion of certain portions of the Work.)

Construction duration is 210 Calendar Days + weather days totaling 44 days. This is based upon days starting at mid-April and continuing through mid-November being calculated. At each

2

 

progress meeting, we will review and total the number of days lost to weather vs. the 44 day value amount, subject to adjustments of this Contract Time as provided in the Contract Documents.

(Insert provisions, if any, for liquidated damages relating to failure to complete on time 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 Four Million One Hundred Eight Thousand & ___xx/100 Dollars ($4,108,000.00), subject to additions and deductions as provided in 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 decisions on other alternates are to be made by the Owner subsequent to the execution of this Agreement, attach a schedule of such other alternates showing the amount for each and the date when that amount expires.)

4.3 Unit prices, if any, are as follows:

     N/A

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:

5.1.3 Provided that an Application for Payment is received by the Architect not
later than the 25th day of a month, the Owner
shall make payment 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 twenty-five calendar days after the Architect receives the Application for Payment.

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

3

 

the Architect may require. This schedule, unless objected to by the Architect, shall be used as a basis for reviewing the Contractor’s Applications for Payment.

5.1.5 Applications for Payment shall indicate 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 Subparagraph 7.3.8 of AIA Document A201-1997;
	 
	 	.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 Paragraph 9.5 of AIA Document A201-1997.

5.1.7 The progress payment amount determined in accordance with Subparagraph 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 (Subparagraph 9.8.5 of AIA Document A201-1997 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 Subparagraph 9.10.3 of AIA Document A201-1997.

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 Clauses 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.)

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NOTE — There will be no retainage held on Structural Steel Materials upon installation, a value will be established for the structural steel materials. Retainage is to be held on steel field labor as listed above.

Retainage will be reduced to an amount equal to the value of uncompleted work and punch list items as determined by the Architect and Owner but will not be reduced to an amount less than $25,000.00 at any time until the requirements for Final Payment as described in Section 5.2 are met.

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 Subparagraph 12.2.2 of AIA Document A201-1997, 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 Architect’s final Certificate for Payment, or as follows:

ARTICLE 6 TERMINATION OR SUSPENSION

6.1 The Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document A201-1997.

6.2 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201-1997.

ARTICLE 7 MISCELLANEOUS PROVISIONS

7.1 Where reference is made in this Agreement to a provision of AIA Document A201-1997 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents.

7.2
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.)

   Prevailing Prime Rate +2%

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(Usury laws and requirements under the Federal Truth in Lending Act, similar state and local consumer credit laws and other regulations at the Owner’s and Contractor’s principal places of business, the location of the Project and elsewhere may affect the validity of this provision. Legal advice should be obtained with respect to deletions or modifications, and also regarding requirements such as written disclosures or waivers.)

7.3
The Owner’s representative is:

(Name, address and other information)

Mr. Greg Wilby

6196 Oxon Hill Road

Suite 340

Oxon Hill, MD 20745

7.4
The Contractor’s representative is:

(Name, address and other information)

Mr. Edward Brnich

1515 Sulphur Spring Rd

Baltimore, MD 21227

7.5 Neither the Owner’s nor the Contractor’s representative shall be changed without ten days’ written notice to the other party.

7.6 Other provisions:

Contractor Mark-up for work performed by its own forces on changes to the scope of work is cost + 12% (twelve percent).

Contractor Mark-up for work performed by sub-contractors on changes to the scope of work is cost + 8% (eight percent).

Sub-Contractor Mark-up for work performed by its own forces on changes to the scope of work is cost +10% (ten percent) Overhead + 15% (fifteen percent) Fee.

ARTICLE 8 ENUMERATION OF CONTRACT DOCUMENTS

8.1 The Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated as follows:

8.1.1 The Agreement is this executed 1997 edition of the Standard Form of Agreement Between Owner and Contractor, AIA Document A101-1997.

8.1.2 The General Conditions are the 1997 edition of the General Conditions of the Contract for Construction, AIA Document A201-1997.

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	8.1.3	 	The Supplementary and other Conditions of the Contract are those contained in the Project Manual dated July 26, 2004 ___, and are as follows:

	 	 	 	 	 
	Document

	 	Title
	 	Pages

See Attached Appendix IV — List of Drawings; Specifications & Technical Documents

8.1.4
The Specifications are those contained in the Project Manual
dated as in Subparagraph 8.1.3, and are as follows:

(Either List the Specifications here or refer to an exhibit attached to this Agreement.)

	 	 	 	 	 
	Section

	 	Title
	 	Pages

See Attached Appendix IV — List of Drawings, Specifications & Technical Documents

8.1.5
The Drawings are as follows, and are dated
 ______ unless a different date is shown below:

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

	 	 	 	 	 
	Number

	 	Title
	 	Date

See Attached Appendix IV — List of Drawings, Specifications & Technical Documents.

8.1.6 The Addenda, if any, are as follows:

	 	 	 	 	 
	Number

	 	Date
	 	Pages

See Attached Appendix IV — List of Drawings; Specifications & Technical Documents

Portions of Addenda relating to bidding requirements are not part of the Contract
Documents unless the bidding requirements are also enumerated in this Article 8.

8.1.7 Other documents, if any forming part of the Contract Documents are as follows:

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(List here any additional documents that are intended to form part of the Contract Documents. AIA Document A201-1997 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.)

Appendix I — Budget Breakdown (for reference only)

Appendix II — Clarifications & Qualifications

Appendix III — Alternates and Allowances

Appendix IV — List of Drawings; Specifications and Technical Documents

This Agreement is entered into as of the day and year first written above and is executed in at least three original copies, of which one is to be delivered to the Contractor, one to the Architect for use in the administration of the Contract; and the remainder to the Owner.

	 	 	 
	/s/ Gregory S. Wilby

	 	/s/ Edward A. Brnich
	 

	 	 
	OWNER (Signature)

	 	CONTRACTER (Signature)
	 
	 	 
	Gregory S. Wilby

	 	Edward A. Brnich V.P.
	 

	 	 
	(Printed name and title)

	 	(Printed name and title)

CAUTION: You should sign an original AIA document or a licensed reproduction. Originals contain the AIA logo printed in read; licensed reproductions are those produced in accordance with the Instructions to this document.

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