Document:

AGC Document No. 415

 EXHIBIT 10.10 
  

 AGC DOCUMENT NO. 415 
 STANDARD FORM OF DESIGN-BUILD 
 AGREEMENT AND GENERAL CONDITIONS 
 BETWEEN OWNER AND DESIGN-BUILDER 
 (Where the Basis of Payment is a Lump Sum Based on an 
 Owner’s Program including Schematic Design Documents)

  

 This
standard form agreement was developed with the advice and cooperation of the AGC Private Industry Advisory Council, a number of Fortune 500 owners’ design and instruction managers who have been meeting with AGC contractors to discuss issues of
mutual concern. AGC gratefully acknowledges the contributions of these owners’ staff who participated in this effort to produce a basic agreement for construction. 
 TABLE OF ARTICLES 
  

					
	1.	  	AGREEMENT	  	2
			
	2.	  	GENERAL PROVISIONS	  	3
			
	3.	  	DESIGN-BUILDER’S RESPONSIBILITIES	  	5
			
	4.	  	OWNER’S RESPONSIBILITIES	  	13
			
	5.	  	SUBCONTRACTS	  	15
			
	6.	  	CONTRACT TIME	  	15
			
	7.	  	CONTRACT PRICE	  	16
			
	8.	  	CHANGES IN THE WORK	  	16
			
	9.	  	PAYMENT	  	19
			
	10.	  	INDEMNITY, INSURANCE, BONDS, AND WAIVER OF SUBROGATION	  	20
			
	11.	  	 SUSPENSION AND TERMINATION OF THE AGREEMENT AND OWNER’S RIGHT TO PERFORM DESIGN-BUILDER’S RESPONSIBILITIES
	  	25
			
	12.	  	DISPUTE RESOLUTION	  	
			
	13.	  	MISCELLANEOUS PROVISIONS	  	28
			
	14.	  	EXISTING CONTRACT DOCUMENTS	  	30

 This Agreement has important legal and insurance consequences. Consultation with an attorney and insurance
consultant is encouraged with respect to its completion or modification. 

 AGC DOCUMENT NO. 415 
 STANDARD FORM OF DESIGN-BUILD AGREEMENT AND 
 GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER 

(Where the Basis of Payment is a Lump Sum Based on an 
 Owner’s Program including Schematic Design Documents) 
 ARTICLE 1 
 AGREEMENT 
 This Agreement is made this
     day of              the year         , by and between the 
  

			
	OWNER	  	 
	(Name and Address)	  	 Faith Realty, LLC
 P.O. Box 829
 Slatersville, RI 02876

		
	and the DESIGN-BUILDER 	  	Riggs & Gallagher, Inc.
	(Name and Address)	  	 37 Glen Road
 Cranston, RI 02920

		
	 for services in connection with the following 
 PROJECT
	  	
	(Name, location and brief description)	  	Summer Infant Site work, foundations, footings and structural steel scope associated with. the construction of 52,000 SF warehouse/office facility in Highland Corporate Park, Woonsocket,
RI

 Notice to the parties shall be given at the above addresses. 

 ARTICLE 2 
 GENERAL PROVISIONS 
 2.1 TEAM RELATIONSHIP The Owner and the Design-Builder agree to proceed with the Project
on the basis of trust, good faith and fair dealing. The Design-Builder agrees to procure the architectural and engineering services set forth below, and to furnish construction and administration of the Work. 
 2.2 ARCHITECT/ENGINEER Architectural and engineering services shall be procured from licensed, independent design professionals retained by the Design-Builder or
furnished by licensed employees of the Design-Builder, or as permitted by the law of the state where the Project is located. The standard of care for architectural and engineering services performed under this Agreement shall be the care and skill
ordinarily used by members of the architectural and engineering professions practicing under similar conditions at the same time and locality. The person or entity providing architectural and engineering services shall be referred to as the
Architect/Engineer. If the Architect/Engineer is an independent design professional, the architectural and engineering services shall be procured and payments shall be made pursuant to a separate agreement between the Design-Builder and the
Architect/Engineer. The Architect/Engineer for the Project is Prout Robert & Elias Architects, Yoder & Tidwell, Ltd., and Crossman Engineering, Inc. 
 2.3 EXTENT OF AGREEMENT This Agreement is solely for the benefit of the parties, represents the entire and integrated agreement between the parties, and supersedes all prior negotiations, representations or
agreements, either written or oral. The Owner and the Design-Builder agree to look solely to each other with respect to the performance of the Agreement. The Agreement and each and every provision is for the exclusive benefit of the Owner and the
Design-Builder and not for the benefit of any third party nor any third party beneficiary, except to the extent expressly provided in the Agreement 
 2.4
DEFINITIONS 
 .1 The Contract Documents consist of: 
 a. Change Orders and written amendments to this Agreement including exhibits and appendices, signed by both the Owner and Design-Builder; 
 b. this Agreement, except for the existing Contract Documents set forth in item e below; 
 c. the most current Documents approved by the Owner pursuant to Paragraph 3.1; 
 d. the information provided by the Owner pursuant to Clause 4.1.2.1; 
  

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 e. the Contract Documents in existence at the time of this Agreement which are set forth in Article 14;

 f. the Owner’s Program provided pursuant to Subparagraph 4.1.1. 
 In case of any inconsistency, conflict or ambiguity among the Contract Documents, the Documents shall govern in the order in which they are listed above. 
 .2 The term day shall mean calendar day unless otherwise specifically defined. 
 .3 Defective Work is any portion of the Work not in conformance with the Contract Documents; and/or legal documents as more fully described
in Paragraph 3.8. 
 .4 Final Completion occurs on the date when the Design-Builder’s obligations under this Agreement are
complete and accepted by the Owner and final payment becomes due and payable. 
 .5 A Material Supplier is a party or entity
retained by the Design Builder to provide material and equipment for the Work. 
 .6 Others means other contractors and all
persons at the Worksite who are not employed by Design-Builder, its Subcontractors or Material Suppliers. 
 .7 The Owner is the
person or entity identified as such in this Agreement and includes the Owner’s Representative. 
 .8 The Owner’s
Program is a description of the Owner’s objectives, budgetary and time criteria, space requirements and relationships, flexibility and expandability requirements, special equipment and systems, and site, requirements, together with
Schematic Design Documents which shall include drawings, outline specifications and other conceptual documents illustrating the Project’s basic elements, scale and their relationship to the Worksite. 
 .9 The Project, as identified in Article 1, is the building, facility and/or other improvements for which the Design-Builder is to perform
the Work under this Agreement. It may also include improvements to be undertaken by the Owner or Others. 
 .10 A Subcontractor
is a party or entity retained by the Design-Builder as an independent contractor to provide the on site labor, materials, equipment and/or services necessary to complete a specific portion of the Work. The term Subcontractor does not include the
Architect/Engineer or any separate contractor employed by the Owner or any separate contractor’s subcontractors. 
 .11
Substantial Completion of the Work, or of a designated portion, occurs on the date when construction is sufficiently complete in accordance with the Contract Documents or the Owner can occupy or utilize the Project, or a designated
portion for the use for which it is intended, in accordance with Paragraph 9.4. The issuance of a Certificate of Occupancy may not be a prerequisite for Substantial Completion it the Certificate of Occupancy cannot be obtained due to factors beyond
the Design- 

  

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Builder’s control. This date shall be confirmed by a certificate of Substantial Completion signed by the Owner and Design-Builder. The certificate shall
state the respective responsibilities of the Owner and Design-Builder for security, maintenance, heat, utilities, damage to the Work and insurance. The certificate shall also list the items to be completed or corrected, and establish the time for
their completion and correction within this timeframe. If any, established in Subparagraph 6.2.1 for the Date of Final Completion. 
 .12
A Subsubcontractor is a party or entity who has an agreement with a Subcontractor to perform any portion of the Subcontractor’s work. 
 .13 The Work is the Design Services procured in accordance with Paragraph 3.1, the Construction Services provided in accordance with Paragraph 3.2, Additional Services in accordance with Paragraph 3.10,
and other services which are necessary to complete the Project in accordance with and reasonably inferable from the Contract Documents. 
 .14 Worksite means the geographical area at the location mentioned in Article 1 where the Work is to be performed 
 .15 Legal Requirements means any federal, state, local, or municipal law, statute, ordinance, code, rule, or regulation having jurisdiction over the project. 
 ARTICLE 3 
 DESIGN-BUILDER’S RESPONSIBILITIES 
 The Design-Builder shall be responsible for the construction of the Work consistent with the scope of work letter dated 5/19/06, noted as Exhibit A and design plans
developed within the scope of the design contract (Doc. #AGC400) dated 2/10/06. The scope of work and a list of plans are detailed on Exhibit A attached herewith. The Design-Builder shall exercise reasonable skill and judgment in the performance of
Work. 
 3.1 DESIGN SERVICES Design Development Documents and/or Construction Documents, including Owner’s written approval, will be completed
under the Design Contract AGC#400 dated 2/10/06 (“Design Contract”). 
 3.1.1 If required, the Design Development Documents
shall further define the Project including drawings and outline specifications fixing and describing the Project size and character as to site utilization, and other appropriate elements incorporating the structural, architectural, mechanical and
electrical systems. When the Design-Builder submits the Design Development Documents, the Design-Builder shall identify in writing all material changes and deviations that have taken place from the Contract Documents in existence at the time of the
execution of this Agreement. Any changes in the Work contained in the Design Development Documents approved by the Owner shall result in a Change Order pursuant to Article 8 adjusting the Contract Price and/or the Date of Substantial Completion
and/or the Date of Final Completion. 
  

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 3.1.2 The Construction Documents shall set forth in detail the requirements for construction of
the Work, and shall be based upon codes, laws or regulations enacted at the time of their preparation. When the Design-Builder submits the Construction Documents, the Design-Builder shall identify in writing all material changes and deviations that
have taken place from the Design Development Documents or the Contract Documents in existence at the time of the execution of this Agreement. Any changes in the Work contained in the Construction Documents approved by the Owner shall result in a
Change Order pursuant to Article 8 adjusting the Contract Price and/or the Date of Substantial Completion and/or the Date of Final Completion. Construction shall be in accordance with the approved Construction Documents. One set of these documents
shall be furnished to the Owner prior to commencement of construction. 
 3.1.3 OWNERSHIP OF DOCUMENTS. Upon making the payments
pursuant to the Design Contract, the Owner shall receive ownership of the property rights, of all documents, drawings, specifications, electronic data and information prepared, provided or procured by the Design-Builder, its Architect/Engineer,
Subcontractors and consultants and distributed to the Owner for this Project. (“Design-Build Documents”) 
 .3 The Owner may
use, reproduce and make derivative works from the Design-Build Documents for subsequent renovation and remodeling of the Work, but shall not use, reproduce and make derivative works from the Design-Build Documents for other Projects without the
written authorization of the Design-Builder, who shall not unreasonably withhold consent. 
 .4 The Owner’s use of the
Design-Build Documents without the Design-Builder’s involvement or on other projects is at the Owner’s sole risk, except for the Design-Builder’s indemnification obligation pursuant to Paragraph 3.6, and the Owner shall defend,
indemnify and hold harmless the Design-Builder, its Architect/Engineer, Subcontractors and consultants, and the agents, officers, directors and employees of each of them from and against any and all claims, damages, losses, costs and expenses,
including but not limited to attorney’s fees, costs and expenses incurred in connection with any dispute resolution process, arising out of or resulting from the Owner’s use of the Design-Build Documents without the Design-Builder’s
involvement. 
 3.1.5 The Design-Builder shall obtain from its Architect/Engineer, Subcontractors and consultants property rights and
rights of use that correspond to the rights given by the Design-Builder to the Owner in this Agreement, or pursuant to the Design Contract. 
 3.1
CONSTRUCTION SERVICES 
 3.2.1 Construction will commence upon the issuance by the Owner of a written notice to proceed.

  

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 3.2.2 In order to complete the Work, the Design-Builder shall provide all necessary construction
supervision, inspection, construction equipment, construction labor, materials, tools and subcontracted items. 
 3.2.3 The
Design-Builder shall give all notices and comply with all legal requirements enacted at the date of execution of the Agreement which govern the proper performance of the Work. 
 3.2.4 The Design-Builder shall maintain the Schedule of Work. This Schedule shall include the dates for the start and completion of the various
stages of the construction, including the dates when information and approvals are required from the Owner. It shall be revised as required by the conditions of the Work. 
 3.2.5 The Design-Builder shaft obtain and the Owner shall pay, in addition to the Contract Price, for the building permits necessary for the construction of the Project. 
 3.2.6 The Design-Builder shall keep such full and detailed accounts as may be necessary for proper financial management under this Agreement. The
Owner shall be afforded access to all the Design-Builder’s records, books, correspondence, instructions, drawings, receipts, vouchers, memoranda and similar data relating to Change Order work performed on the basis of actual cost, The
Design-Builder shall preserve all such records for a period of three years after the final payment or longer where required by law. 
 3.2.7 The Design-Builder shall provide periodic written reports to the Owner on the progress of the Work in such detail as is required by the Owner and as agreed to by the Owner and Design-Builder. 
 3.2.8 The Design-Builder shall regularly remove debris and waste materials at the Worksite resulting from the Work. Prior to discontinuing Work in
an area, the Design-Builder shall clean the area and remove all rubbish and’ its construction equipment, tools, machinery, waste and surplus materials. The Design-Builder shall minimize and confine dust and debris resulting from construction
activities. At the completion ‘of the Work, the Design-Builder shall remove from the Worksite alt construction equipment, tools, surplus materials, waste materials and debris. 
 3.2.9 The Design-Builder shaft prepare and submit to the Owner 
 final marked up as-built drawings 
 in general documenting how the various elements of the Work including changes were actually constructed or installed, or as defined by the parties by attachment to this Agreement. 
 3.3 SCHEDULE OF THE WORK The Design-Builder shall prepare and submit a Schedule of Work for the Owner’s acceptance and written approval as to milestone dates.
This schedule shall indicate the dates for the start and completion of the various stages of the Work, including the dates when information and approvals are required from the Owner. The Schedule shall be revised as required by the conditions of the
Work. 
  

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 3.4 SAFETY OF PERSONS AND PROPERTY 
 3.4.1 SAFETY PRECAUTIONS AND PROGRAMS The Design-Builder shall have overall responsibility for safety precautions and programs in the performance of the Work. While the provisions of this Paragraph establish
the responsibility for safety between the Owner and the Design-Builder, they do not relieve Subcontractors of their responsibility for the safety of persons or property in the performance of their work, nor for compliance with the provisions of
applicable laws and regulations. 
 3.4.2 The Design-Builder shall seek to avoid injury, loss or damage to persons or property by
taking reasonable steps to protect 
 .1 its employees and other persons at the Worksite; 
 .2 materials, supplies and equipment stored at the Worksite for use in performance of the Work; and 
 .3 the Project and all property located at the Worksite and adjacent to work areas, whether or not said property or structures are part of the
Project or involved in the Work. 
 3.4.3 DESIGN-BUILDER’S SAFETY REPRESENTATIVE The Design-Builder shall designate an individual
at the Worksite in the employ of the Design-Builder who shall act as the Design-Builder’s designated safety representative with a duty to prevent accidents. Unless otherwise Identified by the Design-Builder in writing to the Owner, the
designated safety representative shall be the Design-Builder’s project superintendent. The Design-Builder will report immediately in writing all accidents and injuries occurring at the Worksite to the Owner. When the Design-Builder is required
to file an accident report with a public authority, the Design-Builder shall furnish a copy of the report to the Owner. 
 3.4.4 The
Design-Builder shall provide the Owner with copies of all notices required of the Design-Builder by law or regulation. The Design-Builder’s safety program shall comply with the requirements of governmental and quasi-governmental authorities
having jurisdiction over the Work. 
 3.4.5 Damage or loss not insured per property insurance which may arise from the performance of
the Work, to the extent of the negligence attributed to such acts or omissions of the Design-Builder, or anyone for whose acts the Design-Builder maybe liable, shall be promptly remedied by the Design-Builder. Damage or loss attributable to the acts
or omissions of the Owner or Others’ and not to the Design-Builder shall be promptly remedied by the Owner. 
 3.4.6 If the Owner
deems any part of the Work or Worksite unsafe, the Owner, without assuming responsibility for the Design-Builder’s safety program, may require the Design-Builder to stop performance of the Work or take corrective measures satisfactory to the
Owner, or both. It the Design-Builder does not adopt corrective measures, the Owner may perform them and reduce the amount of the Contract Price by the costs of the corrective measures. The Design-Builder agrees to make no claim for damages, for an
adjustment in the Contract Price and/or the Date of Substantial Completion and/or the Date of Final Completion based on the Design-Builder’s compliance with the Owner’s reasonable request. 
  

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 3.5 HAZARDOUS MATERIAL 
 3.5.1 A Hazardous Material is any substance or material identified now or in the future as hazardous under any federal, state or local law or regulation, or any other substance or material which may be
considered hazardous or otherwise subject to statutory or regulatory requirements governing handling, disposal and/or clean-up. The Design-Builder shall not be obligated to commence or continue Work until all known or suspected Hazardous Material
discovered at the Project site has been removed, rendered or determined to be harmless by the Owner as certified by an independent testing laboratory and approved by the appropriate government agency. 
 3.5.2 If after the commencement of the Work, known or suspected Hazardous Material is discovered at the Project, the Design-Builder shall be
entitled to immediately stop Work in the affected area. The Design-Builder shall report the condition to the Owner and, if required, the government agency with jurisdiction. 
 3.5.3 The Design-Builder shall not be required to perform any Work relating to or in the area of Hazardous Material without written mutual
agreement. 
 3.5.4 The Owner shall be responsible for retaining an independent tasting laboratory to determine the nature of the
material encountered and whether it is a Hazardous Material requiring corrective measures and/or remedial action. Such measures shall be the sole responsibility of the Owner, and shaft be performed in a manner minimizing any adverse effect upon the
Work of the Design-Builder. The Design-Builder shall resume Work in the area affected by any Hazardous Material only upon written agreement between the parties after the Hazardous Material has been removed or rendered harmless and only after
approval, if necessary, of the governmental agency or agencies with jurisdiction. 
 3.5.5 If the Design-Builder incurs additional
costs and/or is delayed due to the presence or remediation of Hazardous Material, the Design-Builder shall be entitled to an equitable adjustment in the Contract Price and/or the date of substantial Completion. 
 3.5.6 Provided the Design-Builder, its Subcontractors and Sub-subcontractors, and the agents, officers, directors and employees of each of them,
have not, acting under their own authority, knowingly entered upon any portion of the Work containing Hazardous Materials, and to the extent not caused by the negligent acts or omissions of the Design-Builder, its Subcontractors and
Sub-subcontractors, and the agents, officers, directors and employees of each of them, the Owner shall defend, indemnify and hold harmless the Design-Builder, its Subcontractors and Sub-subcontractors, and the agents, officers, directors and
employees of each of them, from and against any and all direct claims, damages, losses, costs and expenses, including but not united to attorney’s fees, costs and expenses incurred in connection with any dispute resolution process, arising out
of or relating to the performance of the Work in any area affected by Hazardous Material. To the fullest extent permitted by law, such indemnification shall apply regardless of the fault, negligence, breach of warranty or contract, or strict
liability of the Owner. 
  

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 3.5.7 Material Safety Data (MSD) sheets as required by law and pertaining to materials or
substances used or consumed in the performance of the Work, whether obtained by the Design-Builder, Subcontractors, the Owner or Others, shall be maintained at the Project by the Design-Builder and made available to the Owner and Subcontractors.

 3.5.8 During the Design-Builder’s performance of the Work, the Design-Builder shall be responsible for the proper handling of
all materials including Hazardous Materials brought to the Worksite by the Design-Builder. Upon the issuance of the Certificate of Substantial Completion, the Owner shall be responsible under this Paragraph for materials and substances brought to
the site by the Design-Builder if such materials or substances are required by the Contract Documents. 
 3.5.9 The terms of this
Paragraph 3.5 shall survive the completion of the Work under this Agreement and/or any termination of this Agreement. 
 3.6 ROYALTIES, PATENTS AND
COPYRIGHTS The Design-Builder shall pay all royalties and license fees which may be due on the inclusion of any patented or copyrighted materials, methods or systems selected by the Design-Builder and incorporated in the Work. The Design-Builder
shall defend, indemnify and hold the Owner harmless from all suits or claims for infringement of any patent rights or copyrights arising out of such selection. The Owner agrees to defend, indemnify and hold the Design-Builder harmless from all suits
or claims of infringement of any patent rights or copyrights arising out of any patented or copyrighted materials, methods or systems specified by the Owner. 
 3.7 TAX EXEMPTION If in accordance with Owner’s direction the Design-Builder claims an exemption for taxes, the Owner shall defend, indemnify and hold the Design-Builder harmless from all liability, penalty, interest, fine, tax
assessment, attorneys fees or other expense or cost incurred by the Design-Builder as a result of any action taken by the Design-Builder in accordance with the Owner’s direction. 
 3.8 WARRANTIES AND COMPLETION 
 3.8.1 The Design-Builder warrants that all materials and
equipment furnished under this Agreement will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials. Warranties shall commence on the date of Substantial
Completion of the Work or of a designated portion. The Design-Builder agrees to correct all construction performed under this Agreement which proves to be defective in workmanship or materials within a period of one year from the date of Substantial
Completion as set forth In Paragraph 6.2 or for such longer periods of time as may be set forth with respect to specific warranties required by the Contract Documents. 
  

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 3.8.2 To the extent products, equipment, systems or materials incorporated in the Work are
specified and purchased by the Owner, they shall be covered exclusively by the warranty of the manufacturer. There are no warranties which extend beyond the description on the face thereof. To the extent products, equipment, systems or materials
incorporated in the Work are specified by the Owner but purchased by the Design-Builder and are Inconsistent with selection criteria that otherwise would have been followed by the Design-Builder, the Design-Builder shall assist the Owner in pursuing
warranty claims. ALL OTHER WARRANTIES EXPRESSED OR IMPLIED INCLUDING THE WARRANTY OF MERCHANTABILITY AND THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY DISCLAIMED. 
 3.8.3 The Design-Builder shall secure required certificates of inspection, testing or approval and deliver them to the Owner. 
 3.8.4 The Design-Builder shall collect all written warranties and equipment manuals and deliver them to the Owner in a format directed by the
Owner. 
 3.8.5 With the assistance of the Owner’s representative the Design-Builder shall direct the checkout of utilities and
start up operations, and adjusting and balancing of systems and equipment for readiness. 
 3.9 CONFIDENTIALITY The Design-Builder shall treat as
confidential and not disclose to third persons, except Subcontractors Sub-subcontractors and the Architect/Engineer as is necessary for the performance of the Work, or use for its own benefit any of the Owner’s developments, confidential
information, know-how, discoveries, production methods and the like that may be disclosed to the Design-Builder or which the Design-Builder may acquire in connection with the work. The Owner shall treat as confidential information all of the
Design-Builder’s estimating systems and historical and parameter cost data that may be disclosed to the Owner in connection with the performance of this Agreement. 
 3.10 ADDITIONAL SERVICES The Design-Builder shall provide or procure the following Additional Services upon the request of the Owner. A written agreement between the Owner and Design-Builder shall define the
extent of such Additional Services. Such Additional Services shall be considered a Change in the Work, unless they are specifically included in Article 14. 
 .1 Development of the Owner’s Program, establishing the Project budget, investigating sources of financing, general business planning and other intonation and documentation as may be required to establish
the feasibility of the Project. 
 .2 Consultations, negotiations, and documentation supporting the procurement of Project financing.

 .3 Surveys, site evaluations, legal descriptions and aerial photographs. 
 .4 Appraisals of existing equipment, existing properties, new equipment and developed properties. 
  

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 .5 Soils, subsurface and environmental studies, reports and investigations required for submission
to governmental authorities or others having jurisdiction over the Project. 
 .6 Consultations and representations before governmental
authorities or others having jurisdiction over the Project other than normal assistance in securing building permits. 
 .7
Investigation or making measured drawings of existing conditions or the verification of Owner-provided drawings and information. 
 .8
Artistic renderings, models and mockups of the Project or any part of the Project or the Work. 
 .9 Inventories of existing
furniture, fixtures, furnishings and equipment which might be under consideration for incorporation into the Work. 
 .10 Interior
design and related services including procurement and placement of furniture, furnishings, artwork and decorations. 
 .11 Making
revisions to design documents after they have been approved by the Owner when revisions are due to causes beyond the control of the Design-Builder. Causes beyond the control of the Design-Builder do not include acts or omissions on the part of
Subcontractors, Sub-subcontractors or the Architect/Engineer. 
 .12 Design, coordination, management, expediting and other services
supporting the procurement of materials to be obtained, or work to be performed, by the Owner, including but not limited to telephone systems, computer wiring networks, sound systems, alarms, security systems and other specialty systems which are
not a part of this Agreement. 
 .13 Estimates, proposals. appraisals, consultations, negotiations and services in connection with the
repair or replacement of an insured loss, provided such repair or replacement did not result from the negligence of the Design-Builder. 
 .14 The premium portion of overtime work ordered by the Owner including productivity impact costs, other than that required try the Design-Builder to maintain the Schedule of Work. 
 .15 Out-of-town travel by the Architect/Engineer in connection with the Work, except between the Architect/Engineer’s office,
Design-Builder’s office, Owner’s office and the Project site. 
 .16 Obtaining service contractors and training maintenance
personnel; assisting and consulting in the use of systems and equipment after the initial start up. 
  

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 .17 Services for tenant or rental spaces not a part of this Agreement. 
 .18 Services requested by the Owner or required by the Work which are not specified in the Contract Documents and which are not normally part of
generally accepted design and construction practice. 
 .19 Serving or preparing to serve as an expert witness in connection with any
proceeding, legal or otherwise, regarding the Project. 
 .20 Excessive/Document reproduction exceeding the normal standard for this
type of project. 
 3.11 DESIGN-BUILDER’S REPRESENTATIVE The Design-Builder shall designate a person who shall be the Design-Builder’s
authorized representative. The Design-Builder’s Representative is William J. Riggs, III. 
 ARTICLE 4 
 OWNER’S RESPONSIBILITIES 
 4.1 INFORMATION AND
SERVICES PROVIDED BY OWNER 
 4.1.1 The Owner shall provide full information in a timely manner regarding requirements for the
Project, including the Owners Program and other relevant information. 
 4.1.2 The Owner shall provide: 
 .1 all available information describing the physical characteristics of the site, including surveys, site evaluations, legal descriptions, existing
conditions, subsurface and environmental studies, reports and investigations; (already provided) 
 .2 Inspection and testing services
during construction as required by law or as mutually agreed; and 
 .3 unless otherwise provided in the Contract Documents, necessary
approvals, site plan review, rezoning, easements and assessments, fees and charges required for the construction, use, occupancy or renovation of permanent structures, including legal and other required services. 
 4.1.3 The Owner shall provide reasonable evidence satisfactory to the Design-Builder, prior to commencing the Work and during the progress of the
Work, that sufficient funds are available and committed for the entire cost of the Project covered by this Agreement including an allowance for changes in the Work as may be approved in the course of the Work. Unless such reasonable evidence is
provided, the Design-Builder shall not be required to commence or continue the Work. The Design-Builder may stop Work after seven (7) days’ written notice to the Owner if such evidence is not presented within a reasonable time. The failure
of the Design- 

  

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Builder to insist upon the providing of this evidence at any one time shall not be a waiver of the Owner’s obligation to make payments pursuant to this
Agreement, nor shall it be a waiver of the Design-Builder’s right to request or insist that such evidence be provided at a later date. 
 4.1.4 The Design-Builder shall be entitled to rely on the completeness and accuracy of the information and services required by this Paragraph 4.1. 
 4.2 RESPONSIBILITIES DURING DESIGN 
 4.2.1 The Owner shall review and approve further development of the drawings and
specifications as set forth in Article 3. 
 4.3 RESPONSIBILITIES DURING CONSTRUCTION 
 4.3.1 The Owner shall review the Schedule of Work as set forth in Paragraph 3.3, timely approve milestone dates set forth and timely respond to its
obligations. 
 4.3.2 If the Owner has actual knowledge of any error, omission or failure to meet the requirements of the Contract
Documents or any fault or defect in the Work, the Owner shall give prompt written notice to the Design-Builder. 
 4.3.3 The Owner
shall communicate with the Design-Builder’s Subcontractors, suppliers and Architect/Engineer only through or in the presence of the Design-Builder. The Owner shall have no contractual obligations to Subcontractors, suppliers, or the
Architect/Engineer. 
 4.3.4 The Owner shall provide insurance for the Project as provided in Article 10. 
 4.4 OWNER’S REPRESENTATIVE The Owner’s representative is Paul J. DiCicco. 
 The representative: 
 .1 shall be fully acquainted with the Project; 
 .2 agrees to furnish the information and services required of the Owner pursuant to Paragraph 4,1 so as not to delay the Design-Builder’s
Work; and 
 .3 shall have authority to bind the Owner in all matters requiring the Owner’s approval, authorization or written
notice. If the Owner changes its representative or the representative’s authority as listed above, the Owner shall notify the Design-Builder in writing in advance. 
  

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 ARTICLE 5 
 SUBCONTRACTS 
 Work not performed by the Design-Builder with its own forces shall be performed by Subcontractors or
the Architect/Engineer. 
 5.1 RETAINING SUBCONTRACTORS The Design-Builder shall not retain any Subcontractor to whom the Owner has a reasonable and
timely objection, provided that the Owner agrees to increase the Contract Price for any additional costs incurred by the Design-Builder as a result of such objection. The Owner may propose subcontractors to be considered by the Design-Builder. The
Design-Builder shall not be required to retain any subcontractor to whom the Design-Builder has a reasonable objection. 
 5.2 MANAGEMENT. OF
SUBCONTRACTORS The Design-Builder shall be responsible for the management of the Subcontractors in the performance of their work. 
 (Covered under
previous Contract.) 
 5.3 ASSIGNMENT OF SUBCONTRACT AGREEMENTS The Design-Builder shall provide for assignment of subcontract agreements in the event
that the Owner terminates this Agreement for cause as provided in Paragraph 11.2. Following such termination, the Owner shah notify in writing those subcontractors whose assignments will be accepted, subject to the rights of sureties. 
 5.4 BINDING OF SUBCONTRACTORS AND MATERIALS SUPPLIERS The Design-Builder agrees to bind every Subcontractor and Material Supplier (and require every Sub-contractor
to so bind its Sub-subcontractors and Material Suppliers) to all the provisions of this Agreement and the Contract Documents as they apply to the Subcontractor’s and Material Supplier’s portions of the Work. 
 5.5 LABOR RELATIONS (Insert here or attach as exhibit as necessary any conditions, obligations or requirements relative to tabor relations and their effect on the
Project. Legal counsel is recommended.) 
 ARTICLE 6 
 CONTRACT TIME 
 6.1 DATE OF COMMENCEMENT The Date of Commencement is the effective date of this Agreement as
first written in Article 1 unless otherwise set forth below: (Insert here any special provisions concerning Notices to Proceed and the Date of Commencement.) 
 Construction for this portion of work will be started as soon as the Town of Woonsocket releases the building permit for this portion of work. 
  

 15 

 The Work shall proceed in general accordance with the Schedule of Work as such schedule may be amended from time to time,
subject, however, to other provisions of this Agreement. 
 6.2 SUBSTANTIAL COMPLETION/FINAL COMPLETION. Designated portion as defined by the Scope of
Work as set forth on Exhibit B. 
 6.2.1 Completion of Work shall be achieved in 120 days from the Date of Commencement. Unless
otherwise specified, the Work shall be finally complete within 30 days after the date of designated portion, subject to adjustments as provided for in the Contract Documents. 
 6.2.2 Time limits stated in the Contract Documents are of the essence. 
 6.2.4 Unless instructed by the Owner in writing, the Design-Builder shall not knowingly commence the Work before the effective date of insurance
that is required to be provided by the Design-Builder or the Owner. 
 ARTICLE 7 
 CONTRACT PRICE 
 [Intentionally
omitted] 
 ARTICLE 8 
 CHANGES IN THE WORK 
 Changes in the Work which are within the general scope of this Agreement may be accomplished without invalidating this
Agreement by Change Order, Work Change Directive, or a minor change in the Work, subject to the limitations stated in the Contract Documents. 
 8.1 CHANGE
ORDERS 
 8.1.1 The Design-Builder may request and/or the Owner, without invalidating this Agreement, may order changes in the Work
within the general scope of the Contract Documents consisting of adjustment to the Contract Price and/or the Date of Substantial Completion and/or the Date of Final Completion. All such changes in the Work shall be authorized by applicable Change
Order, and shall be performed under the applicable conditions. of the Contract Documents. Each adjustment in the Contract Price resulting from a Change Order shall clearly separate the amount attributable to Design Services. 
 8.1.2 The Owner and the Design-Builder shall negotiate in good faith an appropriate adjustment to Contract Price and/or the Date of Substantial
Completion and/or the Date of Final Completion and shall conclude these negotiations as expeditiously as possible. Acceptance of the Change Order and any adjustment in the Contract Price and/or the Date of Substantial Completion and/or the Date of
Final Completion shall not be unreasonably withheld. 
  

 16 

 8.2 WORK CHANGE DIRECTIVES 
 8.2.1 The Owner may issue a written Work Change Directive directing a change in the Work prior to reaching agreement with the Design-Builder on the adjustment, if any, in the Contract Price and/or the Date of
Substantial Completion and/or the Date of Final Completion, and if appropriate, the compensation for Design Services. 
 8.2.2 The
Owner and the Design-Builder shall negotiate expeditiously and in good faith for appropriate adjustments, as applicable, to the Contract Price and/or the Date of Substantial Completion and/or the Date of Final Completion. and if appropriate the
compensation for Design Services, arising out of Work Change Directives. As the changed work is completed, the Design Builder shall submit its costs for such work with its Application for Payment beginning with the next Application for Payment
within thirty (30) days of the issuance of the Work Change Directive. Pending final determination of cost to the Owner, amounts not in dispute may be included in Applications for Payment and shall be paid by Owner. 
 8.2.3 If the Owner and the Design-Builder agree upon the adjustments in the Contract Price and/or the Date of Substantial Completion and/or the
Date of Final Completion, and if appropriate the compensation for Design Services, for a change in the Work directed by a Work Change Directive, such agreement shall be the subject of an appropriate Change Order. The Change Order shall include all
outstanding Change Directives issued since the last Change Order. 
 8.3 MINOR CHANGES IN THE WORK 
 8.3.1 Design-Builder may make minor changes in the design and construction of the Project consistent with the intent of the Contract Documents
which do not involve an adjustment in the Contract Price and/or the Date of Substantial Completion and/or the Date of Final Completion; and are of an administrative nature and do not adversely affect the design of the Project, the quality of any of
the materials or equipment specified in the Contract Documents, the performance of any materials, equipment or systems specified in the Contract Documents, or the quality of workmanship required by the Contract Documents. 
 8.3.2 Design-Builder shall promptly inform the Owner writing of any such changes and shall record such changes on the Design-Build Documents
maintained by the Design-Builder. 
 8.4 DETERMINATION OF COST 
 8.4.1 An increase or decrease in the Contract Price resulting from a change in the Work shall be determined by one or more of the following methods: 
 .1 unit prices set forth in this Agreement or as subsequently agreed; 
 .2 a mutually accepted, itemized lump sum; or 
 .3 if an increase or decrease cannot be agreed
to as set forth in Clause 8.4.1.1 or 8.4.1.2 and the Owner issues a written order for the Design-Builder to proceed with the change, the adjustment in the Contract Price shall be determined by the 

  

 17 

 
reasonable expense and savings of the performance of the Work resulting from the change. If there is a net increase in the Contract Price, a reasonable
adjustment shall be made in the Design-Builder’s overhead and profit In the case of a net decrease in cost, the amount of decrease in the Contract Price will not include a reduction in overhead and profit. The Design-Builder shall maintain a
documented, itemized accounting evidencing the expenses and savings. 
 8.4.2 If unit prices are indicated in the Contract Documents or
are subsequently agreed to by the parties, but the character or quantity of such unit items as originally contemplated is so different in a proposed Change Order that the original unit prices will cause substantial inequity to the Owner or the
Design-Builder, such unit prices shall be equitably adjusted. 
 8.4.3 If the Owner and the Design-Builder disagree as to whether work
required by the Owner is within the scope of the Work, the Design-Builder shall furnish the Owner with an estimate of the costs to perform the disputed work in accordance with the Owner’s interpretations. If the Owner issues a written order for
the Design-Builder to proceed, the Design-Builder shall perform the disputed work and the Owner shall pay the Design-Builder fifty-percent (50%) of its estimated cost to perform the work. In such event, both parties reserve their rights as to
whether the work was within the scope of the Work. The Owner’s payment does not prejudice its right to be reimbursed should it be determined that the disputed work was within the scope of Work. The Design-Builder’s receipt of payment for
the disputed work does not prejudice its right to receive full payment for the disputed work should it be determined that the disputed work is not within the scope of the Work. 
 8.5 UNKNOWN CONDITIONS If in the performance of the work the Design-Builder finds latent, concealed or subsurface physical conditions which materially differ from the conditions the Design-Builder
reasonably anticipated, or if physical conditions are materially different from those normally encountered and generally recognized as inherent in the kind of work provided for in this Agreement, then the Contract Price and/or the date of
Substantial Completion shall be equitably adjusted by Change Order within a reasonable time after the conditions are first observed. Design-Builder shall provide Owner with written notice within the time period set forth in Paragraph 8.6.

 8.6 CLAIMS FOR ADDITIONAL COST OR TIME For any claim for an increase in the Contract Price and/or an extension in the Date of Substantial Completion
and/or the Date of Final Completion, the Design-Builder shall give the Owner written notice of the claim within twenty-one (21) days after the occurrence giving rise to the claim or within twenty-one (21) days after the Design-Builder
first recognizes the condition giving rise to the claim, whichever is later. Except in an emergency, notice shall be given before proceeding with the Work. Claims for design and estimating costs incurred in connection with possible changes requested
by the Owner, but which do not proceed, shall be made within twenty-one (21) days after the decision is made not to proceed. Any change in Contract Price and/or the Date of Substantial Completion and/or the Date of Final Completion resulting
from such claim shall be authorized by Change Order. 
  

 18 

 8.7 EMERGENCIES In any emergency affecting the safety of persons and/or property, the Design-Builder shall act, at
its discretion, to prevent threatened damage, injury or loss. Any change in the Contract Price and/or extension of the Date of Substantial Completion and/or the Date of Final Completion on account of emergency work shall be determined as provided in
this Article. 
 8.8 CHANGES IN LAW In the event any changes in laws or regulations affecting the performance of the Work are enacted after the sale of
this Agreement; the Contract Price and the Date of Substantial Completion and/or the Date of Final Completion, and if appropriate the compensation for Design Services, shall be equitably adjusted by Change Order. 
 ARTICLE 9 
 (Refer to Addendum
Attached) 
 PAYMENT 
 9.3
ADJUSTMENT OF DESIGN-BUILDER’S APPLICATION FOR PAYMENT The Owner may adjust or reject an application for payment or nullify a previously approved application for payment, in whole or in part, as may reason-ably be necessary to protect the
Owner from loss or dam-age based upon the following, to the extent that the Design-Builder is responsible under this Agreement: 
 .1
the Design-Builder’s repeated failure to perform the Work as required by the Contract Documents; 
  

 19 

 .2 loss or damage arising out of or relating to this Agreement and caused by the Design-Builder to
the Owner, or Others to whom the Owner may be liable; 
 .3 the Design-Builder’s failure to pay the Architect/Engineer,
Subcontractors for labor, materials, equipment or supplies properly furnished in connection with the Work, provided that the Owner is making payments to the Design-Builder in accordance with the terms of this Agreement; 
 .4 Defective Work not corrected in a timely fashion; 
 .5 reasonable evidence of delay in performance of the Work such that the Work will not be completed by the Date of Substantial Completion and/or the Date of Final Completion, and that the unpaid balance of the
Contract Price is not sufficient to offset any direct damages that may be sustained by the Owner as a result of the anticipated delay caused by the Design-Builder; and 
 .6 reasonable evidence demonstrating that the unpaid balance of the Contract Price is insufficient to fund the cost to complete the Work. 
 When the above reasons for disapproving or nullifying an application for payment are removed, payment will be made for the amounts previously withheld. 
 ARTICLE 10 
 INDEMNITY, INSURANCE; BONDS, 
 AND WAIVER OF SUBROGATION 
 10.1 INDEMNITY

 10.1.1 To the fullest extent permitted by law, the Design-Builder shall defend, indemnify and hold harmless the Owner,
Owner’s officers, directors, members, consultants, agents and employees from all claims for bodily injury and property damage (other than to the Work itself and other property required to be insured under Paragraph 10.5 owned by or in the
custody of the owner), that may arise from the performance of the Work, to the extent of the negligence attributed to such acts or omissions by the Design-Builder, Subcontractors or anyone employed directly or indirectly by any of them or by anyone
for whose acts any of them may be liable. The Design-Builder shall not be required to defend, indemnify or hold harmless the Owner, the Owner’s officers, directors, members, consultants, agents and employees for any acts, omissions or
negligence of the Owner, Owner’s officers, directors, members, consultants, employees, agents or separate contractors. 
 10.1.2 To the fullest extent permitted by law, the Owner shall defend, indemnify and hold harmless the Design-Builder, its officers, directors or members, Subcontractors or anyone employed directly or indirectly by any of them
or anyone for whose acts any of them may be liable from all claims for bodily injury and property damage, other than property insured under Paragraph 10.5, that may arise from the performance of work by Others, to the extent of the negligence
attributed to such acts or omissions by Others. 
  

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 10.2 DESIGN-BUILDER’S LIABILITY INSURANCE 
 10.2.1 The Design-Builder shall obtain and maintain insurance coverage for the following claims which may arise out of the performance of this
Agreement, whether resulting from the Design-Builder’s operations or from the operations of any Subcontractor, anyone in the employ of any of them, or by an individual or entity for whose acts they may be liable; 
 .1 Workers’ compensation, disability benefit and other employee benefit claims under acts applicable to the Work; 
 .2 under applicable employers’ liability law, bodily injury, occupational sickness, disease or death claims of the Design-Builder’s
employees; 
 .3 bodily injury, sickness, disease or death claims for damages to persons not employed by the Design-Builder;

 .4 personal injury liability claims for damages directly or indirectly related to the person’s employment by the Design-Builder
or for damages to any other person; 
 .5 damage to or destinations of tangible property including resulting loss of use, claims for
property other than the work itself and other property insured under Paragraph 10.5; 
 .6 bodily injury, death or property damage
claims resulting from motor vehicle liability in the use, maintenance or ownership of any motor vehicle; and 
 .7 contractual
liability claims involving the Design-Builder’s obligations under Subparagraph 10.1.1. 
 10.2.2 The Design-Builder’s
Commercial General and Automobile Liability insurance as required by Subparagraph 10.2.1 shall be written for not less than the following limits of liability: 
 .1 Commercial General Liability Insurance 
  

	 	a.	Each Occurrence Limit 

 $            5, 500,000. 
  

	 	b.	General Aggregate 

 $            6,000,000. 
  

	 	c.	Products/Completed 

 Operations Aggregate 
 $            6,000,000. 
  

 21 

	 	d.	Personal and Advertising 

 Injury Limit 
 $            5,500,000. 
 .2 Comprehensive Automobile Liability Insurance 
  

	 	a.	Combined Single Limit Bodily 

 Injury and Property Damage

 $            5,500,000. 
               Each Occurrence 
  

	 	b.	Bodily injury 

 $            N/A 
               Each Person 
 $            N/A 
               Each Occurrence 
  

	 	c.	Property Damage 

 $            N/A 
               Each Occurrence 
 10.2.3 Commercial
General Liability Insurance may be arranged under a single policy for the full limits required or by a combination of underlying policies and an Excess or Umbrella Liability policy. 
 10.2.4 The policies shall contain a provision that coverage will not be canceled or not renewed until at least thirty (30) days’ prior
written notice has been given to the Owner. Certificates of insurance showing required coverage to be in force shall be filed with the Owner prior to commencement of the Work. 
 10.2.5 Products and Completed Operations insurance shall be maintained for a minimum period of one year(s) after the Date of Substantial Completion
or completion of designated portion of this work, as outlined in the Scope of Work. 
 10.3 PROFESSIONAL LIABILITY INSURANCE The Design-Builder
shall obtain through the Architect/Engineer, professional liability insurance for claims arising from the negligent performance of professional services under this Agreement, which shall be either: 
 General Office Coverage 
 See attached Certificates of
Insurance, Exhibit C. Each separate design profession is to be responsible for their particular design work. 
 10.4 OWNER’S LIABILITY INSURANCE
The Owner shall be responsible for obtaining and maintaining its own liability insurance. Insurance for claims arising out of the performance of this Agreement may be purchased and maintained at the Owner’s discretion. The Owner shall provide
the Design-Builder with a certificate of insurance at the request of the Design-Builder. 
  

 22 

 10.5 INSURANCE TO PROTECT PROJECT 
 10.5.1 The Owner shall obtain and maintain “All Risk” Builder’s Risk Insurance in a form acceptable to the Design-Builder upon the entire Project for the full cost of replacement at the time of
any loss. This insurance shall include as named insureds the Owner, Design-Builder, Architect/Engineer, Subcontractors and Sub-subcontractors. This insurance shall include all risk insurance for physical loss or damage including without duplication
of coverage, at least: theft, vandalism, malicious mischief, transit, materials stored off site, collapse, falsework, temporary buildings, debris removal, flood, earthquake, testing, and damage resulting from defective design, workmanship or
material. The Owner shall Increase limits of coverage, if necessary, to reflect estimated replacement cost. The insurance policy shall be written without a coinsurance clause. The Owner shall be solely responsible for any deductible amounts.

 10.5.2 If the Owner occupies or uses a portion of the Project prior to its Substantial Completion, such occupancy or use shall not
commence prior to a time mutually agreed to by the Owner and the Design-Builder. Permission for partial occupancy from the insurance company shall be included as standard in the property insurance policy, to ensure that this insurance shall not be
canceled or lapsed on account of partial occupancy. Consent of the Design-Builder to such early occupancy or use shall not be unreasonably withheld. 
 10.5.3 The Owner shall obtain and maintain boiler and machinery insurance as necessary. The interests of the Owner, Design-Builder, Architect/Engineer, Subcontractors and Sub-contractors shall be protected under this coverage.

 10.5.4 The Owner will purchase and maintain insurance to protect the Owner, Design-Builder, Architect/Engineer, Sub-contractors and
Sub-subcontractors against loss of use of Owner’s property due to those perils insured pursuant to Paragraph 10.5. Such policy will provide coverage for expediting expenses of materials, continuing overhead of the Owner and the Design-Builder,
Architect/Engineer, Subcontractors and Sub-subcontractors, necessary labor expense including overtime, loss of income by the Owner and other determined exposures. Exposures of the Owner, Design-Builder, Architect/Engineer, Subcontractors and
Sub-subcontractors shall be determined by mutual agreement with separate limits of coverage fixed for each item. 
 10.5.5 The Owner
shall provide the Design-Builder with a copy of all property insurance policies before an exposure to loss may occur. Copies of any subsequent endorsements shall be furnished to the Design-Builder. The Design-Builder shall be given thirty
(30) days notice of cancellation, non-renewal, or any endorsements restricting or reducing coverage. The Owner shall give written notice to the Design-Builder before commencement of the Work if the Owner will not be obtaining property
Insurance. 

  

 23 

 
In that case, the Design-Builder may obtain insurance in order to protect its interest in the Work, as well as the interest of the Architect/Engineer,
Subcontractors and Sub-subcontractors in the Work. The Contract Price shall be increased by the cost of this insurance through Change Order. If the Design-Builder is damaged by the failure of the Owner to purchase or maintain property insurance or
to so notify the Design-Builder, the Owner shall bear all reasonable costs incurred by the Design-Builder arising from the damage. 
 10.5.6 The Owner shall have the right to self-insure against the risks covered in Subparagraphs 10.5.1 and 10.5.4 upon providing evidence satisfactory to the Design-Builder of the ability to so self-insure. 
 10.6. PROPERTY INSURANCE LOSS ADJUSTMENT 
 10.6.1
Any insured loss shall be adjusted with the Owner and the Design-Builder and made payable to the Owner and Design-Builder as trustees for the insureds, as their interests may appear, subject to any applicable mortgagee clause. 
 10.6.2 Upon the occurrence of an insured loss, monies received will be deposited in a separate account and the trustees shall make distribution in
accordance with the agreement of the parties in interest, or in the absence of such agreement, in accordance with a dispute resolution award pursuant to Article 12. If the trustees are unable to agree between themselves on the settlement of the
loss, such dispute shall also be submitted for resolution pursuant to Article 12. 
 10.7 WAIVER OF SUBROGATION 
 10.7.1 The Owner and Design-Builder waive all rights against each other, the Architect/Engineer, and any of their respective employees, agents,
consultants, Subcontractors, Material Suppliers and Sub-subcontractors, for damages covered by the insurance provided pursuant to Paragraph 10.5 to the extent they are covered by that insurance, except such rights as they may have to the proceeds of
such insurance held by the Owner and Design-Builder as trustees. The Design-Builder shall require similar waivers from the Architect/Engineer and all Subcontractors, and shall require each of them to include similar waivers in their sub subcontracts
and consulting agreements. 
 10.7.2 The Owner waives subrogation against the Design-Builder, Architect/Engineer, Subcontractors,
Material Suppliers and Sub-subcontractors on all property and consequential loss policies carried by the Owner on adjacent properties and under property and consequential loss policies purchased for the Project after its completion. 
 10.7.3 The policies shall also be endorsed to state that the carrier waives any right of Subrogation against the Design-Builder, the
Architect/Engineer, Subcontractors, Material Suppliers, or Sub-subcontractors. 
 10.8 MUTUAL WAIVER OF CONSEQUENTIAL DAMAGES The Owner and the
Design-Builder agree to waive all claims against the other for all consequential damages that may arise out of or relate to this Agreement. The Owner agrees to waive damages including but not limited to the Owner’s loss of use of the Property,
all rental expenses incurred, loss of services of employees, or loss 

  

 24 

 
of reputation. The Design-Builder agrees to waive damages including but not limited to the loss of business, loss of financing, principal office overhead and
profits, loss of profits not related to this Project, or loss of reputation. This Paragraph shall not be construed to preclude contractual provisions for liquidated damages when’ such provisions relate to direct damages only. The provisions of
this Paragraph shall govern the termination of this Agreement and shall survive such termination. 
 10.9 BONDING 
 10.9.1 Performance and Payment Bonds 
 are 
 required of the Design-Builder. Such bonds shall be issued by a surety licensed in the state of the location of the Project
and must be acceptable to the Owner. The cost of the bond for this scope of work is to be included in the sum of this contract to be determined. 
 10.9.2 Such Performance Bond all be issued in the penal sum equal to one hundred percent (100%) of the Contract price, of this designated work. 
 Such Performance Bond shall cover the cost to complete the Work, but shall not cover any damages of the type specified to be covered by the insurance pursuant to Paragraphs 10.2 and 10.3, whether or not such insurance
is provided or in an amount sufficient to cover such damages. 
 10.9.3 The penal sum of the Payment Bond shall equal the penal sum of
the Performance Bond. 
 ARTICLE 11 
 SUSPENSION, TERMINATION OF THE AGREEMENT 
 AND OWNER’S RIGHT TO PERFORM 
 DESIGN-BUILDER’S RESPONSIBILITIES 
 11.1
SUSPENSION BY THE OWNER FOR CONVENIENCE 
 11.1.1 The Owner may order the Design-Builder in writing to suspend, delay or interrupt
all or any part of the Work without cause for such period of time as the Owner may deter-mine to be appropriate for its convenience. 
 11.1.2 Adjustments caused by suspension, delay or interruption shall be made for Increases in the Contract Price and/or the Date of Substantial Completion and/or the Date of Final Completion. No adjustment shall be made if the
Design-Builder is or otherwise would have been responsible for the suspension, delay or interruption of the Work, or if another provision of this Agreement is applied to render an equitable adjustment. 
  

 25 

 11.2 OWNER’S RIGHT TO PERFORM DESIGN-BUILDER’S OBLIGATIONS AND TERMINATION BY THE OWNER FOR CAUSE

 11.2.1 if the Design-Builder persistently fails to perform any of its obligations under this Agreement, the Owner may, after
five (5) days’ Written notice, during which period the Design-Builder fails to perform such obligation, undertake to perform such obligations. The Contract Price shall be reduced by the cost to the Owner of performing such obligations.

 11.2.2 Upon five (5) days written notice to the Design-Builder and the Design-Builder’s surety, if any, the Owner may
terminate this Agreement for any of the following reasons: 
 .1 if the Design-Builder persistently utilizes improper materials and/or
inadequately skilled workers; 
 .2 if the Design-Builder does not make proper payment to laborers, material suppliers or contractors
provided that the Owner is making payments to the Design-Builder in accordance with the terms of this Agreement; 
 .3 if the
Design-Builder persistently fails to abide by the orders, regulations, rules, ordinances or laws of governmental authorities having jurisdiction; or 
 .4 if the Design-Builder repeatedly fails to meet the schedule of completion dates to be provided by Design-Builder 
 .5
if the Design-Builder otherwise materially breaches this Agreement. 
 If the Design-Builder fail to cure or commence and continue to cure
within the five (5) days, the Owner, without prejudice to any other right or remedy, may take possession of the Worksite and complete the Work utilizing any reasonable means. In this event, the Design-Builder shall not have a right to further
payment until the Work is completed. 
 112.3 If the Design Builder files a petition under the Bankruptcy Code, this Agreement shall
terminate if the Design-Builder or the Design-Builder’s trustee rejects the Agreement or, if there has been a default, the Design-Builder is unable to give adequate assurance that the Design-Builder will perform as required by this Agreement or
otherwise is unable to comply with the requirements for assuming this Agreement under the applicable provisions of the Bankruptcy Code. 
 11.2.4 In the event the Owner exercises its rights under Subparagraph 11.2.1 or 11.2.2, upon the request of the Design-Builder the Owner shall provide a detailed accounting of the cost incurred by the Owner. 
 11.3 TERMINATION BY OWNER WITHOUT CAUSE it the Owner terminates this Agreement other than as set forth in Paragraph 11.2, the Owner shall pay the Design-Builder
for all Work executed and for all proven loss, cost or expense in connection with the Work, plus all demobilization costs. In addition, the Design-Builder shall be paid an amount calculated as set forth below: 
 .1 If the Owner terminates this Agreement prior to commencement of the construction, the Design-Builder shall be paid the unpaid balance of the
Design-Builder’s design costs as set forth in the Schedule of Values and a premium as set forth below: (insert here the amount agreed to by the Parties) 
  

 26 

 No premium. Refer to design portion of the contract, AGC 400 dated 2/10/06 
 .2 If the Owner terminates this Agreement after commencement of the construction, the Design-Builder shall be paid the unpaid balance of the
Design-Builder’s design costs as set forth in the Schedule of Values, the Construction Services provided to date and a premium as set forth below: (insert here the amount agreed to by the Parties) 
 10% 
 .3 The Owner shall also pay to
the Design-Builder fair compensation, either by purchase or rental at the election of the Owner, for all equipment retained. The Owner shall assume and become liable for obligations, commitments and unsettled claims that the Design-Builder has
previously undertaken or incurred in good faith in connection with the Work or as a result of the termination of this Agreement. As a condition of receiving the payments provided under this Article 11, the Design-Builder shall cooperate with the
Owner by taking all steps necessary to accomplish the legal assignment of the Design-Builder’s rights and benefits to the Owner, including the execution and delivery of required papers. 
 11.4 TERMINATION BY THE DESIGN-BUILDER 
 11.4.1
Upon five (5) days’ written notice to the Owner, the Design-Builder may terminate this Agreement for any of the following reasons: 
 .1 if the Work has been stopped for a sixty (60) day period; 
 a. under court order or order of other
governmental authorities having jurisdiction; or 
 b. as a result of the declaration of a national emergency or other governmental
act emergency during which, through no act or fault of the Design-Builder, materials are not available; 
 .2 if the Work is suspended
by the Owner for sixty (60) days; or 
 .3 if the Owner fails to furnish reasonable evidence that sufficient funds are available
and committed for the entire cost of the Project in accordance with Subparagraph 4.1.3 of this Agreement. 
  

 27 

 11.4.2 If the Owner has for thirty (30) days failed to pay the Design-Builder pursuant to the
Subparagraph 9.1.3, the Design-Builder may give written notice of its intent to terminate this Agreement. If the Design-Builder does not receive payment within five (5) days of giving written notice to the Owner, then upon five (5) days
additional written notice to the Owner, the Design-Builder may terminate this Agreement. 
 11.4.3 Upon termination by the
Design-Builder in accordance with Subparagraph 11.4.1, the Design-Builder shall be entitled to recover from the Owner payment for all Work executed and for all proven loss, cost or expense in connection with the Work, plus all demobilization costs
and reasonable damages. In addition, the Design-Builder shall be paid an amount calculated as set forth either in Subparagraph 11.3.1 or 11.3.2, depending on when the termination occurs, and Subparagraph 11.3.3. 
 ARTICLE 12 
 DISPUTE RESOLUTION

 [Intentionally omitted] 
 ARTICLE 13 
 MISCELLANEOUS PROVISIONS 
 13.1 ASSIGNMENT Neither the Owner nor the Design-Builder shall assign its interest in this Agreement without the written consent of the other except as to the assignment of proceeds. The Owner may, however,
assign its rights hereunder to its financial lender and/or to Summer Infant, Inc. The terms and conditions of this Agreement shall be binding upon both parties, their partners successors, assigns and legal representatives. Neither party to this
Agreement all assign the Agreement as a whole without written consent of the other except that the Owner may assign the Agreement to a wholly-owned subsidiary of the Owner when the Owner has fully indemnified the Design-Builder or to an
institutional lender providing construction financing for the Project as long as the assignment is no less favorable to the Design-Builder than this Agreement In the event of such assignment, the Design-Builder shall execute all consents reasonably
required. In such event, the wholly-owned subsidiary or lender shall assume the Owner’s rights and obligations under the Contract Documents. If either party attempts to make such an assignment, that party shall nevertheless remain legally
responsible for all obligations under the Agreement, unless otherwise agreed by the other party. 
 13.2 GOVERNING LAW This Agreement shall be
governed by the law in effect at the location of the Project. 
 13.3 SEVERABILITY The partial or complete invalidity any one or more provisions of
this Agreement shall not affect the validity or continuing force and effect of any other provision. 
 13.4 NO WAIVER OF PERFORMANCE The failure of
either party to insist, in any one or more instances, on the performance of any of the terms, covenants or conditions of this Agreement, or to exercise any of its rights, shall not be construed as a waiver or relinquishment of such term, covenant,
condition or right with respect to further performance. 
  

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 13.5 TITLES AND GROUPINGS The title given to the articles of this Agreement are for ease of reference only and
shall not be relied upon or cited for any other purpose. The grouping of the articles in this Agreement and of the Owner’s specifications under the various headings is solely for the purpose of convenient organization and in no event shall the
grouping of provisions, the use of paragraphs or the use of headings be construed to limit or alter the meaning of any provisions. 
 13.6 JOINT
DRAFTING The parties to this Agreement expressly agree that this Agreement was jointly drafted, and that both had opportunity to negotiate its terms and to obtain the assistance of counsel in reviewing its terms prior to execution. Therefore,
this Agreement shall be construed neither against nor in favor of either party, but shall be construed in a neutral manner. 
 13.7 RIGHTS AND REMEDIES
The parties’ rights, liabilities, responsibilities and remedies with respect to this Agreement, whether in contract, tort, negligence or otherwise, shall be exclusively those expressly set forth in this Agreement. 
  

	13.8	OTHER PROVISIONS The financial commitments of this contract are to be guaranteed by Summer Infant, Inc. 

  

 29 

 EXISTING CONTRACT DOCUMENTS 
 The Contract Documents in existence at the time of execution of this Agreement are as follows: 
  
 The following Exhibits are a part of this Agreement: 
  

			
	 EXHIBIT NO. 1
	  	Dispute Resolution Menu, one page.
		
	 EXHIBIT NO. 2
	  	Labor Relations provisions,          pages - N/A
		
	 ADDENDUM NO. 1
	  	attached hereto is hereby incorporated into this Agreement.

 This Agreement is entered into as of the date entered in Article 1. 
  

							
	 	 	 	  	OWNER: FAITH REALTY, LLC.
				
	ATTEST:	 	 /s/ Joseph Driscoll
	  	BY:	 	 /s/ Jason P. Macari

				
		 		  	PRINT NAME:	 	Jason P. Macari
				
		 		  	PRINT TITLE:	 	Member
			
		 		  	DESIGN-BUILDER: RIGGS & GALLAGHER, INC
				
	ATTEST:	 	 /s/ Stina A. Tyszkowski
	  	BY:	 	 /s/ William J. Riggs III

				
		 		  	PRINT NAME:	 	William J. Riggs III
				
		 		  	PRINT TITLE:	 	Vice President

  

 30 

 ADDENDUM #1 
 This Addendum #1 (“Addendum”) is made to that certain Standard Form Agreement between Owner and Design-Builder, AGC Document 415, dated of even date herewith (the “Agreement”). 
 1. Contract Time: 
 “6.1.1 The Design-Builder shall
commence the Work as soon as the City of Woonsocket releases the Building Permit. The Design-Builder shall diligently and continuously prosecute and complete the Work and provide the Scope of Work in accordance with the Project Schedule, attached
hereto as Schedule (“Project Schedule”). In accordance with the Project Schedule, the Design-Builder acknowledges that TIME IS OF THE ESSENCE in meeting’ the Project schedule. 
 6.2 The Design-Builder shall participate and coordinate the schedules of all subcontractors used at the Project to achieve timely completion of the Work,
providing information and coordination for the scheduling of the times and sequence of operations for all the Work to meet the Project schedule attached hereto, shall continuously monitor the Project Schedule to ensure compliance therewith. The
Design-Builder shall furnish to the Owner periodic progress reports of the Work, as requested. 
 6.3 Should the Design-Builder be delayed,
hindered or interfered with in the commencement, prosecution or completion of the Work by any cause including but not limited to any act, omission, neglect, negligence or default of the Owner or of anyone employed by the Owner, or by governmental
directive or order in no wise chargeable to the Design-Builder, or by any extraordinary conditions arising out of war or governmental regulations, or by any other cause beyond the control of and not due to any fault of the Design-Builder or any
subcontractor employed by Design-Builder or their officers, agents, employees or suppliers, then in such instance the Design-Builder shall be entitled to an extension of time to the Project Schedule for a period equivalent to the time lost by reason
of any and all of the aforesaid causes and an adjustment in the contract price of the delay causes an increase in the cost for the Design-Builder.” 
 2.
Article 7 of the Agreement is hereby deleted in its entirety and replaced with the following: 
 “7. Contract Sum and Schedule of Values

 7.1 In consideration of the complete and timely performance of all Work, the Owner shall pay to the Design-Builder the Contract Sum of One
Million Ten Thousand Five Hundred Seventy-one Dollars ($1,010,571.00) which Contract Sum does not include the cost of the adjustments forth in Article 8 hereof, but includes all premiums for required insurance except for Owner’s Liability,
which shall be paid for by the Owner. All sales, use, personal property and other taxes required to be paid or collected by the Design-Builder or any of its subcontractors or vendors by reason of the performing of the Work or the acquisition,
ownership, furnishing or use of any materials, equipment, supplies, labor or other items for or in connection with the Work. See Exhibit A—Scope of Work letter dated 5/19/06. 
  

 31 

 7.2 Attached hereto as Exhibit B is a Schedule of Values (“Schedule of Values”) prepared by the
Design—Builder and approved by the Owner, which sets forth the project budget and delineates a schedule of values and breakdown of the parts of its Work by and among such items as craft, materials and general conditions and supported by such
evidence as to correctness as may be requested by Owner. In addition, attached hereto as Exhibit D, is a draw schedule (“Draw Schedule”) that the Design-Builder has prepared setting forth the anticipated amount of the month progress
payment requests to be made by the Design-Builder to the Owner.” 
 3. Except for Section 9.3, Article 9 of the Agreement, is hereby deleted in its
entirety and replaced with the following: 
 “9. Progress Payments/Final Payment 
 9.1 Payments shall be made in installments as the Work progresses unless the Design-Builder is in
default. By the last business day of each month, the Design-Builder shall submit to the Owner a written request for payment (“Payment Application”) in a form to be mutually agreeable, which must show the proportionate value of the Work
performed and completed to date from which shall be deducted the following: (i) a retainage of ten percent (10%) of such proportionate value, (ii) all previous payments, (iii) all charges for materials and other services, if any,
furnished by the Owner to the Design-Builder, and (iv) any other charges and deductions provided for in the Agreement, this Addendum or the Contract Documents. The balance of the Payment Application, to the extent approved by the Owner and the
Lender’s representative, shall be paid by the fifteenth (15th) day of the next succeeding month, or to the
extent that the Design-Builder does not submit the completed Payment Application timely, within twenty (20) days after receipt of a completed Payment Application. Payments approved by the Owner and the Lender’s representative shall, to the
extent of such approval, be paid within twenty (20) days or shall bear interest from the date the payment was due at the rate of nine percent (9%) per annum on the outstanding balance. 
 9.1.1 The quantities of work performed and materials furnish as established by the Owner and Lender’s representative shall constitute
the basis for computation of the payment to the Design-Builder. Payments made on account of materials and incorporated into the Work, but delivered and suitably stored, shall be in accordance with the Contract Documents. Payment is not conclusive of
full performance nor should payments be considered to be acceptance of non-conforming work or materials. 
 9.1.2 As a
condition for any progress payment, the Design-Builder shall have submitted to the Owner along with the Payment Application, partial waivers and releases of claims in the amount of the monthly payment requested for all work up to the date through
which such monthly payment request is made. The form of the partial waiver and release shall be acceptable to the Owner. In addition, the Design-Builder shall obtain similar partial waivers and releases from each of its major subcontractors and
suppliers for the previous monthly payment and such partial waivers and releases shall be included with each Payment Application. Design-Builder’s failure to include such waivers and releases, shall be sufficient cause to reject any application
for 

  

 32 

 
payment in whole or in part ad prevent future releases of monies due the Design-Builder. Submission by the Design-Builder of its Payment Application to the
Owner shall constitute a representation by the Design-Builder that it has obtained such partial waivers for the previous month from each of its major subcontractors and suppliers. 
 9.1.3 If requested by the Owner, the Design-Builder shall provide a current list of all major material suppliers and subcontractors who
furnished services to the Design-Builder in connection with the Design-Builder’s Work on the Project. 
 9.2 Final payment shall be made
to the Design-Builder within fifteen days after final completion (including all punch list items) of the Work and acceptance thereof by the Owner and the Lender’s representative and upon satisfaction of the following conditions: 
 9.2.1 that all labor, subcontractors and material men have been paid to date and the Design-Builder has furnished to the Owner from the
Design-Builder, all major subcontractors and suppliers, final waivers, and, releases of claims, in form acceptable to Owner and Design-Builder, and final satisfaction of all liens and claims arising out of the Agreement and/or this Addendum and
receipts in full covering all services for which a lien could be filed. 
 4. Article 12 is deleted in its entirety and replaced with the following:

 12.1 Any claims or disputes which may arise, including adjustments to compensation or to time of completion, shall be governed by the
Contract Documents. 
 12.2 If a claim, dispute or other matter in question relates to or is subject of a mechanic’s lien, the party
asserting such matter may proceed in accordance with applicable law to comply with the lien notice or filing deadlines prior to the resolution of the matter by mediation or arbitration. 
 12.3 The parties shall endeavor to resolve their disputes by mediation which, unless the parties mutually agree otherwise, shall be in accordance with the
Construction industry Mediation Rules of the American Arbitration Association (“AAA”) currently in effect. Request for mediation shall be filed in writing with the other party and with the AAA. The request may be made concurrently with the
filing of a demand for arbitration but, in such event, mediation shall proceed in advance of arbitration or legal or equitable proceedings, which shall be stayed pending mediation for a period of forty-five (45) days from the date of filing.

 12.4 Claims, disputes and other matters in question arising out of or relating to the Contract of the performance thereunder, if not
resolved by mediation, shall be resolved by binding arbitration, which shall be in accordance the Construction Industry Arbitration Rules of the AAA currently in effect. The demand for arbitration shall be tiled in writing with the other party and
with AAA and shall be made within a reasonable time after the dispute has arisen. Any arbitration all be held in Providence, Rhode Island. The award rendered by the arbitrator or arbitrators shall be final and binding and judgment may be entered
upon it in accordance with applicable law in any court having jurisdiction thereof.” 
  

 33 

 5. Article 13 of the Agreement is hereby amended by adding the following provisions thereto: 
 “13.2 In the event that any provision or any part of a provision of this Agreement or this Addendum shall be finally determined to be suspended,
invalid, illegal or otherwise unenforceable pursuant to applicable laws by an authority having jurisdiction, such determination shall not impair or otherwise affect the validity, legality or enforceability of the remaining provisions or parts of
provisions of the Agreement and/or this Addendum, which shall retrain in full force and effect as if the unenforceable provision or part were deleted. 
 13.3 If the Owner does not insist in any instance upon strict compliance with any of the provisions of the Agreement or this Addendum, or to exercise any options provided therein, this shall not be construed as a
waiver of its rights to thereafter require such compliance or to exercise such option in the future, provided, however, the provisions hereof shall not apply to any items previously accepted by the Owner. 
 13.1 The Agreement and this Addendum shall be binding on and inure to the benefit of the heirs successors and assigns of the parties hereto. 

13.9 Written notices shall be deemed to have been served if deposited in the United States mail, postage prepaid, sent by registered or certified mail,
return receipt requested, or by Federal Express or other comparable overnight courier service or personal service receipted, and addressed to the parties at the addresses set forth on the first page of the Agreement. 
 13.10 This Addendum shall be governed by and construed in accordance with the laws of the State of Rhode Island. 
 6. Except as amended or modified hereby, the Agreement is hereby ratified and affirmed. 
  

 34 

 IN WITNESS WHEREOF, the Owner and the Design-Builder have executed this Addendum on the date set opposite
their names. 
  

					
	In the presence of	  	OWNER
		
		  	Faith Realty, LLC
			
	 /s/ Paul J. DiCicco
	  	By:	 	 /s/ Jason P. Macari

		  	duly authorized member
		
		  	DESIGN-BUILDER
		
		  	Riggs & Gallagher, Inc.
			
	 /s/ George Moni
	  	By:	 	 /s/ William J. Riggs III

		  	duly authorized member

  

 35 

 SECOND ADDENDUM 
 This Second Addendum is made this 4th day of October, 2006 by and between Faith Realty, LLC (the “Owner”) and Riggs & Gallagher, Inc. (“Design-Builder” or
“DB”). 
 RECITALS 
 WHEREAS, on 4th day of October, 2006, the Owner and the Design-Builder entered into that certain Standard Form of Design-Build Agreement and General Conditions
(“Construction Agreement”), which Construction Agreement was modified and amended by Addendum #1, executed of even date with the Construction Agreement (“Addendum”). (The Construction Agreement and the Addendum are hereinafter
collectively referred to as the “Agreement”); 
 WHEREAS, the Design-Builder has completed the plans and specifications for the
construction of a 52,000 square foot warehouse and office facility; 
 WHEREAS, the parties desire to modify and amend the scope of the
Project to include the construction and completion of a 52,000 square foot warehouse and office facility to be located on the owner’s real property located in Highland Corporate Park, Woonsocket, Rhode Island (“Property”); and

 WHEREAS, the parties desire to further amend the Agreement to include, without limitation, the expansion of the scope of the Project,
expansion of the scope of Work, modification of the Contract Price and to amend the Project Schedules, Schedules of Values and the Draw Schedules, all on the terms and conditions hereinafter set forth. 
 NOW THEREFORE, in consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree to amend the Agreement as follows: 
 1. Capitalized terms not defined herein shall have the
definition proscribed to such terms in the Agreement. 
 2. The definition of “Project” is hereby amended to include: the
construction of a 52,000 square foot warehouse and office facility to be located on the Property, to be built, constructed and completed in accordance with the Contract Documents and applicable laws, rules, codes and regulations having jurisdiction
over the Project (“Applicable Laws”). 
 3. The “Scope of Work” or “Work” to complete the Project shall.
include, without limitation and in addition to the Work set forth in the Agreement, the work described in Schedule A, attached hereto and incorporated herein. 
 4. The definition of Contract Documents shall be amended to include, in addition to the documents listed in the Agreement the following, as may be modified by Schedule A hereto: 
  

	 	•	 	 Those certain architectural plans and specifications prepared by Trout Robert & Elias Architects (“Architects”) dated August 8, 2006 and
revised September 7, 2006 

	 	•	 	 Those certain engineering plans and specifications prepared by Yoder & Tidwell Ltd. Dated August 15, 2006; 

  

	 	•	 	 Those certain plumbing plans and specifications reference as sheets P1.0 through P2.0 prepared by the Architects and Engineering Design Services, Inc.
(“EDS”) and dated September 8, 2006; 

  

	 	•	 	 Those certain fire protection plans and specifications referenced as sheets FP 1.0 through FP 3.0 prepared by the Architects and EDS and dated September 8,
2006; 

  

	 	•	 	 Those certain mechanical plans and specifications referenced as sheets M 1.0 through M 3.0 prepared by the Architects and EDS and dated September 8, 2006;

  

	 	•	 	 Those certain electrical plans and specifications referenced as sheets E 1.0 through E 5.0 prepared by the Architects and EDS and dated September 8, 2006.

 5. Section. 2.4, subsection .11 is hereby amended in its entirety and replaced with the following provisions: 

“Substantial Completion of the Work occurs on the date when construction is substantially and materially completed, a certificate of occupancy has
been obtained for the Project and there are no construction related or Work related impediments to Owner occupying or using the Project for its intended use. This date shall be confirmed by a certificate of Substantial Completion signed by the Owner
and the Design-Builder. The certificate shall state the respective responsibilities of the Owner and the Design-Builder for security, maintenance, heat, utilities, damage to the Work and insurance. The certificate shall. also list the items to be
completed or corrected, and establish the time for their completion and correction within the timeframe, if any, established in Subparagraph 6.2.1 for the Date of Final Completion.” 
 6. Attached hereto as Schedule E is the revised Schedule of Work which shall be in addition to the Schedule of Work referenced in Section 6.1.1
(Addendum). 
 7. The Contract Price is hereby amended by increasing the Contract Price by $2,011,345, bringing the total Contract Price to
$3,103,326. The Contract Price represents the Lump sum price for which the Design-Builder shall construct and complete the Project in accordance with the Contract Documents, the Agreement, the Second Addendum and Applicable Laws. 
 8. Attached hereto as Schedule B (revised) is the revised. Schedule of Values for the increase in the Contract price and revises Exhibit B to
Section 7.2 of the Agreement (Addendum). 
  

 37 

 9. Attached hereto as Schedule D (revised) is the anticipated Draw Schedule that the Design-Builder has
prepared to include the additional Work set forth on Schedule A hereto and for the increase in the Contract Price, which schedule sets forth the anticipated amount of the monthly progress payment requests to be made by the Design-Builder to the
Owner. 
 10. Change Order #3 is hereby rescinded as such change order has been incorporated into this Second Addendum. 
 11. Except as amended or modified hereby, the Agreement shall remain in full force and effect and is hereby ratified and confirmed. 
 IN WITNESS WHEREOF, the Owner and the Design-Builder have executed this Second Addendum on the
4th day of October, 2006. 
  

					
	In the presence of	  	OWNER
		
		  	Faith Realty, LLC
			
	 /s/ Paul J. DiCicco
	  	By:	 	 /s/ Jason P. Macari

		
		  	DESIGN-BUILDER
		
		  	Riggs & Gallagher, Inc.
			
	 /s/ Paul J. DiCicco
	  	By:	 	 /s/ William J. Riggs III

  

 38Construction Loan Agreement

 EXHIBIT 10.11 
 CONSTRUCTION LOAN AGREEMENT 
 AGREEMENT made this 21st day of December, 2006, by and between Bank of America, N.A., a
national banking association, with an office located at 111 Westminster Street, Providence, Rhode Island (the “Lender”) and Faith Realty, LLC, a Rhode Island limited liability company with its principal business office located at
582 Great Road, North Smithfield, Rhode Island (the “Borrower”). 
 I. DEFINITIONS 
 1.01. Certain Defined Terms. In addition to the definitions contained in the foregoing recital clause, the following terms shall
have the meanings provided below: 
 “Advances” means, collectively, Construction Advances and the Refinance Advance.

 “Agreement” means this Agreement, as amended from time to time. 
 “Borrower’s Equity” shall equal the total Direct Costs of the Improvements, as such project costs are amended and modified from time
to time, in excess of the amount of the maximum amount of the proposed Construction Advances. 
 “Borrower’s Share”
shall equal the excess, if any, of the costs of completing the Improvements incurred to the end of the latest Requisition period (net of retained amounts not then due) over the aggregate Construction Advances by the Lender for costs incurred to the
end of that period. 
 “Change Order” means any change, amendment or modification to the Plans or the Construction Contract.

 “Collateral Assignment” shall mean the Collateral Assignment of Leases and Rents by the Borrower to the Lender dated as of
even date. 
 “Completion” or “Completion of the Improvements” shall mean the completion and payment of the
Direct Costs and the Indirect Costs of all design, construction, equipping, furnishing and tenant-fixturing of the Improvements, all clearing, landscaping, lighting and paving of the Premises, and procurement of all approvals, licenses and permits
necessary to make the same ready for use and occupancy and place the same in operation in order to use or otherwise dispose of the Premises and Improvements, as a whole or in parts, so that the Loan can be repaid or refinanced on or before the
maturity date of the Note. 
 “Completion Date” shall mean the date of the Completion of the Improvements and issuance of a
Certificate of Occupancy by the City of Woonsocket, which shall be no later than June 30, 2007. 
 “Completion Deposit”
shall mean a deposit with the Lender of cash, certificates of deposit, letters of credit or marketable securities by the Borrower. 

 “Construction Advance” or “Construction Advances” shall mean the
advances of funds to the Borrower by the Lender pursuant to this Agreement on a non-revolving basis for construction of the Improvements up to a maximum amount of One Million Four Hundred Sixty-Five Thousand Nine Hundred Dollars ($1,465,900), but
not to exceed the sum of the Direct Costs and the Indirect Costs less the amount of Borrower’s Equity. 
 “Construction
Assignment” shall mean the Assignment of Project Contracts by and between the Borrower and the Lender dated even date. 
 “Construction Consultant” shall mean an independent qualified engineer or architect, selected by the Lender whose duties shall include analysis of the Plans and Requisitions, monitoring progress on the construction of the
Improvements, and other customary services incidental to the foregoing. 
 “Construction Contract” shall mean that Standard
Form of Design- Build Agreement and General Conditions as modified and amended by Addendum 1 thereto dated June 6, 2006 as further amended and modified by Second Addendum dated October 4, 2006 between the Borrower and the Contractor to
provide, or supervise or manage the procurement of, substantially all labor and materials needed for the construction of the Improvements. 
 “Construction Term” shall mean the period commencing on the date hereof and ending on the Completion Date. 
 “Contractor” shall mean Riggs & Gallagher, Inc. 
 “Default” means any of the events
specified in Article IX hereof which with the passage of time or giving of notice or both would constitute an Event of Default. 
 “Direct Costs” shall mean the aggregate costs of all labor, materials, equipment, fixtures and furnishings necessary for the Completion of the Improvements. The initial projection of the Direct Costs appears on the Initial
Project Cost Statement. 
 “Event of Default” means an Event of Default described in Article IX hereof. 
 “GAAP” means generally accepted accounting principles in the United States. 
 “Governmental Authorities” means the United States, the State of Rhode Island and any political subdivisions agency, department,
commission, board, bureau or instrumentality of either of them, including any local authorities, which exercise jurisdiction over the Premises or the construction of the Improvements thereon. 
 “Guarantor” shall mean Summer Infant, Inc., a Rhode Island corporation. 
 “Guaranty” shall mean the Guaranty of the Guarantor dated as of even date. 
 “Hazardous Waste Laws” shall mean any federal, state or local law governing the existence, release, generation, storage or disposal of
any Hazardous Waste now or hereafter existing. 
  

 2 

 “Hazardous Waste” shall mean any “oil,” “hazardous material,”
“hazardous wastes” or “hazardous substances” as defined in the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601 et seq., as amended, or any similar statute, and the regulations
adopted pursuant thereto and shall include without limitation (whether or not included in the definition contained in said laws), petroleum, solvents, asbestos and other chemicals which would be materially dangerous to the environment or to human
beings. 
 “Improvements” shall mean the construction of an office/warehouse facility to serve as the corporate headquarters
of the Guarantor at the Premises in accordance with the Plans. 
 “Indirect Costs” shall mean all costs of Completion of the
Improvements other than Direct Costs, including but not limited to, architects’ fees, attorneys’ fees, interest, real estate taxes, survey costs, accounting fees and title insurance premiums. The initial projection of the Indirect Costs
appears on the Initial Project Cost Statement. 
 “Initial Construction Advance” shall mean the first Construction Advance to
be made hereunder, which may be contemporaneous with or subsequent to the time of the execution and delivery by the Borrower and the Lender of this Agreement. 
 “Initial Project Cost Statement” means the projection of, among other things, the Direct Costs and the Indirect Costs. 
 “Loan” shall mean the loan of Three Million One Hundred Forty-Five Thousand Dollars ($3,145,000) from the Lender to the Borrower, consisting of the Construction Advances and the Refinance Advance.

 “Major Subcontracts” shall mean the subcontracts of each and every subcontractor or material supplier whose bid represents
10% or more of the total costs of Completion of the Improvements and a sufficient number of subcontractors’ and material suppliers’ contracts whose bids collectively represent not less than 70% of the total costs of Completion of the
Improvements. 
 “Mortgage” shall mean the Open-End Mortgage and Security Agreement by the Borrower to the Lender dated as of
even date. 
 “Note” shall mean the Borrower’s secured promissory note in the form attached hereto as Exhibit A,
which Note is hereby incorporated herein by reference and made a part hereof. 
 “Obligations” means all obligations and all
liabilities of the Borrower under this Agreement, the Note and the Security Documents. 
 “Permitted Encumbrances” shall mean
those encumbrances, if any, permitted by the Lender on the Premises as set forth in Exhibit B attached hereto and incorporated herein by reference. 
 “Person” means and includes an individual, a partnership, a joint venture, a corporation, a limited liability company, a trust, an unincorporated organization and a government or any department or
agency thereof. 
  

 3 

 “Plans” means all preliminary and final drawings, plans, specifications and other
documents (including but not limited to complete architectural, structural, mechanical, electrical and sprinkler system) prepared by the Contractor and approved by the Lender and the Construction Consultant which describe and show the materials,
equipment, fixtures and furnishings necessary for the construction of the Improvements, including all amendments and modifications thereof made by approved Change Orders. 
 “Premises” means that certain parcel of land, with all buildings and improvements now or hereafter situated thereon, located at Highland Industrial Park, Woonsocket, Rhode Island, and more
particularly described in the Mortgage. 
 “Refinance Advance” means an advance of the proceeds of the Loan in the amount of
$1,679,100, which Refinance Advance shall be used to repay all existing mortgage liens on the Premises. 
 “Requisition”
means a statement by the Borrower and, in the case of a Direct Cost requisition, by the Borrower and the Contractor, setting forth the amount of the Construction Advance requested in each instance (Direct Cost requisitions to be on the American
Institute of Architect’s form G-702-G-703; Indirect Cost requisitions to be on the Lender’s form of Indirect Cost Budget Requisition; and a summary of the Direct Costs and the Indirect Costs to be on the Lender’s form of Summary of
Requisition). 
 “Retainage” shall mean the retention by the Lender often (10%) percent of the funds to be advanced
under a Direct Cost Requisition pending the Completion of the Improvements. 
 “Security Documents” means the Mortgage, the
Collateral Assignment, the Guaranty, the Construction Assignment and any other agreement or instrument now or hereafter securing the Note. 
 “Site Assessment Report” shall mean an environmental site assessment report prepared by a qualified environmental engineer satisfactory to the Lender indicating that no Hazardous Waste is or has been present on the Premises
or areas adjacent to the Premises and containing evidence satisfactory to the Lender that no “notice of responsibility” or other order has been issued by the United States Environmental Protection Agency against the Borrower or the
Premises. 
 1.02. Accounting Terms. All accounting terms not specifically defined herein shall be construed in
accordance with GAAP consistent with those applied in the preparation of all financial data submitted pursuant to this Agreement and prepared in accordance with GAAP. 
 II. GENERAL TERMS 
 2.01. Loan. The Borrower has applied to the Lender for the Loan and
the Lender has agreed to make the Loan to the Borrower subject to all the terms and conditions of this Agreement. The Loan will be disbursed as follows: the Refinance Advance shall be distributed to or on behalf of the Borrower, and shall be used to
pay-offal! existing mortgage liens on the Premises; and the Construction Advances shall be disbursed in accordance with the terms of Section 2.05 hereof. 
  

 4 

 2.02. Note. The Loan shall be evidenced by the Note. 
 2.03. Payments. The Borrower shall make payments to the Lender in immediately available funds, as and when required by the Note.

 2.04. Security for the Note. The Note shall be secured by the Security Documents and by such additional security as shall be
agreed to by the Lender and the Borrower from time to time. 
 2.05. Construction Advances. (a) Subject to the provisions
of this Agreement, the Lender will advance and the Borrower will accept the Construction Advances as follows: After Borrower’s expenditure of the Borrower’s Equity, the initial Construction Advance will be made upon the satisfaction of the
applicable conditions set forth in Article IV hereof relevant thereto, and all subsequent Construction Advances shall be made not more frequently than monthly thereafter, upon the satisfaction of the applicable conditions set forth in Article V
hereof, in amounts which shall be equal to the aggregate of the Direct Costs and the Indirect Costs incurred by the Borrower, in excess of the Borrower’s Equity, through the end of the period covered by the Requisition less: 

(i) The Retainage; and 
 (ii) The total of the Construction Advances theretofore made by the Lender; and, at the election of the Lender, less any combination of the following further amounts: 
 (iii) The entire amount by which any Direct Costs or Indirect Costs are (or are estimated by the Lender to be) greater than the amounts
set forth on the Initial Project Cost Statement for such costs; provided, however, that the Initial Project Cost Statement may be modified by reallocating funds between and among line items to reflect cost savings and/or cost over runs in one or
more line items, subject to verification by Lender’s Construction Consultant that such statement as modified is sufficient to complete construction of the Improvements; and/or 
 (iv) Any costs covered by the Requisition not approved, certified or verified as provided in Section 2.06 below, any Indirect Costs
covered by a previous Requisition for which proof of payment has not been received by the Lender, and/or any Direct Costs covered by a previous Requisition for which payment receipts have not been received by the Construction Consultant and/or the
Lender; and/or 
 (v) Any real estate taxes, mechanics’ liens, security interests, claims or other charges against the
Premises or the Improvements and any interest, fees or other costs which the Borrower has failed to pay in accordance with this Agreement, the Note or the Security Documents following written notice thereof given by the Lender to the Borrower.

 (b) The Borrower’s Share shall be payable by the Borrower out of its own funds (and not out of the proceeds of the
Loan). 
  

 5 

 2.06. Certification of Direct Costs. All Direct Costs are to be certified by the Contractor
and verified by the Construction Consultant. Verification of the monthly progress and Direct Costs of construction of the Improvements which have been incurred by the Borrower from time to time and the estimated total Direct Costs of construction of
the Improvements from time to time may be made by the Construction Consultant in his sole discretion. Both the Direct Costs and the Indirect Costs are to be approved by the Lender and may also be verified by the Lender from time to time. 

2.07. Location of Advances and Deposit Thereof. All Construction Advances are to be made from the principal office of the Lender or from
such other place as the Lender may designate. Requisitions shall be received five (5) business days prior to the date of the requested Construction Advance. Such Construction Advances shall be made to or deposited in a separate bank account
with the Lender which shall (a) be the depository for all Construction Advances made hereunder and (b) not be drawn upon except to pay (or to reimburse the Borrower if previously paid) for Direct Costs and Indirect Costs approved by the
Lender. 
 2.08. Last Advance. Amounts not advanced pursuant to paragraph (a)(i) of Section 2.05 during the course of
construction of the Improvements shall be advanced upon the satisfaction of the conditions set forth in Section 5.02 hereof for the receipt of the last advance for Direct Costs. Loan budget amounts for Indirect Costs not advanced prior to
Completion of the Improvements shall be advanced until exhausted, not more frequently than once a month, for the Indirect Costs as incurred after such Completion. 
 2.09. Building Material Advances. The Lender shall not be required to make any advances far building materials or furnishings which are not stored on the Premises or which are stored on the Premises but
not affixed to or incorporated in the Improvements; provided, however, the Lender may make advances for such materials if(a) they are stored on the Premises or in a bonded warehouse, (b) they are covered by adequate insurance, (c) they are
adequately protected against theft and damage and (d) the Construction Consultant confirms the foregoing and recommends such disbursements. 
 2.10. Acceleration of Advances. If following the occurrence of an Event of Default continuing uncured beyond any grace or notice period the Lender considers that its best interests and the best interests of Completion of the
Improvements lies in accelerating the amounts to be advanced pursuant to paragraph (a) of Section 2.05 hereof, it shall be entitled to do so and no Person dealing with the Borrower or the Contractor or any other Person shall have standing
to demand any different performance from the Lender. The Lender may also, while such Event of Default continues uncured, disburse Construction Advances, at its option, directly to the Contractor and/or subcontractors. 
 2.11. Insufficient Loan Proceeds. If at any time (which may include the execution of this Agreement and the inception of the Loan), and
from time to time, the Lender shall determine that the undisbursed balance of the available Construction Advances is insufficient to cover the remaining costs of Completion of the Improvements, then to further secure the future payment of the
Borrower’s Share of such costs the Lender may require the Borrower to furnish a Completion Deposit in an amount, and in form, if applicable, satisfactory to the Lender. Portions of any Completion Deposit shall be released to the Borrower when
and to the extent that the Lender determines that the value or amount thereof is more than the excess, if any, of the total remaining costs of Completion of the improvements over the undisbursed balance of the available Construction Advances.

  

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 2.12. Permanent Loan Phase. Upon the Completion Date, provided that there shall not then
exist an event that constitutes a Default or an Event of Default, the Loan shall continue for the term and subject to the conditions and requirements as stated in the Note, and all of the representations, warranties, covenants and agreements of the
Borrower stated herein shall continue until payment in full of all principal, interest and charges due under the Note and hereunder. 
 2.13. Participations. The Lender reserves the right without notice to the Borrower to sell participations in the Loan, in whole or in part, provided that the Borrower’s rights under this Agreement will not be modified
thereby. Furthermore, the Lender shall have the right to make available to actual or potential participants all financial information, public or non-public, that the Lender receives from the Borrower. 
 2.14. Conveyance to Guarantor. The Lender acknowledges and agrees that the Borrower may sell or otherwise transfer the Premises to the
Guarantor, subject to the Loan and the Security Documents, without the prior written consent of the Lender, but upon prior written notice to the Lender. 
 III. REPRESENTATIONS AND WARRANTIES 
 To induce the Lender to enter into this Agreement and make the
Loan, the Borrower represents and warrants to the Lender (which representations and warranties shall survive the delivery of the Note and the making of the Loan) that: 
 3.01. Financial Statements. All financial statements previously furnished by the Borrower to the Lender have been prepared in accordance with GAAP applied on a basis consistent with that of preceding
periods, are complete and correct, and fully and accurately reflect the financial condition of the Borrower as of said dates, and the results of its operations for the periods stated. To the best of the Borrower’s knowledge and belief, the
Borrower does not have any contingent obligations, liabilities for taxes, unusual long-term commitments or tease commitments except as specifically mentioned in such financial statements or the notes thereto. Since the date of the most recent
financial statements submitted to Lender there has been no material adverse change in the financial condition of the Borrower. 
 3.02.
Organization and Qualification. The Borrower (i) is duly organized, validly existing and in good standing under the laws of the State of Rhode Island, (ii) has the power and authority to own its properties and to carry on
business as now being conducted and is qualified to do business in every jurisdiction where such qualification is necessary and (iii) has the power to execute and deliver this Agreement, to borrow hereunder and to execute and deliver to the
Lender the Note, the Security Documents and any other instruments required hereunder. 
 3.03. No Conflict. (a) The
Borrower has taken all necessary action to authorize the borrowings on the terms and conditions of this Agreement and to authorize the execution, delivery and performance of this Agreement, the Note, the Security Documents and any other agreements
referred to herein or related to the Loan. 
  

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 (b) All consents, licenses, approvals or authorizations of, or registrations or declarations with, any
Governmental Authorities, bureaus or agencies which are required in connection with the execution, delivery, performance, validity or enforceability of this Agreement, the Note and any other agreements referred to herein have been duly obtained and
are in full force and effect. 
 (c) The execution, delivery and performance of this Agreement, the Note, the Security Documents and any other
agreement referred to herein will not be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under, any provision of any existing law or regulation or of any order or decree of any courts or
Governmental Authorities, bureaus or agencies or of the Articles of Organization or Operating Agreement of the Borrower or of any mortgage, indenture, contract or other agreement to which the Borrower is a party or which purports to be binding upon
it or upon any of its properties or assets, and will not result in the creation or imposition of any lien, charge or encumbrance on, or security interest in, any of its properties or assets, except in favor of the Lender. 
 3.04. Litigation. There is no action, suit or proceeding at law or in equity or by or before any Governmental Authorities or other agencies
now pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower which, if adversely determined, would have a material adverse effect on the business operations, properties, assets or condition (financial or otherwise)
of the Borrower. The Borrower is not in default with respect to any order of any courts, arbitrators or Governmental Authorities arising out of any action, suit or proceeding under any statute or other law. 
 3.05. No Default. The Borrower is not in default in the performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in any agreement or instrument to which it is a party or by which its assets may be bound, and no Default or Event of Default as hereinafter specified has occurred and is continuing hereunder. 
 3.06. Properties. The Borrower has good title to, or valid leasehold interests in, all of its properties and assets, real and personal,
including the Premises, free and clear of all mortgages, liens and encumbrances, except for the Permitted Encumbrances. 
 3.07.
Taxes. The Borrower has filed or caused to be filed all tax returns required to be filed, and has paid all taxes shown to be due and payable on said returns or on any assessments made against it, and no tax liens have been filed and no
claims are being asserted, or proposed or threatened to be asserted, with respect to any taxes which are not reflected in the financial statements referred to in Section 3.01 hereof, and the Borrower is currently providing adequate reserves for
all current taxes. 
 3.08. No Pending Insolvency. Any funds advanced to the Borrower under this Agreement do not
and will not render the Borrower insolvent; the Borrower is not contemplating either the filing of a petition under any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its property and the Borrower has
no knowledge of any Person 

  

 8 

 
contemplating the filing of any such petition against it, and none of such properties and assets owned by the Borrower is subject to any mortgage, security
interest, pledge, lien, charge, encumbrance or title retention or other security agreement or arrangement of any nature whatsoever, except for the Permitted Encumbrances. 
 3.09. Statements. No statement of fact made by or on behalf of the Borrower in this Agreement or in any certificate or schedule furnished to the Lender pursuant hereto, contains any untrue statement of a
material fact or omits to state any material fact necessary to make the statements contained therein or herein not misleading. There is no fact presently known to the Borrower which has not been disclosed to the Lender which materially affects
adversely nor as far as the Borrower can foresee, will materially affect adversely the property, business, prospects or condition (financial or otherwise) of the Borrower. 
 3.10. Legally Enforceable Agreement. This Agreement, the Note, the Security Documents and any other documents executed by the Borrower in connection with the Loan, are the legal, valid and binding
obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms, except to the extent that such enforcement may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
generally and except as certain remedies thereunder may be subject to equitable principles. 
 3.11. Regulation U. The Borrower
is not engaged principally, or as one of the Borrower’s important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation Li of the Board of Governors of the
Federal Reserve System), and will not use the proceeds of the Loan so as to violate Regulation U as it may be amended or interpreted from time to time by the Board of Governors of the Federal Reserve System. 
 3.12. Plans. The Plans are satisfactory to the Borrower, have been designed by the Contractor and, to the extent required by applicable law
or any effective restrictive covenant, approved by all Governmental Authorities and the beneficiary of any such covenant, respectively. The Plans so approved have been initialed by the Borrower and the Contractor. All construction, if any, already
performed on the Improvements has been performed within the perimeter of the Premises in accordance with the Plans approved by the Persons named above and with any restrictive covenants applicable thereto. There are no structural defects in the
Improvements or violations of any requirement of any Governmental Authorities with respect thereto; the planned use of the Improvements complies with applicable zoning ordinances, regulations and restrictive covenants affecting the Premises as well
as all environmental, ecological, landmark and other applicable laws and regulations; and all requirements for such use have been satisfied. 
 3.13. No Violation; Approvals. Construction of the Improvements will not violate the Permitted Encumbrances nor any zoning, environmental, building code, subdivision or land use ordinance, regulation or law, as such ordinance,
regulation or law has been affected by relief obtained by the Borrower from Governmental Authorities. No approvals are required by the U.S. Environmental Protection Agency or the Department of Housing and Urban Development under the Flood Disaster
Act of 1973. 
  

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 3.14. Brokerage Commissions. The making of the Loan or the Lender’s acquisition of the
Note or any of the Security Documents will not subject the Lender to any claim for a brokerage commission. 
 IV. CONDITIONS OF MAKING THE
REFINANCE ADVANCE 
 AND THE INITIAL CONSTRUCTION ADVANCE 
 The obligation of the Lender to make the Refinance Advance and the Initial Construction Advance hereunder is subject to the following conditions
precedent: 
 4.01. Representations. The representations and warranties set forth in Article III hereof shall be true and
correct on and as of the date hereof and the date that each advance under the Loan is made. 
 4.02. Certification. The Borrower
shall have executed and delivered to the Lender, upon the execution of this Agreement, the following: (a) a consent of the Borrower’s members and/or managers authorizing the execution and delivery of this Agreement, the Note, the Security
Documents and any other documents related to the Loan, and (b) such other supporting documents as the Lender may reasonably request. 
 4.03. Legal Opinion. The Lender shall have received the written opinion of Poore & Rosenbaum LLP, counsel for the Borrower, dated the date of the Loan, satisfactory to the Lender and its counsel in scope and
substance. 
 4.04. Good Standing. The Lender shall have received for the Borrower a Certificate of Good Standing from the Rhode
Island Secretary of State. 
 4.05. Legal Matters. All legal matters incident to the transactions hereby contemplated shall be
satisfactory to counsel for the Lender. 
 4.06. No Material Damage. The Improvements, if any, shall not have been materially
injured or damaged by fire or other casualty. 
 4.07. First Requisition. The Lender shall have received a Requisition for the
Initial Construction Advance. 
 4.08. Title Continuation. The Lender shall have received title continuation report of the title
policy to the dates of the Refinance Advance and the Initial Construction Advance in a form approved by the Lender and the Lender’s counsel containing a pending disbursements provision and setting forth no additional exceptions except those
approved in writing by the Lender and its counsel. 
 4.09. No Default. There shall be no Default under this Agreement or the
Security Documents at the time of the Refinance Advance and the Initial Construction Advance. 
 4.10. Direct Costs. If the
Initial Construction Advance shall consist of advances for Direct Costs (in addition to Indirect Costs) or be solely for Direct Costs, or if Direct Costs shall have theretofore been incurred even though not included within the Initial Advance, the
Construction Consultant shall have received and approved copies of (l) the Requisition, (2) the Construction Contract, and (3) all Change Orders which are in effect as of the date of such Requisition. 
  

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 4.11. Documents To Be Delivered To The Lender. The items to be delivered to the Lender
prior to the Initial Construction Advance shall be: 
 (a) The Construction Consultant’s fees and expenses and Lender’s counsel fees
and expenses. 
 (b) The Plans. 
 (c) Advice from the Construction Consultant to the effect that (1) the Plans have been approved by him and by the Governmental Authorities, (2) a Construction Contract and/or Major Subcontracts are in effect which satisfactorily
provide for the Completion of the Improvements, and (3) in his opinion the construction of the Improvements theretofore performed was performed in accordance with the Plans and will be finished along with all utilities on or before the
Completion Date. 
 (d) The executed Note. 
 (e) The executed Security Documents. 
 (f) The policies of hazard insurance required by the Security
Documents, accompanied by evidence of the payment of the premiums therefor, which policies shall contain an endorsement specifically providing that, in the case of any damage, the entire insurance proceeds will be paid to the Lender so long as it
certifies to the insurer that the unpaid principal amount of the Loan equals or exceeds the proceeds of insurance. 
 (g) A paid title
insurance policy, or commitment therefor, in American Land Title Association form, approved by the Lender, from a title insurer acceptable to the Lender, for the amount of the Note, insuring the Mortgage to be a valid first lien on the
Borrower’s interest in the Premises free and clear of all defects, encumbrances and exceptions except the Permitted Encumbrances and such other defects, encumbrances and exceptions as the Lender and its counsel shall approve, and shall contain:

 (i) full coverage against mechanics’ and materialmen’s liens; 
 (ii) a reference to the survey but no survey exceptions except those theretofore approved in writing by Lender and its counsel; and

 (iii) a pending disbursement clause in a form approved by the Lender. 
 (h) Uniform Commercial Code financing statements to perfect the security interest created by the Security Documents in the personalty, fixtures and other
property described therein. 
  

 11 

 (i) A progress schedule showing the interval of time over which the construction of the Improvements will
be completed. 
 (j) The Initial Project Cost Statement. 
 (k) Certified copies of all authorizations including plot plan approvals, sewer permits and zoning variances, if any, building and other permits required by any Governmental Authorities for the construction, use,
occupancy and operation of the Premises and/or the Improvements for the purposes contemplated by the Plans in accordance with all applicable building, environmental, ecological, landmark, subdivision and zoning codes, laws and regulations, which are
presently procurable. 
 (l) A current title report from the title insurer which shall set forth a legally sufficient description of the
Premises, copies of all instruments which appear as exceptions in the report, any liens which have been previously discharged by bonding, court deposit or other means other than full payment, the status of the title to abutting streets and roads,
and any UCC filings against the Borrower or other owner of the Premises; and advice from the title insurer to the effect that searches of proper public records disclose no leases of personalty or financing statements filed or recorded against the
Premises or the Borrower, or owner of any of the property which is the subject of the Security Documents. 
 (m) Copies of the Construction
Contract and all riders, addenda and other instruments referred to therein as “contract documents,” certified by the Borrower to be true and complete and copies of Major Subcontracts so certified. 
 (n) Lien releases or affidavits from, or the submission of other appropriate forms by, suppliers, the Contractor, subcontractors or materialmen as the
Lender may deem desirable. 
 4.12. Documents To Be Delivered To The Construction Consultant. The items to be delivered to the
Construction Consultant prior to the Initial Construction Advance shall be: 
 (a) Copies of a site plan (showing all necessary approvals,
utility connections and site improvements) and the Plans. 
 (b) Copies of the Construction Contract and any Major Subcontracts. 

(c) Copies of the authorizations, approvals, permits and other documents referred to in paragraph (k) of Section 4.11. 
 4.13. Borrower’s Equity. Prior to the Initial Construction Advance the Borrower shall have expended an amount equal to the
Borrower’s Equity in payment of the Direct Costs and the Indirect Costs. 
  

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 V. CONDITIONS OF MAKING CONSTRUCTION ADVANCES 
 AFTER THE INITIAL CONSTRUCTION ADVANCE 
 5.01. Conditions Precedent. The Lender’s obligation to make Construction Advances after the Initial Construction Advance shall be subject to the satisfaction of the following conditions: 
 (a) All conditions of Article IV shall remain satisfied, performed and unimpaired as of the date of each such subsequent advance. 
 (b) If the advance shall consist of disbursements for Direct Costs, the Construction Consultant and the Lender shall have received, as of the date of the
advance, the items required by Section 4.12 and such other documentation and information (including but not limited to the progress schedule) as the Construction Consultant or the Lender may require. 
 (c) The Lender shall have received a Requisition for the advance. 
 (d) The Lender shall have received a title continuation report of the title policy to the date of such advance, in the form approved by the Lender’s counsel, including, but not limited to, the pending
disbursements clause and setting forth no additional exceptions except those approved in writing by the Lender and its counsel. 
 (e) If
required by the title insurance company, the Lender shall have received a survey certified to the Lender, and the title insurer, updated with respect to all relevant requirements and information to within ten (10) days of the advance.

 (f) The representations and warranties set forth in Article III hereof shall be true and correct on and as of the date of the advance with
the same effect as if made on such date. 
 (g) There shall be no Default under this Agreement or the Security Documents as of the date of
such advance. 
 5.02. Last Advance. In the case of the last Construction Advance as provided in Section 2.08, the Lender
shall also have received: 
 (a) Evidence of (i) approval by all Governmental Authorities of the Completion of the Improvements in their
entirety and the issuance of a certificate for the temporary, conditional or permanent occupancy thereof (and if temporary or conditional, subject to reasonable conditions but permitting the Borrower to occupy and begin operations) to the extent any
such approval is a condition of the lawful use and occupancy of the Improvements for the contemplated uses, and (ii) such approval by the State Fire Marshall or its equivalent. 
 (b) Certifications from the Contractor, the Construction Consultant, and the Architect, in form and substance reasonably acceptable to the Lender, that
all design, site, construction and finishing work necessary for the Completion of the Improvements and any necessary utilities have been finished and made available for use in accordance with the Plans. 
  

 13 

 (c) An affidavit of the Borrower that all work performed or materials supplied for the Improvements
during the prior two hundred (200) days has been fully paid for or delivery of lien releases or affidavits from, or the submission of other appropriate forms by, suppliers, the Contractor, subcontractors or materialmen as the Lender may
reasonably deem desirable. 
 VI. AFFIRMATIVE COVENANTS 
 The Borrower covenants and agrees that, from the date hereof and until payment in full of the principal of, and interest on, the Loan, unless the Lender shall otherwise consent in writing, the Borrower will:

 6.01. Maintenance of Properties; Insurance. (a) Do or cause to be done all things necessary to preserve, renew and keep
in full force and effect its rights, licenses, permits and franchises and comply with all laws and regulations applicable to it; at all times maintain, preserve and protect all franchises and trade names and preserve all the remainder of its
property used or useful in the conduct of its business and keep the same in good repair, working order and condition, and from time to time, make, or cause to be made, all needful and proper repairs, renewals, replacements, betterments and
improvements thereto, so that the business carried on in connection therewith may be properly and advantageously conducted at all times; and maintain insurance in accordance with the requirements of the Security Documents. 
 (b) Comply in all material respects with all applicable laws and regulations, whether now in effect or hereafter enacted or promulgated by any
Governmental Authorities having jurisdiction over the property which is the subject of the Security Documents. 
 6.02. Payment of
Obligations and Taxes. Pay and discharge or cause to be paid and discharged all of its obligations and liabilities and all taxes, assessments and governmental charges or levies imposed upon it or upon its respective income and profits or
upon any of its property, real, personal or mixed, or upon any part thereof, before the same shall become in default, as well as all lawful claims for labor, materials and supplies or otherwise, which, if unpaid, might become a lien or charge upon
such properties or any part thereof; provided that the Borrower shall not be required to pay and discharge or cause to be paid and discharged any such tax, assessment, charge, levy or claim so long as the validity thereof shall be contested in good
faith by appropriate proceedings and it shall have set aside on its books adequate reserves with respect to any such tax, assessment, charge, levy or claim, so contested; and provided, further, that payment with respect to any such tax, assessment,
charge, levy or claim shall be made within ten (10) days after entry of final judgment and before any of its property shall be seized or sold in satisfaction thereof. 
 6.03. Legal Proceedings. Give prompt written notice to the Lender of any proceedings instituted against it in any Federal or state court or before any commission or other regulatory body, Federal, state
or local, which, if adversely determined, would have an adverse effect upon its business, operations, properties, assets, or condition, financial or otherwise. 
 6.04. Books, Records and Reports. At all times keep proper books of record and accounts in which full, true and correct entries will be made of its transactions in accordance with GAAP and in a manner
satisfactory to the Lender. The Borrower hereby authorizes the Lender to make or cause to be made, at the Borrower’s expense and in such reasonable manner and at such reasonable times as the Lender may require: 
 (a) Inspections and audits of any books, records and papers in the custody or control of the Borrower or others, relating to the Borrower’s financial
or business conditions, including the making of copies thereof and extracts therefrom, provided, however, unless an event of default has occurred, then such right to inspect and audit the books and records of the Borrower, at Borrower’s
expense, shall be limited to not more than one time in any calendar year, and 
  

 14 

 (b) Inspections and appraisals of any of the Borrower’s assets. 
 6.05. Financial Statements. Furnish or cause to be furnished to the Lender: 
 (a) Within one hundred twenty (120) days of the end of each calendar year, copies of Borrower’s income tax returns for the year then ended,
balance sheets for the Borrower, and statements of income and expense and cash flows for the Premises, each prepared in reasonable detail and in form and substance reasonably satisfactory to the Lender, such balance sheets to be as of the close of
such calendar year and such other statements to be for the period from the beginning of such calendar year to the end of such calendar year; 
 (b) Upon request of the Lender, a true and correct schedule of all leases of the Premises showing the name of the tenant, the space occupied, the rental rate, and the expiration date of the term; 
 (c) Promptly, from time to time, such other information regarding its assets, business affairs and financial condition, as the Lender may reasonably
request. 
 6.06. Adverse Changes. Promptly advise the Lender of (a) all litigation and proceedings affecting
the Borrower in which the amount involved is Fifty Thousand Dollars ($50,000) or more and is not covered by insurance; (b) any material adverse change in its condition, financial or otherwise; or (c) any Default described in Article IX
hereof or of the occurrence of any event which upon notice or lapse of time or both would constitute such an Event of Default. 
 6.07.
Accounting. Maintain a standard system of accounting. 
 6.08. Depository. Use the Lender as the principal bank of
account of the Borrower’s funds. 
 6.09. Additional Instruments. Promptly execute and deliver or cause to be executed and
delivered to the Lender all such additional and/or supplemental other instruments and documents from time to time as the Lender deems necessary or appropriate for the performance of the Borrower’s obligations under this Agreement, so long as
such additional instruments do not create any additional liabilities or obligations of the Borrower. 
 6.10. Compliance with
Laws. Promptly comply in all material respects with all laws, ordinances, orders, rules, statutes and regulations of Governmental Authorities and furnish the Lender, promptly, with reports of any official searches made by any Governmental
Authorities and any claims of violations thereof. 

 15 

 6.11. Inspection of Premises. Permit the Lender, its representatives and the Construction
Consultant, to enter upon the Premises at all reasonable times, upon advance notice to the Borrower during normal business hours of the Borrower and without interfering with the Borrower’s normal business operations, to inspect the Improvements
and all materials to be used in the construction thereof and to examine all detailed plans and shop drawings which are or may be kept at the construction site. The Borrower will cooperate and also cause the Contractor and the subcontractors under
the Major Subcontracts to cooperate with the Construction Consultant to enable him to perform his functions hereunder. At the time of each inspection by the Construction Consultant, the Borrower will make available to the Construction Consultant, on
demand, daily log sheets covering the period since the immediately preceding inspection showing the date, weather, subcontractors on the job, number of workers and status of construction. 
 6.12. Payment of Fees. Pay or authorize the Lender to pay out of proceeds of the Loan all costs and expenses required for the Completion of
the Improvements and the satisfaction of the conditions of this Agreement, including without limitation: 
 (a) All costs of title searches or
abstracts, document taxes, stamp taxes and recording expenses; 
 (b) Any fees and commissions due to brokers in connection with this
transaction; and 
 (c) The Construction Consultant’s fees and expenses related to the project, and Lender’s counsel’s
reasonable fees and expenses. 
 6.13. Commencement of Construction. Commence construction of the Improvements no later than
thirty (30) days from the date hereof; cause the construction thus begun to be prosecuted with diligence and continuity in accordance with the Plans except during the existence of delays (for not more than forty-five (45) days) caused by
events beyond its control; and complete the Improvements in accordance with the Plans on or before the Completion Date free and clear of defects and liens or claims for liens for material supplied or labor or services performed in connection with
the construction of the Improvements. 
 6.14. Payment of the Borrower’s Share. Pay in any month in which an Advance
occurs, the portion of the costs of Completion of the Improvements theretofore incurred equal to the Borrower’s Share. 
 6.15.
Satisfaction of Conditions. Cause the satisfaction of all conditions of this Agreement to be performed by or imposed upon the Borrower. 
 6.16. Delivery of Bill of Sale, Etc. Deliver to the Lender or the Construction Consultant copies of all contracts, bills of sale, statements, receipted vouchers or agreements under which the Borrower claims title to any
materials, fixtures or articles incorporated in the Improvements or subject to the lien of the Security Documents, or under which it has incurred costs for which it is entitled to a Loan advance. 
  

 16 

 6.17. Correction of Defects. Upon demand of the Lender or the Construction Consultant, and
following review of such demand by the Borrower and its contractor and consultants, correct any defects (including structural) in the Improvements or any material departures from the Plans not approved by the Lender (with respect to which the
advance of any Loan proceeds shall not constitute a waiver of the Lender’s right to require correction of any such defects or departures from the Plans not theretofore discovered by, or called to the attention of, the Lender or the Construction
Consultant). 
 6.18. Security. Employ reasonable means to protect from theft or vandalism all portions of the Improvements and
all tools and building materials stored at the Premises. 
 6.19. Compliance with Easements, Etc. Comply with all restrictions,
covenants and easements affecting the Premises or the Improvements. 
 6.20. Change Orders. Not permit Change Orders which would
involve a change in costs of more than $25,000 or involve changes exceeding $100,000 in the aggregate. 
 6.21. Press Releases.
Use best efforts to include in press releases concerning the Premises that the Lender is providing the financing therefor. 
 VII.
FINANCIAL COVENANTS 
 [RESERVED] 
 VIII. NEGATIVE COVENANTS 
 The Borrower covenants and agrees that, until payment in full of the principal of, and interest
on, the Loan, unless the Lender shall otherwise consent in writing, it will not, directly or indirectly: 
 8.01. Liens. Create,
incur, make, assume or suffer to exist any assignment, mortgage, pledge, lien, charge, security interest or other encumbrance of any nature whatsoever on the Premises other than in favor of the Lender or other than the Permitted Encumbrances.

 8.02. Fundamental Changes. Dissolve, liquidate, consolidate with, or merge with, or otherwise acquire all or substantially
all of the assets or properties of, any other Person, or make any substantial change in its executive management, or engage, directly or indirectly, in any business substantially different from the business now being conducted. 
 8.03. Acceleration of Other Indebtedness. Accelerate the maturity of any Indebtedness now or hereafter outstanding to any other bank,
supplier, or other third party, or repay the same otherwise than in accordance with its regular amortization. 
 8.04. Performance of
Work. Permit the performance of any work on the Improvements pursuant to the Construction Contract, Major Subcontracts, Change Orders or Plans until the Lender or the Construction Consultant shall have received copies of such 

  

 17 

 
Construction Contract, Major Subcontracts, Change Orders or Plans and, in the case of Change Orders (except as provided in Section 6.20 hereof) or
Plans, given specific written approval thereof, it being understood that approval of any Plans or Change Orders will not obligate the Lender to increase or advance any Loan budget amount on account of any such Plans or Change Orders. 
 8.05. Hazardous Waste. Release, generate or dispose of any Hazardous Waste at the Premises or on any properties adjacent to the Premises in
violation of any Hazardous Waste Laws. In the event that any Hazardous Waste is found at the Premises, the Borrower shall immediately, if required by Hazardous Waste Laws, contain and remove the same in compliance with all Hazardous Waste Laws. The
Borrower shall insure that all of its properties and operations are in compliance with all Hazardous Waste Laws. 
 IX. DEFAULTS AND
REMEDIES 
 9.01. Events of Default. The following shall constitute Events of Default: 
 (a) any material representation or warranty made herein, or in any report, certificate, financial statement, Requisition or other instrument furnished in
connection with this Agreement, or the borrowing hereunder, shall prove to be false or misleading in any material respect on or as of the date made or deemed made, and shall, in Lender’s reasonable judgment, adversely affect either the
collateral for the Loan or the prospects for the Borrower’s repayment of the Loan; 
 (b) default in the payment of any installment of
the principal of, or fees or interest on, the Note after the date when the same shall become due and payable, whether at the due date thereto for at a date fixed for prepayment or by acceleration or otherwise, including any applicable grace period;

 (c) default in the due observance or performance of any covenant, condition or agreement contained in Articles VI, VII or VIII hereof, in
the Note (other than payment) or in the Security Documents, and the continuance of such default for a period of twenty (20) days after the date Lender provides Borrower written notice of such default; 
 (d) default in the due observance or performance of any other covenant, condition or agreement, on the part of the Borrower to be observed or performed
pursuant to the terms hereof, and the continuance of such default for a period of twenty (20) days after written notice of such default is given by the Lender to the Borrower; 
 (e) default, after the expiration of any applicable grace or notice period, in the due observance or performance of any covenant, promise or provision
contained in any other agreement of the Borrower in favor of the Lender, including without limitation, any other loan agreement, promissory note, mortgage deed or security document; 
 (f) default, after the expiration of any applicable grace periods, in the due observance or performance of any covenant, promise or provision contained in
any of the Security Documents, and the continuance of such default for a period of twenty (20) days after the date Lender provides Borrower written notice of such default; 
  

 18 

 (g) default, after the expiration of any applicable grace periods, in the due observance or performance
of any covenant, promise or provision contained in, or the occurrence of any event of default as defined under, any agreement of the Guarantor in favor of the Lender, including without limitation, any loan agreement, promissory note, mortgage deed
or security document; 
 (h) the Borrower shall (i) apply for or consent to the appointment of a receiver, trustee or liquidator of it or
any of its property, (ii) admit in writing inability to pay its debts as they mature, (iii) make a general assignment for the benefit of creditors, (iv) be adjudicated a bankrupt or insolvent or (v) file a voluntary petition in
bankruptcy, or a petition or an answer seeking reorganization or an arrangement with creditors or to take advantage of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law or statute, or an answer
admitting the material allegations of a petition filed against it in any proceeding under any such law or if corporate action shall be taken for the purpose of effecting any of the foregoing; provided, however, Borrower shall have forty-five
(45) days within which to cause the dismissal of any involuntary petition; 
 (i) an order, judgment or decree shall be entered, without
the application, approval or consent of the Borrower by any court of competent jurisdiction, approving a petition seeking reorganization of the Borrower or appointing a receiver, trustee or liquidator of the Borrower or of all or a substantial part
of the assets of the Borrower, provided, however, with respect to such involuntary proceedings, the Borrower shall have thirty (30) days from the date of such order, judgment or decree to discharge the same; 
 (j) final judgment for the payment of money in excess of an aggregate of Fifty Thousand Dollars ($50,000) shall be rendered against the Borrower, which
judgment is uninsured, and the same shall remain undischarged for a period of thirty (30) consecutive days, or shall not be fully bonded in a manner reasonably acceptable to the Lender within such thirty (30) day period, during which
execution shall not be effectively stayed; 
 (k) the occurrence of any attachment of any deposits or other property of the Borrower in the
hands or possession of the Lender, or the occurrence of any attachment of any other property of the Borrower (other than the Premises or the Improvements thereon) in an amount exceeding Fifty Thousand Dollars ($50,000) which shall not be fully
bonded in a manner reasonably acceptable to the Lender or discharged within thirty (30) days of the date of such attachment; 
 (l)
discontinuance of construction of the Improvements for a continuous period of twenty (20) days without prior written notice to the Lender, or, as a result of delays beyond the Borrower’s reasonable control, for a period of more than ninety
(90) days; 
 (m) refusal to permit the Lender, its representatives or the Construction Consultant to enter upon the Premises at all
reasonable times to inspect the Improvements, the construction thereof and all materials, fixtures and articles used or to be used in said construction and to examine all detailed plans, shop drawings and specifications which relate to the
Improvements, which refusal 

  

 19 

 
continues for five (5) days after written request by the Lender, and/or failure to furnish to the Lender, its representative or the Construction
Consultant copies of such plans, drawings and specifications within ten (10) days after a written request therefor by the Lender; 
 (n)
execution by the Borrower of any security instrument other than the Security Documents or otherwise permitted under this Agreement covering any materials, fixtures, furnishings or equipment intended to be incorporated or placed in the Improvements,
the filing of a financing statement with the Borrower’s consent, publishing notice of such security instrument with the Borrower’s consent, or failure to purchase any of such materials, fixtures, furnishings or equipment so that the
ownership thereof will not vest unconditionally in the Borrower free from encumbrances on delivery at the Premises except as otherwise permitted under this Agreement; 
 (o) failure by the Borrower to disclose to the Lender or the Construction Consultant, upon request, the names of all Persons with whom the Borrower has contracted or intends to contract for the construction of the
Improvements or for the furnishing of labor or materials therefor, or to obtain the approval of such Persons by the Lender when required by this Agreement; 
 (p) failure or inability of the Borrower to complete the Improvements on or before the Completion Date; 
 (q)
failure to satisfy or bond a lien for the performance of work or the supply of materials filed against the Premises for a period of thirty (30) days after the filing thereof; 
 (r) if (i) any “notice of violation”, “notice of responsibility” or other similar order is issued by any one or more Governmental
Authorities against the Premises or the Borrower under any applicable Hazardous Waste Law and the Borrower fails to diligently respond to such notice and to begin remediation of all violations noticed therein or (ii) if any lien or claim is
filed or arises against the Premises under any Hazardous Waste Law and the Borrower fails to diligently respond to such notice and to begin remediation of all violations noticed therein; 
 (s) if any easement over, across or under or otherwise materially affecting the Premises or any portion thereof (other than customary utility easements)
shall be granted without the Lender’s prior written consent; or 
 (t) the occurrence of any event of default as defined in any of the
Security Documents which is continuing beyond any applicable grace or cure periods. 
 9.02. Acceleration. Upon the occurrence
of any such Event of Default and at any time thereafter during the continuance of such Event of Default, the Lender may, by written notice to the Borrower, declare the entire principal amount of the Loan forthwith to be due and payable, whereupon
the Loan shall become forthwith due and payable, both as to principal and interest, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived, anything contained herein or in the Note or other evidence of
the Loan to the contrary notwithstanding and any obligation of the Lender to extend further credit pursuant to any of the terms hereof shall immediately terminate. 
  

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 9.03. Set-off. Borrower hereby grants to Lender a continuing lien, security interest and
right of setoff as security for all liabilities and obligations to Lender, whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property, now or hereafter in the possession, safekeeping or control of
Lender or any entity under the control of Bank of America Corporation and its successors and assigns, or in transit to any of them. At any time, without demand or notice, Lender may set off the same or any part thereof and apply the same to any
liability or obligation of Borrower even though unmatured and regardless of the adequacy of any collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH
SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 
 9.04. Completion by the Lender. After and during the continuation of any Event of Default which in the Lender’s judgment may materially
and substantially interfere with Completion of the Improvements, the Lender shall have the right and is hereby given a license, in addition to and without limiting any other rights or remedies afforded by the Note, the Security Documents, or this
Agreement, or other documents executed and delivered hereunder or thereunder, or by law, to enter or to cause the Construction Consultant or another independent contractor of the Lender’s selection to enter the Premises and perform any and all
work and labor necessary for the Completion of the Improvements in accordance with the Plans. All sums advanced hereunder and any other amounts expended by the Lender for the Completion of the Improvements shall be deemed to have been advanced to
the Borrower and shall be secured by the Security Documents. 
 9.05. Attorney-In-Fact. For purposes of Section 9.04, the
Borrower hereby constitutes and appoints the Lender, the Construction Consultant and/or another independent contractor selected by the Lender, its true and lawful attorney-in-fact with full power of substitution for the purpose of causing, upon the
occurrence of an Event of Default and for so long as such Event of Default continues uncured, the Completion of the Improvements in the name of the Borrower, and hereby empowers said attorney-in-fact to do any or all of the following: 
 (a) To use any and all funds which may remain unadvanced hereunder for the purpose of causing the Completion of the Improvements in the manner called for
by the Plans; 
 (b) To make such additions, changes and corrections in the Plans as shall be necessary or desirable for the Completion of the
Improvements in substantially the manner contemplated by the Plans; 
 (c) To employ any contractors, subcontractors, agents, architects and
inspectors required for said purposes; 
  

 21 

 (d) To employ attorneys to defend against attempts to interfere with the exercise of the powers granted
hereby; 
 (e) To pay, settle or compromise all existing bills and claims which are or may be liens against the Premises or Improvements or
may be necessary or desirable for the Completion of the Improvements or the clearance of title; 
 (f) To execute all applications and
certificates in the name of the Borrower which may be required by any construction contract; and/or 
 (g) To prosecute and defend all actions
or proceedings in connection with the construction of the Improvements on the Premises and to take such action, require such performance and do any and every other act as is deemed reasonably necessary with respect to the Completion of the
Improvements which the Borrower might do in its own behalf. 
 9.06. Power Coupled with an Interest. The power-of-attorney given
in Section 9.05 shall be a power coupled with an interest which, together with the license given in Section 9.04, cannot be revoked until the Completion of the Improvements in accordance with this Agreement. 
 9.07. Payment Direct to Contractor. After the occurrence of any Event of Default, the Borrower does irrevocably permit and authorize the
Lender to advance any remaining proceeds of the Loan directly to subcontractors under the Major Subcontracts, the Contractor and other Persons to pay for the Completion of the Improvements but the Lender is not under any obligation to do so. No
further direction or authorization from the Borrower shall be necessary to warrant such direct advances and all such advances shall satisfy pro tanto the obligations of the Lender hereunder and shall be secured by the Security Documents as
fully as if made to the Borrower regardless of the disposition thereof by any major subcontractor, the Contractor or such other Persons. The Lender may impose any condition for such direct payment including, but not limited to, receipt of estoppel
certificates, waivers of lien, releases and the like. 
 9.08. Other Remedies. The Lender may look to, utilize, and realize upon
any item or portion of any security held by it hereunder or under the Security Documents, or other instrument securing the Loan or any other Indebtedness, liabilities, or Obligations of the Borrower to the Lender, whether now existing or hereafter
contracted or acquired, in any order it may elect without obligation to equalize the burden between or among the separate items of security or portions thereof or between or among the owners thereof, or to marshal the same in any way, and the Lender
may apply any proceeds of any security in such order as it shall determine, and after all Indebtedness, liabilities, and Obligations now or hereafter of the Borrower to the Lender have been paid in full, the Lender shall account for any security
then remaining or any surplus proceeds of any security then remaining to the owner of such security. 
 X. MISCELLANEOUS 
 10.01. Survival of Representations. This Agreement and all covenants, agreements, representations and warranties made herein and in the
certificates delivered pursuant hereto, shall survive the making by the Lender of the Loan, the execution and delivery to the Lender of the Note and the Security Documents, and shall continue in full force and effect so long as the Note is
outstanding and unpaid. 
  

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 10.02. Successors and Assigns. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the successors and assigns of such party; and all covenants, promises and agreements in this Agreement contained, by or in behalf of the Borrower shall inure to the benefit of the respective
successors and assigns of the Lender, provided that the Borrower may not transfer or assign any of its respective rights hereunder without the prior written consent of the Lender. 
 10.03. Lenders Expenses. The Borrower will reimburse the Lender upon demand for all reasonable out-of-pocket costs, charges and expenses of
the Lender (including reasonable fees and disbursements of counsel to the Lender) in connection with (i) the preparation, execution and delivery of this Agreement, the Note, the Security Documents and any other agreements hereunder,
(ii) the making of the Loan, (iii) any amendments, modifications, consents, or waivers in respect thereof, (iv) any enforcement thereof and (v) any enforcement of the Lender’s rights with respect to, or the administration,
supervision, preservation, protection of, or realization upon, any property securing the Note and/or this Agreement. 
 10.04.
Governing Law. This Agreement, the Note and the Security Documents (unless otherwise specified therein) shall be construed in accordance with and governed by the internal laws (and not the law of conflicts) of the State of Rhode Island.

 10.05. No Waiver. No modification or waiver of any provision of this Agreement or the Note nor consent to any departure by
the Borrower therefrom, shall in any event be effective unless the same shall be in writing, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. No notice to, or demand on, the
Borrower, in any case, shall entitle the Borrower to any other or future notice or demand in the same, similar or other circumstances. Neither any failure nor delay on the part of the Lender in exercising any right, power or privilege hereunder, or
under the Note, or any other instrument given as security therefor, shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or future exercise, or the exercise of any other right, power or privilege.

 10.06. Captions. The captions and other headings contained in this Agreement are for reference only and shall not affect the
meaning or interpretation of this Agreement. 
 10.07. Notices. All communications provided for hereunder shall be in writing,
sent by U.S. Mail, postage prepaid, to the respective parties at the addresses set forth below: 
  

					
		 	If to the Lender:	  	 Bank of America, N.A.
 111 Westminster
Street
 Providence, Rhode Island 02903
 Attention: David J.
Angell, Senior Vice President

			
		 	With a copy to:	  	 R. Jeffrey Knisley, Esquire
 Roberts, Carroll,
Feldstein & Peirce Incorporated
 Ten Weybosset Street
 Providence, Rhode Island 02903

  

 23 

					
		 	If to the Borrower:	 	 Faith Realty, LLC
 582 Great Road
 North Smithfield, Rhode Island 02896
 Attn: Jason Macari

			
		 	With a copy to:	 	 Steven I. Rosenbaum, Esq.
 Poore & Rosenbaum
LLP
 30 Exchange Terrace
 Commerce Center
 Providence, Rhode Island 02903

 Each party by notice duly given in accordance herewith may specify a different address for the purposes hereof.

 10.08. Maximum Payments. Notwithstanding any other terms or conditions hereof, in no event shall the amount paid or agreed
to be paid to the Lender hereunder exceed the maximum permissible under applicable law. If, for any reason, fulfillment of any obligation of Borrower shall involve the exceeding of such maximum, then such obligation, automatically and without action
or notice by Lender, shall be reduced to such maximum valid amount and any amount received by Lender in excess thereof shall be applied to the reduction of principal outstanding and not to interest. 
 10.09. Jurisdiction. The Borrower, to the extent that it may lawfully do so, hereby consents to the jurisdiction of the courts of the State
of Rhode Island and the United States District Court for the District of Rhode Island as well as to the jurisdiction of all courts from which an appeal may be taken from such courts, for the purpose of any suit, action or other proceeding arising
out of any of its Obligations arising hereunder or with respect to the transactions contemplated hereby, and expressly waives any and all objections it may have as to venue in any of such courts. 
 10.10. Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 
 10.11. Gender. Words of the masculine gender shall mean and include correlative words of the feminine and neuter genders and words
importing the singular number shall mean and include the plural number and vice versa. 
 10.12. Arm’s-Length Transaction.
The Borrower recognizes, stipulates and agrees that the Lender’s actions and relationships with the parties hereto, including, but not limited to, those relationships created or referenced by or in this Agreement, the Note and the Security
Documents, have been and constitute arm’s-length commercial transactions and that such actions and relationships shall at all times in the future continue to constitute arm’s-length commercial transactions and that the Lender or the
Lender’s attorneys shall not at any time act, be obligated to act, or otherwise be construed or interpreted as acting as or being the agent, attorney, partner, employee or fiduciary of any such parties. 
  

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 10.13. Negotiations. The Borrower stipulates and agrees that each of this Agreement, the
Note and the Security Documents are products of and result from lengthy arm’s-length negotiations between the parties and that neither the Lender nor any other party has exerted or attempted to induce, through threats or otherwise, the
execution or delivery of this Agreement, the Note or the Security Documents. Without in any way limiting the foregoing, the Borrower stipulates and agrees that at all times during the course of the negotiations surrounding the execution and delivery
of this Agreement, the Note and the Security Documents, it has, to the extent deemed necessary or advisable in its sole discretion, been advised and assisted by competent counsel of its own choosing, that counsel has been present and actively
participated in the negotiations surrounding this Agreement, the Note and the Security Documents, and that it has been fully advised by counsel of its choosing of the effect of each term, condition, provision and stipulation contained herein and
therein. 
 10.14. No Offer. Neither the negotiations to date nor the preparation of this Agreement, the Note or the Security
Documents shall be deemed an offer by any of the parties to the other. No such instrument, document or agreement shall be deemed binding on any party until such party has executed and delivered the same in writing. 
 10.15. Agreements Relating to Consideration. The Borrower hereby acknowledges and agrees that the covenants and agreements of the Lender
under this Agreement constitute full and fair consideration for the obligations, covenants and agreements of (a) the Borrower under this Agreement, and that, by virtue of such consideration, each of the parties hereto and thereto have received
reasonably equivalent value in exchange for the covenants and agreements hereunder and thereunder. 
 10.16. No Joint Venture.
Notwithstanding anything to the contrary contained herein, in the Note and/or in the Security Documents, the Lender, by entering into this Agreement with the Borrower, will not be deemed a partner or joint venturer with the Borrower and the Borrower
agrees to hold the Lender harmless from any damages and expenses resulting from such construction of the relationship of the parties or any exertion thereof. 
 10.17. Integration. This Agreement and the Security Documents contain the entire agreement between the parties relating to the subject matter hereof and thereof and supercede all oral statements and
prior writings with respect thereto. 
 10.18. Jury Waiver. BORROWER AND LENDER MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF
CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF LENDER RELATING TO THE ADMINISTRATION OF THE LOANS OR
ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE 

  

 25 

 
THAT NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. BORROWER CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR LENDER TO ACCEPT
THE NOTE AND MAKE THE LOAN. 
 10.19. Replacement of Note. Upon receipt of an affidavit of an officer of Lender as to the loss,
theft, destruction or mutilation of the Note or any other security document which is not of public record, and, in the case of any such loss, theft, destruction or mutilation, upon surrender and cancellation of the Note or other security document,
Borrower will issue, in lieu thereof, a replacement promissory note or other security document in the same principal amount thereof and otherwise of like tenor. Lender agrees to indemnify and hold Borrower harmless from any liability or damages
arising under the original promissory note if a replacement promissory note is delivered. 
 10.20. Assignment of Loan. Lender
shall have the unrestricted right at any time or from time to time, and without Borrower’s consent, to assign all or any portion of its rights and obligations hereunder to one or more banks or other financial institutions (each, an
“Assignee”), and Borrower agrees that it shall execute, or cause to be executed, such documents, including without limitation, amendments to this Agreement and to any other documents, instruments and agreements executed in connection
herewith as Lender shall deem necessary to effect the foregoing. In addition, at the request of Lender and any such Assignee, Borrower shall issue one or more new promissory notes, as applicable, to any such Assignee and, if Lender has retained any
of its rights and obligations hereunder following such assignment, to Lender, which new promissory notes shall be issued in replacement of, but not in discharge of, the liability evidenced by the promissory note held by Lender prior to such
assignment and shall reflect the amount of the respective commitments and loans held by such Assignee and Lender after giving effect to such assignment. Upon the execution and delivery of appropriate assignment documentation, amendments and any
other documentation required by Lender in connection with such assignment, and the payment by Assignee of the purchase price agreed to by Lender, and such Assignee, such Assignee shall be a party to this Agreement and shall have all of the rights
and obligations of Lender hereunder (and under any and all other guaranties, documents, instruments and agreements executed in connection herewith) to the extent that such rights and obligations have been assigned by Lender pursuant to the
assignment documentation between Lender and such Assignee, and Lender shall be released from its obligations hereunder and thereunder to a corresponding extent. Borrower may furnish any information concerning Borrower in its possession from time to
time to prospective Assignees, provided that Lender shall require any such prospective Assignees to agree in writing to maintain the confidentiality of such information. The execution and delivery of appropriate assignment documentation, including
amendments and replacement promissory notes, and the reasonable attorney’s fees of Borrower’s counsel in reviewing such assignment documentation, shall be at Lender’s cost and expense. 
  

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 10.21. Pledge to a Federal Reserve Bank. The Lender may at any time pledge all or any
portion of its rights under this Agreement or the Security Documents to any of the twelve (12) federal reserve banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C. §341. No such pledge or enforcement thereof shall
release the Lender from its obligations under any of said loan documents. 
  

 27 

 IN WITNESS WHEREOF, the Borrower and the Lender have caused this Agreement to be duly executed all
as of the day and year first above written. 
  

									
	WITNESS:	 		 	Faith Realty, LLC	 	
					
	 /s/ Steven Rosenbaum
	 		 	By:	 	 /s/ Jason P. Macari
	 	
		 		 	Name:	 	Jason P. Macari	 	
		 		 	Title:	 	Member	 	
				
		 		 	Bank of America, N.A.	 	
					
	 /s/ R. Jeffrey Knisley
	 		 	By:	 	 /s/ David J. Angell
	 	
		 		 	Name:	 	David J. Angell	 	
		 		 	Title:	 	Senior Vice President	 	

  

 28

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