Document:

Exhibit 10.17

 

TRANS WORLD CORPORATION

 

2004 EQUITY INCENTIVE PLAN

 

SECTION 1.  Purpose.  The purposes of the Trans World Corporation
2004 Equity Incentive Plan are to promote the interests of the Company and its
stockholders by (i) attracting and retaining exceptional executive personnel
and other key employees of the Company and its Affiliates; (ii) motivating such
employees by means of performance-related incentives to achieve long-range
performance goals; and (iii) enabling such employees to participate in the
long-term growth and financial success of the Company.

 

SECTION 2.  Definitions.  As used in the Plan, the following terms
shall have the meanings set forth below:

 

“Affiliate”
shall mean (i) any entity that, directly or indirectly, is controlled by the
Company and (ii) any entity in which the Company has a significant equity
interest, in either case as determined by the Committee.

 

“Award” shall
mean any Option, Stock Appreciation Right, Restricted Stock Award, Other
Stock-Based Award or Performance Award.

 

“Award
Agreement” shall mean any written agreement, contract or other instrument or
document evidencing any Award, which may, but need not, be executed or
acknowledged by a Participant.

 

“Board” shall
mean the Board of Directors of the Company.

 

“Change in
Control” shall mean a change in control of a nature that would be required to
be reported in response to Item 6(e) of Schedule 14A of Regulation 14A
promulgated under the Exchange Act or any successor thereto, provided that,
without limiting the foregoing, a change in control also shall mean the
occurrence of any of the following events:

 

(i)            any
“person” (as defined in Section 3(a)(9) of the Exchange Act) or “group” of
persons (as provided under Rule 13d-3 under the Exchange Act) who, after the effective
date of the Plan, becomes a “beneficial owner” of (as defined in Rule 13d-3 or
otherwise under the Exchange Act) or acquires, directly or indirectly
(including as provided in Rule 13d-3(d)(1) under the Exchange Act),  capital stock of the Company the holders of
which are entitled to vote for the election of directors (“voting stock”)
representing that percentage of the Company’s then outstanding voting stock
(giving effect to the deemed ownership of securities by such person or group,
as provided in Rule 13d-3(d)(1) the Exchange Act, but not giving effect to any
such deemed ownership of securities by another person or group) equal to or
greater than twenty-five percent (25%) of all such voting stock, excluding for
purposes of this definition, any person who, as of the effective date of this
plan, is an existing stockholder of the Company  and controls directly or indirectly
equal to or greater than twenty-five percent (25%) of the voting stock of the
Company;

 

(ii)           during any period
of twenty-four consecutive months, individuals who, at the beginning of such
period, constituted the Board (including for this purpose any new director
whose election or nomination for election by the Company’s shareholders was
approved by a vote of at least a majority of the directors then still in office
who were directors at the beginning of such period) cease for any reason to
constitute at least a majority of the Board (excluding any Board seat that is
vacant or otherwise unoccupied); and

 

(iii)          there
shall be consummated any consolidation, merger, stock-for-stock exchange or
similar transaction (collectively, “Merger Transactions”) involving securities
of the Company in which holders of voting stock of the Company immediately
prior to such consummation own, as a group, immediately after such
consummation, voting stock of the Company (or, if the Company does not survive
the Merger Transaction, voting securities of the corporation surviving such
transaction) having less than

 

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50% of the
total voting power in an election of directors of the Company (or such other
surviving corporation).

 

“Code” shall
mean the Internal Revenue Code of 1986, as amended from time to time.

 

“Committee”
shall mean the Compensation Committee of the Board, which shall
be composed of not less than the minimum number of persons from time to time
required by (i) Rule 16b-3, each of whom, to the extent necessary to comply
with Rule 16b-3, shall be a “non-employee director” within the meaning of Rule
16b-3, as from time to time amended, and (ii) applicable listing or quotation
requirements relating to the Shares, each of whom, to the extent necessary to
comply with such requirements, shall be “independent” directors within the
meaning of such requirements, provided that, with respect to any Covered
Employee, “Committee” shall mean the Compensation Subcommittee of the Compensation Committee of the Board,
which shall consist of two or more members of the Board appointed by the Board
who qualify as outside directors for purposes of Section 162(m) of the
Code.  Any reference in the Plan to the “Committee”
shall be understood to refer to the Compensation
Committee or its Compensation Subcommittee, whichever has administrative
authority with respect to the matter.

 

“Company”
shall mean Trans World Corporation and any successor thereto.

 

“Covered
Employee” shall mean any Employee who is a covered employee as defined in
Section 162(m)(3) of the Code and the regulations
thereunder, or any successor section and regulations thereunder.

 

“Employee”
shall mean an employee of the Company or of any Affiliate.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

“Fair Market
Value” shall mean the fair market value of the property or other item being
valued, as determined by the Committee in its sole discretion, provided that,
unless otherwise determined by the Committee in order to satisfy the
requirements relating to Incentive Stock Options under applicable laws and
regulations, the “Fair Market Value” of a Share shall be (i) if the Shares are
listed or admitted to trading on any securities exchange or national market
system in the United States, the closing price, regular way, on such day on the
principal securities exchange or national market system in the United States on
which Shares are traded, (ii) if the Shares are not then listed or admitted to
trading on any such day, or if no sale takes place on such day, the average of
the closing bid and asked prices in the United States on such day, as reported
by a reputable quotation source designated by the Committee, and (iii) if the
Shares are not then listed or admitted to trading on any such securities
exchange or national market system and no such reported sale price or bid and
asked prices are available, the average of the reported high bid and low asked
prices in the United States on such day, as reported in The Wall Street Journal (Eastern edition)
or other newspaper designated by the Committee.

 

“Incentive
Stock Option” shall mean a right to purchase Shares from the Company at a fixed
price for a specified period that is granted under Section 6 of the Plan and
that is intended to meet the requirements of Section 422 of the Code or any
successor provisions thereto.

 

 “Nonqualified Stock Option” shall mean a right
to purchase Shares from the Company at a fixed price for a specified period
that is granted under Section 6 of the Plan and that is not intended to be an
Incentive Stock Option.

 

“Option” shall
mean an Incentive Stock Option or a Nonqualified Stock Option.

 

“Other
Stock-Based Award” shall mean any right granted under Section 9 of the Plan.

 

“Participant”
shall mean any Employee selected by the Committee to receive an Award under the
Plan.

 

“Performance
Award” shall mean any Award granted under Section 10 of the Plan.

 

“Performance
Goal” shall have the meaning set forth in Section 10(d).

 

“Performance
Period” shall mean, with respect to any Performance Award, the period specified
by the 

 

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Committee, including, but not limited to, the calendar year or any part
thereof and periods of more than one consecutive calendar year.

 

“Performance
Targets” shall mean the specific measures which must be satisfied in connection
with any Performance Goal.

 

“Person” shall
mean any individual, corporation, partnership, association, joint-stock
company, trust, unincorporated organization, government or political
subdivision thereof or other entity.

 

“Plan” shall
mean this Trans World Corporation 2004 Equity Incentive Plan, as may be amended
from time to time in accordance with its terms.

 

“QDRO” shall
mean a domestic relations order meeting such requirements as the Committee
shall determine, in its sole discretion.

 

“Restricted
Stock Award” shall mean any Award granted under Section 8 of the Plan.

 

“Restricted
Stock” shall mean any Share granted under Section 8 of the Plan that is subject
to a substantial risk of forfeiture due to a restriction based on continued
employment or the occurrence of other events as determined by the Committee in
its sole discretion and as specified in the Applicable Award Agreement.

 

“Restricted
Stock Unit” shall mean any unit granted under Section 8 of the Plan that is
subject to a substantial risk of forfeiture due to a restriction based on
continued employment or the occurrence of other events as determined by the
Committee in its sole discretion, which may be settled either (i) by the
delivery of one Share for each Restricted Stock Unit or (ii) in cash in an
amount equal to the Fair Market Value of one Share for each Restricted Stock
Unit, all as specified in the applicable Award Agreement. The Award of a
Restricted Stock Unit represents the mere promise of the Company to deliver a
Share or the appropriate amount of cash, as applicable, upon removal of the
applicable restriction (or such later date as may be provided in the Award
Agreement) in accordance with and subject to the terms and conditions of the
applicable Award Agreement, and is not intended to constitute a transfer of “property”
within the meaning of Section 83 of the Code.

 

“Rule 16b-3”
shall mean Rule 16b-3 as promulgated and interpreted by the SEC under the
Exchange Act, or any successor rule or regulation thereto as in effect from
time to time.

 

“SEC” shall
mean the Securities and Exchange Commission or any successor thereto and shall
include the staff thereof.

 

“Shares” shall
mean shares of the common stock, $.001 par value, of the Company, or such other
securities of the Company as may be designated by the Committee from time to
time.

 

“Stock
Appreciation Right” shall mean any right granted under Section 7 of the Plan to
receive the difference between (i) a grant price, which shall be no less than
one hundred percent (100%) of the Fair Market Value of a Share on the date of
grant, and (ii) the Fair Market Value of a Share on the date the right is
exercised, which amount may be paid in cash, Shares or a combination of cash
and Shares.

 

SECTION 3.  Administration.

 

(a)           Authority of Committee.  The Plan shall be administered by the
Committee.  Subject to the terms of the
Plan and applicable law, and in addition to other express powers and
authorizations conferred on the Committee by the Plan, the Committee shall have
full power and authority to:  (i)
designate Participants; (ii) determine the type or types of Awards to be
granted to an eligible Employee; (iii) determine the number of Shares to be
covered by, or with respect to which payments, rights or other matters are to
be calculated in connection with, Awards; (iv) determine the terms and
conditions of any Award, provided that no Awards granted under the Plan shall
have a vesting period of less than one year, except (x) as provided in Section
12 hereof and (y) in the Committee’s sole discretion, in the event of the
Participant’s retirement, permanent and total disability or death; (v)
determine whether, to what extent and under what circumstances Awards may be
settled or exercised in cash, Shares, other securities, other Awards or other
property, or canceled, forfeited or suspended; (vi) determine whether,

 

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to what extent and under what
circumstances cash, Shares, other securities, other Awards, other property and
other amounts payable with respect to an Award shall be deferred either
automatically or at the election of the holder thereof or of the Committee;
(vii) interpret and administer the Plan and any instrument or agreement
relating to, or Award made under, the Plan; (viii) establish, amend, suspend or
waive such rules and regulations and appoint such agents as it shall deem
appropriate for the proper administration of the Plan; (ix) determine the
meaning of the terms “retirement” and “permanent and total disability” for
purposes of the Plan; and (x) make any other determination and take any other
action that the Committee deems necessary or desirable for the administration
of the Plan.

 

(b)           Committee Discretion Binding.  Unless otherwise expressly provided in the
Plan, all designations, determinations, interpretations and other decisions
under or with respect to the Plan or any Award shall be within the sole
discretion of the Committee, may be made at any time and shall be final,
conclusive and binding upon all Persons, including the Company, any Affiliate,
any Participant, any holder or beneficiary of any Award, any stockholder and
any Employee.

 

(c)           Delegation.  Subject to the terms of the Plan and
applicable law, the Committee may delegate to one or more officers of the
Company or any Affiliate, or to a committee of such officers, the authority,
subject to such terms and limitations as the Committee shall determine, to
grant Awards to, or to cancel, modify or waive rights with respect to, or to
alter, discontinue, suspend or terminate Awards held by, Employees who are not
(i) Covered Employees or (ii) officers or directors of the Company for purposes
of Section 16 of the Exchange Act, or any successor section thereto, or who are
otherwise not subject to such Section.

 

SECTION 4.  Shares Available for
Awards.

 

(a)           Shares Available.  Subject to adjustment as provided in Section
4(c), the number of Shares with respect to which Awards may be granted under
the Plan shall not exceed (i) 251,583 plus (ii) 10,800 Shares that, as of May
5, 2004, were available for issuance under the Company’s 1998 Stock Option Plan
(the “Prior Plan”) or that thereafter become available for issuance under the
Prior Plan in accordance with its terms as in effect on such date.  Subject to the last sentence of this Section
4(a), if, after the effective date of the Plan, any Shares covered by an Award
granted under the Plan, or to which such an Award relates, are forfeited, or if
such an Award is settled for cash or otherwise terminates or is canceled
without the delivery of Shares, then the Shares covered by such Award, or to
which such Award relates, or the number of Shares otherwise counted against the
aggregate number of Shares with respect to which Awards may be granted, to the
extent of any such settlement, forfeiture, termination or cancellation, shall
again become Shares with respect to which Awards may be granted.  Subject to the last sentence of this Section
4(a), in the event that any Option or other Award granted hereunder is
exercised through the delivery of Shares or in the event that withholding tax
liabilities arising from such Award are satisfied by the withholding of Shares
by the Company, the number of Shares available for Awards under the Plan shall
be increased by the number of Shares so surrendered or withheld.  Notwithstanding any other provision of the
Plan to the contrary, the aggregate number of Shares that may be issued under
the Plan upon the exercise of Incentive Stock Options shall not be increased by
any of the actions set forth in the two immediately preceding sentences to the
extent that such an increase is not permitted by applicable regulations under
Section 422 of the Code.

 

(b)           Award Limits.  Notwithstanding any provision herein to the
contrary, the following provisions shall apply (subject to adjustment as
provided in Section 4(c)):

 

(i)            in no event shall a
Participant receive an Award or Awards during any one calendar year covering in
the aggregate more than 25,000 Shares (whether such Award or Awards may be
settled in Shares, cash or any combination thereof); and

 

(ii)           in no event shall
there be granted during the term of the Plan Restricted Stock or Restricted
Stock Units which are not subject to be achievement of a Performance Target or
Targets covering more than an aggregate of 75,000 Shares.

 

(c)           Adjustments.  In the event that the Committee determines
that any dividend or other distribution (whether in the form of cash, Shares,
other securities or other property), recapitalization, stock split, reverse
stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company, or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by

 

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the Committee to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan, then the Committee shall, in such manner as it may deem
equitable, adjust any or all of (i) the number of Shares or other securities of
the Company (or number and kind of other securities or property) with respect
to which Awards may be granted, (ii) the number of Shares or other securities
of the Company (or number and kind of other securities or property) subject to
outstanding Awards and (iii) the grant or exercise price with respect to any
Award, or, if deemed appropriate, make provision for a cash payment to the holder
of an outstanding Award; provided, in each case, that (A) with respect to
Awards of Incentive Stock Options no such adjustment shall be authorized to the
extent that such authority would cause the Plan to violate Section 422(b)(1) of
the Code, as from time to time amended, and (B) with respect to any Award no
such adjustment shall be authorized to the extent that such authority would be
inconsistent with the Plan’s meeting the requirements of Section 162(m) of the
Code, as from time to time amended, or Rule 16b-3, as from time to time
amended.

 

(d)           Sources of Shares Deliverable Under Awards.  Any
Shares delivered pursuant to an Award may consist, in whole or in part, of
authorized and unissued Shares or of treasury Shares, including Shares
purchased in the open market or in private transactions.

 

SECTION 5.  Eligibility.  Any Employee, including any officer or
employee-director of the Company or any Affiliate, who is not a member of the
Committee, shall be eligible to be designated a Participant, provided that (i)
only Employees who are common-law employees of the Company or any of its
Affiliates shall be eligible for the grant of an Incentive Stock Option and
(ii) an Employee-shareholder who owns more than 10% of the total combined
voting power of all classes of outstanding stock of the Company or any of its
Affiliates shall not be eligible for the grant of an Incentive Stock Option
unless the requirements set forth in Section 422(c)(5) of the Code are
satisfied.

 

SECTION 6.  Stock Options.

 

(a)           Grant.  Subject to the provisions of the Plan, the
Committee shall have sole and complete authority to determine the Employees to
whom Options shall be granted, the number of Shares to be covered by each
Option, the option price therefor and the conditions and limitations applicable
to the exercise of the Option.  The
Committee shall have the authority to grant Incentive Stock Options, or to
grant Nonqualified Stock Options, or to grant both types of options.  In the case of Incentive Stock Options, the
terms and conditions of such grants shall be subject to and comply with such
rules as may be prescribed by Section 422 of the Code, as from time to time
amended, and any regulations implementing such statute.

 

(b)           Exercise Price.  The Committee in its sole discretion shall
establish the exercise price at the time each Option is granted, provided that
the per share price at which Shares may be purchased upon exercise of an Option
shall be no less than one hundred percent (100%) of the Fair Market Value of a
Share at the time such Option is granted.

 

(c)           Exercise.  Subject to the terms of the Plan, each Option
shall be exercisable at such times and subject to such terms and conditions as
the Committee may, in its sole discretion, specify in the applicable Award
Agreement or thereafter, provided that no Option shall be exercisable after the
expiration of ten years from the date the Option is granted.  The Committee may impose such conditions with
respect to the exercise of Options, including without limitation any conditions
relating to the application of federal or state securities laws, as it may deem
necessary or advisable.

 

(d)           Payment.  No Shares shall be delivered pursuant to any
exercise of an Option until payment in full of the option price therefor is
received by the Company.  Such payment
may be made in cash, or its equivalent, or, if and to the extent permitted by
the Committee, by exchanging Shares owned by the optionee (which are not the
subject of any pledge or other security interest), or by a combination of the
foregoing, provided that the combined value of all cash and cash equivalents
and the Fair Market Value of any such Shares so tendered to the Company as of
the date of such tender is at least equal to such option price.

 

SECTION 7.  Stock Appreciation Rights.

 

(a)           Grant.  Subject to the provisions of the Plan, the
Committee shall have sole and complete authority to determine the Employees to
whom Stock Appreciation Rights shall be granted, the number of Shares to be

 

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covered by each Stock Appreciation Right, the grant price thereof,
which may be no less than one hundred percent (100%) of the Fair Market Value
of a Share on the date of grant, the conditions and limitations applicable to
the exercise thereof and whether a Stock Appreciation Right shall be settled in
cash, Shares or a combination of cash and Shares.  Stock Appreciation Rights may be granted in
tandem with another Award, in addition to another Award, or freestanding and
unrelated to another Award.  Stock
Appreciation Rights granted in tandem with or in addition to an Award may be
granted either at the same time as the Award or at a later time, provided that
any Stock Appreciation Right related to an Incentive Stock Option must be
granted at the same time such Incentive Stock Option is granted.

 

(b)           Other Terms and Conditions.  Subject to the terms of the Plan and any
applicable Award Agreement, the Committee shall determine, at or after the
grant of a Stock Appreciation Right, the term, methods of exercise, methods and
form of settlement and any other terms and conditions of any Stock Appreciation
Right.  Any such determination by the
Committee may be changed by the Committee from time to time and may govern the
exercise of Stock Appreciation Rights granted prior to such determination as
well as Stock Appreciation Rights granted thereafter.  The Committee may impose such conditions or
restrictions on the exercise of any Stock Appreciation Right as it shall deem
appropriate.

 

SECTION 8.  Restricted Stock and Restricted Stock
Units.

 

(a)           Grant.  Subject to the provisions of the Plan, the
Committee shall have sole and complete authority to determine the Employees to
whom Shares of Restricted Stock and Restricted Stock Units shall be granted,
the number of Shares of Restricted Stock and/or the number of Restricted Stock
Units to be granted to each Participant, the duration of the period during
which, and the conditions under which, the Restricted Stock and Restricted
Stock Units may be forfeited to the Company, the other terms and conditions of
such Awards and, in the case of Restricted Stock Units, whether such Units
shall be settled in cash, Shares or a combination of cash and Shares on the
date of grant.  Each Restricted Stock
Unit shall have a value equal to no less than one hundred percent (100%) of the
Fair Market Value of a Share on the date of grant.  Notwithstanding any other provision of the
Plan to the contrary, Restricted Stock and Restricted Stock Units which have
not been granted in lieu of base salary or bonuses or which have a restriction
based on completion of a specified period of service with the Company or an
Affiliate without achievement of a Performance Target or Performance Targets or
other performance objectives of the Company as a condition of vesting shall
have a minimum vesting period of three years from the date of grant, except (i)
as provided in Section 12 hereof and (ii) in the Committee’s sole discretion,
in the event of the Participant’s retirement, permanent and total disability or
death.

 

(b)           Transfer Restrictions.  Shares of Restricted Stock and Restricted
Stock Units may not be sold, assigned, transferred, pledged or otherwise
encumbered, except, in the case of Restricted Stock, as provided in the Plan or
the applicable Award Agreements. 
Certificates issued in respect of Shares of Restricted Stock shall be
registered in the name of the Participant and deposited by such Participant,
together with a stock power endorsed in blank, with the Company.  Upon the lapse of the restrictions applicable
to such Shares of Restricted Stock, the Company shall deliver such certificates
to the Participant or the Participant’s legal representative.

 

(c)           Dividends and Distributions.  Dividends and other distributions paid on or
in respect of any Shares of Restricted Stock may be paid directly to the
Participant, or may be reinvested in additional Shares of Restricted Stock or
in additional Restricted Stock Units, as determined by the Committee in its
sole discretion.

 

(d)           Voting of Restricted Stock.  Unless otherwise determined by the Committee
at the time of grant, an Employee to whom Shares of Restricted Stock shall be
granted shall be entitled to vote such Shares.

 

SECTION 9.  Other Stock-Based Awards.  The Committee shall have authority to grant
to eligible Employees an Other Stock-Based Award, which shall consist of any
right that is (i) not an Award described in Sections 6 through 8 above and (ii)
an Award of Shares or an Award denominated or payable in, valued in whole or in
part by reference to, or otherwise based on or related to, Shares (including,
without limitation, securities convertible into Shares), as deemed by the
Committee to be consistent with the purposes of the Plan.  Subject to the terms of the Plan and any
applicable Award Agreement, the Committee shall determine the terms and
conditions of any such Other Stock-Based Award and whether such Awards shall be
paid in cash, Shares or a combination of cash and Shares.  Notwithstanding any other provision of the
Plan to the contrary, an Other Stock-Based Award which is not granted in lieu
of base salary or bonuses  or which is
not subject to the achievement of a Performance Target or Targets or

 

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other
performance objectives of the Company as a condition to vesting shall have a
minimum vesting period of three years from the date of grant, except (i) as
provided in Section 12 hereof and (ii) in the Committee’s sole discretion, in
the event of the Participant’s retirement, permanent and total disability or
death.

 

SECTION 10.  Performance Awards.

 

(a)           Grant.  The Committee shall have sole and complete
authority to determine the extent to which an Award of Options, Restricted
Stock, Restricted Stock Units or Other Stock-Based Awards shall be subject to
the achievement of one or more Performance Targets over one or more Performance
Periods.  For any Award to a Covered  Employee, any such Performance Target and
related Performance Goal(s) and Performance Period(s) shall be determined by
the Committee within the time prescribed by Section 162(m) and the regulations
thereunder, or any successors thereto, in order for the Performance Target to
be considered “pre-established” for this purpose.

 

(b)           Terms and Conditions.  Subject to the terms of the Plan and any
applicable Award Agreement, the Committee shall determine the Performance
Targets to be achieved during any Performance Period, the length of any
Performance Period, the amount of any Performance Award and the amount and kind
of any payment or transfer to be made pursuant to any Performance Award.

 

(c)           Payment of Performance Awards.  Performance Awards may be paid in a lump sum
or in installments following the close of the Performance Period, provided that
no full and/or partial payment of a Performance Award granted hereunder may be
made to a Covered Employee until the Committee has certified in writing the
attainment by the Company of the applicable Performance Target or Performance
Targets over the applicable Performance Period or Performance Periods.

 

(d)           Performance Goals.  For purposes of the Plan, the term “Performance
Goals” shall mean objective criteria based on one or more of the following: net
income, net income before taxes, operating earnings, cash earnings, operating
cash earnings, cash flow, financial return ratios (including, but not limited
to, return on average total assets, return on tangible total assets, return on
average stockholders’ equity, return on average tangible stockholders’ equity,
average stockholders’ equity to average total assets, risk-adjusted return on
capital, return on investment, economic value added, efficiency ratio, expense
ratio, revenue growth, noninterest income to total revenue ratio and net
interest margin), total stockholder return, earnings per share, operating
earnings per share, cash earnings per share, other balance sheet or income
statement items, stock price, market share or project completion.  Performance Goals with respect to awards to
Participants who are not Covered Employees also may be based on any other
objective performance goals as may be established by the Committee for a
Performance Period.  Performance Goals
may be measured (i) solely on a corporate, subsidiary or business unit basis or
a combination thereof and/or (ii) on actual or targeted growth factors.  Performance Goals may reflect absolute entity
performance or a relative comparison of entity performance to the performance
of a peer group of entities or other external measure of the selected
Performance Goals.  A Performance Goal
may include or exclude items that measure specific objectives, such as the
cumulative effect of changes in generally accepted accounting principles,
losses resulting from discontinued operations, securities gains and losses,
restructuring, merger-related and other
nonrecurring costs, amortization of goodwill and other intangible assets,
extraordinary gains or losses and any unusual, nonrecurring gain or loss that
is separately quantified in the Company’s financial statements.  Any Performance Goal expressed on a per-Share
basis shall, in case of a recapitalization, stock dividend, stock split or
reverse stock split affecting the number of outstanding Shares, be
mathematically adjusted by the Committee so that the change in outstanding Shares
does not cause a substantive change in the relevant goal.  The Committee may adjust Performance Goals
for any other objective events or occurrences which occur during a Performance
Period, including, but not limited to, acquisitions by the Company and changes
in applicable tax laws or accounting principles, provided that the Committee
shall not have the discretion to increase the amount of a Performance Award
that would otherwise be due upon attainment of a Performance Target or
Performance Targets to any Participant who is a Covered Employee except to the
extent permitted under Section 162(m) of the Code and the regulations
thereunder or any successors thereto.

 

SECTION 11.  Termination or
Suspension of Employment.  The
following provisions shall apply in the event of the Participant’s termination
of employment unless the Committee shall have provided otherwise, either at the
time of the grant of the Award or thereafter.

 

 

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(a)           Nonqualified Stock Options and
Stock Appreciation Rights.

 

(i)            Termination of
Employment.  If the Participant’s
employment with the Company or its Affiliates is terminated for any reason
other than death, permanent and total disability or retirement, the Participant’s
right to exercise any Nonqualified Stock Option or Stock Appreciation Right
shall terminate, and such Option or Stock Appreciation Right shall expire, on
the earlier of (A) the first anniversary of such termination of employment or
(B) the date such Option or Stock Appreciation Right would have expired had it
not been for the termination of employment. 
The Participant shall have the right to exercise such Option or Stock
Appreciation Right prior to such expiration to the extent it was exercisable at
the date of such termination of employment and shall not have been exercised.

 

(ii)           Death,
Disability or Retirement.  If the
Participant’s employment with the Company or its Affiliates is terminated by
death, permanent and total disability or retirement, the Participant or his
successor (if employment is terminated by death) shall have the right to
exercise any Nonqualified Stock Option or Stock Appreciation Right to the
extent it was exercisable at the date of such termination of employment and
shall not have been exercised, but in no event shall such Option or Stock
Appreciation Right be exercisable later than the date the Option or Stock
Appreciation Right would have expired had it not been for the termination of
such employment.

 

(iii)          Acceleration and
Extension of Exercisability. 
Notwithstanding the foregoing, the Committee may, in its discretion,
provide (A) that an Option granted to a Participant may terminate at a date
earlier than that set forth above, including without limitation the date of
termination of employment, (B) that an Option granted to a Participant may
terminate at a date later than that set forth above, provided such date shall
not be beyond the date the Option would have expired had it not been for the
termination of the Participant’s employment, and (C) that an Option or Stock
Appreciation Right may become immediately exercisable when it finds that such
acceleration would be in the best interests of the Company.

 

(b)           Incentive Stock Options.  Except as otherwise determined by the
Committee at the time of grant, if the Participant’s employment with the
Company is terminated for any reason, the Participant shall have the right to
exercise any Incentive Stock Option and any related Stock Appreciation Right
during the 90 days after such termination of employment to the extent it was
exercisable at the date of such termination, but in no event later than the
date the Option would have expired had it not been for the termination of such
employment.  If the Participant does not
exercise such Option or related Stock Appreciation Right to the full extent
permitted by the preceding sentence, the remaining exercisable portion of such
Option automatically will be deemed a Nonqualified Stock Option, and such
Option and any related Stock Appreciation Right will be exercisable during the
period set forth in Section 11(a) of the Plan, provided that in the event that
employment is terminated because of death or the Participant dies during such
90-day period, the Option will continue to be an Incentive Stock Option to the
extent provided by Section 421 or Section 422 of the Code, or any successor
provisions, and any regulations promulgated thereunder.

 

(c)           Restricted Stock.  Except as otherwise determined by the
Committee at the time of grant, upon termination of employment for any reason
during the restriction period, all shares of Restricted Stock still subject to
restriction shall be forfeited by the Participant and reacquired by the Company
at the price (if any) paid by the Participant for such Restricted Stock,
provided that in the event of a Participant’s retirement, permanent and total
disability or death, or in cases of special circumstances, the Committee may,
in its sole discretion, when it finds that a waiver would be in the best
interests of the Company, waive in whole or in part any or all remaining
restrictions with respect to such Participant’s shares of Restricted Stock.

 

SECTION 12.  Change in Control.  Notwithstanding any other provision of the
Plan to the contrary, upon a Change in Control all outstanding Awards shall
vest, become immediately exercisable or payable or have all restrictions lifted
as may apply to the type of Award.

 

SECTION 13.  Amendment and
Termination.

 

(a)           Amendments to the Plan.  The Board may amend, alter, suspend,
discontinue or terminate the Plan or any portion thereof at any time, provided
that no such amendment, alteration, suspension, discontinuation or termination
shall be made that would adversely affect the rights of any Participant or any
holder or beneficiary of any Award theretofore granted without the consent of
the affected Participant, holder or beneficiary, or that without

 

8

 

the approval of
the stockholders of the Company would:

 

(i)            except
as provided in Section 4(c) of the Plan, increase the total number of Shares
with respect to which Awards may be granted under the Plan;

 

(ii)           change
the employees or class of employees eligible to participate in the Plan;

 

(iii)          reduce
the exercise price for Options and Stock Appreciation Rights by repricing or
replacing such Awards; or

 

(iv)          change
the Performance Goals which may be established for Performance Awards.

 

(b)           Amendments to Awards.  The Committee may waive any conditions or
rights under, amend any terms of, or alter, suspend, discontinue, cancel or
terminate, any Award theretofore granted, prospectively or retroactively,
provided that any such waiver, amendment, alteration, suspension,
discontinuance, cancellation or termination that would adversely affect the
rights of any Participant or any holder or beneficiary of any Award theretofore
granted shall not to that extent be effective without the consent of the
affected Participant, holder or beneficiary. 
Notwithstanding any other provision of the Plan to the contrary, except
as provided in Section 4(c) and Section 13(c), the Committee shall not have the
authority to cancel any outstanding Option or Stock Appreciation Right and
issue a new Option or Stock Appreciation Right in its place with a lower
exercise price without the approval of the stockholders of the Company.

 

(c)           Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events.  The Committee is hereby
authorized to make adjustments in the terms and conditions of, and the criteria
included in, Awards in recognition of unusual or nonrecurring events
(including, without limitation, the events described in Section 4(c) hereof)
affecting the Company, any Affiliate, or the financial statements of the
Company or any Affiliate, or of changes in applicable laws, regulations or
accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, provided that
no such adjustment shall be authorized to the extent that such authority would
be inconsistent with the Plan’s meeting the requirements of Section 162(m) of
the Code, as from time to time amended, or Rule 16b-3, as from time to time
amended.

 

SECTION 14.  General Provisions.

 

(a)           Dividend Equivalents.  In the sole and complete discretion of the
Committee, an Award may provide the Participant with dividends or dividend
equivalents, payable in cash, Shares, other securities or other property on a
current or deferred basis.

 

(b)           Nontransferability.  No Award shall be assigned, alienated,
pledged, attached, sold or otherwise transferred or encumbered by a
Participant, except by will or the laws of descent and distribution or pursuant
to a QDRO, provided, however, that an Award may be transferable, to the extent
determined by the Committee and set forth in the applicable Award Agreement,
(i) if such Award Agreement provisions do not disqualify such Award for
exemption under Rule 16b-3, as from time to time amended, (ii) if such Award is
not intended to qualify for exemption under such rule or (iii) with respect to
Awards which are Incentive Stock Options, if such Award Agreement provisions do
not prevent the Incentive Stock Options from qualifying as such under Section 422
of the Code, as from time to time amended.

 

(c)           No Rights to Awards.  No Employee, Participant or other Person
shall have any claim to be granted any Award, and there is no obligation for
uniformity of treatment of Employees, Participants or holders or beneficiaries
of Awards.  The terms and conditions of
Awards need not be the same with respect to each recipient.

 

(d)           Share Certificates.  All certificates for Shares or other
securities of the Company or any Affiliate delivered under the Plan pursuant to
any Award or the exercise thereof shall be subject to such stop transfer orders
and other restrictions as the Committee may deem advisable under the Plan or
the rules, regulations and other requirements of the SEC, any stock exchange or
national market quotation system upon which such Shares or other securities are
then listed or quoted, respectively, and any applicable Federal or state laws,
and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

 

9

 

(e)           Withholding.  A Participant may be required to pay to the
Company or any Affiliate and the Company or any Affiliate shall have the right
and is hereby authorized to withhold from any Award, from any payment due or
transfer made under any Award or under the Plan or from any compensation or
other amount owing to a Participant the amount (in cash, Shares, other
securities, other Awards or other property) of any applicable withholding taxes
in respect of any Award, its exercise or any payment or transfer under an Award
or under the Plan and to take such other action as may be necessary in the
opinion of the Company to satisfy all obligations for the payment of such
taxes.  The Committee may provide for
additional cash payments to holders of Awards to defray or offset any tax
arising from the grant, vesting, exercise or payments of any Award, but only in
the case of a Covered Employee to the extent permitted under Section 162(m) of
the Code and the regulations thereunder or any successor thereto.

 

(f)            Award Agreements.  Each Award hereunder shall be evidenced by an
Award Agreement that shall be delivered to the Participant and shall specify
the terms and conditions of the Award and any rules applicable thereto.

 

(g)           No Limit on Other Compensation
Arrangements.  Nothing contained in
the Plan shall prevent the Company or any Affiliate from adopting or continuing
in effect other compensation arrangements, which may, but need not, provide for
the grant of Options, Restricted Stock Awards and other types of Awards
provided for hereunder (subject to stockholder approval if such approval is
required), and such arrangements may be either generally applicable or
applicable only in specific cases.

 

(h)           No Right to Employment.  Neither the Plan nor the grant of any Awards
hereunder nor any action taken by the Committee or the Board in connection with
the Plan shall create any right on the part of any Employee to continue in the
employ of the Company or any Affiliate.

 

(i)            No Rights as Stockholder.  Subject to the provisions of the applicable
Award and the Plan, no Participant or holder or beneficiary of any Award shall
have any rights as a stockholder with respect to any Shares to be distributed
under the Plan until he or she has become the holder of such Shares.

 

(j)            Governing Law.  The validity, construction and effect of the
Plan and any rules and regulations relating to the Plan and any Award Agreement
shall be determined in accordance with the laws of the State of Wisconsin.

 

(k)           Severability.  The Plan is intended to comply in all aspects
with applicable laws and regulations, including, with respect to those
Participants who are Covered Employees, Section 162(m) of the Code and the
regulations thereunder, or any successors thereto.  If any provision of the Plan or any Award is
or becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction, Person or Award and the remainder of the
Plan and any such Award shall remain in full force and effect.

 

(l)            Other Laws.  The Committee may refuse to issue or transfer
any Shares or other consideration under an Award if, acting in its sole
discretion, it determines that the issuance or transfer of such Shares or such
other consideration might violate any applicable law, regulation or listing or
quotation requirement relating to the Shares or entitle the Company to recover
the same under Section 16(b) of the Exchange Act, and any payment tendered to
the Company by a Participant, other holder or beneficiary in connection with
the exercise of such Award shall be promptly refunded to the relevant
Participant, holder or beneficiary. 
Without limiting the generality of the foregoing, no Award granted
hereunder shall be construed as an offer to sell securities of the Company, and
no such offer shall be outstanding, unless and until the Committee in its sole
discretion has determined that any such offer, if made, would be in compliance
with all applicable requirements of the U.S. federal securities laws and any
other laws to which such offer, if made, would be subject, as well as any
applicable listing or quotation requirements relating to the Shares.

 

10

 

(m)          No Trust or Fund Created.  Neither the Plan nor any Award shall create
or be construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Affiliate and a Participant or any
other Person.  To the extent that any
Person acquires a right to receive payments from the Company or any Affiliate
pursuant to an Award, such right shall be no greater than the right of any
unsecured general creditor of the Company or any Affiliate.

 

(n)           No Fractional Shares.  No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities or other property shall be paid or transferred
in lieu of any fractional Shares or whether such fractional Shares or any
rights thereto shall be canceled, terminated or otherwise eliminated.

 

(o)           Headings.  Headings are given to the Sections and
subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of the Plan or any
provision thereof.

 

(p)           Successors and Assigns.  The Plan and any Award Agreement shall be
binding upon the successors and assigns of the Company and upon each
Participant and such Participant’s heirs, executors, administrators, personal
representatives, permitted assignees and successors in interest.

 

SECTION 15.  Effective Date; Term of
the Plan.

 

(a)           Effective Date.  The Plan shall be effective upon its approval
by the Board of Directors of the Company on May 13, 2004, subject to approval
of the Plan by the holders of a majority of the shares of Common Stock present,
in person or by proxy, at the first annual meeting of stockholders of the
Company held subsequent to the approval of the Plan by the Board of Directors
of the Company.  If the Plan is not so
approved by the stockholders of the Company, the Plan shall immediately terminate
and all actions taken thereunder shall be null and void.

 

(b)           Term of the Plan.  The Plan shall remain in effect until the
earlier of (i) the date that no additional Shares are available for issuance
under the Plan, (ii) the date that the Plan has been terminated in accordance
with Section 13 or (iii) the close of business on the tenth annual anniversary
of the Effective Date.  Termination of
the Plan shall not affect any Awards previously granted and such Awards shall
remain valid and in effect until they have been fully exercised or earned, are
surrendered or by their terms expire or are forfeited.

 

11Exhibit 10.1

 

 

 

March 24, 2005

 

Mr. Ernest Mill

Mill Construction Company

41 Clark Street

Salinas, CA 93901

 

Dear Ernie,

 

We are in receipt of your company’s letter
dated March 21, 2005 detailing the proposed budget for our new winery
building in Greenfield, California totaling $11,594,920. As described in section 5.2
(Guaranteed Maximum Price) of the Standard Form of Agreement Between Owner
and Contractor (attached as Exhibit 1), we hereby accept this price to be
the “Guaranteed Maximum Not-to-Exceed” amount of the project.

 

In addition, this is your formal “Notice to
Proceed” as described in Section 4.1 of the Standard Form of
Agreement Between Owner and Contractor.

 

If you mutually agree upon the above, please
sign below and forward me one of the originals of this letter.

 

Sincerely,

 

	
  /s/ Scott D. Scheid

  	
   

  
	
  Scott D. Scheid

  
	
  President & CEO

  

 

 

Attachment

 

 

AGREED AND AKNOWLEDGED:

 

 

	
  /s/ Mr. Ernest D. Mill

  	
   

  	
  3/25/05

  	
   

  
	
  Mr. Ernest Mill, President

  	
  Date

  
	
  Mill Construction

  	
   

  

 

 

1997 EDITION

 

AIA DOCUMENT A111-1997

 

Standard Form of Agreement Between Owner and
Contractor

where the basis for payment is the COST OF THE WORK PLUS A FEE with a
negotiated Guaranteed Maximum Price

 

	
  AGREEMENT made as of the Third

  in the year Two Thousand and Four

  (In words, indicate day, month and year)

  	
   

  	
  day of June

  	
   

  	
  This document has important legal consequences. Consultation with an
  attorney is encouraged with respect to its completion or modification.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BETWEEN the Owner:

  (Name, address and other information)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Scheid Vineyards

  305 Hilltown Road
Salinas, CA 93908

  	
   

  	
  Ph :

  Cell:

  Fax:

  	
  (831) 455-9990

  (831) 214-4504

  (831) 455-9998

  	
   

  	
  This document is not intended for use in competitive bidding.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn: Kurt Gollnick

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  and the Contractor:

  (Name, address and other information)

  	
   

  	
   

  	
   

  	
  AIA Document A201-1997, General Conditions of the Contract for
  Construction, is adopted in this document by reference.

  
	
   

  	
   

  	
   

  	
   

  
	
  Mill Construction Company

  41 Clark Street
Salinas, CA 93901
Attn: Ernie Mill

  	
   

  	
  Ph:

  Fax:

  	
  (831) 424-0781

  (831) 424-0500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Project is:

  (Name and address)

  

  New Winery Facility
1972 Hobson Avenue
Greenfield, CA

  	
   

  	
   

  	
   

  	
  This document has been approved and endorsed by The Associated
  General Contractors of America.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Architect is:

  (Name, address and other information)

  	
   

  	
   

  	
   

  	
   

  
							

 

 

The
Owner and Contractor agree as follows.

 

	
   

  	
  

  
	
   

  	
  ©1997 AIA®

  
	
   

  	
  AIA DOCUMENT AIII-1997

  
	
   

  	
  OWNER-CONTRACTOR

  
	
   

  	
  AGREEMENT

  
	
   

  	
   

  
	
   

  	
  The American Institute

  
	
   

  	
  of Architects

  
	
   

  	
  1735 New York Avenue, N.W.

  
	
   

  	
  Washington, D.C. 20006-5292

  

 

Copyright
1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, © 1997 by The
American Institute of Architects. Reproduction of the material herein of
substantial quotation of its provisions without written permission of the AIA violates
the copyright laws of the United States and will subject the violator to legal
prosecution.

 

1

 

ARTICLE 1   THE CONTRACT
DOCUMENTS

 

The Contract Documents consist of this Agreement,
Conditions of the Contract (General, Supplementary and other Conditions),
Drawings, Specifications, Addenda issued prior to execution of this Agreement,
other documents listed in this Agreement and Modifications issued after
execution of this Agreement; these form the Contract, and are as fully a part
of the Contract as if attached to this Agreement or repeated herein. The
Contract represents the entire and integrated agreement between the parties
hereto and supersedes prior negotiations, representations or agreements, either
written or oral. An enumeration of the Contract Documents, other than
Modifications, appears in Article 15. If anything in the other Contract
Documents is inconsistent with this Agreement, this Agreement shall govern.

 

ARTICLE 2   THE WORK OF THIS
CONTRACT

 

The Contractor shall fully execute the Work
described in the Contract Documents, except to the extent specifically
indicated in the Contract Documents to be the responsibility of others.

 

ARTICLE 3   RELATIONSHIP OF
THE PARTIES

 

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

 

ARTICLE 4   DATE OF
COMMENCEMENT AND SUBSTANTIAL COMPLETION

 

4.1.    The date of commencement of the Work shall be
the date of this Agreement unless a different date is stated below or provision
is made for the date to be fixed in a notice to proceed issued by the Owner.

 

(Insert the date of commencement, if it differs from the date of this
Agreement or, if applicable, state that the date will be fixed in a notice to
proceed.)

Within ten (10) working days of the Notice to
Proceed or the issuance of the building permit, whichever is later.

 

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

 

4.2.                                      The
Contract Time shall be measured from the date of commencement.

 

2

 

4.3                                         The
Contractor shall achieve Substantial Completion of the entire Work not later
than                                                
 days from the date of commencement, or as follows:

 

(Insert number of calendar days. Alternatively, a calendar date may be
used when coordinated with the date of commencement. Unless stated elsewhere in
the Contract Documents, insert any requirements for earlier Substantial
Completion of certain portions of the Work.)

 

Contract schedule with completion dates will be
established and mutually agreed to once permit documents are complete.

 

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

(Insert provisions, if any, for liquidated damages relating to failure
to complete on time, or for bonus payments for early completion of the work.)

 

ARTICLE 5   BASIS FOR PAYMENT

 

5.1                                         CONTRACT
SUM

 

5.1.1                               The
Owner shall pay the Contractor the Contract Sum in current funds for the
Contractor’s performance of the Contract. The Contract Sum is the Cost of the
Work as defined in Article 7 plus the Contractor’s Fee.

 

5.1.2                               The
Contractor’s Fee is:

 

(State a lump sum, percentage of Cost of the
Work or other provision for determining the Contractor’s Fee, and describe the
method of adjustment of the Contractor’s Fee for changes in the Work.)

 

*Based on an approximate contract amount of $4
million or more:

 

	
  *Overhead 

  	
  Percentage 

  	
   

  	
  = 6

  	
  %

  
	
  *Fee 

  	
  Percentage 

  	
   

  	
  = 2

  	
  %

  
	
   

  	
  Total

  	
   

  	
  = 8

  	
  %

  

 

5.2                                         GUARANTEED
MAXIMUM PRICE

 

5.2.1                               The
sum of the Cost of the Work and the Contractor’s Fee is guaranteed by the
Contractor not to exceed                                                                          Dollars
($                )
subject to additions and deductions by Change Order as provided in the Contract
Documents. Such maximum sum is referred to in the Contract Documents as the
Guaranteed Maximum Price. Costs which would cause the Guaranteed Maximum Price
to be exceeded shall be paid by the Contractor without reimbursement by the
Owner.

(Insert specific provisions if the Contractor
is to participate in any savings.)

*Guaranteed Maximum Not-to-Exceed Amount will
be determined and mutually agreed to once the permit documents are completed.

 

5.2.2                               The
Guaranteed Maximum Price is based on the following alternates, if any, which
are described in the Contract Documents and are hereby accepted by the Owner:

 

(State the numbers or other identification of
accepted alternates. If decisions on other alternates are to be made by the
Owner subsequent to the execution of this Agreement, attach a schedule of
such other alternates showing the amount for each and the date when the amount
expires.)

 

3

 

5.2.3                               Unit
prices, if any, are as follows:

 

5.2.4                               Allowances,
if any, are as follows:

(Identify
and state the amounts of any allowances, and state whether they include labor,
materials, or both.)

 

5.2.5                               Assumptions,
if any, on which the Guaranteed Maximum Price is based are as follows:

 

5.2.6                               To
the extent that the Drawings and Specifications are anticipated to require
further development by the Architect, the Contractor has provided in the
Guaranteed Maximum Price for such further development consistent with the Contract
Documents and reasonably inferable therefrom. Such further development does not
include such things as changes in scope, systems, kinds and quality of materials,
finishes or equipment, all of which, if required, shall be incorporated by
Change Order.

 

ARTICLE 6   CHANGES IN THE WORK

 

6.1                                         Adjustments
to the Guaranteed Maximum Price on account of changes in the Work may be
determined by any of the methods listed in Subparagraph 7.3.3 of AIA Document
A201-1997.

 

6.2                                         In
calculating adjustments to subcontracts (except those awarded with the Owner’s
prior consent on the basis of cost plus a fee), the terms “cost” and “fee” as
used in Clause 7.3.3.3 of AIA Document A201-1997 and the terms “costs”
and “a reasonable allowance for overhead and profit” as used in Subparagraph
7.3.6 of AIA Document A201-1997 shall have the meanings assigned to them
in AIA Document A201-1997 and shall not be modified by Articles 5.7 and 8
of this Agreement. Adjustments to subcontracts awarded with the Owner’s prior
consent on the basis of cost plus a fee shall be calculated in accordance with
the terms of those subcontracts.

 

6.3                                         In
calculating adjustments to the Guaranteed Maximum Price, the terms “cost” and
“costs” as used in the above- referenced provisions of AIA Document A201-1997
shall mean the Cost of the Work as defined in Article 7 of this Agreement
and the terms “fee” and “a reasonable allowance for overhead and profit” shall
mean the Contractor’s Fee as defined in Subparagraph 5.1.2 of this Agreement.

 

4

 

6.4                                         If
no specific provision, is made in Paragraph 5.1 for adjustment of the
Contractor’s Fee in the case of changes in the Work, or if the extent of such
changes is such, in the aggregate, that application of the adjustment
provisions of Paragraph 5.1 will cause substantial inequity to the Owner or
Contractor, the Contractor’s Fee shall be equitably adjusted on the basis of
the Fee established for the original Work, and the Guaranteed Maximum Price
shall be adjusted accordingly.

 

ARTICLE 7   COSTS TO BE REIMBURSED

 

7.1                                         COST
OF THE WORK

 

The term Cost
of the Work shall mean costs necessarily incurred by the Contractor in the
proper performance of the Work. Such costs shall be at rates not higher the
standard paid at the place of the Project except with prior consent of the
Owner. The Cost of the Work shall include only the items set forth in this Article 7.

 

7.2                                         LABOR
COSTS

 

7.2.1                               Wages
of construction workers directly employed by the Contractor to perform the
construction of the Work at the site or with the Owner’s approval, at off-site
workshops.

 

7.2.2                               Wages
or salaries of the Contractor’s supervisory and administrative personnel when
stationed at the site with the Owner’s approval.

 

(If it is
intended that the wages or salaries of certain personnel stationed at the
Contractor’s principal or other offices shall be included in the Cost of the
Work, identify in Article 14 the personnel to be included and whether for
all or only part of their time, and the rates at which their time will be
charged to the Work.)

 

7.2.3                               Wages
and salaries of the Contractor’s supervisory or administrative personnel
engaged, at factories, workshops or on the road, in expediting the production
or transportation of materials or equipment required for the Work, but only for
that portion of their time required for the Work.

 

7.2.4                               Costs
paid or incurred by the Contractor for taxes, insurance, contributions,
assessments and benefits required by law or collective bargaining agreements
and, for personnel not covered by such agreements, customary benefits such as
sick leave, medical and health benefits, holidays, vacations and pensions,
provided such costs are based on wages and salaries included in the Cost of the
Work under Subparagraphs 7.2.1 through 7.2.3.

 

7.3                                         SUBCONTRACT
COSTS

 

7.3.1                               Payments
made by the Contractor to Subcontractors in accordance with the requirements of
the subcontracts.

 

7.4                                         COSTS
OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED CONSTRUCTION

 

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

 

7.4.2                               Costs
of materials described in the preceding Subparagraph 7.4.1 in excess of those
actually installed to allow for reasonable waste and spoilage. Unused excess
materials, if any, shall become the Owner’s property at the completion of the
Work or, at the Owner’s option, shall be sold by the Contractor. Any amounts
realized from such sales shall be credited to the Owner as a deduction from the
Cost of the Work.

 

7.5                                         COSTS
OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY FACILITIES AND RELATED ITEMS

 

7.5.1                               Costs,
including transportation and storage, installation, maintenance, dismantling
and removal of materials, supplies, temporary facilities, machinery, equipment,
and hand tools not customarily owned by construction workers, that are provided
by the Contractor at the site and

 

5

 

fully consumed
in the performance of the Work; and cost (less salvage value) of such items if
not fully consumed, whether sold to others or retained by the Contractor. Cost
for items previously used by the Contractor shall mean fair market value.

 

7.5.2                               Rental
charges for temporary facilities, machinery, equipment, and hand tools not
customarily owned by construction workers that are provided by the Contractor
at the site, whether rented from the Contractor or others, and costs of
transportation, installation, minor repairs and replacements, dismantling and
removal thereof. Rates and quantities of equipment rented shall be subject to
the Owner’s prior approval.

 

7.5.3                               Costs
of removal of debris from the site.

 

7.5.4                               Costs
of document reproductions, facsimile transmissions and long-distance telephone
calls, postage and parcel delivery charges, telephone service at the site and
reasonable petty cash expenses of the site office.

 

7.5.5                               That
portion of the reasonable expenses of the Contractor’s personnel incurred while
traveling in discharge of duties connected with the Work.

 

7.5.6                               Costs
of materials and equipment suitably stored off the site at a mutually
acceptable location, if approved in advance by the Owner.

 

7.6                                         MISCELLANEOUS
COSTS

 

7.6.1                               That
portion of insurance and bond premiums that can be directly attributed to this
Contract

 

7.6.2                               Sales,
use or similar taxes imposed by a governmental authority that are related to
the Work.

 

7.6.3                               Fees
and assessments for the building permit and for other permits, licenses and
inspections for which the Contractor is required by the Contract Documents to
pay.

 

7.6.4                               Fees
of laboratories of tests required by the Contract Documents, except those
related to defective or nonconforming Work for which reimbursement is excluded
by Subparagraph 13.5.3 of AIA Document A201-1997 or other provisions of
the Contract Documents, and which do not fall within the scope of Subparagraph
7.7.3.

 

7.6.5                               Royalties
and license fees paid for the use of a particular design, process or product
required by the Contract Documents; the cost of defending suits or claims for infringement
of patent rights arising from such requirement of the Contract Documents and
payments made in accordance with legal judgments against the Contractor resulting
from such suits or claims and payments of settlements made with the Owner’s
consent. However, such costs of legal defenses, judgments and settlements shall
not be included in the calculation of the Contractor’s Fee or subject to the
Guaranteed Maximum Price. If such royalties, fees and costs are excluded by the
last sentence of Subparagraph 3.17.1 of AIA Document A201-1997 or other
provisions of the Contract Documents, then they shall not be included in the
Cost of the Work.

 

7.6.6                               Data
processing costs related to the Work.

 

7.6.7                               Deposits
lost for causes other than the Contractor’s negligence or failure to fulfill a
specific responsibility to the Owner as set forth in the Contract Documents.

 

6

 

7.6.8                               Legal,
mediation and arbitration costs, including attorneys’ fees, other than those
arising from disputes between the Owner and Contractor, reasonably incurred by
the Contractor in the performance of the Work and with the Owner’s prior
written approval; which approval shall not be unreasonably withheld.

 

7.6.9                               Expenses
incurred in accordance with the Contractor’s standard personnel policy for
relocation and temporary living allowances of personnel required for the Work,
if approved by the Owner.

 

7.7                                         OTHER
COSTS AND EMERGENCIES

 

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

 

7.7.2                               Costs
due to emergencies incurred in taking action to prevent threatened damage,
injury or loss in case of an emergency affecting the safety of persons and
property, as provided in Paragraph 10.6 of AIA Document A201-1997.

 

7.7.3                               Costs
of repairing or correcting damaged or nonconforming Work executed by the
Contractor, Subcontractors or suppliers, provided that such damaged or
nonconforming Work was not caused by negligence or failure to fulfill a
specific responsibility of the Contractor and only to the extent that the cost
of repair or correction is not recoverable by the Contractor from insurance,
sureties, Subcontractors or suppliers.

 

ARTICLE 8   COSTS NOT TO BE REIMBURSED

 

8.1                                         The
Cost of the Work shall not include:

 

8.1.1                               Salaries
and other compensation of the Contractor’s personnel stationed at the
Contractor’s principal office or offices other than the site office, except as
specifically provided in Subparagraphs 7.2.2 and 7.2.3 or as may be provided in
Article 14.

 

8.1.2                               Expenses
of the Contractor’s principal office and offices other than the site office.

 

8.1.3                               Overhead
and general expenses except as may be expressly included in Article 7.

 

8.1.4                               The
Contractor’s capital expenses, including interest on the Contractor’s capital
employed for the Work.

 

8.1.5                               Rental
costs of machinery and equipment except as specifically provided in
Subparagraph 7.5.2.

 

8.1.6                               Except
as provided in Subparagraph 7.7.3 of this Agreement, costs due to the
negligence or failure to fulfill a specific responsibility of the Contractor,
Subcontractors and suppliers or anyone directly or indirectly employed by any
of them or for whose acts any of them may be liable.

 

8.1.7                               Any
cost not specifically and expressly described in Article 7.

 

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

 

ARTICLE 9   DISCOUNTS, REBATES AND REFUNDS

 

9.1                                         Cash
discounts obtained on payments made by the Contractor shall accrue to the Owner
if (1) before making the payment, the Contractor included them in an
Application for Payment

 

7

 

and received
payment therefore from the Owner, or (2) the Owner has deposited funds
with the Contractor with which to make payments; otherwise, cash discounts
shall accrue to the Contractor. Trade discounts, rebates, refunds and amounts
received from sales of surplus materials and equipment shall accrue to the
Owner, and the Contractor shall make provisions so that they can be secured.

 

9.2                                         Amounts
that accrue to the Owner in accordance with the provisions of Paragraph 9.1
shall be credited to the Owner as a deduction from the Cost of the Work.

 

ARTICLE 10
  SUBCONTRACTS AND OTHER AGREEMENTS

 

10.1                                  Those
portions of the Work that the Contractor does not customarily perform with the
Contractor’s own personnel shall be performed under subcontracts or by other
appropriate agreements with the Contractor. The Owner may designate specific
persons or entities from whom the Contractor shall obtain bids. The Contractor
shall obtain bids from Subcontractors and from suppliers of materials or
equipment fabricated especially for the Work and shall deliver such bids to the
Architect. The Owner shall then determine, with the advice of the Contractor
and the Architect, which bids will be accepted. The Contractor shall not be
required to contract with anyone to whom the Contractor has reasonable
objection.

 

10.2                                  If
a specific bidder among those whose bids are delivered by the Contractor to the
Architect (1) is recommended to the Owner by the Contractor; (2) is
qualified to perform that portion of the Work; and (3) has submitted a bid
that conforms to the requirements of the Contract Documents without
reservations or exceptions, but the Owner requires that another bid be
accepted, then the Contractor may require that a Change Order be issued to
adjust the Guaranteed Maximum Price by the difference between the bid of the
person or entity recommended to the Owner by the Contractor and the amount of
the subcontract or other agreement actually signed with the person or entity
designated by the Owner.

 

10.3                                  Subcontracts
or other agreements shall conform to the applicable payment provisions of this
Agreement and shall not be awarded on the basis of cost plus a fee without the
prior consent of the Owner.

 

ARTICLE 11   ACCOUNTING RECORDS

 

The Contractor
shall keep full and detailed accounts and exercise such controls as may be
necessary for proper financial management under this Contract, and the
accounting and control systems shall be satisfactory to the Owner. The Owner
and the Owner’s accountants shall be afforded access to, and shall be permitted
to audit and copy, the Contractor’s records, books, correspondence,
instructions, drawings, receipts, subcontracts, purchase orders, vouchers,
memoranda and other data relating to this Contract, and the Contractor shall
preserve these for a period of three years after final payment, or for such
longer period as may be required by law.

 

ARTICLE 12   PAYMENTS

 

12.1                                  PROGRESS
PAYMENTS

 

12.1.1                        Based upon
Applications for Payment submitted to the Architect by the Contractor, the
Owner shall make progress payments on account of the Contract Sum to the
Contractor as provided below and elsewhere in the Contract Documents.

 

12.1.2                        The period
covered by each Application for Payment shall be one calendar month ending on
the last day of the month, or as follows:

 

8

 

12.1.3                        Provided
that an Application for Payment is received by the Architect not later than the
First day of a month, the Owner shall make payment to the Contractor not later
than the Fifteenth day of the same month. If an Application for Payment is
received by the Architect after the application date fixed above, payment shall
be made by the Owner not later than Fifteen calendar days after the Architect
receives the Application for Payment.

 

12.1.4                        With each
Application for Payment, the Contractor shall submit evidence required by the
Owner or Architect to demonstrate that cash disbursements already made by the
contractor on account of the Cost of the Work equal or exceed (1) progress
payments already received by the Contractor; less (2) that portion of
those payments attributable to the Contractor’s Fee; plus (3) payrolls for
the period covered by the Application for Payment.

 

12.1.5                        Each
Application for Payment shall be based on the most recent schedule of
values submitted by the Contractor in accordance with the Contract Documents.
The schedule of values shall allocate the entire Guaranteed Maximum Price
among the various portions of the Work, except that the Contractor’s Fee shall
be shown as a single separate item. The schedule of values shall be
prepared in such form and supported by such data to substantiate its accuracy
as the Architect may require. This schedule unless objected to by the
Architect, shall be used as a basis for reviewing the Contractor’s Applications
for Payment.

 

12.1.6                        Applications
for Payment shall show the percentage of completion of each portion of the Work
as of the end of the period covered by the Application for Payment. The
percentage of completion shall be the lesser of (1) the percentage of that
portion of the Work which has actually been completed; or (2) the
percentage obtained by dividing (a) the expense that has actually been
incurred by the Contractor on account of that portion of the Work for which the
Contractor has made or intends to make actual payment prior to the next
Application for Payment by (b) the share of the Guaranteed Maximum Price
allocated to that portion of the Work in the schedule of values.

 

12.1.7                        Subject to
other provisions of the Contract Documents, the amount of each progress payment
shall be computed as follows:

 

.1              take that portion of
the Guaranteed Maximum Price properly allocable to completed Work as determined
by multiplying the percentage of completion of each portion of the Work by the
share of the Guaranteed Maximum Price allocated to that portion of the Work in
the schedule of values. Pending final determination of cost to the Owner
of changes in the Work amounts not in dispute shall be included as provided in
Subparagraph 7.3.8 of AIA Document A201-1997;

 

.2              add that portion of
the Guaranteed Maximum Price properly allocable to materials and equipment
delivered and suitably stored at the site for subsequent incorporation in the
Work or if approved in advance by the Owner, suitably stored of the site at a location
agreed upon in writing;

 

.3              add the Contractor’s
Fee, less retainage of Five percent (5%). The Contractor’s Fee shall be
computed upon the Cost of the Work described in the two preceding Clauses at
the rate stated in Subparagraph 5.1.2 or, if the Contractor’s Fee is stated as
a fixed sum in that Subparagraph, shall be an amount that bears the same ratio
to that fixed-sum Fee as the Cost of the Work in the two preceding Clauses
bears to a reasonable estimate of the probable Cost of the Work upon its
completion;

 

.4              subtract the
aggregate of previous payments made by the Owner;

 

.5              subtract the
shortfall, if any, indicated by the Contractor in the documentation required by
Paragraph 12.1.4 to substantiate prior Applications for Payment, or resulting
from errors subsequently discovered by the Owner’s accountants in such
documentation; and

 

.6              subtract amounts, if
any, for which the Architect has withheld or nullified a Certificate for
Payment as provided in Paragraph 9.5 of AIA Document A201-1997.

 

9

 

12.1.8                        Except
with the Owner’s prior approval, payments to Subcontractors shall be subject to
retainage of not less than Five percent (5%). The Owner and the Contractor
shall agree upon a mutually acceptable procedure for review and approval of
payments and retention for Subcontractors.

 

12.1.9                        In taking
action on the Contractor’s Applications for Payment, the Architect shall be
entitled to rely on the accuracy and completeness of the information furnished
by the Contractor and shall not be deemed to represent that the Architect has
made a detailed examination, audit or arithmetic verification of the
documentation submitted in accordance with Subparagraph 12.1.4 or other supporting
data; that the Architect has made exhaustive or continuous on-site inspections
or that the Architect has made examinations to ascertain how or for what
purposes the Contractor has used amounts previously paid on account of the Contract.
Such examinations, audits and verifications, if required by the Owner, will be
performed by the Owner’s accountants acting in the sole interest of the Owner.

 

12.2                                  FINAL
PAYMENT

 

12.2.1                        Final
Payment, constituting the entire unpaid balance of the Contract Sum, shall be
made by the Owner to the Contractor when:

 

.1              the Contractor has
fully performed the Contract except for the Contractor’s responsibility to
correct Work as provided in Subparagraph 12.2.2 of AIA Document A201-1997,
and to satisfy other requirements, if any, which extend beyond final payment;
and

 

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

 

12.2.2                        The Owner’s
final payment to the Contractor shall be made no later than 30 days after the
issuance of the Architect’s final Certificate for Payment, or as follows:

 

Thirty (30)
days following the recordation of the “Notice of Completion” or the date of
completion as defined in Section 3086 of the Civil Code, whichever is
earlier.

 

12.2.3                        The Owner’s
accountants will review and report in writing on the Contractor’s final
accounting within 30 days after delivery of the final accounting to the
Architect by the Contractor. Based upon such Cost of the Work as the Owner’s
accountants report to be substantiated by the Contractor’s final accounting, and
provided the other conditions of Subparagraph 12.2.1 have been met, the
Architect will within seven days after receipt of the written report of the
Owner’s accountants, either issue to the Owner a final Certificate for Payment
with a copy to the Contractor, or notify the Contractor and Owner in writing of
the Architect’s reasons for withholding a certificate as provided in
Subparagraph 9.5.1 of the AIA Document A201-1997. The time periods stated
in this Subparagraph 12.2.3 supersede those stated in Subparagraph 9.4.1 of the
AIA Document A201-1997.

 

12.2.4                        If the
Owner’s accountants report the Cost of the Work as substantiated by the
Contractor’s final accounting to be less than claimed by the Contractor, the
Contractor shall be entitled to demand arbitration of the disputed amount
without a further decision of the Architect. Such demand for arbitration shall
be made by the Contractor within 30 days after the Contractor’s receipt of a
copy the Architect’s final Certificate for Payment; failure to demand arbitration
within this 30-day period shall result in the substantiated amount
reported by the Owner’s accountants becoming binding on the Contractor. Pending
a final resolution by arbitration, the Owner shall pay the Contractor the
amount certified in the Architect’s final Certificate for Payment.

 

12.2.5                        If,
subsequent to final payment and at the Owner’s request, the Contractor incurs
costs described in Article 7 and not excluded by Article 8 to correct
defective or nonconforming Work,

 

10

 

the Owner
shall reimburse the Contractor such costs and the Contractor’s Fee applicable
thereto on the same basis as if such costs had been incurred prior to final
payment, but not in excess of the Guaranteed Maximum Price. If the Contractor
has participated in savings as provided in Paragraph 5.2, the amount of such
savings shall be recalculated and appropriate credit given to the Owner in
determining the net amount to be paid by the Owner to the Contractor.

 

ARTICLE 13   TERMINATION OR SUSPENSION

 

13.1                                  The
Contract may be terminated by the Contractor, or by the Owner for convenience,
as provided in Article 14 of AIA Document A201-1997. However, the
amount to be paid to the Contractor under Subparagraph 14.1.3 of AIA Document A201-1997
shall not exceed the amount the Contractor would be entitled to receive under
Paragraph 13.2 below, except that the Contractor’s Fee shall be calculated as
if the Work had been fully completed by the Contractor, including a reasonable
estimate of the Cost of the Work for Work not actually completed.

 

13.2                                  The
Contract may be terminate by the Owner for cause as provided in Article 14
of AIA Document A201-1997. The amount, if any, to be paid to the
Contractor under Subparagraph 14.2.4 of AIA Document A201-1997 shall not
cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed an
amount calculated as follows:

 

13.2.1                        Take the
Cost of the Work incurred by the Contractor to the date of termination;

 

13.2.2                        Add the
Contractor’s Fee computed upon the Cost of the Work to the date of termination
at the rate stated in Subparagraph 5.1.2 or if the Contractor’s Fee is stated
as a fixed sum in that Subparagraph, an amount that bears the same ratio to
that fixed-sum Fee as the Cost of the Work at the time of termination bears to
a reasonable estimate of the probable Cost of the Work upon its completion; and

 

13.2.3                        Subtract
the aggregate of previous payments made by the Owner.

 

13.3                                  The
Owner shall also pay the Contractor fair compensation, either by purchase or
rental at the election of the Owner, for any equipment owned by the Contractor
that the Owner elects to retain and that is not otherwise included in the Cost
of the Work under Subparagraph 13.2.1. To the extent that the Owner elects to
take legal assignment of subcontracts and purchase orders including rental
agreements), the Contractor shall, as a condition of receiving the payments
referred to in this Article 13, execute and deliver all such papers and
take all such steps, including the legal assignment of such subcontracts and
other contractual rights of the Contractor, as the Owner may require for the
purpose of fully vesting in the Owner the rights and benefits of the Contractor
under such subcontracts or purchase orders.

 

13.4                                  The
Work may be suspended by the Owner as provided in Article 14 of AIA
Document A201-1997; in such case the Guaranteed Maximum Price and
Contract Time shall be increased as provided in Subparagraph 14.3.2 of AIA
Document A201-1997 except that the term “profit” shall be understood to
mean the Contractor’s Fee as described in Subparagraphs 5.1.2 and Paragraph 6.4
of this Agreement.

 

ARTICLE 14   MISCELLANEOUS PROVISIONS

 

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

 

11

 

14.2                                  Payments
due and unpaid under the Contract shall bear interest from the date payment is
due at the rate stated below, or in the absence thereof, at the legal rate
prevailing from time to time at the place where the Project is located.

(Insert
rate of interest agreed upon, if any.)

 

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

 

	
  14.3           The Owner’s representative is:

  	
  Kurt Gollnick

  
	
  (Name, address and other information.)

  	
   Ph: (831) 455-9990

  
	
   

  	
   Cell: (831) 214-4504

  
	
   

  	
   Fax: (831) 455-9998

  
	
   

  	
   

  
	
  14.4           The Contractor’s representative is:

  	
  Ernie Mill

  
	
  (Name, address and other information.)

  	
  Ph: (831) 424-0781

  
	
   

  	
  Fax: (831) 424-0500

  
	
  also Field: 

  	
  Paul
  Kershing

  
	
   

  	
  Cell: (831)
  809-2779

  

 

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

 

14.6                                  Other
provisions:

 

	
  Hazardous Materials:

  	
  Contractor’s scope of work shall not
  include the identification, detection, abatement, encapsulation or removal of
  asbestos or any other hazardous or toxic substances whether in structure or
  below grade.

  
	
  Licensing:

  	
  Contractors are required by law to be
  licensed and regulated by the Contractor’s State License Board, which has
  jurisdiction to investigate complaints against contractors if a complaint is
  filed within 3 years of the date of the alleged violation. Any questions
  concerning a contractor may be referred to the Registrar, Contractor’s State
  License Board, P.O. Box 26000, Sacramento, CA 95826.

  

 

ARTICLE 15   ENUMERATION OF CONTRACT DOCUMENTS

 

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

 

15.1.1                        The
Agreement is this executed 1997 edition of the Standard Form of Agreement
Between Owner and Contractor, AIA Document A111-1997.

 

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

 

12

 

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

 

	
  Document

  	
   

  	
  Title

  	
   

  	
  Pages

  

 

15.1.4             The
Specifications are those contained in the Project Manual dated as in
Subparagraph 15.1.3 and are as follows:

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

 

	
  Section

  	
   

  	
  Title

  	
   

  	
  Pages

  

 

15.1.5             The
Drawings are as follows and are dated                                     
unless a different date is shown below:

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

 

	
  Number

  	
   

  	
  Title

  	
   

  	
  Date

  

 

WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution.

 

13

 

15.1.6             The
Addenda, if any, are as follows:

 

	
  Number

  	
   

  	
  Date

  	
   

  	
  Pages

  

 

 

Portions of Addenda relating to bidding requirements are not part of
the Contract Documents unless the bidding requirements are also enumerated in
this Article 15.

 

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

(List here any additional documents, such as a list
of alternates that are intended to form part of the Contract Documents. AIA
Document A201-1997 provides that bidding requirements such as
advertisement or invitation to bid, Instructions to Bidders sample forms and
the Contractor’s bid are not part of the Contract Documents unless enumerated
in this Agreement.  They should be listed
here only if intended to be part of the Contract Documents.)

 

14

 

ARTICLE 16   INSURANCE AND BONDS

(List required limits of liability for
insurance and bonds. AIA Document A201-1997 gives other specific
requirements for insurance and bonds.)

 

16.1                        Within ten
(10) days of signing this agreement, Contractor shall submit Certificates
of Insurance to the Owner with all limits and naming the Owner as additionally
insured.

 

 

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

 

	
  /s/ Scott D. Scheid

  	
   

  	
  /s/ Ernest D. Mill

  	
   

  
	
  OWNER  (Signature) Scott Scheid, CEO

  	
  CONTRACTOR  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Kurt Gollnick

  	
   

  	
   

  
	
  Kurt Gollnick Scheid Vineyards, COO

  	
   

  	
  Ernest D. Mill, President

  	
   

  
	
   

  	
   

  
	
  (Printed
  name and title)

  	
  (Printed
  name and title)

  
						

 

 

15

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