Document:

Exhibit

Exhibit 10.39

INDUSTRIAL NET LEASE
BROADWAY 101 COMMERCE PARK – PHASE III

Landlord:

PRA/LB, L.L.C., 
an Arizona limited liability company

and

Tenant:

DEXCOM, INC.,
a Delaware corporation

TABLE OF CONTENTS

	
				
	ARTICLE
	PAGE

	LEASE SUMMARY (AND SOME DEFINED TERMS)
	iii
	

	1.
	USE AND RESTRICTION
	1
	

	2.
	TERM
	2
	

	3.
	RENT
	3
	

	4.
	ADDITIONAL RENT
	3
	

	5.
	LETTER OF CREDIT
	5
	

	6.
	ALTERATIONS
	9
	

	7.
	REPAIR
	10
	

	8.
	LIENS
	13
	

	9.
	ASSIGNMENT AND SUBLETTING
	13
	

	10.
	INDEMNIFICATION
	15
	

	11.
	INSURANCE
	16
	

	12.
	WAIVER OF SUBROGATION
	17
	

	13.
	SERVICES AND UTILITIES
	17
	

	14.
	HOLDING OVER
	18
	

	15.
	SUBORDINATION
	18
	

	16.
	RULES AND REGULATIONS
	19
	

	17.
	REENTRY BY LANDLORD
	19
	

	18.
	DEFAULT
	20
	

	19.
	REMEDIES
	21
	

	20.
	QUIET ENJOYMENT
	24
	

	21.
	CASUALTY
	24
	

	22.
	EMINENT DOMAIN
	26
	

	23.
	SALE BY LANDLORD
	26
	

	24.
	ESTOPPEL CERTIFICATES
	26
	

	25.
	SURRENDER OF PREMISES
	27
	

	26.
	NOTICES
	28
	

	27.
	TAXES PAYABLE BY TENANT
	28
	

	28.
	SIGNS; USE OF ROOF SPACE
	28
	

	29.
	HEADINGS
	30
	

	30.
	TENANT'S AUTHORITY
	30
	

	31.
	FINANCIAL STATEMENTS AND CREDIT REPORTS
	31
	

	32.
	COMMISSIONS
	31
	

	33.
	TIME AND APPLICABLE LAW
	31
	

	34.
	SUCCESSORS AND ASSIGNS
	31
	

	35.
	ENTIRE AGREEMENT
	31
	

	36.
	EXAMINATION NOT OPTION
	31
	

	37.
	RECORDATION
	32
	

	38.
	LIMITATION OF LANDLORD'S LIABILITY
	32
	

i

	
				
	39.
	EXPENDITURES BY LANDLORD
	32
	

	40.
	CONFIDENTIALITY
	32
	

	41.
	LANDLORD'S DEFAULT
	32
	

	42.
	OPTIONS TO EXTEND
	33
	

	43.
	TENANT’S RIGHT TO PURCHASE BUILDING
	35
	

	44.
	BACKUP GENERATORS; ADDITIONAL EQUIPMENT
	40
	

	45.
	INCENTIVES
	40
	

	46.
	LEASEHOLD TITLE INSURANCE
	41
	

	47.
	NAME AND IMAGE
	41
	

	48.
	LANDLORD'S COVENANTS
	41
	

	EXHIBIT A-1 – BUILDING AND PARKING SITE PLAN
	 

	EXHIBIT A-2 – PROPERTY SITE PLAN
	 

	EXHIBIT B – WORK LETTER
	 

	EXHIBIT C – RULES AND REGULATIONS
	 

	EXHIBIT D – HAZARDOUS MATERIALS
	 

	EXHIBIT E – FORM OF LETTER OF CREDIT
	 

	EXHIBIT F – MEMORANDUM OF LEASE
	 

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LEASE SUMMARY (AND SOME DEFINED TERMS)
	
						
	LEASE DATE:
	May 1, 2016

	LANDLORD:
	PRA/LB, L.L.C., an Arizona limited liability company

	LANDLORD’S ADDRESS:
	PRA/LB, L.L.C.
c/o Cox Armored Mini-Storage Management Inc.
1650 East Lamar Road
Phoenix, Arizona  85016
Attention: Diane Gibson

With a copy to:

Brier, Irish, Hubbard & Erhart, P.L.C.
2400 East Arizona Biltmore Circle, Suite 1300
Phoenix, Arizona  85016-2115
Attention: Robert N. Brier, Esq.

	ADDRESS FOR RENT PAYMENT:
	PRA/LB, L.L.C.
c/o Cox Armored Mini-Storage Management Inc.
1650 East Lamar Road
Phoenix, Arizona  85016
Attention: Diane Gibson

	TENANT:
	Dexcom, Inc., a Delaware corporation

	TENANT’S ADDRESS:
	Dexcom, Inc.
6340 Sequence Drive
San Diego, California  92121
Attention:  Chief Executive Officer

with a copy to:

Dexcom, Inc.
6340 Sequence Drive
San Diego, California  92121
Attention:  Legal Department

and with a copy to:

Stuart Kane LLP
620 Newport Center Drive, Suite 200
Newport Beach, California  92660
Attention:  Josh C. Grushkin 

	BUILDING:
	Building 1 situated on the Property, having an address of 232 South Dobson Road, Mesa, Arizona 85202, containing approximately 148,797 square feet of rentable area, in the aggregate, which rentable area includes an initial take down of approximately 78,000 square feet (“Phase I”) and a final take down of approximately 70,797 square feet (“Phase II”).

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	PREMISES:
	The entire Building (Building 1) and all appurtenances and improvements situated on the land on which the Building is located, as shown on the Building and Parking Site Plan attached hereto as Exhibit A-1, including, without limitation, exterior patio area(s), parking areas, landscaped areas, loading and unloading areas, trash areas, sidewalks, walkways, parkways and driveways, and all fixtures, systems and facilities contained, maintained or used in connection with those areas.

	PROPERTY:
	The Building and another building ("Building 2") located at 318 South Dobson Road, Mesa, Arizona 85202, containing approximately 64,187 square feet of rentable area, together with all appurtenances and improvements situated on the land on which such buildings are located, as shown on the Property Site Plan attached hereto as Exhibit A-2, as such area may be expanded or reduced from time to time, including the parking areas, sidewalks, landscaping and other common areas now or subsequently located upon the land.  The Building and Building 2 are collectively referred to as the "Buildings". The Property is commonly known as "Broadway 101 Commerce Park – Phase III" and contains approximately 212,984 square feet of rentable area, subject to the terms of Section 1.1.

	USE:
	General office and warehouse uses in connection with the research and development, manufacture and distribution of medical and other technological devices, including, but not limited to, continuous glucose monitoring systems for diabetes management, and customer service and training; and any other use requested by Tenant and approved by Landlord, which approval Landlord shall not unreasonably withhold so long as such use is permitted by law and does not conflict with the express terms of this Lease or with any other uses and/or restrictive covenants then in effect at the Property.

	EARLY ACCESS:
	Landlord shall provide Tenant with access to the Premises for purposes of inspection and other pre-construction activities promptly after (a) Landlord has received and approved copies of Tenant's insurance certificates as required under this Lease, and (b) Landlord has also received from Tenant a copy of this Lease fully executed by Tenant and the Letter of Credit required under this Lease. Tenant shall prepare the Premises for occupancy by Tenant in accordance with the Work Letter attached to this Lease as Exhibit B.

	TARGET PHASE I OCCUPANCY DATE:
	Tenant is expected to cause the tenant improvements in Phase I to be completed on or about October 1, 2016.

	TARGET PHASE II OCCUPANCY DATE:
	Tenant is expected to cause the tenant improvements in Phase II to be completed on or about January 1, 2018.

	COMMENCEMENT DATE:
	May 1, 2016

	TERM:
	Eleven (11) years, eleven (11) months, beginning on the Commencement Date.

	EXPIRATION DATE:
	March 31, 2028

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	BASE RENT (Article 3):
	 

	Dates
	Mos.
	RSF
	Monthly Rate PSF*
	Monthly Rent*
	Rental Consideration for Entire Period*

	5/1/2016 – 9/30/2016
	5
	78,000
	$0.000
	$0.00
	$0.00

	10/1/2016 – 12/31/2017
	15
	78,000
	$0.670
	$52,260.00
	$783,900.00

	1/1/2018 – 12/31/2018
	12
	148,797
	$0.690
	$102,669.93
	$1,232,039.16

	1/1/2019 – 12/31/2019
	12
	148,797
	$0.711
	$105,794.67
	$1,269,536.04

	1/1/2020 – 12/31/2020
	12
	148,797
	$0.732
	$108,919.40
	$1,307,032.80

	1/1/2021 – 12/31/2021
	12
	148,797
	$0.754
	$112,192.94
	$1,346,315.28

	1/1/2022 – 12/31/2022
	12
	148,797
	$0.777
	$115,615.27
	$1,387,383.24

	1/1/2023 – 12/31/2023
	12
	148,797
	$0.800
	$119,037.60
	$1,428,451.20

	1/1/2024 – 12/31/2024
	12
	148,797
	$0.824
	$122,608.73
	$1,471,304.76

	1/1/2025 – 12/31/2025
	12
	148,797
	$0.849
	$126,328.65
	$1,515,943.80

	1/1/2026 – 12/31/2026
	12
	148,797
	$0.874
	$130,048.58
	$1,560,582.96

	1/1/2027 – 3/31/2028
	15
	148,797
	$0.900
	$133,917.30
	$2,008,759.50

	First Option Term (if applicable):

	4/1/2028 – 3/31/2029
	12
	148,797
	$0.927
	$137,934.82
	$1,655,217.84

	4/1/2029 – 3/31/2030
	12
	148,797
	$0.955
	$142,101.14
	$1,705,213.68

	4/1/2030 – 3/31/2031
	12
	148,797
	$0.984
	$146,416.25
	$1,756,995.00

	4/1/2031 – 3/31/2032
	12
	148,797
	$1.013
	$150,731.36
	$1,808,776.32

	4/1/2032 – 3/31/2033
	12
	148,797
	$1.044
	$155,344.07
	$1,864,128.84

	
		
	*plus applicable rental taxes thereon
NOTE:  If Tenant occupies all or any portion of Phase II for the purpose of conducting Business Operations (as defined below) therein prior to January 1, 2018 (each such early occupancy of all or portions of Phase II, herein a "Phase II Early Take Down"), then from the date Tenant commences to use such portion of Phase II for Business Operations until January 1, 2018, notwithstanding anything otherwise provided above, Tenant shall be required to pay Base Rent for such portion of Phase II at the monthly rate of $0.670 per rentable square foot (prorated for any partial month during such period), provided that each such Phase II Early Take Down (until the final take down) shall include at least 20,000 square feet of rentable area irrespective of the actual rentable area of Phase II then being occupied by Tenant for the purpose of conducting Business Operations.  Prior to each such Phase II Early Take Down, (a) Tenant shall give Landlord advance written notice thereof, (i) specifying the date that Tenant desires to commence Business Operations in such portion of Phase II subject to a Phase II Early Take Down, and (ii) specifying the rentable area included in such portion of Phase II subject to a Phase II Early Take Down, and (b) the parties shall promptly enter into a written agreement setting forth the date upon which Tenant will commence to occupy and pay Base Rent for such portion of Phase II subject to a Phase II Early Take Down and specifying the amount of such Base Rent.  For purpose hereof, "Business Operations" shall mean (i) the stationing of employees in any portion of Phase II subject to a Phase II Early Take Down, or (ii) the storage or operation of any equipment, inventory or personal property in any portion of Phase II subject to a Phase II Early Take Down; provided, however, in no event shall Business Operations be deemed to have commenced in Phase II if Tenant, its employees or agents are solely using any portion of Phase II for the staging of Tenant Improvements.  

v

	
		
	RENT ABATEMENT: As reflected in the rent schedule above, as an inducement to Tenant entering into this Lease, Landlord has agreed to abate the monthly installments of Base Rent (calculated at the monthly rate of $0.670 per square foot) that would otherwise be payable for Phase I and Phase II (148,797 SF) during Months 1 through 5 of the Term and for Phase II (70,797 SF) during Months 6 through 15* of the Term (collectively, the "Rent Abatement").  Base Rent only is being abated, or partially abated, as the case may be, during said months of the Term and Tenant shall nevertheless be required to commence to pay Tenant’s Building Share and/or Tenant’s Property Share (as such terms are defined below), as applicable, of Insurance Costs, Taxes and Property Management Expenses, with respect to the entire Building (148,797 SF), commencing on the Commencement Date. 

*or until such earlier date(s) that Tenant is required to commence paying Base Rent for all or portions of Phase II.

	TENANT’S SHARE:
	(i) 100% to the extent the Building or Premises (as opposed to the entire Property) are separately assessed or charged for the applicable item of additional rent ("Tenant’s Building Share"); or (ii) with respect to items of additional rent which are applicable to the entire Property, the percentage obtained by converting a fraction, the numerator of which is the rentable area of the Building and the denominator of which is the rentable area of both Buildings on the Property ("Tenant’s Property Share").  Subject to the terms of Section 1.1, Tenant’s Property Share as of the Lease Date is approximately 70% (based on 148,797 square feet of rentable area in the Building and 212,984 square feet of rentable area in both Buildings on the Property). 

	INITIAL LETTER OF CREDIT AMOUNT:
	$3,600,000.00

	PARKING:
	Approximately three hundred eighty-six (386) parking spaces ("Tenant Parking Spaces") located on the Premises adjacent to the Building (north of Birchwood), as shown on the Building and Parking Site Plan attached to this Lease as Exhibit A-1.  During the Term, including any Option Terms, Tenant and the Tenant Entities (as defined below) will be entitled to use all such Tenant Parking Spaces, free of charge, subject to such reasonable rules and regulations as Landlord may from time to time promulgate regarding such use.

	REAL ESTATE BROKER DUE COMMISSION:
	Cushman & Wakefield, representing Landlord and Tenant, whose fees shall be paid by Landlord pursuant to separate written agreement(s).

The above information and defined terms (together, the "Summary") are incorporated into and made a part of the Standard Lease Provisions set forth below.  In the event of any conflict between the Summary and the Standard Lease Provisions, the Summary shall control.  This "Lease" includes the Summary, the Standard Lease Provisions and Exhibits A through F, all of which are made a part of this Lease. 

vi

STANDARD LEASE PROVISIONS
1.USE AND RESTRICTIONS ON USE.
1.1
    By this Lease Landlord leases to Tenant and Tenant leases from Landlord the Building and the Premises as set forth and described on the Summary.  The term "rentable area" shall mean the rentable area of the Building on the Premises or the Buildings on the Property, as the case may be, as calculated by Landlord, including a proportionate share of any common areas.  Tenant hereby accepts and agrees to be bound by the figures for the rentable area of the Building and the Buildings as shown on the Summary; however, Landlord may adjust the rentable area of the Buildings on the Property (and Tenant’s Building Share and/or Tenant’s Property Share, as applicable) if there is any addition to or subtraction from the Buildings on the Property, or any other circumstance reasonably justifying adjustment.  If Tenant constructs any mezzanine space in the Building, at Tenant’s sole cost and expense, subject to the terms of Exhibit B, the square footage of such area shall not be added to the rentable area of the Building for purposes of determining the Monthly Base Rent or Tenant’s Building Share and/or Tenant’s Property Share, as applicable, under this Lease.
1.2
    The Building is to be used solely for the purposes set forth on the Summary. Tenant shall have access to the Building and the Premises 24 hours per day, seven days per week, subject to the terms of this Lease and such reasonable rules and regulations as Landlord may from time to time promulgate regarding such access. Tenant shall not do or permit anything to be done in or about the Building or Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Property or injure, annoy, or disturb them, or allow the Building or Premises to be used for any improper, immoral, unlawful, or objectionable purpose, or commit any waste.  Landlord and Tenant acknowledge that Section 5.2 of that certain Easements, Covenants, Conditions and Restrictions Agreement dated and recorded on August 11, 2014, in the Official Records of Maricopa County as instrument number 20140526495 (the "ECC&Rs"), states that the owner of the Premises shall not use or permit any other person or business enterprise to use any portion of the Premises, and that the Premises is restricted from use, as (i) a retail convenience grocery store, (ii) a smoke shop, or other retail outlet selling tobacco products as one of its primary uses, (iii) a sexually oriented business, (iv) for the sale of pornographic or sexually explicit materials or drug paraphernalia, package or carry out beer, wine, liquor or spirits, (v) for the retail sale of motor fuels, or (vi) for the sale of items commonly sold in a convenience store, including, but not limited to, candy, chips, snacks, juice, smoothies, coffee and coffee products, donuts, pastries, soda and other carbonated beverages, unless such items are sold on an incidental basis (such incidental basis herein referred to as the "Incidental Sales").  Tenant agrees that in no event shall the Premises or any portion of the Premises or the Building be used at any time for any of the restricted uses set forth in the ECC&Rs, with the exception of Incidental Sales.  Landlord agrees that, so long as such uses are in compliance with all applicable laws, ordinances and regulations and do not violate the restrictions set forth in the ECC&Rs, Tenant shall be permitted to operate a store, café, and/or cafeteria in a portion of the Building, exclusively for use by Tenant's employees working at the Building and not open to the general public.  Subject to Landlord's express obligations set forth in Section 7.1(b) and elsewhere in this Lease, Tenant shall comply with all governmental laws, ordinances and regulations applicable to the use of the Building, the Premises and its occupancy and shall promptly comply with all governmental orders and directions for the correction, prevention and abatement of any violations caused or permitted by, or resulting from the specific use by, Tenant, or in or upon, or in connection with, the Building or the Premises, all at Tenant’s sole expense.  Tenant shall not do or knowingly permit anything to be done on or about the Building or the Premises or bring into or keep anything in the Building or the Premises which will in any way increase the rate of, invalidate or prevent the procuring of any insurance protecting against loss or damage to the Building or any of its contents by fire or other casualty or against liability for damage to property or injury to persons in or about the Building or any part thereof.
1.3
    Tenant shall not, and shall not direct, suffer or permit any of its agents, contractors, employees, licensees or invitees (collectively, the "Tenant Entities") to at any time handle, use, manufacture, store or dispose of (collectively, "Use") in or about the Building, the Premises, or the Property any (collectively, "Hazardous 

1

Materials") flammables, explosives, radioactive materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or derivatives or any substance subject to regulation by or under any federal, state and local laws and ordinances relating to the protection of the environment or the keeping, use or disposition of environmentally hazardous materials, substances, or wastes, presently in effect or hereafter adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of such laws or ordinances (collectively, "Environmental Laws"), except as provided below in Sections 1.3(A) and 1.3(B) hereof, nor shall Tenant suffer or permit any Hazardous Materials to be used in any manner not fully in compliance with all Environmental Laws, in the Building, the Premises, or the Property or allow the environment to become contaminated with any Hazardous Materials.  Notwithstanding the foregoing, (A) Tenant may Use Hazardous Materials in the Building, subject to the additional terms and conditions set forth on Exhibit D (Hazardous Materials) attached hereto and incorporated herein by this reference, and (B) Tenant may handle, store, use or dispose of products containing small quantities of Hazardous Materials (such as aerosol cans containing insecticides, toner for copiers, paints, paint remover and the like) to the extent customary and necessary for the use of the Building for general office purposes; provided that Tenant shall always handle, store, use, and dispose of any such Hazardous Materials in a safe and lawful manner and never allow such Hazardous Materials to contaminate the Building, the Premises, the Property or the environment.  Tenant shall protect, defend, indemnify and hold harmless Landlord and its trustees, boards of directors, officers, general partners, managers, members, beneficiaries, stockholders, employees and agents (collectively, the "Landlord Entities") for, from and against any and all loss, claim, liability or cost whatsoever (including court costs and attorneys’ fees) incurred by reason of any failure of Tenant to fully comply with all applicable Environmental Laws, or the presence, handling, use or disposition in or from the Building, the Premises, and/or the Property of any Hazardous Materials by Tenant or any Tenant Entity (even though permissible under all applicable Environmental Laws or the provisions of this Lease), or by reason of any failure of Tenant to keep, observe, or perform any provision of this Section 1.3.
1.4
    During the Term of this Lease, Tenant and the Tenant Entities will be entitled to exclusive use of the Premises (subject to the non-exclusive rights of others granted under any easements or other agreements affecting the Premises and Landlord’s rules and regulations regarding such use), including all of the Tenant Parking Spaces set forth in the Summary and shown on Exhibit A-2.  Tenant shall have the right to monitor and control the use of the Tenant Parking Spaces, including closure of such parking areas, as well as the right to mark the parking stalls in accordance with applicable laws, ordinances and regulations.  In no event will Tenant or the Tenant Entities park in any of the other parking areas which serve the Property.  
2.
    TERM.
The Term of this Lease shall be for the period designated in the Summary, beginning on the Commencement Date and ending on the Expiration Date, as the same may be extended or sooner terminated as provided in this Lease.  Landlord shall deliver possession of the Building and the Premises to Tenant as provided in the Summary.  Tenant acknowledges that, except as otherwise expressly set forth in this Lease, neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the Building, the Premises, the Property or their condition, or with respect to the suitability thereof for the conduct of Tenant's business, and Tenant shall accept the Building and the Premises in their then as-is condition on delivery by Landlord (subject to the further terms of this Lease), without any obligation on Landlord's part to make any alterations, upgrades or improvements thereto.  Tenant shall be responsible for constructing, furnishing and/or installing such improvements, additions, alterations, equipment and furnishings for the Building and the Premises, including, without limitation, the installation of all heating, ventilating and air conditioning systems, evaporative cooling systems, fire sprinkler systems and the like, which are necessary to permit the Building to be utilized for the purposes set forth on the Summary and otherwise in accordance with all of the terms of this Lease; such work shall be performed by Tenant in accordance with the terms and conditions set forth in Exhibit B.  The entry, use or occupancy of the Building by Tenant, or any agent, employee or contractor of Tenant, prior to the Commencement Date, for the purpose of preparing the Building for occupancy by Tenant, as more particularly set forth in Exhibit B, shall be subject to all the provisions of this Lease other than the payment of rent, including, without limitation, Tenant’s compliance with the insurance requirements of Article 11. Said early 

2

possession shall not advance the Commencement Date or the Expiration Date.  Even though the Term of this Lease does not commence until the Commencement Date, this Lease shall be in full force and effect as a binding obligation of the parties from and after the date this Lease is fully executed.
3.
    RENT.
3.1
    Tenant agrees to pay to Landlord the Monthly Base Rent then in effect on or before the first day of each full calendar month during the Term, commencing upon the expiration of the Rent Abatement.  Rent for any period during the Term which is less than a full month shall be a prorated portion of the Monthly Base Rent based upon the number of days in such month.  Said rent shall be paid to Landlord, without deduction or offset except as expressly permitted under this Lease, and without notice or demand, at the Rent Payment Address set forth on the Summary, or to such other person or at such other place as Landlord may from time to time designate in writing.  If an Event of Default occurs, Landlord may require by notice to Tenant that all subsequent rent payments be made by an automatic payment from Tenant’s bank account to Landlord’s account, without cost to Landlord.  Tenant must implement such automatic payment system prior to the next scheduled rent payment or within ten (10) business days after Landlord’s notice, whichever is later.  Unless specified in this Lease to the contrary, all amounts and sums payable by Tenant to Landlord pursuant to this Lease, other than Base Rent, shall be additional rent.  Tenant shall pay to Landlord, in addition to, and simultaneously with, all payments of rent and any other amounts payable to Landlord under this Lease, a sum equal to the aggregate of any municipal, county, state or federal excise, sales, use, rental or transaction privilege taxes now or hereafter levied or imposed against, or on account of, any or all consideration from and amounts payable under this Lease by Tenant, or the receipt thereof by Landlord.
3.2
    Tenant recognizes that late payment of any rent or other sum due under this Lease will result in administrative expense to Landlord, the extent of which additional expense is extremely difficult and economically impractical to ascertain.  Tenant therefore agrees that if rent or any other sum is not paid when due and payable pursuant to this Lease, a late charge shall be imposed in an amount equal to five percent (5%) of the unpaid rent or other payment.  The provisions of this Section 3.2 in no way relieve Tenant of the obligation to pay rent or other payments on or before the date on which they are due, nor do the terms of this Section 3.2 in any way affect Landlord’s remedies pursuant to Article 19 of this Lease in the event said rent or other payment is unpaid after date due.
4.
    ADDITIONAL RENT.  
4.1
    Except as may otherwise be expressly provided in this Lease, all rent shall be absolutely net to Landlord so that this Lease shall yield net to Landlord the rent to be paid each month during the Term of this Lease.  Accordingly, and except as may otherwise be provided in this Lease, all costs, expenses and obligations of every kind or nature whatsoever relating to the Building and the Premises which may arise or become due during the Term (including, without limitation, all costs and expenses of maintenance and repairs (including necessary replacements), insurance and taxes, etc., except as may otherwise be expressly provided in this Lease) shall be paid by Tenant.  In the event Tenant fails to pay, perform or discharge any imposition, insurance premium, utility charge, maintenance, repair or replacement expense which it is obligated to pay or discharge, Landlord may, but shall not be obligated to, pay, perform and/or discharge the same, and in that event Tenant shall reimburse Landlord for such amount as additional rent, together with a reasonable fee for overhead not to exceed eight percent (8%), within thirty (30) days after invoice, and Tenant hereby agrees to indemnify, defend and hold Landlord harmless for, from and against such costs, fees, charges, expenses, reimbursements and obligations referred to above.  Nothing herein contained, however, shall be deemed to require Tenant to pay or discharge any liens or mortgages of any character whatsoever which may exist or hereafter be placed upon the Premises by an affirmative act or omission of Landlord.  For the purpose of this Article 4, the following terms are defined as follows:

3

4.1.1
    Insurance Costs:  All insurance charges of or relating to all insurance policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building, the Premises and the Property or any part thereof, including, without limitation, the insurance required to be maintained by Landlord pursuant to Section 21.1 of this Lease. 
4.1.2
    Taxes:  Real estate taxes and any other taxes, charges and assessments which are levied with respect to the Property, or with respect to any improvements, fixtures and equipment or other property of Landlord, real or personal, located on the Property and used in connection with the operation of the Property; and all fees, expenses and costs incurred by Landlord in investigating, protesting, contesting or in any way seeking to reduce or avoid increase in any assessments, levies or the tax rate pertaining to any Taxes to be paid by Landlord in any calendar year.  Taxes shall not include any corporate franchise, or estate, inheritance or net income tax, or tax imposed upon any transfer by Landlord of its interest in this Lease or the Building or any taxes to be paid by Tenant pursuant to Article 27.
4.1.3
    Property Management Expenses:  An amount equal to two and one-half percent (2.5%) of the annual gross receipts of the Premises (which amount shall be allocated and paid by Tenant based on Tenant's Building Share), and, if applicable, any assessments, costs or fees paid or incurred by Landlord pursuant to any owners' association, cross-access (vehicular and pedestrian) easement or similar agreement entered into by Landlord and the owner(s) of adjacent properties, as equitably prorated and apportioned between the Premises (or the Property if allocated to Tenant pursuant to Tenant’s Property Share) and such other properties, provided that, (a) any such agreement to be entered into by Landlord and the owner(s) of adjacent properties after the execution of this Lease and during the Term of this Lease shall be subject to Tenant’s right to reasonably comment upon and approve the same in advance of Landlord entering into same, which approval shall not be unreasonably withheld, delayed or conditioned by Tenant, and (b) such agreement shall not provide for cross parking unless expressly approved in advance by Tenant.
4.2
    Tenant shall pay as additional rent for each calendar year Tenant’s Building Share or Tenant’s Property Share, as applicable, of Insurance Costs, Taxes and Property Management Expenses incurred for such calendar year, commencing on the Commencement Date.  Subject to the terms of Sections 4.4 and 4.5 below, payment of such amounts shall be due within thirty (30) days after invoice.  When providing any such invoice to Tenant for payment, Landlord shall provide an explanation to Tenant with the calculation of how such amount was determined, including whether such amount is calculated as Tenant’s Building Share or Tenant’s Property Share. 
4.3
    Concurrently with Landlord’s delivery of any invoice to Tenant, or otherwise promptly after written request from Tenant from time to time, but not more often than one time per calendar year, Landlord shall furnish to Tenant copies of the insurance premium statements and tax bills for the current and immediately preceding calendar year, as well as any additional back-up documentation for any other charges being attributed to Tenant’s Building Share and/or Tenant’s Property Share. 
4.4
    Prior to the actual determination thereof for a calendar year, Landlord may from time to time estimate Tenant’s Building Share and/or Tenant’s Property Share, as applicable, for Insurance Costs, Taxes and/or Property Management Expenses under Section 4.2 for the calendar year or portion thereof.  Landlord will give Tenant written notification of the amount of such estimate not more often than two times in any calendar year, and Tenant agrees that it will pay, by increase of the monthly estimate of Tenant’s Building Share or Tenant’s Property Share, as applicable, of Insurance Costs, Taxes and/or Property Management Expenses (as applicable) due for such calendar year, additional rent in the amount of such estimate, as of the first of the month that occurs not less than thirty (30) days following Tenant’s receipt of such written notification of the amount of such estimate.  Any such increased rate of the monthly estimate of Tenant’s Building Share and/or Tenant’s Property Share, as applicable, of Insurance Costs, Taxes and/or 

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Property Management Expenses pursuant to this Section 4.4 shall remain in effect until further written notification to Tenant pursuant hereto.
4.5
    When the above mentioned actual determination of Tenant’s Building Share and/or Tenant’s Property Share, as applicable, for Insurance Costs, Taxes and/or Property Management Expenses is made for any calendar year, Landlord shall provide written notice to Tenant reconciling the previously paid estimated amounts with such actual amounts, and when Tenant is so notified in writing by Landlord, then:
4.5.1
    If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Insurance Costs, Taxes and/or Property Management Expenses for the calendar year is less than Tenant’s liability for Tenant’s Building Share and/or Tenant’s Property Share, as applicable, of Insurance Costs, Taxes and/or Property Management Expenses, then Tenant shall pay such deficiency to Landlord as additional rent in one lump sum within thirty (30) days after Tenant’s receipt of Landlord’s bill therefor; and
4.5.2
    If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Insurance Costs, Taxes and/or Property Management Expenses for the calendar year is more than Tenant’s Building Share and/or Tenant’s Property Share, as applicable, for Insurance Costs, Taxes and/or Property Management Expenses, then Landlord shall credit the difference against the then next due payments to be made by Tenant under this Article 4, or, if the Lease has terminated, refund the difference to Tenant in one lump sum within thirty (30) days after Landlord’s determination thereof.
4.6
    If the Commencement Date is other than January 1 or if the Expiration Date is other than December 31, Tenant’s liability for Tenant’s Building Share and/or Tenant’s Property Share, as applicable, of Insurance Costs, Taxes and/or Property Management Expenses for the calendar year in which said date occurs shall be prorated based upon a three hundred sixty-five (365) day year.
4.7    Promptly following Tenant’s execution of this Lease, Tenant shall pay to Landlord the sum of $21,000.00, as the agreed upon payment for a portion of the Insurance Costs, Taxes and Property Management Expenses attributable to the early access period occurring prior to the Commencement Date.

5.
    LETTER OF CREDIT.  
5.1
    Concurrently with Tenant’s execution of this Lease, Tenant shall deliver to Landlord, as protection for the full performance by Tenant of all of its obligations under this Lease and for all claims, damages, judgments, suits, causes of action, losses, liabilities, penalties, fines, expenses and costs Landlord may suffer (or which Landlord reasonably estimates that it may suffer) as a result of any default by Tenant under this Lease, an original, unconditional, irrevocable, standby letter of credit ("Letter of Credit") in the form of Exhibit E attached hereto and containing the terms required herein, in the Initial Letter of Credit Amount set forth in the Summary, naming Landlord as beneficiary, issued (or confirmed) by a solvent, nationally recognized financial institution with a long term credit rating of Baa2 or higher under the Moody’s rating system, BBB or higher under the Standard & Poor’s rating system, or comparable credit rating under an equivalent reputable rating system, acceptable to Landlord in Landlord’s sole discretion, payable in Maricopa County, Arizona, or elsewhere so long as demands for payment are permitted via facsimile ("Bank"), permitting multiple and partial draws thereon, and otherwise in a form acceptable to Landlord in its sole discretion.  The Letter of Credit shall be subject to the International Standby Practices-ISP 98, International Chamber of Commerce Publication #590.  Tenant shall pay all expenses, points and/or fees incurred in obtaining the Letter of Credit.  Tenant shall cause the Letter of Credit to be continuously maintained in effect (whether through replacement, renewal or extension) in the then required Letter of Credit Amount as provided below in Section 5.8, through the 

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Final LC Expiration Date (as defined in Section 5.8).  If the Letter of Credit held by Landlord expires earlier than the Final LC Expiration Date (whether by reason of a stated expiration date or a notice of termination or non-renewal given by the Bank), Tenant shall deliver a new Letter of Credit or certificate of renewal or extension to Landlord not later than fifty (50) days prior to the expiration date of the Letter of Credit then held by Landlord, without any action whatsoever on the part of Landlord.  Additionally, if Tenant desires to replace the Letter of Credit held by Landlord earlier than the expiration date of such Letter of Credit, Tenant shall deliver a new Letter of Credit to Landlord which satisfies the requirements of this Article 5, and Landlord shall surrender the Letter of Credit then held by Landlord to Tenant or Bank, as directed by Tenant, not later than thirty (30) days after Landlord’s receipt of the new Letter of Credit.  Any renewal or replacement Letter of Credit shall comply with all of the provisions of this Article, shall be irrevocable, transferable and shall remain in effect (or be automatically renewable) through the Final LC Expiration Date upon the same terms as the expiring Letter of Credit or such other terms as may be acceptable to Landlord in its sole discretion.  In addition to the rights and remedies of Landlord set forth in this Article, any failure of Tenant to deliver such new Letter of Credit or certificate of renewal or extension when and as required above shall be an immediate material event of default under this Lease without notice or opportunity to cure.  
5.2
    Landlord shall have the immediate right to draw upon the Letter of Credit, in whole or in part, at any time and from time to time upon the occurrence of any of the following events (each, a "Triggering Event"): (a) a default by Tenant under this Lease which continues beyond the expiration of any applicable notice and cure period ("Triggering Default"); (b) a monetary Triggering Default occurs, irrespective of whether the amounts owing under such Triggering Default are subsequently received by Landlord from the proceeds of a draw on the Letter of Credit, and Tenant thereafter fails to make any payment of rent within five (5) days after the date due, without the need for Landlord to provide any notice or opportunity to cure, or fails to pay any Landlord Losses (as defined below) within five (5) days after invoice; (c) Tenant files a voluntary petition under the U.S. Bankruptcy Code or any state bankruptcy code (collectively, "Bankruptcy Code"); (d) an involuntary petition is filed against Tenant under the Bankruptcy Code; (e) Tenant files a voluntary petition under the Bankruptcy Code or an involuntary petition is filed against Tenant under the Bankruptcy Code and Tenant thereafter fails to make any payment of rent within five (5) days after the date due, without the need for Landlord to provide any notice or opportunity to cure; or (f) if the Letter of Credit held by Landlord is scheduled to expire earlier than the Final LC Expiration Date (whether by reason of a stated expiration date or a notice of termination or non-renewal given by the Bank), and Tenant fails to deliver to Landlord, at least fifty (50) days prior to the scheduled expiration date of the Letter of Credit then held by Landlord, a renewal or substitute Letter of Credit that is in effect and that complies with the provisions of this Article.  In order to draw upon the Letter of Credit, Landlord shall submit a demand to the Bank, purportedly signed by Landlord or its managing agent, authorized representative or legal counsel, (i) identifying the Letter of Credit, (ii) specifying the date of the draw demand, (iii) specifying the amount of the draw, and (iv) specifying to whom (and to what bank account) the draw proceeds should be wired.  The Letter of Credit shall require the Bank to honor any draw demand within two (2) business days after such demand is submitted.  No condition or term of this Lease shall be deemed to render the Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing upon such Letter of Credit in a timely manner.  Tenant hereby acknowledges and agrees that Landlord is entering into this Lease in material reliance upon the ability of Landlord to draw upon the Letter of Credit upon the occurrence of any of the Triggering Events described above in this paragraph.  
5.3
    Upon any draw in accordance with the provisions of this Article: (A) Landlord may immediately apply or offset the proceeds of the Letter of Credit against any of the following (collectively, "Landlord Losses"): (i) any rent or other charges payable by Tenant under this Lease that are not paid by Tenant within five (5) days after the date first due; (ii) all actual losses and damages that Landlord has suffered as a result of any breach of this Lease by Tenant; (iii) any costs reasonably incurred by Landlord in connection with this Lease (including attorneys’ fees); and (iv) any other amounts that Landlord may spend or become obligated to spend by reason of the occurrence of the Triggering Event; and/or (B) Landlord may hold such proceeds, or place such proceeds into escrow, and apply or offset the same from time to time against any unpaid rent or other quantifiable Landlord Losses.  Any unused proceeds held by Landlord, or placed into escrow, shall constitute the property of Landlord to be applied as necessary to cover any actual Landlord Losses, and need not be segregated from Landlord’s other assets.  The use, application or retention 

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of the Letter of Credit, or any portion thereof, by Landlord (a) shall not prevent Landlord from exercising any other right or remedy provided by this Lease or by any applicable law, it being intended that Landlord shall not first be required to proceed against the Letter of Credit, (b) shall not operate as a limitation on any recovery to which Landlord may otherwise be entitled, and (c) shall not constitute the cure of any breach of this Lease by Tenant or the waiver of such breach by Landlord.  Tenant agrees not to interfere in any way with payment to Landlord of the proceeds of the Letter of Credit, either prior to or following a draw by Landlord of any portion of the Letter of Credit, provided that such draw is consistent with the terms of this Lease and the Letter of Credit.  Tenant covenants and warrants that it will neither assign nor encumber the Letter of Credit or any part thereof and that neither Landlord nor its successors or assigns will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.
5.4
    Tenant agrees and acknowledges that (a) the Letter of Credit constitutes a separate and independent contract between Landlord and the Bank, (b) Tenant is not a third party beneficiary of such contract, (c) Tenant has no property interest whatsoever in the Letter of Credit or the proceeds thereof, and (d) in the event Tenant becomes a debtor under any chapter of the Bankruptcy Code, neither Tenant, any trustee, nor Tenant’s bankruptcy estate shall have any right to restrict or limit Landlord’s claim and/or rights to the Letter of Credit and/or the proceeds thereof by application of Section 502(b)(6) of the Bankruptcy Code or otherwise.
5.5
    The Letter of Credit shall also provide that Landlord may, at any time and without notice to Tenant and without first obtaining Tenant’s consent thereto, transfer (one or more times) all or any portion of its interest in and to the Letter of Credit to another party, person or entity, including any mortgagee and/or to have the Letter of Credit reissued in the name of the mortgagee.  If Landlord transfers its interest in the Property and/or the Building and transfers the Letter of Credit (or transfers or credits any proceeds thereof then held by Landlord) in whole or in part to the transferee, Landlord shall, without any further agreement between the parties hereto, thereupon be released by Tenant from all liability therefor.  The provisions hereof shall apply to every transfer or assignment of all or any part of the Letter of Credit to a new landlord.  In connection with any such transfer of the Letter of Credit by Landlord, Tenant shall, at Tenant’s sole cost and expense, execute and submit to the issuer of the Letter of Credit such applications, documents and instruments as may be necessary to effectuate such transfer.  Tenant shall be responsible for paying the issuer’s transfer and processing fees in connection with any transfer of the Letter of Credit and, if Landlord advances any such fees (without having any obligation to do so), Tenant shall reimburse Landlord for such transfer or processing fees within ten (10) days after Landlord’s written request therefor.
5.6
    Landlord and Tenant (a) acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or substitute therefor or any proceeds thereof be deemed to be or treated as a “security deposit” under any laws and governmental regulations applicable to security deposits in the commercial context ("Security Deposit Laws"), (b) acknowledge and agree that the Letter of Credit (including any renewal thereof or substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (c) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws.  Tenant hereby waives all provisions of the Security Deposit Laws, now or hereafter in effect, which (i) establish the time frame by which Landlord must refund a security deposit under a lease, and/or (ii) provide that Landlord may claim from the security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean the Premises, it being agreed that Landlord may, in addition, claim the Landlord Losses specified in this Article above and/or other sums reasonably necessary to compensate Landlord for any claims, damages, judgments, suits, causes of action, losses, liabilities, penalties, fines, expenses and costs caused by Tenant’s breach of this Lease or the acts or omissions of Tenant or any of Tenant's agents, employees, contractors, customers or invitees, including any damages Landlord suffers following termination of this Lease or termination of Tenant’s right to possession of the Premises, without termination of this Lease.

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5.7
    If (a) the long term credit rating of the Bank issuing the Letter of Credit is downgraded below that required pursuant to Section 5.1 above, (b) the Bank issuing the Letter of Credit ceases to do business, is seized by the Federal Deposit Insurance Corporation ("FDIC") or any other applicable governing authority, enters into any form of regulatory or governmental receivership or other similar regulatory or governmental proceeding, is otherwise declared insolvent or determined to be insolvent, or is placed on the FDIC "watch list" or downgraded by the FDIC, or (c) the FDIC repudiates the Letter of Credit (each, a "Bank Failure"), then, at Landlord’s sole option and written notice (a "Landlord Election Notice"), Tenant promptly shall either: (y) deliver to Landlord a cash security deposit in the then current required amount of the Letter of Credit, or (z) apply to a different Bank or Banks which satisfy all of the requirements for the issuing Bank, as set forth above, for a replacement Letter of Credit, submit all documentation and fees required in connection with the application, diligently pursue any and all further steps necessary to obtain a replacement Letter of Credit, and otherwise use its best efforts to obtain and deliver to Landlord a replacement Letter of Credit as soon as reasonably possible under the circumstances, issued by a different Bank which satisfies all of the requirements for the issuing Bank, as set forth above.  Tenant shall promptly deliver notice to Landlord of a Bank Failure following Tenant’s actual notice of such Bank Failure.  Landlord shall not be required to pay any fees or undertake any actions whatsoever in connection with a replacement Letter of Credit, except those actions, if any, which may be reasonably requested or required from Landlord, at no cost to Landlord, in order to permit the issuance of a replacement Letter of Credit.  Any such replacement Letter of Credit shall comply with all of the provisions of this Article.  If applicable, Tenant shall keep Landlord apprised of the status of its efforts to obtain the replacement Letter of Credit and shall promptly respond to any requests for status or other information from Landlord in connection therewith, including authorizing Landlord to communicate directly with the Bank or Banks to which Tenant has applied in order to ascertain the status and extent of Tenant’s efforts to obtain the replacement Letter of Credit.  If Tenant does not obtain a replacement Letter of Credit within thirty (30) days after Tenant receives the Landlord Election Notice, Tenant shall immediately deliver a cash security deposit to Landlord in the Letter of Credit Amount and, if Tenant fails to do so, such failure shall be an immediate material event of default by Tenant under this Lease that is not subject to further notice and/or opportunity to cure.
5.8
    Provided that no Reduction Threshold Triggering Event (as defined below) has previously occurred or is then occurring as of each such reduction date (as provided below), the amount that Landlord shall be permitted to draw upon the Letter of Credit shall be reduced (and the amount of the Letter of Credit [herein, the "Letter of Credit Amount"] shall be deemed reduced, irrespective of whether a replacement Letter of Credit or amendment to the existing Letter of Credit is issued) as follows: (a) to $2,880,000.00 on October 1, 2017; (b) to $2,304,000.00 on October 1, 2018; (c) to $1,843,200.00 on October 1, 2019; (d) to $1,474,560.00 on October 1, 2020; and (e) to zero (-0-) on October 1, 2021.  If any Reduction Threshold Triggering Event occurs prior to or on the date of any such reduction, however, then the Letter of Credit Amount shall remain at the rate in effect immediately prior to the occurrence of such Reduction Threshold Triggering Event, until the date ("Final LC Expiration Date") that is one hundred twenty (120) days after the expiration of this Lease.  At Tenant's option, provided Tenant gives Landlord at least twenty (20) days' prior written notice thereof and receives from Landlord written confirmation that no Reduction Threshold Triggering Event has previously occurred or is then occurring, Tenant shall be permitted to tender replacement Letter of Credit(s) or certificate(s) of amendment to the existing Letter of Credit from time to time, conforming in all respects to the requirements of this Article, in the then applicable Letter of Credit Amount.  For the purpose of this Section 5.8, a "Reduction Threshold Triggering Event" shall mean any Triggering Default as defined in Section 5.2 above, except that in the case of a monetary Triggering Default in which the amount owing to Landlord under such monetary Triggering Default is less than $5,000, the same shall not become a Reduction Threshold Triggering Event unless and until Tenant continues to fail to make such delinquent payment to Landlord within three (3) business days after receipt of a second written notice from Landlord following the expiration of the initial notice and cure period.

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6.
    ALTERATIONS.
6.1
    After construction of the initial Tenant Improvements (as defined in Exhibit B), Tenant shall be permitted, at Tenant’s sole cost and expense, upon at least ten (10) days’ advance written notice thereof to Landlord, to do the following without Landlord’s consent: (i) install unattached, movable trade fixtures which may be installed without drilling, cutting or otherwise defacing the Building, and (ii) make minor, decorative additions, alterations and improvements located exclusively within the interior of the Building and provided that same (A) do not require plans and specifications, (B) are not structural in nature, (C) are not visible from outside the Building, (D) do not affect or require modification of the Building's electrical, mechanical, plumbing, heating, air conditioning or other systems, and (E) do not cost more than $75,000.00 to complete for any such project (hard and soft costs) (the foregoing collectively referred to herein as "Cosmetic Alterations").  Other than Cosmetic Alterations, Tenant shall not make or suffer to be made any alterations, additions, or improvements (collectively, "Alterations"), including, but not limited to, the attachment of any fixtures or equipment in, on, or to the Building, the Premises or any part thereof or the making of any improvements as required by Article 7, without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed so long as the requested improvements are in compliance with the terms hereof.  It shall not be deemed unreasonable for Landlord to withhold its consent if the proposed Alterations would (i) adversely affect the outside appearance, character or use of any portions of the Building or other portions of the Property; (ii) adversely affect the Building's roof, roof membrane, or any other any structural component of the Building; (iii) adversely affect any base Building equipment, services or systems, or the proper functioning thereof, or Landlord's access thereto; (iv) in the commercially reasonable opinion of Landlord, lessen the value of the Building, the Premises or the Property; (v) violate or require a change in any occupancy certificate applicable to the Building, unless Tenant pays for such change; or (vi) trigger a legal requirement which would require any Alterations to be made to the Building, the Premises, or other aspect of the Property, unless Tenant pays for such Alterations.  When applying for such consent, Tenant shall, if requested by Landlord, furnish reasonably detailed plans and specifications for such Alterations. 
6.2
    All such Alterations by Tenant other than Cosmetic Alterations shall be made by using a contractor reasonably approved by Landlord, at Tenant’s sole cost and expense.  Landlord shall have the right from time to time as determined by Landlord to inspect, supervise and/or oversee the construction of such Alterations.  Landlord’s right to inspect such Alterations and approve Tenant’s contractor shall not impose upon Landlord any responsibility for defective, incomplete or nonconforming work that Landlord discovers or fails to discover by any such review and/or inspection.  If Tenant employs any contractor or any subcontractor which employs any non-union labor or supplier, Tenant shall be responsible for and hold Landlord harmless from any and all delays, damages and extra costs suffered by Landlord as a result of any dispute with any labor unions concerning the wage, hours, terms or conditions of the employment of any such labor.  In any event, Landlord may charge Tenant a construction management fee for any such Alterations requiring Landlord's consent, (a) in an amount equal to the lesser of (i) Landlord's actual, out-of-pocket costs in connection with such proposed Alterations, including costs to review plans and drawings for the proposed Alterations and costs to inspect, supervise and/or oversee construction of the Alterations, or aspects thereof, or (ii) two percent (2%) of the hard construction costs for the specific project, but (b) in any event not to exceed $50,000.00 per project, with all such amounts being due within thirty (30) days following Tenant’s receipt of Landlord’s demand and copies of invoices or other reasonable evidence of the actual costs incurred by Landlord.  
6.3
    All Alterations by Tenant, including Cosmetic Alterations, shall be constructed in accordance with all government laws, ordinances, rules and regulations, using building standard materials where applicable, and Tenant shall, prior to construction, provide the additional insurance required under Article 11 in such case, and also all such assurances to Landlord as Landlord shall reasonably request in writing delivered to Tenant to assure payment of the costs thereof if the costs of any such non-Cosmetic Alterations exceed $150,000.00 for the project, including but not limited to, notices of non-responsibility, waivers of lien, surety company performance bonds up to 150% of the budget for such project, or funded construction escrows, and to protect Landlord and the Building and appurtenant 

9

land against any loss from any mechanic’s, materialmen’s or other liens.  Tenant shall pay in addition to any sums due pursuant to Article 4, any increase in real estate taxes attributable to any such Alterations for so long, during the Term, as such increase is ascertainable and evidenced by the invoices or other information from applicable taxing authority; at Landlord’s election said sums shall be paid in the same way as sums due under Article 4.  Landlord may, as a condition to its consent to any particular Alterations other than the Tenant Improvements, require Tenant to deposit with Landlord the amount reasonably estimated by Landlord as sufficient to cover the cost of removing any Required Removables (as defined in Section 25.2) and restoring the Building and the Premises, to the extent required under Section 25.2.
7.
    REPAIR.
7.1
    (a)     Landlord shall have no obligation to alter, remodel, improve, repair, maintain, replace, decorate or paint the Building or any portion of the Premises, except as may be expressly provided in this Lease.  By taking possession of the Building and the Premises, Tenant accepts the same as being in good order, condition and repair, subject the Delivery Warranty (as defined below).  
          (b)     Landlord hereby represents and warrants to Tenant, that to Landlord’s knowledge as of the Lease Date, the Building and Premises are in substantial compliance with all governmental laws, ordinances and regulations, including the Americans with Disabilities Act.  In the event the Building or Premises are not in substantial compliance with all governmental laws, ordinances and regulations, including the Americans with Disabilities Act, as of the Lease Date, Landlord shall have the right to contest any alleged violation in good faith, including, without limitation, the right to apply for and obtain a waiver or deferment of compliance, the right to assert any and all defenses allowed by law and the right to appeal any decisions, judgments or rulings to the fullest extent permitted by law.  Landlord, after the exhaustion of any and all rights to appeal or contest, will make all repairs, additions, alterations or improvements necessary to comply with the terms of any final order or judgment.  Notwithstanding the foregoing, Tenant, not Landlord, shall be responsible, at Tenant's sole cost and expense, for the correction of any violations which arise out of (a) the design or configuration of the Building requested by Tenant, (b) the specific nature of Tenant's business in the Building, (c) the acts or omissions of Tenant, its agents, employees or contractors, (d) the Tenant Improvements installed pursuant to Exhibit B, and any subsequent repairs or Alterations of or to the Building or the Premises by or on behalf of Tenant, or (e) Tenant's arrangement of any furniture, equipment or other property in the Building or on the Premises.  It is hereby understood and agreed that no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant, except as specifically set forth in this Lease.  
7.2
    (a)     Subject to the Delivery Warranty and the CapEx Amortization (as defined below), Tenant shall at its own cost and expense keep and maintain all parts of the Building and the Premises in good condition, promptly making all necessary repairs and replacements (including capital), whether ordinary or extraordinary, foreseen or unforeseen, with materials and workmanship of the same character, kind and quality as the original, including, but not limited to, repair and replacement of the roof, roof membrane, drains, gutters, downspouts, foundation, floor slab, exterior side of exterior walls, load bearing walls and other structural portions of the Building, all fixtures installed by Tenant, water heaters serving the Building, windows, glass and plate glass, doors, exterior stairs, skylights, any special office entries, interior walls and finish work, floors and floor coverings, heating, ventilating and air conditioning systems serving the Building, any evaporative cooling systems serving the Building, exposed and unexposed electrical systems and fixtures serving the Building, sprinkler systems, dock boards, truck doors, dock bumpers, exposed and unexposed plumbing work and fixtures, sewage systems serving the Building and the Premises, parking and driveway areas (including resurfacing and restriping), soil and landscaped areas, walkways (including periodic sweeping), signage, site lighting, reasonable and customary pest control services, and performance of regular removal of trash and debris.  As used herein "repairs" shall include all necessary repairs, replacements, alterations, additions and betterments. All work required on the roof of the Building in connection with performing Tenant’s maintenance obligations hereunder, including any necessary repair, patching and/or 

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replacement of the roof in connection therewith, shall be performed, at Tenant's sole cost (subject to the Delivery Warranty and the CapEx Amortization) and risk, only by vendors or contractors which have been pre-approved by Landlord and otherwise in a manner which will not damage the roof or void or adversely affect any roof warranties or guaranties.  If any work by Tenant requires penetrations of the roof, or if otherwise required by Landlord, Tenant, at its sole cost and expense, shall retain the roofing contractor having a then existing warranty in effect on the roof to perform such work (to the extent that it involves the roof).  Tenant shall keep the roof of the Building free of all trash and waste materials produced by Tenant or its agents or contractors and shall promptly notify Landlord in the event of any accident related to the roof.  Tenant as part of its obligations hereunder shall keep the Building and the Premises in a clean and sanitary condition.  Tenant will, as far as possible keep all such parts of the Building and the Premises from deterioration due to ordinary wear and from falling temporarily out of repair, and upon termination of this Lease in any way Tenant will yield up the Building and the Premises to Landlord in good condition and repair, loss by fire or other casualty excepted (but not excepting any damage to glass).  Tenant shall, at its own cost and expense, repair any damage to the Premises or the Building resulting from and/or caused in whole or in part by the negligence or misconduct of Tenant, its agents, employees, contractors, invitees, or any other person entering upon the Building or the Premises as a result of Tenant’s business activities or caused by Tenant’s default hereunder.
          (b)     Notwithstanding anything otherwise provided above or elsewhere in this Lease, Landlord shall deliver the Building with all base building systems and components (including roof, exterior doors, electrical and plumbing) originally installed by Landlord and existing as of the Lease Date ("Existing Systems") in good working order and repair, and shall assign or otherwise pass through to Tenant the benefit of all warranties obtained by Landlord with respect to the Existing Systems (the "Third Party Warranties") so that Tenant can perform its obligations with respect to any necessary repairs, maintenance and replacements of the Existing Systems with the benefit of such Third Party Warranties.  Further notwithstanding anything herein, and provided that Landlord is notified by Tenant of any such latent defects within the first one (1) year of the Term, any necessary repairs, maintenance and replacements of the Existing Systems that are not covered by the Third Party Warranties, and are necessary for correcting any latent defects in the Existing Systems, (i) shall be made by Tenant, and (ii) to the extent the rates charged by Tenant’s vendor are reasonable and comparable to any competitive bids Landlord may obtain for the same work, shall be at Landlord's sole cost and not subject to payment nor reimbursement by Tenant, nor as part of the Allowance or as part of Tenant’s Building Share (the "Delivery Warranty").  Tenant shall provide to Landlord a reasonably detailed invoice and other documentation substantiating the extent of any such necessary repairs, maintenance and/or replacements of the Existing Systems that are not covered by the Third Party Warranties and that are necessary for correcting any latent defects in the Existing Systems.  Tenant and Landlord shall use good faith efforts to arrange for Landlord's direct payment to the applicable vendors for such repairs, maintenance and replacements of the Existing Systems pursuant to the Delivery Warranty; provided, however, in the event Landlord fails to pay any such amounts pursuant to the Delivery Warranty within thirty (30) days after invoice from the applicable party providing the repairs, maintenance and replacements of the Existing Systems, subject to Landlord's right to dispute the reasonableness of such amounts, Tenant shall then have the right, but not the obligation, to make such payments on behalf of Landlord, and thereafter offset or deduct such amounts paid by Tenant from up to twenty percent (20%) of the Monthly Base Rent, Tenant’s Building Share and/or Tenant’s Property Share next becoming due to Landlord.  
(c)    Further notwithstanding anything otherwise provided above or elsewhere in this Lease, if, during the Term of this Lease, Tenant is obligated under this Lease to make a Capital Replacement (as defined below) and the reasonably anticipated useful life of such Capital Replacement exceeds the then-scheduled Expiration Date (i.e., when the Term is scheduled to expire at the time of the Capital Replacement, in the event no remaining Option to Extend Term [as defined below] is exercised by Tenant), then: (i) Tenant shall make such Capital Replacement in connection with Tenant’s obligations under this Section 7.2, (ii) the cost of such Capital Replacement shall be paid by Landlord, as provided below, to the extent the rates charged by Tenant’s vendor are reasonable and comparable to any competitive bids Landlord may obtain for the same work, (iii) the amount paid by Landlord for such Capital Replacement shall be amortized over the useful life of such Capital Replacement in accordance with such reasonable useful life and amortization schedules as shall be mutually agreed upon by Landlord and Tenant in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) per annum in excess of the Wall Street Journal prime lending rate announced from time to time, and (iv) Tenant shall pay to Landlord monthly, as part of Tenant's Building Share, the portion of such amortization applicable to the unexpired 

11

Term and any Option Terms (as defined below) that are exercised by Tenant.  For the purpose of this Lease, "Capital Replacement" shall mean each of the following:  (x) any capital improvement which is reasonably calculated to reduce the repair, maintenance and/or operating expenses for the Building; (y) any capital repair and/or replacement of Existing Systems or other equipment or improvements needed to operate and/or maintain the Building at the same quality levels as prior to the repair and/or replacement; and (z) any other capital repair, improvement or replacement which is required under any governmental laws, regulations or ordinances which were not applicable at the time of construction.  Tenant shall provide to Landlord a reasonably detailed invoice and other documentation substantiating the need for such necessary Capital Replacement.  Tenant and Landlord shall use good faith efforts to arrange for Landlord's direct payment to the applicable vendor providing any such Capital Replacement; provided, however, in the event Landlord fails to pay any such amount within thirty (30) days after invoice from such vendor, subject to Landlord's right to dispute the reasonableness of such amount, Tenant shall then have the right, but not the obligation, to make such payment on behalf of Landlord, and thereafter offset or deduct the amount paid by Tenant from up to twenty percent (20%) of the Monthly Base Rent, Tenant’s Building Share and/or Tenant’s Property Share next becoming due to Landlord, provided the amortized portion thereof applicable to the unexpired Term (including any Option Terms exercised by Tenant) shall be paid by Tenant to Landlord monthly as provided herein.  Notwithstanding the foregoing, Landlord shall not be responsible for the cost of any such Capital Replacement if (aa) the Capital Replacement is required prior to the expiration of the reasonably anticipated useful life of the item to be replaced, (bb) Tenant has failed to perform its maintainance and repair obligations under this Lease with respect to the item being replaced (or if Tenant has failed to provide Landlord with copies of its reports and records relative thereto), or (cc) the Capital Replacement is otherwise required as a result of the acts or omissions of Tenant or any Tenant Entities.  Any required amortization of the cost of any such Capital Replacement as set forth herein is referred to as the "CapEx Amortization."
7.3
    Except as provided in Article 13 and Article 21, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Property, the Building or the Premises, or to fixtures appurtenances and equipment therein.  Except to the extent, if any, prohibited by law, and except as provided in connection with the Delivery Warranty and the CapEx Amortization above, Tenant waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect.
7.4
    Tenant shall, at its own cost and expense, enter into a regularly scheduled preventative maintenance/service contract, providing for not less than quarterly filter changes and other preventative maintenance and servicing, with a maintenance contractor approved by Landlord for servicing all evaporative cooling, heating and air conditioning systems and equipment serving the Building (and a copy thereof shall be furnished to Landlord).  The service contract must include all services suggested by the equipment manufacturer in the operation/maintenance manual and must become effective within thirty (30) days of the date Tenant takes possession of the Building. Should Tenant fail to do so, Landlord may, upon notice to Tenant, enter into such a maintenance/service contract on behalf of Tenant or perform the work and in either case, charge Tenant the cost thereof along with a reasonable amount for Landlord’s overhead not to exceed eight percent (8%).
7.5
    Tenant shall promptly deliver to Landlord copies of (i) all contracts, and renewals thereof, entered into in connection with the performance of its obligations under this Article 7, and (ii) all maintenance and service reports related thereto.  In addition, Tenant shall prepare and deliver to Landlord quarterly reports setting forth in reasonable detail all maintenance, repair, replacement and other work completed with respect to the Building and the Premises during the immediately preceding calendar quarter.  
7.6
    If Tenant fails, refuses or neglects to make repairs and/or maintain the Building or the Premises in accordance with the terms of this Article 7, Landlord shall have the right, but not the duty, in addition to Landlord's other rights and remedies, upon giving Tenant reasonable written notice of Landlord's election to do so, to make such repairs or perform such maintenance on behalf of and for the account of Tenant.  The cost of such work shall be paid 

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by Tenant to Landlord, together with a reasonable fee for overhead not to exceed eight percent (8%), as additional rent, within thirty (30) days after invoice.  In addition, if Landlord reasonably determines that Tenant is not performing its obligations under this Article 7 in a good and workmanlike manner, consistent with the commercially reasonable standards of the remainder of the Property and other similar class properties in the same geographic market area as the Premises, then Landlord may, upon notice thereof to Tenant, elect to undertake the performance of any or all such obligations, whereupon the costs and expenses thereof shall be included in the Property Management Expenses charged to Tenant pursuant to Article 4.
8.
    LIENS.  
Tenant shall keep the Premises, the Building and the Property and Tenant’s leasehold interest in the Building free from any liens arising out of any services, work or materials performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant.  In the event that Tenant fails, within ten (10) business days following Tenant’s receipt of actual notice of the imposition of any such lien, to either cause the same to be released of record or provide Landlord with insurance against the same issued by a major title insurance company or such other protection against the same as Landlord shall accept (such failure to constitute an Event of Default), Landlord shall have the right to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien.  All such sums paid by Landlord and all expenses incurred by it in connection therewith shall be payable to it by Tenant within ten (10) business days after Landlord’s demand.
9.
    ASSIGNMENT AND SUBLETTING.
9.1
    In no event may Tenant encumber, mortgage or otherwise pledge this Lease or Tenant's interest in the Building or the Premises as security for any debt of Tenant.  In addition, except as to a Permitted Transfer (as defined below), Tenant shall not assign this Lease or sublet the whole or any part of the Building or the Premises, whether voluntarily or by operation of law, or permit the use or occupancy of the Building or the Premises by anyone other than Tenant, and shall not make, suffer or permit such assignment, subleasing or occupancy without the prior written consent of Landlord, such consent not to be unreasonably withheld, conditioned or delayed, and said restrictions shall be binding upon any and all assignees of the Lease and subtenants of the Building or the Premises. In the event Tenant desires to sublet, or permit such occupancy of, the Building or the Premises, or any portion thereof, or assign this Lease, whether as a Permitted Transfer or otherwise, Tenant shall give written notice thereof to Landlord at least thirty (30) days but no more than one hundred twenty (120) days prior to the proposed commencement date of such subletting or assignment, or at least ten (10) days prior thereof in the case of a Permitted Transfer, which notice shall set forth the name of the proposed subtenant or assignee, the relevant terms of any sublease or assignment and copies of financial reports and other relevant financial information of the proposed subtenant or assignee.
9.2
    Notwithstanding any assignment or subletting, permitted or otherwise, Tenant shall at all times remain directly, primarily and fully responsible and liable for the payment of the rent specified in this Lease and for compliance with all of its other obligations under the terms, provisions and covenants of this Lease.  Upon the occurrence of an Event of Default, if the Building, the Premises or any part of them are then assigned or sublet, Landlord, in addition to any other remedies provided in this Lease or provided by law, may, at its option, collect directly from such assignee or subtenant all rents due and becoming due to Tenant under such assignment or sublease and apply such rent against any sums due to Landlord from Tenant under this Lease, and no such collection shall be construed to constitute a novation or release of Tenant from the further performance of Tenant’s obligations under this Lease.
9.3
    In addition to Landlord’s right to approve of any subtenant or assignee (other than pursuant to a Permitted Transfer), Landlord shall have the option, in its sole discretion, in the event of any proposed subletting or 

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assignment that is not a Permitted Transfer, to terminate this Lease, or in the case of a proposed subletting of less than the entire Building that is not a Permitted Transfer, to recapture the portion of the Building to be sublet, as of the date the subletting or assignment is to be effective.  The option shall be exercised, if at all, by written notice given by Landlord to Tenant within thirty (30) days following Landlord’s receipt of Tenant’s written notice as required above.  However, if Tenant notifies Landlord, within five (5) business days after receipt of Landlord’s termination notice, that Tenant is rescinding its proposed assignment or sublease, the termination notice shall be void and the Lease shall continue in full force and effect.  If this Lease shall be terminated with respect to the entire Premises pursuant to this Section, because of a subletting of the entire Building, then the Term of this Lease shall end on the date stated in Tenant’s notice as the effective date of the sublease or assignment as if that date had been originally fixed in this Lease for the expiration of the Term.  If Landlord recaptures under this Section only a portion of the Building, the rent to be paid from time to time during the unexpired Term shall abate proportionately based on the proportion by which the approximate square footage of the remaining portion of the Building shall be less than that of the Building as of the date immediately prior to such recapture.  Tenant shall, at Tenant’s own cost and expense, discharge in full any outstanding commission obligation which may be due and owing as a result of any proposed assignment or subletting, whether or not the Building and/or Premises are recaptured pursuant to this Section 9.3 and rented by Landlord to the proposed tenant or any other tenant.
9.4
    In the event that Tenant sells, sublets, assigns or transfers this Lease in a transaction that is not a Permitted Transfer, Tenant shall pay to Landlord, as additional rent an amount equal to fifty percent (50%) of any Increased Rent (as defined below), less the Costs Component (as defined below), when and as such Increased Rent is received by Tenant.  As used in this Section, "Increased Rent" shall mean the excess of (i) all rent and other consideration which Tenant is entitled to receive by reason of any sale, sublease, assignment or other transfer of this Lease, over (ii) the rent otherwise payable by Tenant under this Lease at such time.  For purposes of the foregoing, any consideration received by Tenant in form other than cash shall be valued at its fair market value as determined by Landlord in good faith.  The "Costs Component" is that amount which, if paid monthly, would fully amortize on a straight-line basis, over the entire period for which Tenant is to receive Increased Rent, the reasonable costs incurred by Tenant for leasing commissions and tenant improvements in connection with such sublease, assignment or other transfer.
9.5
    Notwithstanding any other provision hereof, it shall be considered reasonable for Landlord to withhold its consent to any assignment of this Lease or sublease of any portion of the Building or the Premises for which Tenant is obligated to obtain Landlord’s consent if at the time of either Tenant’s notice of the proposed assignment or sublease or the proposed commencement date thereof, there shall exist any uncured default of Tenant or matter which will become a default of Tenant with passage of time unless cured, or if the proposed assignee or sublessee is an entity:  (a) with which Landlord is already in negotiation (evidenced by the exchange of written offers and counteroffers); (b) is already an occupant of the Property unless Landlord is unable to provide the amount of space required by such occupant; (c) is a governmental agency; (d) is incompatible with the stated use of the Building set forth in the Summary; or (e) would subject the Building or the Premises to a use which would:  (i) involve increased personnel or wear upon the Property; (ii) violate any exclusive right granted to another tenant of the Property (Landlord hereby confirming that no such exclusive rights have been granted as of the Lease Date); (iii) require any addition to or modification of the Building, the Premises or the Property in order to comply with building code or other governmental requirements unless such addition or modification only affects the Building or the Premises and Tenant agrees to pay all such costs; or (iv) involve a violation of Section 1.3.  Tenant expressly agrees that for the purposes of any statutory or other requirement of reasonableness on the part of Landlord, Landlord’s refusal to consent to any assignment or sublease for any of the reasons described in this Section 9.5, shall be conclusively deemed to be reasonable.
9.6
    Upon any request to assign or sublet other than a Permitted Transfer, Tenant will pay to Landlord (a) an assignment/subletting fee in the amount of $1,000.00 (plus applicable rental taxes thereon), plus, (b) on demand, a sum equal to all of Landlord’s reasonable attorney’s fees actually incurred (but in no event in excess of $2,000.00 

14

for any proposed assignment or sublease) in investigating and considering any proposed assignment of this Lease or sublease of any of the Building or the Premises, regardless of whether Landlord shall consent to, refuse consent, or determine that Landlord’s consent is not required for, such assignment or sublease.  Any purported assignment or other transfer of this Lease or subletting of any of the Building or the Premises which does not comply with the provisions of this Article 9 shall, at the option of Landlord, be void.
9.7
    If Tenant is a corporation, limited liability company, partnership or trust, any transfer or transfers of or change or changes within any twelve (12) month period in the number of the outstanding voting shares of the corporation or limited liability company, the general partnership interests in the partnership or the identity of the persons or entities controlling the activities of such partnership or trust resulting in the persons or entities owning or controlling a majority of such shares, partnership interests or activities of such partnership or trust at the beginning of such period no longer having such ownership or control, and where such events are not done in connection with a Permitted Transfer, shall be regarded as equivalent to an assignment of this Lease to the persons or entities acquiring such ownership or control and shall be subject to all the provisions of this Article 9 to the same extent and for all intents and purposes as though such an assignment.
9.8
    Notwithstanding anything herein to the contrary, without the need to obtain the consent of Landlord, Tenant may (each of the following a "Permitted Transfer") assign this Lease or sublet the Building or the Premises or any portion thereof, to any entity which controls, is controlled by or is under common control with Tenant, or to any entity resulting from a merger, acquisition or consolidation with Tenant, or to any person or entity which acquires all or substantially all of the assets of Tenant's business conducted at the Building, or to any person or entity which acquires all or substantially all of the equity ownership interests of Tenant, provided that:  (i) Tenant is not then in default under this Lease beyond the expiration of any applicable notice and cure period; (ii) at least ten (10) days prior to such Permitted Transfer, Tenant delivers to Landlord notice of such contemplated Permitted Transfer as set forth in Section 9.1; (iii) the stated use of the Building set forth in the Summary remains substantially similar following the Permitted Transfer; (iv) the proposed assignee or sublessee has a financial strength sufficient in Landlord's reasonable opinion to perform the obligations of Tenant under this Lease for the remainder of the Term, or to perform the obligations of the sublessee under the sublease for the stated term of the sublease, as the case may be (taking into consideration such proposed assignee's or sublessee's ability to also successfully operate its other businesses and assets, if any); (v) a fully executed copy of the assignment or sublease, the assumption of this Lease by the assignee and/or the acceptance of the sublease by the sublessee, as the case may be, is delivered to Landlord; and (vi) the Permitted Transfer is not entered into as a subterfuge to avoid the restrictions and provisions of this Article 9.  For purposes of this provision, “control” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting securities, by contract or otherwise. For the purpose of this Lease, any party that engages with Tenant in a Permitted Transfer is referred to herein as a "Permitted Transferee".  Tenant acknowledges, and at Landlord’s request at the time of such assignment or subletting shall confirm, that in each instance Tenant shall remain liable for the performance of the terms and conditions of this Lease despite such assignment or subletting.
10.
    INDEMNIFICATION.  
10.1
    None of the Landlord Entities shall be liable and Tenant hereby waives all claims against them for any damage to any property or any injury to any person in or about the Premises, the Building or the Property by or from any cause whatsoever (including without limiting the foregoing, rain or water leakage of any character from the roof, windows, walls, basement, pipes, plumbing works or appliances, the Building not being in good condition or repair, gas, fire, oil, electricity or theft), except to the extent caused by or arising from the gross negligence or willful misconduct of Landlord or its agents, employees or contractors.  Tenant shall protect, indemnify and hold the Landlord Entities harmless for, from and against any and all loss, claims, liability or costs (including court costs and attorney’s fees) incurred by reason of (a) any damage to any property (including but not limited to property of any 

15

Landlord Entity) or any injury (including but not limited to death) to any person occurring in, on or about the Premises, the Building or the Property to the extent that such injury or damage shall be caused by or arise from any actual or alleged act, neglect, fault, or omission by or of Tenant or any Tenant Entity to meet any standards imposed by any duty with respect to the injury or damage; (b) the conduct or management of any work or thing whatsoever done by Tenant in or about the Premises, the Building or the Property or from transactions of Tenant concerning the Premises, the Building or the Property; (c) Tenant’s failure to comply with any and all governmental laws, ordinances and regulations applicable to the condition or use of the Building, the Premises or their occupancy; or (d) any breach or default on the part of Tenant in the performance of any covenant or agreement on the part of the Tenant to be performed pursuant to this Lease.  The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.
10.2
    Landlord shall protect, indemnify and hold the Tenant Entities harmless for, from and against any and all loss, claims, liability or costs (including court costs and attorney’s fees) incurred by reason of (a) any damage to property (including but not limited to property of any Tenant Entity) or any injury (including but not limited to death) to any person occurring in, on or about the Premises, the Building or the Property to the extent that such injury or damage is caused by or arises from the gross negligence or willful misconduct of any Landlord Entity, (b) Landlord’s failure to comply with any and all governmental laws, ordinances and regulations which are the obligation of Landlord under this Lease, or (c) any breach or default on the part of Landlord in the performance of any covenant or agreement on the part of Landlord to be performed pursuant to this Lease.  The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.
11.
    INSURANCE.  
11.1
    Tenant shall keep in force throughout the Term: (a) a Commercial General Liability insurance policy or policies to protect the Landlord Entities against any liability to the public or to any invitee of Tenant or a Landlord Entity incidental to the use of or resulting from any accident occurring in or upon the Building or the Premises with a limit of not less than $1,000,000 per occurrence and not less than $2,000,000 in the annual aggregate, or such larger amount as Landlord may prudently require from time to time, covering bodily injury and property damage liability, and $1,000,000 products/completed operations aggregate; (b) Umbrella Liability Insurance with a limit of not less than $10,000,000 per occurrence, in excess of and following the form of the underlying insurance described above, which is at least as broad as each and every area of such underlying insurance; (c) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than $1,000,000 per accident; (d) Worker’s Compensation Insurance with limits as required by statute and Employers Liability with limits of $1,000,000 each accident, $1,000,000 disease policy limit, $1,000,000 disease--each employee; (e) Causes of Loss - Special Form coverage protecting Landlord and Tenant against loss of or damage to the initial Tenant Improvements installed under Exhibit B and any subsequent Alterations installed by or on behalf of Tenant, and protecting Tenant against loss of or damage to Tenant's trade fixtures, inventory and other business personal property situated in or about the Building and the Premises, all of the foregoing to the full replacement value of the improvements and property so insured; and, (f) Business Interruption Insurance with limit of liability representing loss of at least approximately twelve (12) months of income.
11.2
    The aforesaid policies shall (a) be provided at Tenant’s expense; (b) name the Landlord Entities as additional insureds (General Liability and Umbrella Liability) and loss payee (Causes of Loss - Special Form); (c) be issued by an insurance company with a minimum Best’s rating of "A-:VII" during the Term; and (d) provide that said insurance shall not be canceled or materially reduced unless thirty (30) days' prior written notice (ten days for non-payment of premium) shall have been given to Landlord; a certificate of Liability insurance on ACORD Form 25 and a certificate of Property insurance on ACORD Form 27, together with additional insured endorsements and endorsements requiring the insurer to provide Landlord with thirty (30) days' prior written notice of any cancellation or material reduction in such insurance coverages, shall be delivered to Landlord by Tenant upon the Commencement 

16

Date and at least thirty (30) days prior to each renewal of said insurance; provided, however, to the extent endorsements expressly requiring the insurer to provide Landlord with thirty (30) days' prior written notice of any cancellation or material reduction in such insurance coverages is not available from Tenant’s insurance company, Tenant shall be obligated to provide such written notice to Landlord in lieu of the insurer providing such notice to Landlord.
11.3
    Whenever Tenant shall undertake any Alterations in, to or about the Building or the Premises ("Work"), the aforesaid insurance protection must extend to and include injuries to persons and damage to property arising in connection with such Work, and such other insurance as Landlord shall require; and the policies of or certificates evidencing such insurance must be delivered to Landlord prior to the commencement of any such Work.
12.
    WAIVER OF SUBROGATION.  
So long as their respective insurers so permit, Tenant and Landlord hereby mutually waive their respective rights of recovery against each other for any loss insured by causes of loss – special form or other insurance now or hereafter existing for the benefit of the respective party but only to the extent of the net insurance proceeds payable under such policies.  Each party shall obtain any special endorsements required by their insurer to evidence compliance with the aforementioned waiver.
13.
    SERVICES AND UTILITIES.  
Commencing as of the earlier of commencement of construction of the Tenant Improvements in Phase I or the Commencement Date, Tenant shall connect and activate its accounts with the applicable providers and pay directly to such providers all charges for water, gas, heat, light, power, telephone, sewer, sprinkler system and other utilities and services used on or from the Building and the Premises, together with any deposits, taxes, penalties, and surcharges or the like pertaining thereto and any maintenance charges for utilities.  Any such deposits for utilities or services which are charged to and paid by Landlord in order to commence service to the Building or the Premises shall be reimbursed by Tenant to Landlord, as additional rent, within thirty (30) days after invoice.  Tenant shall furnish all electric light bulbs, tubes and ballasts, battery packs for emergency lighting and fire extinguishers.  Tenant will not, without the written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed, contract with a utility provider to service the Building or the Premises with any utility, including, but not limited to, telecommunications, electricity, water, sewer or gas, which is not previously providing such service to the Building or the Premises.  Landlord shall in no event be liable for any interruption or failure of utility services on or to the Building or the Premises, except in the event of an Impairment Event as set forth below.  As used herein, "Impairment Event" shall mean that: (a) Tenant's use of or access to all or any material portion of the Building for the conduct of Tenant's business is materially impaired as the result of the gross negligence or willful misconduct of Landlord, whether due to an interruption of essential utility services (i.e., electrical, water or sewer), the existence of Hazardous Materials, or otherwise; (b) such impairment does not arise in whole or in part as a result of an act or omission of Tenant or any Tenant Entities; (c) such impairment is not caused by a fire or other casualty (in which case the provisions in Article 21 will apply); and (d) such impairment continues for a consecutive period of three (3) or more business days after Landlord receives written notice of such impairment, including Saturdays and Sundays if Tenant is then operating its business in the Building seven (7) days per week.  If an Impairment Event occurs, then as its sole and exclusive remedy therefor, Tenant shall be entitled to an equitable abatement of monthly Base Rent and additional rent under this Lease based upon the portion of the Building affected thereby (provided that if the operation of Tenant's business from the remainder of the Building not affected thereby is not reasonably practicable under the circumstances and Tenant in fact does not operate its business from the remainder of the Building, all monthly Base Rent and additional rent under this Lease shall be subject to such abatement), commencing upon the expiration of said three (3) consecutive business day period after Landlord receives written notice of such impairment from Tenant and continuing until such material impairment is cured; provided further, however, that if Landlord is diligently pursuing the repair of such impairment and, if applicable to the nature of such impairment, Landlord provides 

17

substitute services reasonably suitable for Tenant's purposes and Tenant is thereafter able to fully conduct its business in the Building as usual, then there shall not be any abatement of Base Rent or additional rent. 
14.
    HOLDING OVER.  
So long as Tenant gives Landlord at least ninety (90) days’ prior written notice of its intention to remain in possession of the Building after the expiration of the Term, or any Option Term, specifying the approximate length of time Tenant intends to remain in possession, then Tenant shall have the right to remain in possession of the Building for up to six (6) successive one-month periods after such expiration, pursuant to the terms, covenants and conditions of this Lease, except with respect to the length of the Term and except that Monthly Base Rent shall be increased to an amount equal to One Hundred Twenty-Five Percent (125%) of the Monthly Base Rent in effect during the last month immediately preceding such expiration.  If Tenant remains in possession of the Building after the expiration of the Term, or any Option Term, without providing such prior written notice to Landlord, or if Tenant remains in possession of the Building after the aforesaid six (6) month maximum holdover period, with or without Landlord’s written consent, Tenant shall pay Landlord for each such day thereafter that Tenant retains possession of the Building or part of it at the rate ("Holdover Rate") which shall be Two Hundred Percent (200%) of the amount of the Base Rent for the last period prior to the date of such expiration.  Such Monthly Base Rent and all additional rent under Article 4 shall be prorated on a daily basis.  Additionally, if Tenant remains in possession of the Building after the expiration of the Term, or any Option Term, without providing such prior written notice to Landlord, or if Tenant remains in possession of the Building after the aforesaid six (6) month maximum hold over period, and such hold over is without Landlord’s written consent, Tenant shall also pay all damages actually sustained by Landlord by reason of such retention.  If Landlord gives notice to Tenant of Landlord’s election to such effect, Landlord and Tenant may elect to mutually agree in a written amendment to this Lease that any such holding over described above shall constitute renewal of this Lease for a period from month to month or one (1) year, whichever is specified in such notice, in either case at a Monthly Base Rent amount mutually agreed upon by the parties, but if the Landlord does not so elect, no such renewal shall result notwithstanding acceptance by Landlord of any sums due hereunder after such termination; and instead, a tenancy at sufferance at the Holdover Rate shall be deemed to have been created.  In any event, no provision of this Article 14 shall be deemed to waive Landlord’s right of reentry or any other right under this Lease or at law.
15.
    SUBORDINATION.  
15.1
    Without the necessity of any additional document being executed by Tenant for the purpose of effecting a subordination, this Lease shall be subject and subordinate at all times to any ground or underlying leases and to the lien of any mortgages or deeds of trust now or hereafter placed on, against or affecting the Property, Landlord’s interest or estate in the Property, or any ground or underlying lease; provided, however, that if the lessor, mortgagee, trustee, or holder of any such ground or underlying lease, mortgage or deed of trust (each, a "Lender") elects to have Tenant’s interest in this Lease be superior to any such instrument, then, by notice to Tenant, this Lease shall be deemed superior, whether this Lease was executed before or after said instrument.  Notwithstanding the foregoing, Tenant covenants and agrees to execute and deliver within ten (10) business days after Landlord’s request such further instruments evidencing such subordination or superiority of this Lease as may be required by Landlord, so long as such instruments include reference to the fact that Tenant’s rights under this Lease shall not be disturbed on account of such subordination so long as Tenant has not committed a default under this Lease.  Tenant’s failure to sign and return any such documents following an additional five (5) business day cure period after notice shall constitute an immediate Event of Default (as defined in Article 18).  Notwithstanding the foregoing, Tenant's right to quiet possession of the Premises shall not be disturbed on account of such subordination so long as Tenant is not in default, pays all rent and otherwise observes and performs all of its obligations under this Lease, unless this Lease is otherwise terminated pursuant to its terms.

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15.2
    Landlord agrees to use commercially reasonable efforts to cause its existing Lender to deliver to Tenant as soon as reasonably practicable, but in no event later than fifteen (15) days after complete execution of this Lease, at no cost to Landlord, such Lender’s standard subordination, non-disturbance and attornment agreement which provides, among other things, that Tenant’s right to possession of the Premises shall not be disturbed on account of such subordination so long as Tenant has not committed a default under this Lease ("SNDA Agreement"). Tenant shall cooperate in all respects with Landlord's efforts, provide all information reasonably required by such Lender, pay all fees and costs charged by such Lender in connection with procuring or attempting to procure such SNDA Agreement and promptly execute such SNDA Agreement as provided in Section 15.1 above.  Landlord shall not be required to institute any legal action or proceeding in order to obtain such SNDA Agreement and it shall not be a default by Landlord or a defense to the enforceability of this Lease in favor of Tenant if Landlord is unable to obtain delivery of such an SNDA Agreement to Tenant.  
15.3
    As a condition precedent to the subordination of this Lease to the lien of any future Lender, Landlord shall cause any such future Lender to deliver to Tenant such future Lender’s standard SNDA Agreement.  Tenant shall cooperate in all respects with Landlord's efforts, provide all information reasonably required by any such Lender and promptly execute such SNDA Agreement as provided in Section 15.1 above.  Landlord shall not be required to institute any legal action or proceeding in order to obtain such SNDA Agreement. It shall not be a default by Landlord or a defense to the enforceability of this Lease in favor of Tenant if Landlord is unable to obtain delivery of such SNDA Agreement to Tenant  (but instead this Lease will not be subordinated).  
16.
    RULES AND REGULATIONS.  
Tenant shall faithfully observe and comply with all the rules and regulations as set forth in Exhibit C to this Lease and all reasonable and non-discriminatory modifications of and additions to them from time to time put into effect by Landlord.  Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Buildings of any such rules and regulations.  Landlord shall enforce such rules and regulations in a uniform and non-discriminatory manner.
17.
    REENTRY BY LANDLORD.
17.1
    Subject to the terms of this Lease, Landlord reserves and shall at all reasonable times have the right to re-enter the Premises and the Building (a) to inspect the Premises and the Building, (b) to show the Premises and the Building to prospective purchasers or mortgagees, (c) during the last twelve (12) months of the Term, to show the Premises and the Building to prospective tenants, and (d) to exercise its rights under Section 7.6. of this Lease.  In connection with any maintenance and repair of the Building or exterior areas of the Premises by Landlord under this Lease, or any alterations or improvements of the Building or the Premises which have been coordinated with and approved by Tenant (such approval not to be unreasonably withheld), Landlord may erect, use and maintain scaffolding, pipes, conduits and other necessary structures and open any wall, ceiling or floor in and through the Building and Premises where reasonably required by the character of the work to be performed, provided that Tenant has reasonable means of access to the Premises and the Building and the business activities of Tenant at the Building are not interfered with unreasonably.  Notwithstanding the foregoing, except (i) to the extent requested by Tenant, and/or (ii) in the event of an emergency, Landlord shall provide to Tenant at least twenty-four (24) hours’ advance notice (either written or oral) before Landlord enters the Building to perform any repairs therein. Further, a representative of Tenant may be present in the Building during any such entry into the Building (provided that, in the event of an emergency, Landlord shall not be obligated to delay its work merely because Tenant’s representative is not present). Landlord shall have the right at any time to change the arrangement and/or locations of common areas of the Property provided that Tenant’s use of the Building and parking areas is not adversely and materially impacted, and the Building and parking areas at all times remain accessible by reasonable means.  In the event that 

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Landlord damages any portion of any wall or wall covering, ceiling, or floor or floor covering within the Building, Landlord shall repair or replace the damaged portion to match the original as nearly as commercially reasonable but shall not be required to repair or replace more than the portion actually damaged. Tenant hereby waives any claim for damages for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Building or the Premises, and any other loss occasioned by any action of Landlord authorized by this Article 17, with the exception of foreseeable, direct and actual damages incurred by Tenant as a result of Landlord’s gross negligence or willful misconduct.
17.2
    For each of the aforesaid purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in the Premises, excluding Tenant’s vaults and safes or special security areas (designated in advance), and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency to obtain entry to any portion of the Premises.  As to any portion to which access cannot be had by means of a key or keys in Landlord’s possession, Landlord is authorized to gain access by such means as Landlord shall elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and paid to Landlord within thirty (30) days of Landlord’s demand.
18.
    DEFAULT.
The following events shall be deemed to be Events of Default under this Lease:
18.1
    Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord under this Lease, whether such sum be any installment of the rent reserved by this Lease, any other amount treated as additional rent under this Lease, or any other payment or reimbursement to Landlord required by this Lease, whether or not treated as additional rent under this Lease, and such failure shall continue for a period of five (5) days after written notice that such payment was not made when due, but if any such notice shall be given and the default shall not be cured within the applicable cure period and is continuing, then for the twelve (12) month period commencing with the date of such notice, the failure to pay within five (5) days after due any additional sum of money becoming due to be paid to Landlord under this Lease during such period shall be an Event of Default.
18.2
    Tenant shall fail to comply with any term, provision or covenant of this Lease which is not provided for in another Section of this Article and shall not cure such failure within thirty (30) days (forthwith, if the failure involves a hazardous condition) after written notice of such failure to Tenant provided, however, that such failure shall not be an event of default if such failure could not reasonably be cured during such thirty (30) day period, Tenant has commenced the cure within such thirty (30) day period and thereafter is diligently pursuing such cure to completion, but the total aggregate cure period shall not exceed ninety (90) days.
18.3
    Tenant shall fail to vacate the Building and the Premises immediately upon termination of this Lease, by lapse of time or otherwise, or upon termination of Tenant’s right to possession only, but subject to the terms and conditions of Article 14.
18.4
    Tenant shall become insolvent, admit in writing its inability to pay its debts generally as they become due, file a petition in bankruptcy or a petition to take advantage of any insolvency statute, make an assignment for the benefit of creditors, make a transfer in fraud of creditors, apply for or consent to the appointment of a receiver of itself or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws, as now in effect or hereafter amended, or any other applicable law or statute of the United States or any state thereof.

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18.5
    A court of competent jurisdiction shall enter an order, judgment or decree adjudicating Tenant bankrupt, or appointing a receiver of Tenant, or of the whole or any substantial part of its property, without the consent of Tenant, or approving a petition filed against Tenant seeking reorganization or arrangement of Tenant under the bankruptcy laws of the United States, as now in effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not be vacated or set aside or stayed within ninety (90) days from the date of entry thereof.
19.
    REMEDIES.
19.1
    Upon the occurrence of any of the Events of Default described or referred to in Article 18, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever, concurrently or consecutively and not alternatively:
19.1.1
    Landlord may, at its election, terminate this Lease or terminate Tenant’s right to possession only, without terminating the Lease.
19.1.2
    Upon any termination of this Lease, whether by lapse of time or otherwise, or upon any termination of Tenant’s right to possession without termination of the Lease, Tenant shall surrender possession and vacate the Building immediately, and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord full and free license to enter into and upon the Building and the Premises in such event and to repossess Landlord of the Building and the Premises as of Landlord’s former estate and to expel or remove Tenant and any others who may be occupying or be within the Building or the Premises and to remove Tenant’s signs and other evidence of tenancy and all other property of Tenant therefrom without being deemed in any manner guilty of trespass, eviction or forcible entry or detainer, and without incurring any liability for any damage resulting therefrom, Tenant waiving any right to claim damages for such re-entry and expulsion, and without relinquishing Landlord’s right to rent or any other right given to Landlord under this Lease or by operation of law.
19.1.3
    Upon any termination of this Lease, whether by lapse of time or otherwise, Landlord shall be entitled to recover as damages, all rent, including any amounts treated as additional rent under this Lease, and other sums due and payable by Tenant on the date of termination, plus as liquidated damages and not as a penalty, an amount equal to the sum of:  (a) an amount by which the then present value of the rent reserved in this Lease for the residue of the stated Term of this Lease including any amounts treated as additional rent under this Lease and all other sums provided in this Lease to be paid by Tenant, exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided; (b) the value of the time and expense necessary to obtain a replacement tenant or tenants, and the estimated expenses relating to recovery of the Building and the Premises, preparation for reletting and for reletting itself; (c) the cost of performing any other covenants which would have otherwise been performed by Tenant; (d) the Rent Abatement; and (e) the unamortized portion of all tenant improvement costs, allowances, attorneys' fees, brokers' commissions and any other concessions provided by Landlord in connection with this Lease.
19.1.4
    Upon any termination of Tenant’s right to possession only without termination of the Lease:
19.1.4.1
      Neither such termination of Tenant’s right to possession nor Landlord’s taking and holding possession thereof as provided in Section 19.1.2 shall terminate the Lease or release Tenant, in whole or in part, from any obligation, including Tenant’s obligation to pay the rent, including any amounts treated as additional rent, under this Lease for the full Term, and if Landlord so elects Tenant shall continue to pay to Landlord the entire amount of the rent as and when it becomes due, including any amounts treated as additional rent under this Lease, for the remainder of the Term plus any other sums provided in this Lease to be paid by Tenant for the remainder of the Term.

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19.1.4.2
      Landlord shall use commercially reasonable efforts to relet the Building or portions thereof to the extent required by applicable law.  Landlord and Tenant agree that nevertheless Landlord shall at most be required to use only the same efforts Landlord then uses to lease premises in the Property generally and that in any case that Landlord shall not be required to give any preference or priority to the showing or leasing of the Building or portions thereof over any other space that Landlord may be leasing or have available and may place a suitable prospective tenant in any such other space regardless of when such other space becomes available and that Landlord shall have the right to relet the Building for a greater or lesser term than that remaining under this Lease, the right to relet only a portion of the Building, or a portion of the Building or the entire Building as a part of a larger area, and the right to change the character or use of the Building.  In connection with or in preparation for any reletting, Landlord may, but shall not be required to, make repairs, alterations and additions in or to the Building or the Premises and redecorate the same to the extent Landlord deems necessary or desirable, and Tenant shall pay the cost thereof, together with Landlord’s expenses of reletting, including, without limitation, any commission incurred by Landlord, within five (5) days after Landlord’s demand.  Landlord shall not be required to observe any instruction given by Tenant about any reletting or accept any tenant offered by Tenant unless such offered tenant has a credit-worthiness acceptable to Landlord and leases the entire Building upon terms and conditions including a rate of rent (after giving effect to all expenditures by Landlord for tenant improvements, broker’s commissions and other leasing costs) all no less favorable to Landlord than as called for in this Lease, nor shall Landlord be required to make or permit any assignment or sublease for more than the current term or which Landlord would not be required to permit under the provisions of Article 9.
19.1.4.3
      Until such time as Landlord shall elect to terminate the Lease and shall thereupon be entitled to recover the amounts specified in such case in Section 19.1.3, Tenant shall pay to Landlord upon demand the full amount of all rent, including any amounts treated as additional rent under this Lease and other sums reserved in this Lease for the remaining Term, together with (a) the costs of repairs, alterations, additions, redecorating and Landlord’s expenses of reletting and the collection of the rent accruing therefrom (including reasonable attorneys’ fees and broker’s commissions), as the same shall then be due or become due from time to time, less only such consideration as Landlord may have received from any reletting of the Building, (b) the Rent Abatement, and (c) the unamortized portion of all tenant improvement costs, allowances, attorneys' fees, brokers' commissions and any other concessions provided by Landlord in connection with this Lease; and Tenant agrees that Landlord may file suits from time to time to recover any sums falling due under this Article 19 as they become due.  Any proceeds of reletting by Landlord in excess of the amount then owed by Tenant to Landlord from time to time shall be credited against Tenant’s future obligations under this Lease but shall not otherwise be refunded to Tenant or inure to Tenant’s benefit.
19.2
    Upon the occurrence of an Event of Default, Landlord may (but shall not be obligated to) cure such default at Tenant’s sole expense.  Without limiting the generality of the foregoing, Landlord may, at Landlord’s option, enter into and upon the Premises if Landlord determines in its sole discretion that Tenant is not acting within a commercially reasonable time to maintain, repair or replace anything for which Tenant is responsible under this Lease or to otherwise effect compliance with its obligations under this Lease and correct the same, without being deemed in any manner guilty of trespass, eviction or forcible entry and detainer and without incurring any liability for any damage or interruption of Tenant’s business resulting therefrom and Tenant agrees to reimburse Landlord within five (5) days after Landlord’s demand as additional rent, for any expenses which Landlord may incur in thus effecting compliance with Tenant’s obligations under this Lease, plus interest from the date of expenditure by Landlord at the Default Rate (as defined below).
19.3
    If, on account of any breach or default by Tenant in Tenant’s obligations under the terms and conditions of this Lease, it shall become necessary or appropriate for Landlord to employ or consult with an attorney or collection agency concerning or to enforce or defend any of Landlord’s rights or remedies arising under this Lease or to collect any sums due from Tenant, Tenant agrees to pay all costs and fees so incurred by Landlord, including, without limitation, reasonable attorneys’ fees and costs.  Tenant expressly waives any right to trial by jury.

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19.4
    Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies provided in this Lease or any other remedies provided by law (all such remedies being cumulative), nor shall pursuit of any remedy provided in this Lease constitute a forfeiture or waiver of any rent due to Landlord under this Lease or of any damages accruing to Landlord by reason of the violation of any of the terms, provisions and covenants contained in this Lease.
19.5
    No act or thing done by Landlord or its agents during the Term shall be deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no agreement to terminate this Lease or accept a surrender of said Premises shall be valid, unless in writing signed by Landlord.  No waiver by Landlord of any violation or breach of any of the terms, provisions and covenants contained in this Lease shall be deemed or construed to constitute a waiver of any other violation or breach of any of the terms, provisions and covenants contained in this Lease.  Landlord’s acceptance of the payment of rental or other payments after the occurrence of an Event of Default shall not be construed as a waiver of such default, unless Landlord so notifies Tenant in writing.  Forbearance by Landlord in enforcing one or more of the remedies provided in this Lease upon an Event of Default shall not be deemed or construed to constitute a waiver of such default or of Landlord’s right to enforce any such remedies with respect to such default or any subsequent default.
19.6
    To secure the payment of all rentals and other sums of money becoming due from Tenant under this Lease, Landlord shall have and Tenant grants to Landlord a continuing security interest upon all goods, wares, equipment, fixtures, furniture, inventory, accounts, contract rights, chattel paper and other personal property of Tenant situated on the Premises, and such property shall not be removed therefrom without the consent of Landlord until all arrearages in rent as well as any and all other sums of money then due to Landlord under this Lease shall first have been paid and discharged.  Upon the occurrence of an Event of Default, Landlord shall have, in addition to any other remedies provided in this Lease or by law, all rights and remedies under the Uniform Commercial Code, including without limitation the right to sell the property described in this Section 19.6 at public or private sale upon five (5) days’ notice to Tenant.  Tenant hereby authorizes Landlord to file, and if requested, shall execute all such financing statements and other instruments as shall be deemed necessary or desirable in Landlord’s discretion to perfect and continue to perfection of the security interest hereby created and shall sign any such other related documents promptly upon request.
19.7
    Any and all property which may be removed from the Premises by Landlord pursuant to the authority of this Lease or of law, to which Tenant is or may be entitled, may be handled, removed and/or stored, as the case may be, by or at the direction of Landlord but at the risk, cost and expense of Tenant, and Landlord shall in no event be responsible for the value, preservation or safekeeping thereof.  Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all storage charges against such property so long as the same shall be in Landlord’s possession or under Landlord’s control.  Any such property of Tenant not retaken by Tenant from storage within thirty (30) days after removal from the Premises shall, at Landlord’s option, be deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale without further payment or credit by Landlord to Tenant.
19.8
    If an Event of Default by Tenant occurs under this Lease, Landlord shall be entitled to recover interest on all unpaid rent, additional rent, late charges and other sums payable under this Lease, costs to recover possession of the Building and the Premises, costs to return the Building and the Premises to the condition required on surrender thereof by Tenant, costs to remove, store and/or dispose of Tenant's property, costs in connection with reletting the Building (including, without limitation, costs of repairs, alterations, additions and redecoration of the Building, reasonable attorneys’ fees and brokers’ commissions), the amount of the Rent Abatement provided by Landlord under this Lease, attorneys’ fees and costs in connection with enforcing this Lease and collecting sums due hereunder, and any and all other damages recoverable by Landlord under this Lease or applicable law, from the date first due until paid in full, at the rate of fifteen percent (15%) per annum ("Default Rate").

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20.
    QUIET ENJOYMENT.  
Landlord represents and warrants that it has full right and authority to enter into this Lease and that Tenant, while paying the rental and performing its other covenants and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the Premises for the Term without hindrance or molestation from Landlord subject to the terms and provisions of this Lease.  Except as set forth in Article 13, Landlord shall not be liable for any interference or disturbance by other tenants or third persons, nor shall Tenant be released from any of the obligations of this Lease because of such interference or disturbance.
21.
    CASUALTY. 
21.1
    Landlord shall maintain causes of loss-special form property insurance covering the Building as it exists on the Lease Date (i.e., as shown on those certain As-Built Drawings prepared by D.L. Withers Construction and dated 01-26-2016, hereinafter the "D.L. Withers Drawings"), in an amount not less than ninety percent (90%) of the replacement cost thereof and, if Landlord so elects or is otherwise mandated by applicable law or required by Landlord's Lender, flood and wind coverage, the cost of all of which shall be included in the Insurance Costs charged to Tenant pursuant to Article 4. Such insurance shall be for the sole benefit of Landlord and under its sole control.  Tenant shall not take out separate insurance on the Building concurrent in form or contributing in the event of loss with that required to be maintained by Landlord hereunder unless Landlord is included as an additional loss payee thereon; provided, however, Landlord need not be included as an additional loss payee on any insurance coverages maintained by Tenant on the Tenant Improvements, any Alterations, or Tenant's trade fixtures, inventory and other business personal property installed in the Building or on the Premises by, or belonging to, Tenant.  Tenant shall immediately notify Landlord whenever any such separate insurance on the Building is taken out and shall promptly deliver to Landlord the policy or policies of such insurance.  In the event the Premises or the Building are damaged by fire or other cause, and to the extent Landlord makes sufficient insurance proceeds available to Tenant for the cost and expense of same, Tenant shall forthwith repair, reconstruct and restore the same as nearly as possible to the condition that the same were in immediately prior to such damage, but with such changes or alterations as may be reasonably requested by Tenant and reasonably acceptable to Landlord or otherwise required by law, and this Lease and Tenant's obligation to pay rent and additional rent hereunder shall remain in full force and effect.  Such repairs, reconstruction, restoration, changes and alterations, including the cost of any temporary repairs for the protection of the Building and the Premises, or any portion thereof, pending completion thereof, and to the extent Landlord makes sufficient insurance proceeds available to Tenant for same, are referred to as the "Restoration Work".  Notwithstanding anything otherwise provided above, at the option of Tenant, Landlord shall perform that portion of the Restoration Work necessary to repair and restore the Building and the Premises to their condition existing on the Lease Date (as shown on the D.L. Withers Drawings) (herein, the "Base Restoration Work"), using the proceeds of Landlord's property insurance.  Landlord shall not, in any event, be required to repair or replace any damage or loss by or from fire or other cause to the Tenant Improvements, any Alterations, or Tenant's trade fixtures, inventory and other business personal property installed in the Building or on the Premises by, or belonging to, Tenant.      
21.2
    The Restoration Work to be performed by Tenant shall be performed (a) in compliance with the terms and conditions set forth in Exhibit B for performance of the initial Tenant Improvements, except with respect to any fixed date deadlines therein that clearly pertain only to the initial Tenant Improvements, (b) using a licensed architect and general contractor reasonably acceptable to Landlord (if the Architect and general contractor specified in Exhibit B are no longer available or desirable), and (c) pursuant to detailed plans and specifications which have first been approved by Landlord in writing, pursuant to the provisions set forth in Section 4 of Exhibit B.  As applicable, all insurance proceeds recovered and available from Landlord's and Tenant's Causes of Loss - Special Form insurance for the Building (but excluding insurance proceeds recovered for the Tenant Improvements, any Alterations, or Tenant's trade fixtures, inventory and other business personal property installed in the Building or on the Premises by, or belonging to, Tenant) shall be held by Landlord (less the reasonable costs, if any, to Landlord of such recovery), 

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and shall be applied to the payment of the costs of the Base Restoration Work and shall be paid out from time to time as the Base Restoration Work progresses, in the same manner and subject to the same terms, covenants and conditions set forth in Section 5 of Exhibit B for payment of the Allowance.  If the net amount of such insurance proceeds is reasonably deemed insufficient by Landlord to complete the Base Restoration Work (exclusive of the Tenant Improvements, any Alterations and Tenant's trade fixtures, inventory and other business personal property), subject to Section 21.3(b) below, Landlord shall fund, at its sole cost and expense, the amount necessary to complete the Base Restoration Work which is in excess of the available insurance proceeds (the "Excess Restoration Costs").  
21.3
    Notwithstanding anything to the contrary contained in this Article:  (a) Landlord and Tenant shall not have any obligation to complete any Restoration Work when the damage resulting from any casualty covered by the provisions of this Article 21 occurs during the last twelve (12) months of the Term or any Option Term, provided that if Landlord and Tenant elect not to repair any such damage occurring during the last twelve (12) months of the Term or any Option Term, and if such damage renders any material portion of the Building untenantable, then Tenant shall have the right to abate the Base Rent and additional rent next becoming due under this Lease for the portion of the Building rendered untenantable by delivering written notice thereof to Landlord; and (b) in the event Landlord's Lender requires that any insurance proceeds be applied to any indebtedness secured by a mortgage or deed of trust covering the Premises or the Building, Landlord shall have the right to either (i) self-fund the Restoration Work to the extent of the amount payable to its Lender out of such insurance proceeds, or (ii) terminate this Lease by delivering written notice of termination to Tenant.  If this Lease is terminated under this Article 21 after a fire or other casualty, Tenant shall deliver to Landlord all proceeds of insurance applicable to any Tenant Improvements and Alterations that are damaged, excepting only the Required Removables, Tenant's trade fixtures, inventory and other business personal property.  If this Lease is so terminated but Tenant fails to receive insurance proceeds covering the full replacement cost of such Tenant Improvements and Alterations other than the Required Removables, Tenant shall be deemed to have self-insured the replacement cost of the same and shall pay to Landlord the full replacement cost of such items, less any insurance proceeds actually received by Landlord from Tenant's insurance with respect to such items.
21.4
    Notwithstanding anything to the contrary contained in this Article 21, if Tenant or Landlord is obligated to complete any Restoration Work, or portions thereof, but is delayed from completing such Restoration Work for a period of twelve (12) months after the scheduled date for completion thereof (as set forth in the applicable construction schedule), by reason of any causes beyond the reasonable control of such party (including strikes, lockouts, casualties, Acts of God or terrorism, war, material or labor shortages, government regulation or control or other causes beyond the reasonable control of such party), then either party may elect to terminate this Lease upon written notice given to the other party prior to completion of such Restoration Work.
21.5
    In the event of any damage or destruction to the Building or the Premises by any peril covered by the provisions of this Article 21, it shall be Tenant’s responsibility to properly secure the Building and upon notice from Landlord to remove forthwith, at its sole cost and expense, all of the property belonging to Tenant or its licensees from such portion or all of the Building or the Premises as Landlord shall request.
21.6
    This Lease sets forth the terms and conditions upon which this Lease may terminate in the event of any damage or destruction.  Accordingly, except as expressly provided herein, Landlord and Tenant each hereby waives any and all provisions of applicable law that provide alternative rights for the parties in the event of damage or destruction (including, without limitation, the provisions of Section 33-343 of the Arizona Revised Statutes, and any successor statute or laws of a similar nature).

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22.
    EMINENT DOMAIN.  
If all or any substantial part of the Building or the Premises shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, or conveyance in lieu of such appropriation, either party to this Lease shall have the right, at its option, of giving the other, at any time within thirty (30) days after such taking, notice terminating this Lease, except that Tenant may only terminate this Lease by reason of taking or appropriation, if such taking or appropriation shall be so substantial as to materially interfere with Tenant’s use and occupancy of the Building.  If neither party to this Lease shall so elect to terminate this Lease, the rental thereafter to be paid shall be adjusted on a fair and equitable basis under the circumstances.  Landlord shall be entitled to any and all income, rent, award, or any interest whatsoever in or upon any such sum, which may be paid or made in connection with any such public or quasi-public use or purpose, and Tenant hereby assigns to Landlord any interest it may have in or claim to all or any part of such sums, other than any separate award which may be made with respect to Tenant’s trade fixtures and moving expenses; Tenant shall make no claim for the value of any unexpired Term.
23.
    SALE BY LANDLORD.  
In event of a sale or conveyance by Landlord of the Building, the Premises or the Property, the same shall operate to release Landlord from any future liability upon any of the covenants or conditions, expressed or implied, contained in this Lease in favor of Tenant, and in such event Tenant agrees to look solely to the responsibility of the successor in interest of Landlord in and to this Lease.  Except as set forth in this Article 23, this Lease shall not be affected by any such sale and Tenant agrees to attorn to the purchaser or assignee.  If any security has been given by Tenant to secure the faithful performance of any of the covenants of this Lease, Landlord may transfer or deliver said security, as such, to Landlord’s successor in interest and thereupon Landlord shall be discharged from any further liability with regard to said security.
24.
    ESTOPPEL CERTIFICATES.  
24.1
    Within ten (10) business days following any written request which Landlord may make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or prospective mortgagee a sworn statement certifying:  (a) the date of commencement of this Lease; (b) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications to this Lease, that this Lease is in full force and effect, as modified, and stating the date and nature of such modifications); (c) the date to which the rent and other sums payable under this Lease have been paid; (d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant’s statement; and (e) such other factual matters as may be requested by Landlord.  Landlord and Tenant intend that any statement delivered pursuant to this Section 24.1 may be relied upon by any mortgagee, beneficiary or purchaser, and Tenant shall be liable for all loss, cost or expense resulting from the failure of any sale or funding of any loan caused by any material misstatement contained in such estoppel certificate.  Tenant irrevocably agrees that if Tenant fails to execute and deliver such certificate within such ten (10) business day period, Landlord or Landlord’s beneficiary or agent may execute and deliver such certificate on Tenant’s behalf, and that such certificate shall be fully binding on Tenant.
24.2
    Within ten (10) business days following any written request which Tenant may make from time to time, Landlord shall execute and deliver to Tenant a sworn statement certifying:  (a) the date of commencement of this Lease; (b) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications to this Lease, that this Lease is in full force and effect, as modified, and stating the date and nature of such modifications); (c) the date to which the rent and other sums payable under this Lease have been paid; (d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Landlord’s statement; and (e) such other factual matters as may be requested by Tenant.  Landlord and Tenant intend that any statement delivered pursuant to this Section 24.2 may be relied upon by Tenant and any prospective lender, investor 

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or purchaser.  Landlord irrevocably agrees that if Landlord fails to execute and deliver such certificate within such ten (10) business day period, Tenant may execute and deliver such certificate on Landlord's behalf, and that such certificate shall be fully binding on Landlord.
25.
    SURRENDER OF PREMISES.
25.1
    Tenant shall arrange to meet Landlord for two (2) joint inspections of the Building and the Premises, the first to occur at least thirty (30) days (but no more than sixty (60) days) before the last day of the Term, and the second to occur not later than forty-eight (48) hours after Tenant has vacated the Building and the Premises.  In the event of Tenant’s failure to arrange such joint inspections and/or participate in either such inspection, Landlord’s inspection at or after Tenant’s vacating the Building and the Premises shall be conclusively deemed correct for purposes of determining Tenant’s responsibility for repairs and restoration.
25.2
    All Tenant Improvements and Alterations (as defined in Article 6) shall be and remain the property of Tenant during the Term.  At the end of the Term or any renewal of the Term or other sooner termination of this Lease, Tenant will peaceably deliver up to Landlord possession of the Building and the Premises, together with all such Tenant Improvements and Alterations by whomsoever made, in the same conditions received or first installed, broom clean and free of all debris, excepting only ordinary wear and tear and damage by fire or other casualty.  Notwithstanding the foregoing, at the end of the Term or any renewal of the Term or other sooner termination of this Lease, (a) Tenant shall, at Tenant’s sole cost, remove any Tenant Improvements installed pursuant to Exhibit B or Alterations installed thereafter which Landlord has, by written notice delivered to Tenant at the time Landlord approves such Tenant Improvements or other Alterations, identified as Tenant Improvements or Alterations which Landlord will require that Tenant remove at the end of the Term ("Required Removables"), (b) repair any damage caused by such removal, and (c) restore the Building and the Premises to their condition existing immediately prior to the installation of the Required Removables.  Such obligations of removal and restoration shall survive the expiration or earlier termination of this Lease.  All other Tenant Improvements and Alterations shall become a part of the realty and shall belong to Landlord without compensation, and title shall pass to Landlord under this Lease as by a bill of sale.  Tenant must, at Tenant’s sole cost, remove upon termination of this Lease, any and all of Tenant’s furniture, furnishings, equipment, movable partitions of less than full height from floor to ceiling and other trade fixtures and personal property, as well as all data/telecommunications cabling and wiring installed by or on behalf of Tenant, whether inside walls, under any raised floor or above any ceiling (collectively, "Personalty").  If Tenant fails to remove the Required Removables and/or the Personalty, and repair and restore the Building and the Premises as required above, Landlord shall have the right to do so and Tenant shall pay to Landlord all costs incurred by Landlord in connection therewith, plus a reasonable sum for overhead not to exceed eight percent (8%), which amounts shall be payable within ten (10) days after invoice, together with interest thereon from the date of expenditure until paid in full at the rate of eight percent (8%) per annum, provided that if such sums are not paid by Tenant by the date such sums are due, then such sums shall thereafter accrue interest at the Default Rate until paid in full.  Personalty not so removed shall be deemed abandoned by Tenant and title to the same shall thereupon pass to Landlord under this Lease as by a bill of sale, but Tenant shall remain responsible for the cost of removal and disposal of such Personalty, as well as the repair of any damage caused by such removal.  In lieu of requiring Tenant to remove the Required Removables and the Personalty, and repair and restore the Building and the Premises as aforesaid, Landlord may, by written notice to Tenant delivered at least thirty (30) days before the end of the Term or any Option Term or any sooner termination of this Lease, require Tenant to pay to Landlord, as additional rent hereunder, the cost of such removal, and repair and restoration in an amount reasonably estimated by Landlord.
25.3
    All obligations of Tenant under this Lease not fully performed as of the expiration or earlier termination of the Term shall survive the expiration or earlier termination of the Term.  Upon the expiration or earlier termination of the Term, Tenant shall pay to Landlord the amount, as estimated by Landlord, necessary to discharge Tenant’s obligation for unpaid amounts due or to become due to Landlord.  All such amounts shall be used and held 

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by Landlord for payment of such obligations of Tenant, with Tenant being liable for any additional costs upon demand by Landlord, or with any excess to be returned to Tenant after all such obligations have been determined and satisfied.  
26.
    NOTICES.  
Any notice or document required or permitted to be delivered under this Lease shall be addressed to the intended recipient, by fully prepaid registered or certified United States Mail return receipt requested, or by reputable independent contract delivery service furnishing a written record of attempted or actual delivery, and shall be deemed to be delivered when tendered for delivery to the addressee at its address set forth on the Summary, or at such other address as it has then last specified by written notice delivered in accordance with this Article 26, or if to Tenant at either its aforesaid address or its last known registered office.  Any such notice or document may also be personally delivered if a receipt is signed by and received from, the individual, if any, named in Tenant’s Notice Address.
27.
    TAXES PAYABLE BY TENANT.  
Tenant agrees to pay, before delinquency, any and all taxes levied or assessed against Tenant and which become payable during the term hereof upon Tenant’s equipment, furniture, fixtures and other personal property of Tenant located in the Building or on the Premises.  In addition, and notwithstanding anything to the contrary in this Lease, Tenant shall also be liable for, and shall pay to Landlord within thirty (30) days after invoice accompanied by reasonable evidence of such charges, or, at Landlord’s option, as part of Taxes payable hereunder, any and all increases in the property taxes and assessments which are levied against the Premises, Building or Property, to the extent such increases are the result of the installation by or on behalf of Tenant (whether under Exhibit B or thereafter) of alterations, additions or improvements which Landlord reasonably determines are not standard for a typical business park/light industrial property.
28.
    SIGNS; USE OF ROOF SPACE.  
28.1
    Tenant shall have the right to install and maintain on the exterior walls of the Building such signs bearing Tenant’s name as are allowed by the City of Mesa.  The design details (including lettering, style, font, colors, etc.), construction, manner of installation, lighting and all other aspects of the signs shall be subject to the prior approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed, shall reasonably conform to Landlord’s overall signage plan for the Property, and shall be further subject to the approval of the City of Mesa, with any necessary permits and licenses to be obtained by Tenant at Tenant’s sole cost and expense.  The signs may not be attached to the face of the Building or connected to any electrical, lighting or other utility systems serving the Building in any manner which may adversely affect the structure of the Building or any of the mechanical, electrical, lighting, life safety, or other systems of the Building.  After Tenant has obtained all such necessary approvals, permits and licenses, Tenant shall engage a sign contractor reasonably acceptable to Landlord to construct and install the signs, all at Tenant’s sole cost and expense.  Tenant shall cause its vendor to comply with all rules and regulations of the Property during such construction and installation.  Landlord shall have the right, at no cost to Tenant, to supervise the attachment of the signs to the face of the Building and all connections to electrical, lighting and other utility lines serving the Building.  Tenant shall maintain the signs in good condition and repair, at Tenant’s sole cost and expense, and shall indemnify, defend and hold harmless Landlord and the Landlord Entities for, from and against any injury, loss or damage arising from the installation, maintenance or removal of the signs.  At the end of the Term or any renewal of the Term or other sooner termination of this Lease, Tenant shall promptly remove all such signs and related improvements, repair any and all damage caused by such removal, and restore the Building to its condition existing prior to installation of the signs.  Such obligations of removal and restoration shall survive the expiration or earlier termination of this Lease.  If Tenant at any time fails to promptly perform its maintenance obligations or remove all such signs and repair any and all such damage, Landlord shall have the right to do so at Tenant’s sole cost and expense and Tenant shall promptly reimburse Landlord for any such reasonable costs and expenses, as additional rent.  

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28.2
    Notwithstanding any provision of this Lease to the contrary, Tenant shall have the right to use the roof of the Building ("Roof Space") for the sole purpose of installing, maintaining and operating satellite dishes, microwave antennas or other communication devices (together with all related equipment, cabling and wiring, the "Devices"), and photovoltaic solar panels ("Solar Panels"), subject to the following terms and conditions:
28.2.1
    There shall be no rent or other payments due from Tenant for the Roof Space, but all other obligations of Tenant in this Lease, including, without limitation, the insurance and indemnity obligations owed to Landlord and the Landlord Entities, shall apply equally with respect to all matters pertaining to the Solar Panels, the Devices and the use of the Roof Space. Tenant shall give Landlord prompt notice of any casualty, injury or accident occurring on, or related to, the roof of the Building.  The Devices shall be used only for Tenant’s own purposes and in no event shall Tenant allow any provider of telecommunication, video, data or related services ("Communication Services") to locate any equipment on the roof of the Building, nor shall Tenant use the roof of the Building or the Devices to provide Communication Services to an unaffiliated tenant, occupant or licensee of another building, or to facilitate the provision of Communication Services on behalf of another Communication Services provider to an unaffiliated tenant, occupant or licensee of another building.
28.2.2
    The Solar Panels and the Devices (together with a visual screen wall as may be reasonably specified by Landlord) shall be installed, operated and maintained at Tenant's sole risk, cost and expense and Tenant shall comply with all rules and regulations of the Property, all other applicable provisions of this Lease, all applicable laws and regulations, and Landlord's policies and practices for the Building relating to the installation, use and maintenance of the Solar Panels and the Devices. Tenant's right to install the Solar Panels and the Devices shall be subject to the approval rights of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed, and Landlord's architect and/or engineer with respect to the plans and specifications of the Solar Panels and the Devices, the manner in which the Solar Panels and the Devices are attached to the roof of the Building and the manner in which any cables are run to and from the Solar Panels and/or the Devices.  The precise specifications and a general description of the Solar Panels and the Devices along with all documents Landlord reasonably requires to review the installation of such Solar Panels and the Devices shall be submitted to Landlord for Landlord's written approval and Tenant must obtain Landlord's written approval prior to the installation of the Solar Panels and the Devices, which approval shall not be unreasonably withheld, conditioned or delayed.  Furthermore, prior to such installation, Tenant shall coordinate with Landlord's warranty roofer to ensure that the installation, use and maintenance of the Solar Panels and the Devices do not and will not void or otherwise diminish the protection afforded by Landlord's roof warranty.  If such installation requires penetrations of the roof, or if otherwise required by Landlord, Tenant, at its sole cost and expense, shall retain the roofing contractor having a then existing warranty in effect on the roof to perform such work  All sales taxes, use and occupancy taxes and taxes and charges in the nature thereof with respect to the Solar Panels and/or the Devices are the responsibility of and shall be paid by Tenant.  
28.2.3
    Tenant agrees to maintain the Solar Panels and the Devices in proper operating condition and satisfactory condition as to appearance and safety.  Tenant shall keep the roof free of all trash and waste materials produced by Tenant or any Tenant Entities.  If Landlord reasonably determines that the Solar Panels and/or the Devices do not comply with the approved plans and specifications, that the Building or Building's electrical, mechanical or life-safety systems have been damaged during installation of the Solar Panels or the Devices, that the installation was defective or that Tenant is not maintaining the Solar Panels or the Devices in good condition and repair as required herein, Landlord shall notify Tenant of any noncompliance or detected problems and Tenant shall immediately cure the defects.  
28.2.4
    Unless otherwise directed by Landlord at the end of the Term or any renewal of the Term or other sooner termination of this Lease, the Solar Panels and the Devices, the appurtenances and the visual screen wall, if any, shall automatically be considered Required Removables that will remain the personal property of Tenant, and shall 

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be removed by Tenant at its own expense upon the expiration of the Term or other sooner termination of this Lease.  Alternatively, if Tenant vacates the Building without removing the Solar Panels and/or the Devices and Landlord elects in its sole discretion not to require such removal, or if Landlord otherwise requests that Tenant leave the Solar Panels and/or the Devices intact on the Building, and in connection therewith, Landlord and Tenant agreed upon a commercially reasonable amount of consideration to be paid to Tenant for leaving such items intact on the Building, then Tenant shall not remove the same and ownership to the same shall pass to Landlord as if voluntarily conveyed by deed or bill of sale and Tenant shall have no further claim thereto following receipt of the agreed-upon consideration from Landlord.  Tenant shall repair any damage caused by installation and/or removal of the Solar Panels and/or the Devices and shall restore the roof to the condition it was in prior to Tenant installing and using the Solar Panels and/or the Devices, reasonable wear and tear excepted.  Such obligations of removal and restoration shall survive the expiration or earlier termination of this Lease.  If Tenant at any time fails to promptly perform its maintenance obligations under this Section 28.2, or if Tenant fails to remove all such Solar Panels and/or the Devices and repair any and all such damage, Landlord shall have the right to do so at Tenant’s sole cost and expense and Tenant shall promptly reimburse Landlord for all such costs and expenses, together with a reasonable fee for overhead not to exceed eight percent (8%), as additional rent.
29.
    DEFINED TERMS AND HEADINGS.  
The Article headings shown in this Lease are for convenience of reference and shall in no way define, increase, limit or describe the scope or intent of any provision of this Lease.  In any case where this Lease is signed by more than one person, the obligations under this Lease shall be joint and several.  The terms "Tenant" and "Landlord" or any pronoun used in place thereof shall indicate and include the masculine or feminine, the singular or plural number, individuals, firms or corporations, and their and each of their respective successors, executors, administrators and permitted assigns, according to the context hereof.  
30.
    TENANT’S AUTHORITY; OFAC.  
30.1
    If Tenant signs as a corporation, partnership, trust or other legal entity, each of the persons executing this Lease on behalf of Tenant represents and warrants that Tenant has been and is qualified to do business in the state in which the Building is located, that the entity  has full right and authority to enter into this Lease, and that all persons signing on behalf of the entity  were authorized to do so by appropriate actions. Tenant agrees to deliver to Landlord, simultaneously with the delivery of this Lease, a corporate resolution, proof of due authorization by partners, opinion of counsel or other appropriate documentation reasonably acceptable to Landlord evidencing the due authorization of Tenant to enter into this Lease.
30.2
    Tenant hereby represents and warrants that neither Tenant, nor any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (i) the target of any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control, U.S. Department of the Treasury ("OFAC"); (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App.  § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: "List of Specially Designated Nationals and Blocked Persons."
30.3
    Landlord hereby represents and warrants that neither Landlord, nor any persons or entities holding any legal or beneficial interest whatsoever in Landlord, are (i) the target of any sanctions program that is established by Executive Order of the President or published by the OFAC; (ii) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App.  § 5, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive 

30

Order of the President issued pursuant to such statutes; or (iii) named on the following list that is published by OFAC: "List of Specially Designated Nationals and Blocked Persons." 
31.
    FINANCIAL STATEMENTS AND CREDIT REPORTS.  
At Landlord’s request, to be given in writing not more than one (1) time during any twelve (12)-month period during the Term (unless the same has been requested by any Lender of Landlord or by any prospective Lender or any prospective purchaser of the Building, Premises or Property), Tenant shall deliver to Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant’s most recent audited financial statement, or, if unaudited, certified by Tenant’s chief financial officer as being true, complete and correct in all material respects.  Tenant hereby authorizes Landlord to obtain one or more credit reports on Tenant at any time, and shall execute such further authorizations as Landlord may reasonably require in order to obtain a credit report.  The foregoing provisions of this Article 31 shall not apply so long as the “Tenant” is publicly-traded on a recognized national stock exchange and its financial statements and information are available to the public over the internet (as is the case with Dexcom, Inc., as of the Lease Date).  
32.
    COMMISSIONS.  
Each of the parties represents and warrants to the other that it has not dealt with any broker or finder in connection with this Lease, except as described on the Summary.
33.
    TIME AND APPLICABLE LAW.  
Time is of the essence of this Lease and all of its provisions.  This Lease shall in all respects be governed by the laws of the state in which the Property is located.  Venue for any litigation between the parties hereto concerning this Lease or the occupancy of the Premises shall be initiated in the county in which the Premises are located.  
34.
    SUCCESSORS AND ASSIGNS.  
Subject to the provisions of Article 9, the terms, covenants and conditions contained in this Lease shall be binding upon and inure to the benefit of the heirs, successors, executors, administrators and assigns of the parties to this Lease.
35.
    ENTIRE AGREEMENT.  
This Lease, together with its exhibits, contains all agreements of the parties to this Lease and supersedes any previous negotiations.  There have been no representations made by the Landlord or any of its representatives or understandings made between the parties other than those set forth in this Lease and its exhibits.  This Lease may not be modified except by a written instrument duly executed by the parties to this Lease.
36.
    EXAMINATION NOT OPTION.  
Submission of this Lease shall not be deemed to be a reservation of the Premises.  Landlord shall not be bound by this Lease until it has received a copy of this Lease duly executed by Tenant and has delivered to Tenant a copy of this Lease duly executed by Landlord, and until such delivery Landlord reserves the right to exhibit and lease the Premises to other prospective tenants.  

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37.
    RECORDATION.  
Tenant shall not record or register this Lease or a short form memorandum hereof without the prior written consent of Landlord.  Notwithstanding the foregoing, Landlord and Tenant hereby agree to execute and record a short form memorandum of this Lease in the form attached hereto as Exhibit F (the "Memorandum of Lease") within ten (10) business days after the later of (i) the date of mutual execution hereof or (ii) the date that Tenant, at Tenant's sole cost and expense, prepares a legal description for the Premises (separate from the remainder of the Property) which is acceptable to the parties.  Recordation of the Memorandum of Lease shall be at Tenant's expense.
38.
    LIMITATION OF LANDLORD’S LIABILITY.  
Redress for any claim against Landlord under this Lease shall be limited to and enforceable only against and to the extent of Landlord’s interest in the Property.  The obligations of Landlord under this Lease are not intended to be and shall not be personally binding on, nor shall any resort be had to the private properties of, any of its or its investment manager’s trustees, directors, officers, partners, beneficiaries, managers, members, stockholders, employees, or agents, and in no case shall Landlord be liable to Tenant hereunder for any lost profits, damage to business, or any form of special, indirect or consequential damages.
39.
    EXPENDITURES BY LANDLORD.
Whenever under any provision of this Lease Tenant is obligated to make any payment or expenditure, or to do any act or thing, or to incur any liability whatsoever, and Tenant fails, refuses or neglects to perform as herein required, Landlord shall be entitled, but shall not be obligated, to make any such payment or to do any such act or thing, or to incur any such liability, all on behalf of and at the cost and for the account of Tenant.  All costs and expenditures in connection therewith, together with a reasonable fee for overhead not to exceed eight percent (8%), shall be paid by Tenant to Landlord, as additional rent, promptly upon receipt of a bill therefor.
40.
    CONFIDENTIALITY.
Except to the extent Tenant is required by law to disclose the same in Tenant’s Form 8-K or other required filings with the United States Securities and Exchange Commission ("SEC") (as is the case with Dexcom, Inc., as of the Lease Date), each of Landlord and Tenant shall cause the rental rates and other terms of this Lease (the "Confidential Information") to be kept strictly confidential and neither party shall, either directly or indirectly, with or without cause, in whole or in part, disclose, or permit to be disclosed, any Confidential Information to any other person or party, or use or permit the use of such Confidential Information in any manner  other than in connection with enforcing the terms and conditions of this Lease.  A breach of this covenant shall be an immediate material breach and Event of Default under this Lease, subjecting the breaching party to any and all of the other party’s rights and remedies available under this Lease, and/or at law or in equity.  The foregoing covenant shall not, however, prohibit Landlord and Tenant from disclosing the Confidential Information (a) to its respective brokers, financial and other professional advisors, (b) to its lenders, investors or beneficiaries, or any prospective lenders, investors, purchasers or beneficiaries, (c) in connection with any litigation or arbitration proceedings, (d) in response to any governmental request, (e) as may be required by court order or subpoena, or (f) as may otherwise be required by law (including requirements imposed by the SEC on publicly-traded companies).  This covenant of confidentiality shall survive the expiration or earlier termination of this Lease or Tenant's right to possession of the Premises.  
41.
    LANDLORD DEFAULT.
Subject to the terms of Section 7.1(c), in the event of a breach, default or noncompliance hereunder by Landlord, Tenant agrees, before exercising any right or remedy available Tenant, to give Landlord written notice of the claimed 

32

breach, default or noncompliance.  If prior to its giving such notice Tenant has been notified in writing (by way of notice of assignment of rents and leases, or otherwise) of the address of any Lender (as defined in Article 15), concurrently with giving the notice to Landlord, Tenant agrees to also give notice by overnight delivery or registered mail to such Lender.  For the thirty (30) days following such notice (or such longer period of time as may be reasonably required to cure a matter which, due to its nature, cannot reasonably be remedied within thirty (30) days), Landlord shall have the right to cure the breach, default or noncompliance involved.  If Landlord has failed to cure a default within said period, any such Lender shall have an additional thirty (30) days within which to cure the same or, if such default cannot be cured within that period, such additional time as may be necessary if within such thirty (30) day period said Lender has commenced and is diligently pursuing the actions or remedies necessary to cure the breach, default or noncompliance involved (including, but not limited to, commencement and prosecution of proceedings to foreclose or otherwise exercise its rights under its mortgage or other security instrument or ground lease, if necessary to effect such cure), in which event Tenant shall not be entitled to exercise any right or remedy available to it under this Lease so long as such actions or remedies are being diligently pursued by said Lender.  In no event shall Tenant have the right to terminate this Lease as a result of Landlord's default and Tenant's remedies shall be limited to an injunction and/or actual damages (but not special, punitive or consequential damages).  If Tenant fails to give notice to Landlord and any Lender of a default within twelve (12) months after Tenant has actual knowledge of the occurrence of the events pursuant to which the default arises or would occur with notice as provided above, thereafter Tenant shall have no right to deem the same a default hereunder. 
42.
    OPTIONS TO EXTEND.  
42.1
    Landlord hereby grants Tenant four (4) options (each, an “Option to Extend”) to extend the Term for the entire Building and Premises only, for additional consecutive periods of five (5) years each (each, an “Option Term”).  Each Option to Extend shall be exercised, if at all, only by written notice (“Option Notice”) delivered by Tenant to Landlord at least twelve (12) months, but not more than fifteen (15) months, prior to commencement of the applicable Option Term.  If Tenant exercises an Option to Extend, the Term shall be extended for the applicable Option Term upon all of the same terms, covenants and conditions contained in this Lease, except that (a) Monthly Base Rent shall be payable at the rates set forth in the Summary for the first such Option Term, (b) Monthly Base Rent shall be payable at the then Current Market Rate (as determined below) for each subsequent Option Term, and (c) the number of remaining Options to Extend (if any) shall be reduced by one.  If Tenant does not deliver an Option Notice within the time period set forth herein, such Option to Extend and any remaining unexercised Options to Extend shall lapse and Tenant shall have no right to extend the Term.  
42.2
    The “Current Market Rate” shall mean the bona fide rates, terms and conditions then being offered, as of the commencement of the applicable Option Term, in “arm’s length” transactions to comparable tenants under renewal leases or amendments for comparable space within comparable/similar class buildings in the same geographic submarket as the Building, taking into account all tenant inducements then being given to renewing tenants including, but not limited to, rent abatements, tenant improvement allowances and/or remodeling allowances and parking concessions.  Within thirty (30) days after Landlord’s receipt of an Option Notice with respect to either the second, third or fourth Option Terms, Landlord shall provide Tenant written notice of Landlord’s determination of the Current Market Rate for the applicable Option Term, including any step increases over the Option Term.  Within ten (10) business days after Landlord delivers its determination of the Current Market Rate to Tenant, Tenant shall, by written notice to Landlord, either accept or reject the Current Market Rate as determined by Landlord.  If Tenant does not deliver such written acceptance or rejection within said ten (10) business day period, Tenant shall be deemed to have accepted Landlord’s determination of the Current Market Rate.  
42.3
    If Tenant rejects Landlord’s determination of the Current Market Rate within said ten (10) business day period, the parties shall negotiate in good faith in an effort to agree upon the Current Market Rate within fifteen (15) days thereafter.  If the parties fail to reach an agreement within said fifteen (15) day negotiation period, each 

33

party shall select an impartial appraiser licensed in the State of Arizona, who is a member of the American Institute of Real Estate Appraisers or, if it is not then in existence, a member of the most nearly comparable organization, who has a minimum of ten (10) years’ experience in the Phoenix, Arizona, commercial leasing market, and who is not affiliated with either party or involved in an active transaction in which either party is also involved, and shall notify the other party, in writing, of its selection within ten (10) days after the expiration of the negotiation period.  The appraisers shall attempt to reach an agreement concerning the Current Market Rate within the next ten (10) days after their appointment.  If the two appraisers agree upon the Current Market Rate, such determination shall be final and binding on the parties and shall constitute the Monthly Base Rent payable by Tenant during the applicable Option Term.  If the two appraisers do not mutually agree upon the Current Market Rate, the two appraisers shall promptly select within ten (10) days, and provide their respective proposals of the Current Market Rate to, a third appraiser, and the third appraiser will then notify Landlord and Tenant of such appraiser’s name, address and selection within five (5) days after his or her appointment.  The third appraiser shall satisfy the same professional qualifications set forth above for the other appraisers, with the added qualification that he or she shall not have represented either party or any of its affiliates in any capacity during the five (5) years prior to his or her selection as the third appraiser.  Within ten (10) days after the selection of the third appraiser, such third appraiser shall select the proposed Current Market Rate provided by either Landlord’s or Tenant’s appraiser in its entirety, without averaging or otherwise adjusting such value in any manner, and shall notify Landlord, Tenant and the other two appraisers of his or her decision.  The third appraiser’s decision concerning the Current Market Rate shall be binding upon the parties, shall not be subject to any right of appeal and shall constitute the Monthly Base Rent payable by Tenant during the applicable Option Term.  Each party shall be responsible for the fees and costs of its appraiser.  The non-prevailing party shall be responsible for the fees and costs of the third appraiser.
42.4
    If Tenant accepts or is deemed to have accepted Landlord’s determination of the Current Market Rate, as set forth above in Section 42.2, or if the Current Market Rate is otherwise determined in accordance with the provisions of Section 42.3 above, Landlord shall prepare and the parties shall both execute an appropriate amendment to this Lease setting forth the extension of the Term for the applicable Option Term and the Monthly Base Rent payable during such Option Term (“Option Term Amendment”).  If the Current Market Rate has not been determined as of the commencement of the Option Term and until the Current Market Rate is determined in the manner provided above, Tenant shall pay Monthly Base Rent in an amount equal to 105% of the Monthly Base Rent payable for the calendar month immediately preceding the commencement of the applicable Option Term (“Temporary Rent”).  Within ten (10) days after the final determination of the Current Market Rate, Landlord shall refund to Tenant, or Tenant shall pay to Landlord, as the case may be, an amount equal to the difference between the Temporary Rent paid by Tenant and the finally determined Current Market Rate for the same period.
42.5
    Each Option to Extend shall be exercisable by Tenant on the express conditions that at the time of the exercise of the Option to Extend, and upon the date of the commencement of such Option Term, Tenant shall not be in default under any of the provisions of this Lease beyond any applicable cure period, unless such restriction is expressly waived in writing by Landlord (which election shall be in Landlord’s sole discretion).  Each Option to Extend is personal to the originally-named Tenant executing this Lease and any Permitted Transferee which assumes this Lease in writing, and may only be exercised by said Tenant or Permitted Transferee.  If Tenant mortgages, pledges, hypothecates or encumbers this Lease in violation of Section 9.1, or if Tenant assigns this Lease to other than a Permitted Transferee, or if Tenant sublets all or any portion of the Building or Premises to other than a Permitted Transferee, prior to the exercise of an Option to Extend, such Option to Extend and any remaining unexercised Options to Extend shall lapse.  If Tenant mortgages, pledges, hypothecates or encumbers this Lease in violation of Section 9.1, or if Tenant assigns this Lease to other than a Permitted Transferee, or if Tenant sublets all or any portion of the Building or Premises to other than a Permitted Transferee, after the exercise of the Option to Extend, but prior to the commencement of the applicable Option Term, such Option to Extend and any remaining unexercised Options to Extend Term shall lapse and this Lease shall expire as if the Option to Extend had not been exercised, unless such restriction is expressly waived in writing by Landlord (which election shall be in Landlord’s sole discretion).

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43.
    TENANT’S RIGHT TO PURCHASE BUILDING.  
43.1
    Tenant shall have the right to purchase the Building Parcel (defined below) for the total purchase price of $23,063,535 (based on $155 per square foot of rentable area in the Building) (“Purchase Right”), only by delivering to Landlord a Purchase Exercise Notice (as defined below), together with the Earnest Money (as defined below), not later than April 7, 2017.  Tenant may only exercise the Purchase Right one time on or before April 7, 2017.  If Tenant does not exercise the Purchase Right by delivering a Purchase Exercise Notice on or before April 7, 2017, or if Tenant exercises the Purchase Right but the sale is not consummated for any reason other than a default by Tenant under this Article 43, then Tenant shall have an ongoing right of first offer to purchase the Building Parcel at the price Landlord is then willing to offer the Building Parcel for sale (“Offer Right”), should Landlord at any time thereafter elect to offer the Building Parcel for sale to an unaffiliated third party.  At any time Landlord elects to offer the Building Parcel for sale to an unaffiliated third party separately from the remainder of the Property, Landlord shall deliver written notice to Tenant setting forth the terms of the Offer Right to Tenant, and Tenant shall have ten (10) business days after receipt of such written terms of the Offer Right within which to exercise the Offer Right by delivering to Landlord a Purchase Exercise Notice, together with the Earnest Money.  For purposes of this Article 43, “Building Parcel” shall mean the separate legal parcel (as described in Section 43.3 below) that will contain the Premises generally located on the Property north of Birchwood Avenue.  “Earnest Money” as used in this Article 43 shall mean an amount equal to $500,000.  Notwithstanding any provision of this Article 43 to the contrary, Tenant shall have no Offer Right in the event of the offer or sale by Landlord or its members or managers of any interest in the Building Parcel or of any ownership interest in the entity that owns the Building Parcel or in the entities that are the members or managers thereof to a Landlord Affiliate (as defined below), provided that following such sale Kenn Francis and/or Tod Thorpe (individually or as a trustee of a revocable trust) shall retain (individually or through an entity) an ownership and/or management interest in the Building Parcel, in the entity that owns the Building Parcel or in the entities that are the members or managers thereof.  “Landlord Affiliate” means Landlord, Kenn Francis and/or Tod Thorpe, or any person or entity that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with Landlord, Kenn Francis and/or Tod Thorpe, which, in the case of a limited liability company, shall include each manager or member thereof.
43.2
    Tenant shall deliver the Earnest Money to Escrow Agent (defined in Section 43.5 below) in cash or other immediately available U.S. funds, at the same time that Tenant delivers its written notice of the exercise of its Purchase Right or its notice of the exercise of its Offer Right (a “Purchase Exercise Notice”), as the case may be, which amount shall be applied to the purchase price, as further set forth in the Purchase Contract (as defined below). The Earnest Money shall be non-refundable unless (a) the City of Mesa denies Landlord’s application for a Lot Split (as defined below), (b) Tenant disapproves the Declaration (as defined below) proposed by Landlord, (c) there is any lien, claim or encumbrance on title for the Building Parcel that is not one of the Permitted Exceptions (as defined below), or (d) Landlord defaults under its obligations under this Article 43 or the Purchase Contract.  
43.3
    Tenant acknowledges that Landlord’s ability to sell the Building Parcel to Tenant pursuant to Tenant’s rights set forth in this Article 43 is strictly contingent upon obtaining the City of Mesa’s approval to split (the “Lot Split”) the parcel of real property on which the Property is currently situated (as of the Lease Date) into two separate legal parcels, one of which will contain the Building and become the Building Parcel.  In the event Landlord has not caused the Lot Split to occur prior to the delivery of a Purchase Exercise Notice by Tenant, Landlord shall use commercially reasonable efforts to obtain the Lot Split following the delivery of a Purchase Exercise Notice, provided that Landlord shall not be obligated to spend more than $50,000 to obtain the Lot Split (the “Lot Split Cap”) unless Tenant continues to fund the effort to obtain the Lot Split at its sole cost and expense.  If, despite the exercise of commercially reasonable and good faith efforts, Landlord has not obtained the Lot Split after the expenditure of funds up to the Lot Split Cap (as evidenced by invoices provided to Tenant upon written request), Tenant shall have the right to continue to fund the effort to obtain the Lot Split at its sole cost and expense.  Notwithstanding any provision of this Article 43 to the contrary, including the immediately preceding sentence regarding the funding of 

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the Lot Split, if the Closing (defined in Section 43.13 below) shall not have occurred by the date that is twelve (12) months after the delivery of the applicable Purchase Exercise Notice (“Outside Closing Date”), then Landlord shall have the right, at its election, upon delivery of written notice to Tenant and Escrow Agent (as defined in Section 43.5 below) within ten (10) days following the Outside Closing Date, to terminate the Purchase Contract (as defined in Section 43.5 below), in which event the Earnest Money shall be returned to Tenant.  
43.4
    In connection with the Lot Split, Landlord may record any reasonably necessary or desirable declaration or agreement concerning cross-access (vehicular and pedestrian) and other easements between the parcel on which the Building is located and the adjacent parcel that will benefit and burden the parcels (the “Declaration”); provided, however, that Tenant shall have the right to reasonably comment upon and approve any such proposed Declaration prior to the Earnest Money becoming non-refundable, and that such Declaration shall not provide for cross parking, as the parcels shall be self-parked. 
43.5
    If Tenant timely and properly exercises the Purchase Right or the Offer Right, as the case may be, Landlord shall: (a) open escrow with, and deliver the Earnest Money to, First American Title Insurance Company (the name of the escrow officer to be determined by Landlord), which company shall act as the escrow agent and title insurer for this transaction (“Escrow Agent”); (b) if the Lot Split has not then already been approved, apply to the City of Mesa for the Lot Split; and (c) prepare a draft purchase contract (“Purchase Contract”) for Tenant to review and comment upon, setting forth the proposed terms by which Tenant shall purchase the Building Parcel, including, but not limited to, the terms of the Purchase Right or Offer Right, as applicable.  If the City of Mesa, after exhaustion of any and all rights of appeal by Landlord, subject to the Lot Split Cap (unless Tenant agrees to continue to fund the same as provided above) and the Outside Closing Date, refuses to approve the Lot Split, then this Article 43 shall be null and void in its entirety.  
43.6
    The Purchase Contract shall, among other matters, provide for: (a) a closing date (“Closing Date”) that is not more than thirty (30) days after the later of (i) the date that Tenant properly exercises the Purchase Right or Offer Right under this Article 43 (if the Lot Split already has been approved), or (ii) the date that the City of Mesa approves the Lot Split; and (b) conveyance of fee simple title to the Building Parcel by special warranty deed, subject to (i) non-delinquent taxes, (ii) any lien, claim, encumbrance or other matter of record existing as of the Lease Date, excluding all monetary liens created by the acts or omissions of Landlord, including, but not limited to, all judgment and tax liens, mechanics and materialman’s liens and professional liens, mortgages or deeds of trust recorded against the Building Parcel, (iii) any additional matters that may be specifically approved, in writing, by Tenant or otherwise deemed approved or accepted by Tenant, (iv) matters arising out of any act of Tenant or any Tenant Entities, (v) the Declaration, if applicable, in a form approved by Tenant, and (vi) any lien, claim or encumbrance or other matter, except liens, claims or adverse encumbrances caused by any act of Landlord (except to the extent Landlord causes any such liens or claims to be bonded or insured over) (collectively, “Permitted Exceptions”).  Notwithstanding the foregoing, if any so-called speculative builder tax may be assessed against the sale of the Building Parcel, the Closing Date shall be delayed until such tax shall not be applicable, unless Tenant shall agree to be solely responsible for such tax.  In light of Tenant's occupancy and possession of the Building and Premises as the “Tenant” under this Lease, Tenant shall have no right or entitlement to any due diligence or investigation period of or about the Building Parcel pursuant to which Tenant would have any unilateral right to revoke its exercise of its Purchase Right or Offer Right, as applicable, and avoid consummating its acquisition of the Building Parcel.  Notwithstanding the immediately preceding sentence, after Landlord’s receipt of a Purchase Exercise Notice, to the extent not previously made available or delivered to Tenant, Landlord will either make available to or deliver to Tenant copies of the following documents (which documents are called collectively the “Due Diligence Documents”): (i) service contracts and all other written contracts or agreements in Landlord's possession which affect the Building Parcel; (ii) a survey of the Building Parcel, if in Landlord’s possession; and (iii) any environmental, engineering, structural or soils reports, and any building/architectural plans and specifications, to the extent in Landlord’s possession.  

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43.7
      Landlord has not undertaken and shall not undertake any independent investigation as to the truth or accuracy of any of the Due Diligence Documents or other documents or materials provided to Tenant, and is providing access to same to Tenant solely as an accommodation.  Landlord makes no representation or warranty whatsoever, express or implied, as to the completeness, content or accuracy of the Due Diligence Documents.  Tenant shall have no claim against any Landlord Entity by reason of the information contained in, or that should have been contained in, the Due Diligence Documents.  The provisions of this Section 43.7 shall be included in and shall survive the Closing or the termination of the Purchase Contract (if the parties enter into a Purchase Contract).
43.8
    If Tenant exercises the Purchase Right or Offer Right or the purchase of the Building Parcel hereunder is closed prior to disbursement to Tenant of the entire Allowance (as defined in Exhibit B), Landlord shall have no further obligation to disburse to Tenant the remaining portion of the Allowance.  
43.9
    Except as otherwise provided herein or in the terms of the Purchase Contract, Landlord and Tenant shall share all costs in connection with the purchase of the Building Parcel and the transactions contemplated by this Article 43 in a manner customary for the county in which the Building Parcel is located, including, without limitation, any recording fees, broker fees, closing or escrow fees, title insurance premiums, survey costs and transfer fees and taxes. Except as otherwise provided herein, Landlord has no obligation to provide ALTA extended title insurance coverage or a survey of the Building Parcel to Tenant, and if Tenant elects to procure either or both an ALTA extended coverage title insurance policy and/or a survey, such procurement shall not be a condition precedent to Tenant's obligation to close once Tenant delivers its Purchase Exercise Notice; provided, however, it shall be a condition precedent to Tenant’s obligation to close that Landlord cause to be procured for Tenant’s benefit an ALTA standard coverage policy of title insurance, and Landlord shall pay for the standard coverage portion of such owner’s policy of title insurance obtained by Tenant from Escrow Agent and one-half (1/2) of the escrow fees and other closing costs, in accordance with county custom.   Each of Landlord and Tenant shall be responsible for their respective attorneys' fees.
43.10
    The sale of the Building Parcel as provided for herein shall be made on a "AS IS," "WHERE-IS" basis as of the Closing Date, without any representations or warranties of any nature whatsoever from Landlord except for those which may be mutually agreed upon in the Purchase Contract.  Landlord hereby specifically disclaims any warranty (oral or written) concerning: (a) the nature and condition of the Building Parcel and the suitability thereof for any and all activities and uses that Tenant may elect to conduct thereon, (b) the manner, construction, condition and state of repair or lack of repair of any improvements located thereon, (c) the nature and extent of any right-of-way, lien, encumbrance, license, reservation, condition or otherwise, (d) the compliance of the Building Parcel or its operation with any laws, rules, ordinances, or regulations of any government or other body, and (e) any other matter whatsoever. Tenant expressly acknowledges that, in consideration of the agreements of Landlord herein, LANDLORD MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF QUANTITY, QUALITY, CONDITION, HABITABILITY, MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE BUILDING PARCEL, ANY IMPROVEMENTS LOCATED THEREON, OR ANY SOIL CONDITIONS RELATED THERETO.  TENANT SPECIFICALLY ACKNOWLEDGES THAT TENANT IS NOT RELYING ON (AND LANDLORD HEREBY DISCLAIMS AND RENOUNCES) ANY REPRESENTATIONS OR WARRANTIES MADE BY OR ON BEHALF OF LANDLORD OF ANY KIND OR NATURE WHATSOEVER.
43.11
    There shall be no proration of any cost or expense items included within Insurance Costs, Taxes or Property Management Expenses; provided, however, that if and to the extent that, as of the Closing Date, Landlord has paid any bills for any Insurance Costs, Taxes or Property Management Expenses incurred (prior to the Closing Date) in connection with the ownership and operation of the Property that, under the terms of this Lease, Tenant would be required to reimburse Landlord for some or all of such Insurance Costs, Taxes or Property Management 

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Expenses, then at the Closing, Tenant shall be required to pay to Landlord, in addition to the Purchase Price, any such accrued Insurance Costs, Taxes or Property Management Expenses for which Tenant is responsible under this Lease.
43.12
    After the draft Purchase Contract is submitted to Tenant, the parties shall have fifteen (15) business days (“Outside Date”) to attempt to negotiate in good faith an acceptable form of the Purchase Contract.  Landlord and Tenant agree that there shall be no conditions precedent to Tenant's obligation to consummate its acquisition of the Building Parcel (e.g. financing contingency), other than (a) the City of Mesa approving the Lot Split, (b) Tenant approving the Declaration proposed by Landlord, (c) there being no lien, claim or encumbrance on title for the Building Parcel other than the Permitted Exceptions, and Escrow Agent being committed to issue a standard coverage owner’s policy of title insurance to Tenant, and (d) Landlord not being in default under this Article 43 or the Purchase Contract.  If the parties do not execute and deliver to the Escrow Agent the mutually agreeable form of Purchase Contract prior to the Outside Date, the transaction contemplated by the exercised Purchase Right and Offer Right, as applicable to such proposed form of Purchase Contact, shall be void and of no further force or effect. 
43.13
    The purchase of the Building Parcel contemplated herein shall be consummated at a closing (“Closing”) to take place at the offices of Escrow Agent. The Closing shall occur on the Closing Date.  The Closing shall be effective as of 11:59 p.m. on the Closing Date. Tenant shall not have the right to escrow or hold back any portion of the purchase price hereunder. The purchase price shall be paid to Landlord at Closing through Escrow Agent, by federal wire transfer of immediately available U.S. funds.  
43.14
    If Tenant fails to timely perform or satisfy any of its obligations under this Article 43, including its obligation timely to close on the purchase of the Building Parcel in accordance with terms and conditions of the mutually executed Purchase Contract, then the Purchase Right or Option Right, as the case may be, shall be null and void and, provided that Tenant has deposited the Earnest Money with Landlord or Escrow Agent and Landlord or Escrow Agent has full possession of the Earnest Money free and clear of any claim to such Earnest Money from Tenant or any other party, Landlord's sole remedy shall be to obtain and/or retain the Earnest Money as liquidated damages and not as a penalty and such failure to close shall not itself constitute an Event of Default by Tenant under this Lease. If, for any reason, Landlord or Escrow Agent does not have full possession of the Earnest Money free and clear of any claim to such Earnest Money from Tenant or any other party and Tenant fails to timely perform or satisfy any of its obligations imposed under this Article 43, including its obligation to timely close on the purchase of the Building Parcel in accordance with terms and conditions of the mutually executed Purchase Contract, then the Purchase Right and Option Right shall be null and void and such failure may, at Landlord's sole election, constitute an Event of Default by Tenant under this Lease, and Landlord shall have the right to pursue any or all of the following remedies: (a) seek to obtain and/or retain the Earnest Money as liquidated damages and not as a penalty; and (b) all rights and remedies available to it under this Lease against Tenant. If Landlord fails to timely perform or satisfy its obligation to apply for the Lot Split, and subject to the City of Mesa approving the Lot Split, and thereafter consummate a sale of the Building Parcel pursuant to this Article 43 (for any reason other than a default by Tenant under this Lease or any other reason outside of Landlord's reasonable control), then such failure shall constitute a default by Landlord, and Tenant shall have all rights and remedies available to it under this Lease against Landlord, as well as (i) the right to have the Earnest Money immediately refunded to Tenant and have Landlord reimburse Tenant in an amount equal to the lesser of $15,000.00 or Tenant’s actual out-of-pocket costs incurred in connection with the contemplated purchase of the Building Parcel, and (ii) the right to file an action to specifically enforce the terms of this Article 43 and the Purchase Contract. As used in the immediately preceding sentence, the term “out-of-pocket costs” means all out-of-pocket costs that were actually incurred by Tenant in negotiating the Purchase Contract or performing any acts under the Purchase Contract (including actual attorneys’ fees, due diligence expenses, consultant fees, loan fees, and the like).  When making a claim for reimbursement of out-of-pocket costs, Tenant must supply copies of relevant invoices, contracts, and the like documenting the costs. 

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43.15
    At all times from the date on which Tenant exercises the Purchase Right or Offer Right, as the case may be, until the Closing Date, this Lease shall remain in full force and effect. Upon the consummation of the Closing pursuant to this Article 43, this Lease shall automatically terminate and as of such termination, no further obligations or liabilities of Landlord or Tenant shall accrue under this Lease, but the parties shall remain liable for all then-accrued obligations or liabilities, all obligations not performed as of the Closing  and all obligations which by their nature or the express terms of this Lease survive the expiration or earlier termination of this Lease, including, without limitation, obligations of indemnification for any acts or omissions occurring on or before such termination, which obligations shall survive the termination of this Lease. Notwithstanding the foregoing, at Tenant’s election, Landlord shall, at no cost to Landlord, cooperate with Tenant in keeping this Lease intact and assigning Landlord’s right, title and interest in this Lease to the entity selected by Tenant to acquire fee title to the Building Parcel at the Closing.  This Article 43 shall survive the Closing and shall not merge into any conveyance documents delivered at Closing.
43.16
    Each party hereto represents and warrants to the other that it has dealt with no brokers or finders in connection with the Purchase Right, including Cushman & Wakefield. Landlord and Tenant each shall indemnify, protect and defend and hold the other harmless for, from and against all losses, claims, costs, expenses, damages (including, but not limited to, reasonable fees of counsel selected by the indemnified party) resulting from the claims of any broker, finder, or other such party claiming by, through or under the acts or agreements of the indemnifying party. The obligations of the parties pursuant to this Section 43.16 shall survive any termination of this Lease.
43.17
    Landlord may assign all or any of its right, title, interest and obligations under this Article 43 to any third party intermediary (an “Intermediary”) in connection with a tax-deferred exchange pursuant to Section 1031 of the Internal Revenue Code (an “Exchange”). If Landlord elects to so assign its right, title, interest and obligations under this Article 43, Tenant hereby covenants and agrees that Tenant shall reasonably cooperate with Landlord (without incurring any additional liability or any additional third party expenses, however) in connection with such election and the consummation of the Exchange, including without limitation, by executing an acknowledgement of Landlord's assignment, to the Intermediary, of its right, title, interest and obligations under this Article 43.
43.18
    If Tenant is then in default under this Lease beyond any applicable cure period, (a) Tenant shall not have the right to exercise the Purchase Right or the Offer Right, (b) Landlord shall not be obligated to provide Tenant with an offer to purchase the Building Parcel prior to selling the Building Parcel to a third party, in which case the Tenant’s Offer Right under this Article 43 shall be void and of no further force or effect, and (c) Landlord (in its sole discretion) shall not be obligated to consummate the sale of the Building Parcel to Tenant, in which case Tenant’s rights under this Article 43 shall be void and of no further force or effect.  The foregoing rights of Landlord shall be in addition to any other rights and remedies available to Landlord at law or in equity.
43.19
    The rights granted to Tenant under this Article 43 are personal to the originally-named Tenant executing this Lease and any Permitted Transferee that assumes this Lease in writing (that is, Dexcom, Inc., a Delaware corporation, and any Permitted Transferee).  If said Tenant assigns this Lease or otherwise transfers its interest in this Lease or the Premises to any party other than a Permitted Transferee, prior to (i) Tenant’s exercise of the Purchase Right or Offer Right, as the case may be, Tenant’s rights under this Article 43 shall be void and of no further force or effect, (ii) the date Landlord is obligated to provide Tenant with any offer to purchase the Building Parcel, Tenant’s rights under this Article 43 shall be void and of no further force or effect and Landlord shall not be obligated to provide any such offer to Tenant, or (iii) the date Tenant is required to close its purchase of the Building Parcel pursuant to the Purchase Contract, then Landlord (in its sole discretion) shall not be obligated to sell the Building Parcel to Tenant in which case Tenant’s rights under this Article 43 shall be void and of no further force or effect.

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44.
    BACKUP GENERATORS; ADDITIONAL EQUIPMENT.  
44.1
    Landlord shall permit Tenant to install, operate and maintain, at Tenant's sole risk, cost and expense, at locations adjacent to the Building which are mutually agreed upon by Landlord and Tenant, one or more backup generators and such other non-hazardous equipment (e.g., air compressor equipment, etc.) as may be approved by Landlord (collectively, together with any screening, wall enclosures and other ancillary equipment, and all related conduit and wiring, "Tenant's Off-Premises Equipment"), which approval shall not be unreasonably withheld, provided that (a) the plans and specifications therefor are first submitted to and approved by Landlord, (b) the mounting methods are approved by Landlord, (c) Tenant satisfies such conditions as Landlord may in its sole but reasonable discretion impose with respect to the same, based on the advice of Landlord's structural and mechanical engineers, so that the Property’s systems and equipment are not adversely affected, (d) Tenant obtains any and all necessary permits and governmental approvals for the same (or other applicable governmental or quasi-governmental agency), (e) Tenant satisfies such conditions as any applicable governmental or quasi-governmental agency may impose, (f) the same are maintained by Tenant in good order and condition and any damage to the same, the Building or the common areas of the Building is promptly repaired, and (g) Tenant installs and maintains such screening and wall enclosures as may be required by Landlord.  No underground fuel storage tank system, nor any underground piping connected to an above-ground fuel storage tank system, is permitted. All of Tenant's Off-Premises Equipment, including, without limitation, the backup generators, fuel storage tank systems and all other components thereof, must be located entirely above ground.  The backup generators shall be used by Tenant only during (i) testing and regular maintenance, and (ii) any period of electrical power outage at the Building.  Landlord makes no representation or warranty with respect to any of Tenant's Off-Premises Equipment.  
44.2
    Tenant acknowledges, agrees and confirms that if as a consequence of the installation of any Tenant's Off-Premises Equipment pursuant to this Article 44, the Taxes imposed on the land upon which the Property is located increase, then Tenant shall be responsible for such increase in Taxes.  Written evidence establishing such increased tax assessment shall be provided by Landlord to Tenant and Tenant shall pay to Landlord as additional rent such incremental tax amount upon demand.  If any of Tenant's Off-Premises Equipment is located on or within the Tenant Parking Spaces, then the number of parking spaces allocated to Tenant under this Lease shall be reduced by the number of parking spaces which would have been available for use at the Building but for the installation of such Tenant's Off-Premises Equipment. 
44.3
    Tenant shall, at Tenant's sole cost and expense, upon the expiration or earlier termination of this Lease or Tenant's vacation or abandonment of the Premises, (a) remove Tenant's Off-Premises Equipment, (b) repair any and all damage caused to the Building or the common areas of the Building by such removal, and (c) pay to Landlord, on demand, the cost and expense to restore the Building and the Building systems to their condition existing prior to the installation of Tenant's Off-Premises Equipment.  If Tenant fails to remove Tenant's Off-Premises Equipment and repair such damage, Landlord shall  have the right to do so at Tenant’s sole cost and expense and Tenant shall reimburse Landlord for any such costs as additional rent, together with interest thereon from the date of expenditure to the date of reimbursement at the Default Rate. Alternatively, if Tenant vacates the Premises without removing Tenant's Off-Premises Equipment and Landlord elects in its sole discretion not to require such removal, or if Landlord otherwise requests that Tenant leave Tenant's Off-Premises Equipment intact at the Building, then Tenant shall not remove Tenant's Off-Premises Equipment and ownership to the same shall pass to Landlord as if voluntarily conveyed by deed or bill of sale and Tenant shall have no further claim thereto. 
45.
    INCENTIVES. 
Tenant, at Tenant's sole cost and option, may attempt to secure certain economic and tax incentives from the City of Mesa and other applicable governmental agencies, in connection with the operation of its business in the Building. 

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Upon Tenant's request, Landlord, at no cost whatsoever to Landlord, shall use commercially reasonable efforts to cooperate with Tenant while Tenant is attempting to secure any such incentives, provided such incentives do not impose any additional requirements, obligations or undue burden or time constraints on Landlord or its management or administrative personnel, or the Property. Tenant shall reimburse Landlord, as additional rent, for any and all actual costs incurred by Landlord (including attorneys' fees) in connection with Landlord's above described cooperation. Notwithstanding the foregoing, Landlord shall provide notice to Tenant prior to Landlord incurring any costs in connection any such Tenant's incentives. In no event shall Landlord’s duty of cooperation require Landlord to be the applicant, or to sign any joinder or consent, or to incur or assume any risk of liability, in connection with Tenant’s efforts to obtain any such incentives.  Tenant shall promptly furnish to Landlord copies of all applications and materials (and any revisions or supplementations thereto) submitted to and filed with the applicable governmental agency(ies) from which Tenant is pursuing any such incentives and all staff reports and recommendations and other written materials issued by such applicable governmental agency(ies).  If and to the extent any incentive sought by Tenant is actually provided to and received by Landlord in connection with Landlord’s ownership of the Property, then the amount of such incentive or rebate shall be applied as a credit against the monthly installments of Base Rent, Insurance Costs, Taxes and/or Property Management Expenses as applicable until fully used and applied. Tenant acknowledges and agrees that it shall not be a defense to the enforceability of this Lease in favor of Tenant if Tenant is unable to obtain any such incentives. 
46.
    LEASEHOLD TITLE INSURANCE. 
Landlord shall reasonably cooperate with Tenant in Tenant obtaining, at Tenant's sole cost and expense, (a) a leasehold policy of title insurance from a title company selected by Tenant, with the amount of such insurance to be determined by Tenant (the "Title Policy"), and, (b) if requested by Tenant, an ALTA survey of the Premises necessary for the issuance of the Title Policy. 
47.
    NAME AND IMAGE. 
Tenant shall have the right to use the name and image of the Building in Tenant's advertising, website and other Tenant's business related publications.  
48.
    LANDLORD’S COVENANTS.  
Landlord covenants and agrees not to record any declaration of covenants, conditions and restrictions ("CC&Rs") encumbering the Premises, the Building or the Property after the date of this Lease unless such CC&Rs do not materially and adversely affect Tenant's rights or obligations under this Lease.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, this Lease has been executed as of the dates set forth below.  

	
		
	LANDLORD:
	TENANT:

	 
	 

	PRA/LB, L.L.C., an Arizona limited liability company
	DEXCOM, INC., a Delaware corporation

	By:   Pacific Realty Advisors, Inc.,  
	 

	          an Arizona corporation 
	By:  /s/ Jess Roper  

	          Its:  Manager
	Name: Jess Roper

	 
	Its: Senior Vice President, 

	          By:  /s/ Kenn M. Francis
	      Chief  Financial Officer 

	                 Kenn M. Francis
	 

	                 Its:  President
	 

	 
	 

	Dated: April 27, 2016
	Dated:  April 28, 2016

 

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EXHIBIT A-1 – BUILDING AND PARKING SITE PLAN
Exhibit A-1 is intended only to show the general location of the Building, Tenant Parking Spaces and Premises as of the Lease Date.  It does not in any way supersede any of Landlord’s rights set forth in the Lease with respect to arrangements and/or locations of public parts of the Property and changes in such arrangements and/or locations.  It is not to be scaled; any measurements or distances shown should be taken as approximate.

A-1

EXHIBIT A-2 – PROPERTY SITE PLAN
Exhibit A-2 is intended only to show the general layout of the Property as of the Lease Date.  It does not in any way supersede any of Landlord’s rights set forth in the Lease with respect to arrangements and/or locations of public parts of the Property and changes in such arrangements and/or locations.  It is not to be scaled; any measurements or distances shown should be taken as approximate.

A-2

EXHIBIT B – WORK LETTER
1.TENANT IMPROVEMENTS. As used in this Work Letter, the term "Tenant Improvements" or "Tenant Improvement Work" means those items of general tenant improvement construction shown on the Final Plans (described in Section 4 below).  Because the Tenant Improvement Work for the Building will be completed in two separate projects with respect to Phase I and Phase II, the Work Schedule, Allowance and other terms of this Work Letter will be applicable on a per project basis for each such phase of the Tenant Improvement Work.  Capitalized terms used herein without definitions shall have the meanings given such terms in the Lease, unless the context clearly requires otherwise.
2.WORK SCHEDULE.  Within ten (10) days after the execution of the Lease, Tenant will deliver to Landlord, for Landlord's review and approval, a schedule ("Work Schedule") which will set forth the timetable for the planning and completion of the installation of the Tenant Improvements.  The Work Schedule will set forth each of the various items of work to be done or approval to be given by Landlord and Tenant in connection with the completion of the Tenant Improvements.  The Work Schedule will be submitted to Landlord for its approval, which approval Landlord agrees not to unreasonably withhold, condition or delay, and, once approved by both Landlord and Tenant, the Work Schedule will become the basis for completing the Tenant Improvements.  All plans and drawings required by this Work Letter and all work performed pursuant thereto are to be prepared and performed in accordance with the Work Schedule.  Tenant may, from time to time during construction of the Tenant Improvements, modify the Work Schedule as Tenant reasonably deems appropriate, subject to Landlord's reasonable approval.  If Landlord fails to approve the Work Schedule, as originally submitted and/or as it may be modified after discussions between Landlord and Tenant within five (5) business days after the date the Work Schedule is first received by Landlord, the Work Schedule shall be deemed to be approved by Landlord as submitted.
3.CONSTRUCTION REPRESENTATIVES.  Landlord hereby appoints the following person as Landlord's representative ("Landlord's Representative") to act for Landlord in all matters covered by this Work Letter:  Tom Steimel of T. L. Steimel & Associates, Inc., E-mail: tsteimel@tlsa.org, office: 602-224-5771, and cell: 602-370-8102.
Tenant hereby appoints the following person(s) as Tenant's representative ("Tenant's Representative") to act for Tenant in all matters covered by this Work Letter: Jim Gillard, E-mail: jgillard@dexcom.com, office: 858-200-0210. 
All communications with respect to the matters covered by this Work Letter are to be made to Landlord's Representative or Tenant's Representative, as the case may be, in writing in compliance with the notice provisions of the Lease.  Either party may change its representative under this Work Letter at any time by written notice to the other party in compliance with the notice provisions of the Lease.
4.TENANT IMPROVEMENT PLANS.
(a)Preparation of Space Plans.  Tenant has contracted with GC Mansour Architecture (the "Architect") for the preparation of the plans for the Tenant Improvements.  In accordance with the Work Schedule, Tenant shall cause the Architect to promptly prepare detailed space plans and computer-aided design ("CAD") drawings for the layout of the Tenant Improvements in the Building ("Space Plans").  The Space Plans are to be sufficient to convey the architectural design and layout of the Tenant Improvements in the Building and are to be submitted to Landlord in accordance with the Work Schedule for Landlord's approval.  If Landlord reasonably disapproves any aspect of the Space Plans, Landlord will advise Tenant in writing of such disapproval and the reasons therefor in accordance with the Work Schedule.  Tenant will then submit to Landlord for Landlord's approval, in accordance with the Work Schedule, a redesign of the Space Plans incorporating the revisions reasonably required by Landlord. This process will be repeated until the Space Plans are mutually approved by Landlord and Tenant.
(b)Preparation of Final Plans.  Based on the approved Space Plans, and in accordance with the Work Schedule, Tenant shall cause the Architect to prepare and submit to Landlord for its approval complete architectural plans, drawings and specifications and complete engineered mechanical, structural, electrical and plumbing working drawings for all of the Tenant Improvements for the Building (collectively, the "Final Plans").  The Final Plans will show: (a) the subdivision (including partitions and walls), layout, lighting, finish and decoration work (including 

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carpeting and other floor coverings) for the Building; (b) all internal and external communications and utility facilities which will require conduit or other improvements from the base Building shell work and/or within common areas; and (c) all other specifications for the Tenant Improvements.  If Tenant does not elect to use Landlord’s engineer in connection with the preparation of the mechanical, structural, electrical and plumbing working drawings, Tenant shall select an engineer reasonably satisfactory to Landlord and shall cause its engineer to coordinate with Landlord’s engineer in order to assure that the Final Plans do not conflict with any Building structural, mechanical, electrical, plumbing or other systems.  If Landlord disapproves any aspect of the Final Plans, Landlord shall advise Tenant in writing of such disapproval and the reasons therefor within the time frame set forth in the Work Schedule.  In accordance with the Work Schedule, Tenant shall then cause the Architect to redesign the Final Plans, incorporating the revisions requested by Landlord, and resubmit the same to Landlord for approval.  The above process will be repeated until the Final Plans are approved by Landlord and Tenant.  
(c)Requirements of Tenant's Final Plans.  Landlord will not unreasonably withhold, condition or delay its consent to the Final Plans, or any changes in the Final Plans, provided the Final Plans will:  (i) be compatible with the shell and with the design, construction and equipment of the Building; and (ii) comply with all applicable laws, ordinances, rules and regulations of all governmental authorities having jurisdiction, and all applicable insurance regulations.
(d)Submittal of Final Plans.  Once approved by Landlord and Tenant, Tenant shall cause the Architect to immediately submit the Final Plans to the appropriate governmental agencies for plan checking and the issuance of a building permit.  Tenant will cause the Architect to make any changes to the Final Plans which are requested by the applicable governmental authorities to obtain the building permit, provided that no changes, modifications or alterations to the Final Plans as approved by Landlord may be made without the prior written consent of Landlord, and then only after agreement by Tenant to pay any costs resulting from the design and/or construction of such changes in excess of the Allowance.  Landlord's approval of the Final Plans shall create no liability or responsibility on the part of Landlord for the completeness of such plans or their design sufficiency or compliance with laws and regulations.
(e)Changes to Shell of Building.  If the Final Plans or any amendment thereof or supplement thereto shall require changes in the Building shell, the increased cost of the Building shell work caused by such changes will be paid for by Tenant or charged against the "Allowance" described in Section 5 below.
(f)Tenant’s Contractors.  Tenant shall retain Skanska USA Building Inc. to construct the Tenant Improvements in accordance with the Final Plans.  All contractors engaged by Tenant shall be bondable, experienced, reputable, licensed contractors, possessing good labor relations, capable of performing quality workmanship and working in harmony with any other contractors working at the Building, all as reasonably determined by Landlord.  Tenant shall deliver to Landlord, at least five (5) days prior to the commencement of construction, (i) the names, addresses, telephone numbers, and primary contacts for the general, mechanical and electrical contractors Tenant intends to engage, and (ii) the date on which construction will commence, together with the estimated dates of completion of construction. Tenant shall provide Landlord with a copy of its contract with the general contractor prior to commencement of construction.  
(g)Construction.  After Tenant obtains Landlord’s approval of the Final Plans and any and all necessary building permits, Tenant shall cause Tenant’s contractor to promptly commence and complete construction in accordance with the Final Plans and this Work Letter.  Tenant shall not deviate from the approved Final Plans without obtaining Landlord’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.  Tenant shall cause the Tenant Improvements to be constructed in a good, first-class, workmanlike manner, in compliance with all laws and regulations, and in a manner which does not unreasonably disturb any other occupant of the Property.  Landlord shall have the right from time to time as determined by Landlord to inspect, supervise and/or oversee the construction of the Tenant Improvements.  Landlord’s right to inspect the Tenant Improvements and approve Tenant’s contractor shall not impose upon Landlord any responsibility for defective, incomplete or nonconforming work that Landlord discovers or fails to discover by any such review and/or inspection.  During construction of the Tenant Improvements, Tenant shall maintain, or shall cause its general contractor to maintain, builder’s risk and other 

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insurance as reasonably specified by Landlord, naming Landlord, Landlord's managing agent and Landlord's Lender as additional insureds and Landlord's Lender as loss payee, and appropriate liability, worker’s compensation and other insurance as otherwise required under the Lease.  The builder's risk insurance shall cover, without limitation, the full replacement cost of all materials, supplies and equipment used and/or stored during construction, or to be incorporated in the Tenant Improvements, including any temporary off-site storage of such items and transit coverage. Tenant's contractors shall not be permitted to commence construction of the Tenant Improvements until all required insurance has been obtained and certificates of insurance have been received and approved by Landlord.  Tenant hereby agrees to indemnify, defend and hold harmless Landlord for, from and against any and all liability and claims for damage or death of persons or damage or destruction of property arising out of or relating to the construction of the Tenant Improvements.  
(h)Completion.  As will be more particularly set forth in the Work Schedule(s), (A) Tenant agrees to use all commercially reasonable efforts to cause the contractor to commence construction of the Tenant Improvements for Phase I promptly after mutual execution and delivery of the Lease and to substantially complete construction by October 1, 2016, and (B) Tenant agrees to use all commercially reasonable efforts to cause the contractor to commence construction of the Tenant Improvements for Phase II on or about October 1, 2017, and to substantially complete construction by January 1, 2018, subject to delays caused by Landlord and force majeure conditions as may be provided in the Lease.
5.PAYMENT FOR THE TENANT IMPROVEMENTS.
(a)Allowance.  Landlord hereby grants to Tenant an Allowance in an amount equal to $743,985.00 with respect to Phase I and $743,985.00 with respect to Phase II.  The Allowance is to be used only for:
(i)The payment of the cost of Landlord's review of the Space Plans and the Final Plans, including mechanical, electrical, plumbing and structural drawings and of all other aspects necessary to complete the Final Plans, which costs shall be deducted from the Allowance prior to disbursement to Tenant;
(ii)Fees paid by Tenant to the Architect and any other consultants and designers in connection with the preparation of the Space Plans and Final Plans;
(iii)The payment of plan check, permit and license fees relating to construction of the Tenant Improvements;
(iv)Costs of construction of the Tenant Improvements, including, without limitation, costs of labor and materials, and fees for the general contractor including, but not limited to, fees and costs attributable to general conditions associated with the construction of the Tenant Improvements; and
(v)Landlord's construction management fee in an amount not to exceed the lesser of one percent (1%) of the total hard construction costs of the Tenant Improvements in each Phase of the Building or $50,000.00 for each Phase of the Building, which shall be deducted from the Allowance prior to disbursement to Tenant. 
(b)Payment.  Tenant shall be responsible for all costs in connection with the construction of the Tenant Improvements which exceed the Allowance, if any.  In no event may the Allowance be used to pay for Tenant's furniture, artifacts, equipment, telephone systems or any other item of personal property which is not affixed to the Building.  Tenant shall pay all billed costs and expenses incurred in connection with the construction of the Tenant Improvements as construction progresses ("Total Costs"), including those costs and expenses associated with the preparation of architectural and engineering plans, subject to reimbursement out of the Allowance.  The term "Landlord’s Share" (as used below), in the event the Total Costs exceed the amount of the Allowance, shall mean a fraction, the numerator of which is the amount of the Allowance and the denominator of which is the Total Costs.  
(c)Required Submissions.  Throughout and upon completion of construction of the Tenant Improvements, and in connection with each request for disbursements of the Allowance as more particularly set forth below, Tenant shall promptly provide to Landlord (i) all preliminary 20-day notices, (ii) all applications for payment including, without 

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limitation, all standard AIA G702 Application for Payment forms, (iii) paid invoices or other proof of payment reasonably required by Landlord, (iv) full and final unconditional lien waivers, in form and content provided by Arizona Revised Statutes ("ARS") Section 33-1008.D (or any successor statute) and otherwise acceptable to Landlord and Landlord's Lender, from Tenant’s general contractor and all other contractors, subcontractors and material suppliers furnishing services or materials to the Building, (v) releases of any and all liens which may have been filed with respect to the Tenant Improvements, (vi) a copy of any necessary temporary or final certificate of occupancy or its equivalent or other governmental approvals necessary for Tenant to occupy the Building, (vii) certificates of insurance required to be maintained by Tenant pursuant to the Lease, (viii) an AIA G713 certificate of the Architect that the Tenant Improvements have been substantially completed (which certificate shall include a punch list as of the date of the certificate), (ix) a certified statement from Tenant and its general contractor of the actual Total Costs, (x) a certificate signed by Tenant and its general contractor certifying that all of the Tenant Improvements (including all punch list items) under the construction contract have been completed and all Total Costs associated therewith have been fully paid, (xi) air balance reports, (xii) excess energy use calculations, (xiii) any and all reports of inspections by the City of Mesa or other governmental agencies having jurisdiction, (xiv) the "as-builts", (xv) any warranties, operating manuals and similar items applicable to the Tenant Improvements, (xvi) one year warranty letters from Tenant's contractors, (xvii) a final punchlist completed and signed off by the Architect, and (xviii) an acceptance of the applicable Phase of the Building signed by Tenant (all of the foregoing items, together, are herein referred to as the "Required Submissions").  
(d)Disbursement.  Provided Tenant is not then in default under the Lease, Landlord shall disburse the Allowance (not more than one disbursement per month) to Tenant or, at Landlord’s election, directly to Tenant's general contractor, within a reasonable time (not to exceed thirty [30] days) after receipt of Tenant's written request for reimbursement and satisfaction of the following "Evidence of Completion and Payment", provided that (i) Landlord shall not be required to disburse any portion of the Allowance for Phase I prior to May 1, 2016, (ii) Landlord shall not be required to disburse any portion of the Allowance for Phase II prior to October 1, 2017, and (iii) in no event shall Landlord be required to disburse amounts greater than the total construction costs then incurred and paid by Tenant in connection with such portions of the Tenant Improvements as evidenced in the Required Submissions for such disbursement, or Landlord's Share of such total construction costs, as the case may be:
(1)    Landlord shall have received a written draw request ("Draw Request") from Tenant in a form satisfactory to Landlord and Landlord's Lender with respect to the Tenant Improvements specifying that the requisite portion of the Tenant Improvements has been completed.  The Draw Request shall constitute a representation by Tenant that the Tenant Improvements identified therein have been completed in a good and workmanlike manner and in accordance with the Final Plans, the Work Schedule and applicable laws and regulations;
(2)    Landlord shall have received written certification from the Architect that the Tenant Improvements have been completed to the level indicated in the Draw Request in accordance with the Final Plans;
(3)    Landlord’s construction representative shall have inspected the Tenant Improvements and determined that the portion of the Tenant Improvements covered by the Draw Request has been completed in a good and workmanlike manner; 
(4)    Landlord shall have received from Tenant the following Required Submissions: (i) all applicable preliminary 20-day notices if the same have not already been provided to Landlord; (ii) all applications for payment including, without limitation, a standard AIA G702 Application for Payment form, in reasonable detail as required by Landlord or Landlord's Lender; (iii) a reasonably detailed invoice, bill of sale or other transfer of title for any materials, supplies and equipment covered in the Draw Request, including project name, description of the materials being stored or incorporated in the Tenant Improvements, including general quantities thereof, and which is for the same amount being requested for such items on each applicable pay application line, (iv) a certificate of insurance in the form required herein, identifying the project, the materials, supplies or equipment covered, and the invoice amount being requested; (v) proof that the Tenant Improvements for which payment is sought have been completed and/or that the materials covered by the Draw Request have been incorporated into the Tenant Improvements, or stored in the Building (including description of the areas where such materials, supplies or equipment are being 

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stored and such verification thereof [including photographs] as may be required by Landlord's Lender), which proof may be satisfied by a signed statement from Tenant’s general contractor; (vi) paid invoices or other proof of payment reasonably required by Landlord; (vii) an unconditional waiver and release on progress payment, in form and content as provided by ARS Section 33-1008.D (or any successor statute) and otherwise acceptable to Landlord and Landlord's Lender, from Tenant's general contractor and every other contractor, subcontractor and party actually providing or fabricating the labor, services or materials and architects retained by Tenant for the Tenant Improvements for which payment is requested; and (viii) releases of all liens which may have been filed with respect to the applicable Tenant Improvements; provided, however, the final ten percent (10%) of the Allowance shall not be disbursed until Landlord shall have received from Tenant all of the Required Submissions with respect to the applicable Phase of the Building;
(5)    Landlord shall have determined that no Tenant Improvements exist which adversely affect the mechanical, electrical, plumbing, heating, ventilating and air conditioning, life-safety or other systems of the Building, the curtain wall of the Building, or the structure or exterior appearance of the Building; and,
(6)    Any other requirements or conditions which may be required or imposed by Landlord’s Lender with respect to the construction of the Tenant Improvements shall have been satisfied.
Notwithstanding anything to the contrary contained hereinabove, all disbursements of the Allowance shall be subject to the prior deduction of the portion of Landlord's construction management fee allocable to the Tenant Improvements described in the applicable Draw Request.  The Allowance being furnished herein is a one-time allowance only and Tenant shall be solely responsible for all costs of any future improvements or alterations which may be permitted or required under the Lease or which Landlord may otherwise authorize in writing.  
(e)Deadline to Use Allowance.  If Tenant does not complete construction of the Tenant Improvements for Phase I, provide to Landlord all of the items required to be furnished to Landlord pursuant to Section 5(c) above, and request the Allowance applicable to Phase I in writing by December 31, 2017, then any remaining unused portion of the Allowance for Phase I shall be deemed waived and Tenant shall have no further claim thereto. If Tenant does not complete construction of the Tenant Improvements for Phase II, provide to Landlord all of the items required to be furnished to Landlord pursuant to Section 5(c) above, and request the Allowance applicable to Phase II in writing by December 31, 2018, then any remaining unused portion of the Allowance for Phase II shall be deemed waived and Tenant shall have no further claim thereto.
(f)Books and Records.  At its option, Landlord, at any time within three (3) years after final disbursement of the Allowance to Tenant, and upon at least ten (10) business days' prior written notice to Tenant, may cause an audit to be made of Tenant's books and records relating to Tenant's expenditures in connection with the construction of the Tenant Improvements.  Tenant shall maintain complete and accurate books and records in accordance with generally accepted accounting principles of these expenditures for at least three (3) years.  Tenant shall make available to Landlord's auditor at the Building within ten (10) business days after Landlord's notice requiring the audit, all books and records maintained by Tenant pertaining to the construction and completion of the Tenant Improvements.  In addition to all other remedies which Landlord may have pursuant to the Lease, Landlord may recover from Tenant the reasonable cost of its audit if the audit discloses that Tenant falsely reported to Landlord expenditures which were not in fact made or falsely reported a material amount of any expenditure or the aggregate expenditures.
6.WARRANTIES.  Tenant warranties and guarantees the Tenant Improvements against defective workmanship and materials for a period of one year from the date of substantial completion of the applicable portion of the Tenant Improvements, and Tenant agrees, at its sole cost and expense, to repair or replace any defective item occasioned by poor workmanship or materials during said one-year period.  The construction contracts entered into by Tenant in connection with the Tenant Improvements shall provide that each contractor and each subcontractor shall be responsible for the replacement or repair, without additional charge, of all work done or furnished in accordance with its contract that shall become defective within one year after completion of the work performed by such contractor or subcontractors and shall be written such that all guarantees and warranties and all other rights and remedies at law, in equity or by contract with respect to the work performed and the contractor’s or subcontractor’s obligations shall inure to the benefit of both Landlord and Tenant, as their respective interests may appear, and shall 

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be directly enforceable by either. Tenant covenants to give to Landlord any non-exclusive assignment or other assurances which may be necessary to effect such rights of direct enforcement.
7.MISCELLANEOUS CONSTRUCTION COVENANTS.
(a)Additional Services.  If the construction of the Tenant Improvements requires that additional services or facilities (including, but not limited to, hoisting, cleanup or other cleaning services, trash removal, field supervision, or ordering of materials) be provided, Landlord shall not be obligated to provide or pay for same, but if Landlord elects to provide any such services, Tenant shall not be required to pay any additional fee for the same.
(b)Coordination of Labor.  All of Tenant's contractors, subcontractors, employees, servants and agents must work in harmony with and shall not interfere with any labor employed by Landlord, or Landlord's contractors or by any other tenant or its contractors with respect to the any portion of the Property. 
(c)Work in Adjacent Areas.  Any work to be performed in areas adjacent to the Building shall be performed only after obtaining Landlord's express written permission, which shall not be unreasonably withheld, conditioned or delayed, and shall be done only if an agent or employee of Landlord is present.
(d)HVAC Systems.  Tenant agrees to be entirely responsible for the maintenance or the balancing of any heating, ventilating or air conditioning system installed by Tenant and/or maintenance of the electrical or plumbing work installed by Tenant and/or for maintenance of lighting fixtures, partitions, doors, hardware or any other installations made by Tenant.
(e)Coordination with Lease.  Nothing herein contained shall be construed as (i) constituting Tenant as Landlord's agent for any purpose whatsoever, or (ii) a waiver by Landlord or Tenant of any of the terms or provisions of the Lease.  Any default by Tenant following the giving of notice and the passage of any applicable cure period with respect to any portion of this Work Letter shall be deemed a breach of the Lease for which Landlord shall have all the rights and remedies as in the case of a breach of said Lease.
(f)Landlord's Performance of Work.  Within ten (10) business days after receipt of Landlord's notice of Tenant's failure to perform its obligations under this Work Letter, if Tenant shall fail to commence to cure such failure, Landlord shall have the right, but not the obligation, to perform, on behalf of and for the account of Tenant, subject to reimbursement of the cost thereof by Tenant, any and all of the Tenant Improvements which Landlord determines, in its reasonable discretion, should be performed immediately and on an emergency basis for the best interest of the Building including, without limitation, work which pertains to structural components, mechanical, sprinkler and general utility systems, roofing and removal of unduly accumulated construction material and debris; provided, however, Landlord shall use reasonable efforts to give Tenant at least ten (10) days' notice prior to the performance of any Tenant Improvements.

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EXHIBIT C – RULES AND REGULATIONS
1.Except as provided in the Lease, no other sign, placard, picture, advertisement, name or notice shall be installed or displayed on any part of the outside of the Building or elsewhere in the common areas of the Premises without the prior written consent of the Landlord which consent shall be in Landlord’s sole discretion. 
2.
    No awning shall be permitted on any part of the Building, except upon written consent of Landlord, which shall not be unreasonably withheld, conditioned or delayed.  Tenant shall not place anything or allow anything to be placed against or near any glass partitions or doors or windows which may appear unsightly, in the opinion of Landlord, from outside the Building.
3.
    Tenant, upon the termination of its tenancy, shall deliver to Landlord the keys or other means of access to all doors.
4.
    Tenant shall not place a load upon any floor of the Building, including mezzanine area, if any, which exceeds the load per square foot that such floor was designed to carry and that is allowed by law. 
5.
    No cooking shall be done or permitted in the Building, except that Underwriters’ Laboratory approved microwave ovens or equipment for brewing coffee, tea, hot chocolate and similar beverages shall be permitted, provided that such equipment and use is in accordance with all applicable federal, state and city laws, codes, ordinances, rules and regulations, except as provided in Section 1.2 of the Lease.
6.
    Tenant may use hand trucks, forklifts and other material-handling equipment deemed necessary by Tenant for Tenant's use of the Building, subject to compliance with all applicable laws, ordinances, rules and regulations.  
7.
    Consistent with Article 47 of the Lease, Tenant shall have the right to use the name and image of the Building in Tenant's advertising, website and other business related publications.
8.
    All trash and refuse shall be contained in suitable receptacles at locations approved by Landlord. Tenant shall not place in the trash receptacles any personal trash or material that cannot be disposed of in the ordinary and customary manner of removing such trash without violation of any law or ordinance governing such disposal.
9.
    Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governing authority.
10.
    Tenant assumes all responsibility for securing and protecting the Building and its contents including keeping doors locked and other means of entry to the Building closed.
11.
    Tenant shall not permit any animals, other than service animals, to be brought or kept in or about the Building or any common area of the Premises. 
12.
    Tenant shall not permit any motor vehicles to be washed or mechanical work or maintenance of motor vehicles to be performed on any portion of the Premises or parking lot. 

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13.
    These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of any premises in the Property.  Landlord may waive any one or more of these Rules and Regulations for the benefit of any tenant or tenants, and any such waiver by Landlord shall not be construed as a waiver of such Rules and Regulations for any or all tenants.
14.
    Landlord reserves the right to make such other and reasonable rules and regulations as in its judgment may from time to time be needed for safety and security, for care and cleanliness of the Property and for the preservation of good order in and about the Property.  Tenant agrees to abide by all such rules and regulations herein stated and any additional rules and regulations which are adopted.  Tenant shall be responsible for the observance of all of the foregoing rules by Tenant’s employees, agents, clients, customers, invitees and guests.
15.
    Any toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown into them.  
16.
    Tenant shall not permit smoking or carrying of lighted cigarettes or cigars in areas reasonably designated by Landlord or any applicable governmental agencies as non-smoking areas.
17.
    Canvassing, soliciting, distribution of handbills or any other written material at the Property is prohibited and each tenant shall cooperate to prevent the same. No tenant shall solicit business from other tenants or permit the sale of any goods or merchandise without the written consent of Landlord. 
18.
    Driveways shall not be obstructed by tenants or used by tenants for any purpose other than for ingress to and egress from its premises. Landlord shall in all cases retain the right to control and prevent access to the Property by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, character, reputation and interests of the Property or its tenants.
19.
    Tenant shall have the right to park vehicles overnight on the Premises, at the sole risk of Tenant.
20.
    No trucks, tractors or similar vehicles can be parked anywhere other than in Tenant’s own truck dock area. Tractor-trailers which must be unhooked or parked with dolly wheels beyond the concrete loading areas must use steel plates or wood blocks under the dolly wheels to prevent damage to the asphalt paving surfaces. No parking or storing of such trailers will be permitted in the parking areas or on streets adjacent thereto.
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EXHIBIT D – HAZARDOUS MATERIALS

		
	1.
	Except as otherwise set forth herein, Tenant agrees that Tenant and the Tenant Entities shall not handle, use, manufacture, store or dispose of any Hazardous Materials on, under, or about the Building or the Premises without Landlord's prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed as long as Tenant demonstrates and documents to Landlord's reasonable satisfaction (i) that such Hazardous Materials (A) are necessary or useful to Tenant's business; and (B) will be used, kept, and stored in compliance with all laws relating to any Hazardous Materials so brought or used or kept in or about the Building; and (ii) that Tenant will give all required notices concerning the presence in or on the Building or the release of such Hazardous Materials from the Building).  

		
	2.
	Tenant further agrees that Tenant will not permit any substance suspected of causing cancer or reproductive toxicity to come into contact with groundwater under the Building or the Premises.  Any such substance coming into contact with groundwater shall be considered a Hazardous Material for purposes of this Exhibit D.

		
	3.
	(i) Notwithstanding the provisions of paragraph (1) of this Exhibit D, Tenant may handle, store, and use Hazardous Materials, limited to the types, amounts, and use identified in a list of hazardous materials (permitted chemicals) provided by Tenant to Landlord prior to or contemporaneously with the execution of the Lease ("List of Hazardous Materials").  The List of Hazardous Materials shall be subject to change from time to time, and Tenant shall provide Landlord with an updated List of Hazardous Materials on an annual basis, and at any other time within thirty (30) days following written request from Landlord.  If no List of Hazardous Materials is provided to Landlord prior to or contemporaneously with the execution of the Lease, then the portions of this Paragraph (3) which specifically pertain to the List of Hazardous Materials shall be of no force and effect.  Tenant hereby certifies to Landlord that the information provided by Tenant pursuant to this Paragraph is true, correct, and complete.  Tenant covenants to comply with all use restrictions shown on the List of Hazardous Materials and any updated List of Hazardous Materials provided to Landlord from time to time.  Tenant's business and operations, and more especially its handling, storage, use and disposal of Hazardous Materials shall at all times (a) comply with all applicable laws pertaining to Hazardous Materials, and (b) satisfy all required and the highest recommended standards of all governmental authorities and agencies having jurisdiction thereof, including, without limitation, the Occupational Safety & Health Administration (OSHA), OSHA's Hazard Communication Standard, Chemical Hygiene Plan and the Uniform Fire Code.  Tenant shall at all times maintain in good standing all necessary licenses, certificates and approvals as may be required by any governmental authorities and/or agencies having jurisdiction thereof, which compliance documents shall be available for inspection by Landlord at all times.  Tenant shall give or post all notices required by all applicable laws pertaining to Hazardous Materials.  If Tenant shall at any time fail to comply with this Paragraph, Tenant shall immediately notify Landlord in writing of such noncompliance. Landlord's rights and remedies hereunder shall not impose upon Landlord an affirmative duty or obligation whatsoever to monitor or inspect Tenant's use, storage, handling, transportation or disposal of any Hazardous Materials and it shall at all times be Tenant's sole obligation and responsibility to fully comply with all of the terms and conditions herein set forth.  

(ii)  At the request of Landlord from time to time, Tenant shall provide Landlord with copies of or on-line access to electronic copies of any Material Safety Data Sheets (as required by the Occupational Safety and Health Act) relating to any Hazardous Materials to be used, kept, or stored at, in or about the Building.  
(iii)  Tenant shall not store hazardous wastes in the Building or on the Premises for more than ninety (90) days except when done in accordance with applicable Environmental Laws; "hazardous waste" has the meaning given it by the Resource Conservation and Recovery Act of 1976, as amended.  Tenant shall not install any underground or above ground storage tanks on the Premises.  Tenant shall not dispose of any Hazardous Material or solid waste in the Building or on the Premises.  In performing any alterations of the Building permitted by the Lease, Tenant shall not install any Hazardous Material in the Building without the specific consent of Landlord attached as an exhibit to this Exhibit D.
(iv)  Any increase in the premiums for necessary insurance on the Property which arises from Tenant's use and/or storage of Hazardous Materials shall be solely at Tenant's expense.  Tenant shall procure and maintain at its sole expense such additional insurance as may be necessary to comply with any requirement of any federal, state or local governmental agency with jurisdiction. 
		
	4.
	If Landlord, in its sole discretion, believes that the Building, the Premises or the environment has become contaminated with Hazardous Materials that must be removed under the laws of the state where the Premises 

D-1

are located, in breach of the provisions of the Lease, Landlord, in addition to its other rights under the Lease, may enter upon the Building and the Premises and obtain samples, including without limitation the soil and groundwater under the Building and the Premises, for the purposes of analyzing the same to determine whether and to what extent the Building, the Premises or the environment has become so contaminated.  Landlord shall give Tenant at least 24 hours' advance written notice prior to each such inspection (except in an emergency).  If such inspection reveals any Hazardous Materials in the Building or on the Premises that are materially inconsistent with the information disclosed by Tenant to Landlord in this Exhibit D or otherwise, as updated from time to time, Tenant shall reimburse Landlord for the actual costs incurred by Landlord in connection with such inspection.  Landlord shall provide to Tenant samples obtained by Landlord and copies of the results of any inspection, sampling and analysis performed at Landlord’s direction.  Tenant may also, at Tenant's sole cost and expense, perform any such sampling, testing or drilling to locate any Hazardous Materials in the Building or on the Premises, provided that (i) such work is performed by a licensed environmental contractor reasonably acceptable to Landlord, (ii) Tenant first obtains Landlord's approval of the extent, location(s), specifications, method of boring, scheduling, and other specifics of such soil sampling activities, which approval shall not be unreasonably withheld, (iii) Tenant's contractor delivers to Landlord a certificate of insurance evidencing insurance coverages reasonably satisfactory to Landlord prior to entering on the Property, (iv) such activities are done in compliance with all applicable laws and in such a manner as not to interfere with the operations of other occupants at the Property, (v) Tenant promptly delivers to Landlord a detailed and full written report of the results of such inspection and testing, and (vi) upon completion of the inspection and testing, Tenant or its contractor restores all affected areas of the Property to their condition existing prior to the commencement of such work to the reasonable satisfaction of Landlord.  
		
	5.
	Without limiting the above, Tenant shall reimburse, defend, indemnify and hold Landlord and the Landlord Entities harmless for, from and against any and all claims, losses, liabilities, damages, costs and expenses, including without limitation, loss of rental income, loss due to business interruption, and attorneys’ fees and costs, arising out of or in any way connected with the use, manufacture, storage, or disposal of Hazardous Materials by Tenant or any Tenant Entities on, under or about the Building or the Premises including, without limitation, the costs of any required or necessary investigation, repair, cleanup or detoxification and the preparation of any closure or other required plans in connection herewith, whether voluntary or compelled by governmental authority.  The indemnity obligations of Tenant under this clause shall survive any termination of the Lease.  At Landlord's option, Tenant shall perform any required or necessary investigation, repair, cleanup, or detoxification of the Building and/or Premises.  In such case, Landlord shall have the right, in its sole discretion, to approve all plans, consultants, and cleanup standards.  Tenant shall provide Landlord on a timely basis with (i) copies of all documents, reports, and communications with governmental authorities; and (ii) notice and an opportunity to attend all meetings with regulatory authorities.  Tenant shall comply with all notice requirements and Landlord and Tenant agree to cooperate with governmental authorities seeking access to the Building or the Premises for purposes of sampling or inspection.  No disturbance of Tenant's use of the Building or the Premises resulting from activities conducted pursuant to this paragraph shall constitute an actual or constructive eviction of Tenant.  In the event that such cleanup extends beyond the termination of the Lease, Tenant's obligation to pay rent (including additional rent) shall continue until such cleanup is completed and any certificate of clearance or similar document has been delivered to Landlord.  Rent during such holdover period shall be at market rent; if the parties are unable to agree upon the amount of such market rent, then Landlord shall have the option of (a) increasing the rent for the period of such holdover based upon the increase in the cost-of-living from the third month preceding the commencement date to the third month preceding the start of the holdover period, using such indices and assumptions and calculations as Landlord in its sole reasonable judgment shall determine are necessary; or (b) having Landlord and Tenant each appoint a qualified MAI appraiser doing business in the area; in turn, these two independent MAI appraisers shall appoint a third MAI appraiser and the majority shall decide upon the fair market rental for the Premises as of the expiration of the then current term.  Landlord and Tenant shall equally share in the expense of this appraisal except that in the event the rent is found to be within five percent (5%) of the original rate quoted by Landlord, then Tenant shall bear the full cost of all the appraisal process.  In no event shall the rent be subject to determination or modification by any person, entity, court, or authority other than as set forth expressly herein, and in no event shall the rent for any holdover period be less than the rent due in the preceding period.

		
	6.
	Notwithstanding anything set forth in the Lease, Tenant shall only be responsible for contamination of Hazardous Materials or any cleanup resulting directly therefrom, and resulting directly from matters occurring or Hazardous Materials deposited (other than by Landlord or contractors, agents or representatives controlled by Landlord) during the Term of this Lease, and any other period of time during which Tenant is in actual or constructive occupancy of the Building or the Premises.  Tenant shall take reasonable precautions to prevent the contamination of the Building and/or the Premises with Hazardous Materials by third parties.  If Hazardous Materials (other than de minimis amounts) are discovered in or on the Building or the Premises 

D-2

prior to the Commencement Date, except to the extent the same (i) have been caused by Tenant or any Tenant Entities or (ii) represents a breach of any covenant of Tenant respecting the Use of Hazardous Materials therein or thereon, then Landlord shall undertake such measures as it deems reasonably appropriate under the circumstances, or as may be required by law, to either abate or remove and dispose of the Hazardous Materials in compliance with all applicable laws and regulations.  In addition, in the event Landlord either caused or was directly responsible for the presence of Hazardous Materials (other than de minimis amounts) in the Building and/or the Premises, then, to the extent Landlord caused or was directly responsible for the same, Landlord shall indemnify Tenant and the Tenant Entities from all third party claims and actions asserted against Tenant or the Tenant Entities arising from the presence of Hazardous Materials in the Building or the Premises; provided, however, in the event any Lender becomes the "landlord" hereunder, then Tenant expressly acknowledges and agrees that, so long as such Lender is the "landlord" hereunder, the aforesaid indemnification of Tenant by Landlord shall not apply or be enforceable in any way against said Lender as the "landlord" hereunder.
		
	7.
	Except as to a Permitted Transfer, it shall not be unreasonable for Landlord to withhold its consent to any proposed assignment or sublease if (i) the proposed assignee's or sublessee's anticipated use of the Building involves the generation, storage, use, treatment or disposal of Hazardous Materials; (ii) the proposed assignee or sublessee has been required by any prior landlord, lender, or governmental authority to take remedial action in connection with Hazardous Materials contaminating a property if the contamination resulted from such assignee's or sublessee's actions or use of the property in question; or (iii) the proposed assignee or sublessee is subject to an enforcement order issued by any governmental authority in connection with the use, disposal, or storage of a Hazardous Material.

		
	8.
	Any of Tenant's insurance insuring against claims of the type dealt with in this Exhibit D shall be considered primary coverage for claims against the Building, the Premises or the Property arising out of or under this Paragraph.

		
	9.
	In the event of (i) any transfer of Tenant's interest under the Lease; or (ii) the termination of the Lease, by lapse of time or otherwise, Tenant shall be solely responsible for compliance with any and all then effective federal, state or local laws concerning (a) the physical condition of the Premises, Building, or Property; or (b) the presence of toxic or Hazardous Materials in or on the Premises, Building, or Property, including but not limited to any reporting or filing requirements imposed by such laws.  Tenant's duty to pay rent and additional rent shall continue until the obligations imposed by such laws are satisfied in full and any certificate of clearance or similar document has been delivered to Landlord.  

		
	10.
	All consents given by Landlord pursuant to this Exhibit D shall be in writing and shall be attached hereto. If such materials are not specified in the list attached hereto, then such consents will be deemed withheld.

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

D-3

EXHIBIT E – FORM OF LETTER OF CREDIT

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER _____________

ISSUE DATE: ______________

ISSUING BANK:
SILICON VALLEY BANK
3003 TASMAN DRIVE
2ND FLOOR, MAIL SORT HF210
SANTA CLARA, CALIFORNIA 95054

BENEFICIARY:
PRA/LB, L.L.C.
C/O COX ARMORED MINI-STORAGE MANAGEMENT INC.
1650 EAST LAMAR ROAD
PHOENIX, ARIZONA 85016
ATTENTION: DIANE GIBSON

APPLICANT:
DEXCOM, INC.
6340 SEQUENCE DRIVE 
SAN DIEGO, CA 92121
    
AMOUNT: US$3,600,000.00  (THREE MILLION SIX HUNDRED THOUSAND  AND 00/100 U.S. DOLLARS)

EXPIRATION DATE:    ONE YEAR FROM ISSUANCE   

LOCATION: SANTA CLARA, CALIFORNIA

DEAR SIR/MADAM:                                    
                                        
WE, SILICON VALLEY BANK ("ISSUING BANK") HEREBY ISSUE OUR IRREVOCABLE STANDBY LETTER OF CREDIT IN FAVOR OF PRA/LB, L.L.C., ("BENEFICIARY") FOR THE ACCOUNT OF  DEXCOM, INC., ("APPLICANT") UP TO THE AGGREGATE AMOUNT OF THREE MILLION SIX HUNDRED THOUSAND AND NO/100 U.S. DOLLARS ($3,600,000.00). FUNDS, UP TO THE MAXIMUM AGGREGATE AMOUNT AVAILABLE UNDER THIS LETTER OF CREDIT ARE PAYABLE BY THE ISSUING BANK WITHIN TWO (2) BUSINESS DAYS AFTER RECEIPT BY THE ISSUING BANK, ON OR BEFORE OUR CLOSE OF BUSINESS ON THE EXPIRATION DATE OF ONE OR MORE DRAW STATEMENT(S) SIGNED BY AN AUTHORIZED SIGNATORY OF BENEFICIARY INCLUDING THEIR LEGAL COUNSEL (OR IF THIS LETTER OF CREDIT IS TRANSFERRED, BY AN AUTHORIZED SIGNATORY INCLUDING THEIR LEGAL COUNSEL OF ANY SUCH TRANSFEREE) FOLLOWED BY HIS/HER PRINTED NAME AND DESIGNATED TITLE. 

DRAW STATEMENT(S) DRAWN UPON THIS LETTER OF CREDIT SHOULD BE ADDRESSED TO US, MARKED: “DRAWN UNDER SILICON VALLEY BANK STANDBY LETTER OF CREDIT NO. SVBSF__________, ISSUED ON _____________, 20__”.  SPECIFY THE AMOUNT OF THE DRAW REQUEST, SET FORTH WIRE TRANSFER INSTRUCTIONS AND STATE IN SUBSTANCE THAT BENEFICIARY IS ENTITLED TO DRAW ON THIS LETTER OF CREDIT UNDER THE TERMS OF THE LEASE, DATED AS OF ____________, 2016, BETWEEN BENEFICIARY, AS LANDLORD, AND APPLICANT, AS TENANT ("LEASE").

THIS ORIGINAL LETTER OF CREDIT AND AMENDMENT(S), IF ANY, MUST ACCOMPANY ANY DRAWING HEREUNDER FOR ENDORSEMENT OF THE DRAWING AMOUNT AND WILL BE RETURNED TO THE BENEFICIARY UNLESS IT IS FULLY UTILIZED. 

PARTIAL DRAWS AND MULTIPLE PRESENTATIONS ARE PERMITTED HEREUNDER.

ALL THE DETAILS SET FORTH HEREIN IN THIS LETTER OF CREDIT DRAFT IS APPROVED BY APPLICANT.  IF THERE IS ANY DISCREPANCY BETWEEN THE DETAILS OF THIS LETTER OF CREDIT DRAFT AND THE LETTER OF CREDIT APPLICATION, BETWEEN APPLICANT AND SILICON VALLEY BANK, THE DETAILS HEREOF SHALL PREVAIL.

___________________________                           _______________
Applicant’s  Authorized Signature                           DATE

E-1

THE ISSUING BANK SHALL BE ENTITLED (AND REQUIRED) TO RELY UPON THE STATEMENTS CONTAINED IN THE ABOVE-DESCRIBED STATEMENT(S), AND WILL HAVE NO OBLIGATION TO VERIFY THE TRUTH OF ANY STATEMENT(S) SET FORTH THEREIN. 

THIS LETTER OF CREDIT SHALL EXPIRE ON OUR CLOSE OF BUSINESS ON _______________, BUT THIS LETTER OF CREDIT AND SUCH EXPIRATION DATE SHALL AUTOMATICALLY BE EXTENDED WITHOUT AMENDMENT FOR SUCCESSIVE PERIODS OF ONE (1) YEAR EACH FROM ITS CURRENT AND EACH SUCCESSIVE EXPIRATION DATE, BUT IN NO EVENT BEYOND JULY 31, 2028 WHICH SHALL BE THE FINAL EXPIRATION DATE OF THIS LETTER OF CREDIT, UNLESS, AT LEAST SIXTY (60) DAYS PRIOR TO THE THEN CURRENT EXPIRATION DATE, THE ISSUING BANK NOTIFIES BENEFICIARY IN WRITING BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR OVERNIGHT COURIER SERVICE, AT THE ABOVE ADDRESS (OR ANY OTHER ADDRESS INDICATED BY BENEFICIARY, IN A WRITTEN NOTICE TO US THE RECEIPT OF WHICH WE HAVE ACKNOWLEDGED, AS THE ADDRESS TO WHICH WE SHOULD SEND SUCH NOTICE), THAT THIS LETTER OF CREDIT WILL NOT BE EXTENDED BEYOND THE CURRENT EXPIRATION DATE, PROVIDED THAT THE OBLIGATION OF US TO MAKE ANY PAYMENT HEREUNDER IN RESPECT OF A DRAWING REQUEST MADE PRIOR TO THE EXPIRATION DATE HEREOF SHALL CONTINUE UNTIL PAYMENT IS MADE. A COPY OF OUR NON EXTENSION NOTICE SHALL ALSO BE SENT IN THE SAME MANNER TO BRIER, IRISH, HUBBARD & ERHART, P.L.C., 2400 EAST ARIZONA BILTMORE CIRCLE, SUITE 1300, PHOENIX, ARIZONA 85016, ATTN: ROBERT N. BRIER, ESQ; AND PRA/LB L.L.C., 4315 NORTH 66TH STREET, SCOTTSDALE, ARIZONA 85251, ATTN: KENN FRANCIS AND PRA/LB L.L.C., 17 NORTH VISTA DE CATALINA, LAGUNA BEACH, CALIFORNIA 92651, ATTN: TOD THORPE.  HOWEVER, THE LACK OF RECEIPT OF SUCH COPY SHALL NOT INVALIDATE OUR NON EXTENSION NOTICE TO THE BENEFICIARY.

ALL DEMANDS FOR PAYMENT SHALL BE MADE EITHER IN PERSON OR BY OVERNIGHT COURIER SERVICE BY PRESENTATION OF THE ORIGINAL APPROPRIATE DOCUMENTS ON A BUSINESS DAY AT OUR OFFICE (THE “BANK’S OFFICE”) AT: SILICON VALLEY BANK, 3003 TASMAN DRIVE, SANTA CLARA, CA 95054, ATTENTION: STANDBY LETTER OF CREDIT NEGOTIATION SECTION. FACSIMILE PRESENTATIONS ARE PERMITTED. SHOULD BENEFICIARY WISH TO MAKE PRESENTATIONS UNDER THIS LETTER OF CREDIT ENTIRELY BY FACSIMILE TRANSMISSION IT NEED NOT TRANSMIT THIS LETTER OF CREDIT AND AMENDMENT(S), IF ANY. EACH FACSIMILE TRANSMISSION SHALL BE MADE AT: (408) 496-2418 OR (408) 969-6510; AND SIMULTANEOUSLY UNDER ATTEMPTED TELEPHONE ADVICE TO: (408)654-6274 OR (408) 654-7716, ATTENTION: STANDBY LETTER OF CREDIT NEGOTIATION SECTION WITH ORIGINALS TO FOLLOW BY OVERNIGHT COURIER SERVICE; PROVIDED, HOWEVER, THE BANK WILL DETERMINE HONOR OR DISHONOR ON THE BASIS OF PRESENTATION BY FACSIMILE ALONE, AND WILL NOT EXAMINE THE ORIGINALS. IN ADDITION, ABSENCE OF THE AFORESAID TELEPHONE ADVICE SHALL NOT AFFECT OUR OBLIGATION TO HONOR ANY DRAW REQUEST.

THIS LETTER OF CREDIT IS TRANSFERABLE IN FULL, ONE OR MORE TIMES, BY BENEFICIARY’S REQUEST, BUT IN EACH INSTANCE ONLY TO A SINGLE BENEFICIARY AS TRANSFEREE AND ONLY UP TO THE THEN AVAILABLE AMOUNT, ASSUMING SUCH TRANSFER TO SUCH TRANSFEREE WOULD BE IN COMPLIANCE WITH THEN APPLICABLE LAW AND REGULATIONS, INCLUDING BUT NOT LIMITED TO THE REGULATIONS OF THE U. S. DEPARTMENT OF TREASURY AND U. S. DEPARTMENT OF COMMERCE.  AT THE TIME OF TRANSFER, THE ORIGINAL LETTER OF CREDIT AND ORIGINAL AMENDMENT(S), IF ANY, MUST BE SURRENDERED TO US AT OUR ADDRESS INDICATED IN THIS LETTER OF CREDIT TOGETHER WITH OUR TRANSFER FORM ATTACHED HERETO AS EXHIBIT “A” DULY EXECUTED.  THE CORRECTNESS OF THE SIGNATURE AND TITLE OF THE PERSON SIGNING THE TRANSFER FORM MUST BE VERIFIED BY BENEFICIARY’S BANK. APPLICANT SHALL PAY OUR TRANSFER FEE OF 1⁄4 OF 1% OF THE TRANSFER AMOUNT (MINIMUM US$250.00) UNDER THIS LETTER OF CREDIT. EACH TRANSFER SHALL BE EVIDENCED BY OUR ENDORSEMENT ON THE REVERSE OF THE LETTER OF CREDIT AND WE SHALL FORWARD THE ORIGINAL OF THE LETTER OF CREDIT SO ENDORSED TO THE TRANSFEREE. 

WE AGREE THAT WE SHALL HAVE NO DUTY OR RIGHT TO INQUIRE AS TO THE BASIS UPON WHICH BENEFICIARY HAS DETERMINED THAT THE AMOUNT IS DUE AND OWING OR HAS DETERMINED TO PRESENT TO US ANY STATEMENT(S) UNDER THIS LETTER OF CREDIT, AND THE PRESENTATION OF SUCH STATEMENT(S) IN COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT, SHALL AUTOMATICALLY RESULT IN PAYMENT TO THE BENEFICIARY. 

ALL THE DETAILS SET FORTH HEREIN IN THIS LETTER OF CREDIT DRAFT IS APPROVED BY APPLICANT.  IF THERE IS ANY DISCREPANCY BETWEEN THE DETAILS OF THIS LETTER OF CREDIT DRAFT AND THE LETTER OF CREDIT APPLICATION, BETWEEN APPLICANT AND SILICON VALLEY BANK, THE DETAILS HEREOF SHALL PREVAIL.

___________________________                           _______________
Applicant’s  Authorized Signature                           DATE

E-2

EXCEPT AS EXPRESSLY STATED HEREIN, THIS UNDERTAKING IS NOT SUBJECT TO ANY AGREEMENT, CONDITION OR QUALIFICATION. THE OBLIGATION OF SILICON VALLEY BANK UNDER THIS LETTER OF CREDIT IS THE INDIVIDUAL OBLIGATION OF SILICON VALLEY BANK AND IS IN NO WAY CONTINGENT UPON REIMBURSEMENT WITH RESPECT THERETO, OR UPON OUR ABILITY TO PERFECT ANY LIEN, SECURITY INTEREST OR ANY OTHER REIMBURSEMENT.

IF ANY INSTRUCTIONS ACCOMPANYING A DRAWING UNDER THIS LETTER OF CREDIT REQUEST THAT PAYMENT IS TO BE MADE BY TRANSFER TO YOUR ACCOUNT WITH ANOTHER BANK, WE WILL ONLY EFFECT SUCH PAYMENT BY FED WIRE TO A U.S. REGULATED BANK, AND WE AND/OR SUCH OTHER BANK MAY RELY ON AN ACCOUNT NUMBER SPECIFIED IN SUCH INSTRUCTIONS EVEN IF THE NUMBER IDENTIFIES A PERSON OR ENTITY DIFFERENT FROM THE INTENDED PAYEE.

THIS LETTER OF CREDIT IS SUBJECT TO THE INTERNATIONAL STANDBY PRACTICES–ISP98, INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION 590.

IF THE ORIGINAL OF THIS LETTER OF CREDIT IS LOST, STOLEN, MUTILATED OR DESTROYED, WE WILL ISSUE YOU A “CERTIFIED TRUE COPY” OF THIS LETTER OF CREDIT UPON OUR RECEIPT OF YOUR INDEMNITY LETTER TO SILICON VALLEY BANK IN THE FORM OF EXHIBIT “B” ATTACHED HERETO.  

IF BENEFICIARY REQUESTS ANY ASSISTANCE OR HAS ANY QUESTIONS REGARDING THIS TRANSACTION, BENEFICIARY MAY CALL SILICON VALLEY BANK AT (408)654-6274 OR (408) 654-7716.

SILICON VALLEY BANK, 

  ___________________________                           ___________________________
 AUTHORIZED SIGNATURE                                 AUTHORIZED SIGNATURE 

ALL THE DETAILS SET FORTH HEREIN IN THIS LETTER OF CREDIT DRAFT IS APPROVED BY APPLICANT.  IF THERE IS ANY DISCREPANCY BETWEEN THE DETAILS OF THIS LETTER OF CREDIT DRAFT AND THE LETTER OF CREDIT APPLICATION, BETWEEN APPLICANT AND SILICON VALLEY BANK, THE DETAILS HEREOF SHALL PREVAIL.

___________________________                           _______________
Applicant’s  Authorized Signature                           DATE

E-3

IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER __________________

EXHIBIT A
TRANSFER FORM

DATE: ____________________

TO: SILICON VALLEY BANK
       3003 TASMAN DRIVE                RE: IRREVOCABLE STANDBY LETTER OF CREDIT 
       SANTA CLARA, CA 95054                                              NO. _____________   ISSUED BY
       ATTN:INTERNATIONAL DIVISION.                         SILICON VALLEY BANK, SANTA CLARA 
       STANDBY LETTERS OF CREDIT                         L/C AMOUNT: ___________________ 

GENTLEMEN:

FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:

_________________________________________________________________________________________
(NAME OF TRANSFEREE)

_________________________________________________________________________________________
(ADDRESS)

ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF CREDIT UP TO ITS AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS TRANSFER.

BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF CREDIT ARE TRANSFERRED TO THE TRANSFEREE. TRANSFEREE SHALL HAVE THE SOLE RIGHTS AS BENEFICIARY THEREOF, INCLUDING SOLE RIGHTS RELATING TO ANY AMENDMENTS, WHETHER INCREASES OR EXTENSIONS OR OTHER AMENDMENTS, AND WHETHER NOW EXISTING OR HEREAFTER MADE. ALL AMENDMENTS ARE TO BE ADVISED DIRECTLY TO THE TRANSFEREE WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.

THE ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO ENDORSE THE TRANSFER ON THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF TRANSFER.

    SIGNATURE AUTHENTICATED

The name(s), title(s), and signature(s) conform to that/those on file with us for the company and the signature(s) is/are authorized to execute this instrument.

_________________________________________________
   (Name of Bank)
_________________________________________________
  (Address of Bank)
_________________________________________________
(City, State, ZIP Code)
_________________________________________________
          (Authorized Name and Title)

_________________________________________________
                               (Authorized Signature)
_________________________________________________
                                (Telephone number)
SINCERELY,

_____________________________                                                       
     (BENEFICIARY’S NAME) 
    
_____________________________
(SIGNATURE OF BENEFICIARY)
 
_____________________________

ALL THE DETAILS SET FORTH HEREIN IN THIS LETTER OF CREDIT DRAFT IS APPROVED BY APPLICANT.  IF THERE IS ANY DISCREPANCY BETWEEN THE DETAILS OF THIS LETTER OF CREDIT DRAFT AND THE LETTER OF CREDIT APPLICATION, BETWEEN APPLICANT AND SILICON VALLEY BANK, THE DETAILS HEREOF SHALL PREVAIL.

___________________________                           _______________
Applicant’s  Authorized Signature                           DATE

E-4

        (NAME AND TITLE)

Exhibit “B”

ALL THE DETAILS SET FORTH HEREIN IN THIS LETTER OF CREDIT DRAFT IS APPROVED BY APPLICANT.  IF THERE IS ANY DISCREPANCY BETWEEN THE DETAILS OF THIS LETTER OF CREDIT DRAFT AND THE LETTER OF CREDIT APPLICATION, BETWEEN APPLICANT AND SILICON VALLEY BANK, THE DETAILS HEREOF SHALL PREVAIL.

___________________________                           _______________
Applicant’s  Authorized Signature                           DATE

E-5

EXHIBIT B

___________________, 20___

Silicon Valley Bank
3003 Tasman Drive
Santa Clara, CA 95054
Attn: Standby Letters of Credit Department

Re: Irrevocable Standby Letter of Credit No. SVBSF_______

Ladies and Gentlemen:

The undersigned (“Beneficiary”) is the beneficiary under Irrevocable Standby Letter of Credit No. SVBSF_______ issued by Silicon Valley Bank (“Bank”) upon the request of ______________________ (together with all amendments issued to such letter of credit, the "Standby L/C"). Beneficiary cannot locate the executed original of the Standby L/C (the “Original Standby L/C”) and has requested that Bank issue a certified true copy of the Standby L/C (“Certified True Copy”) to replace the Original Standby L/C. Beneficiary understands that Bank is willing to grant Beneficiary’s request to issue the Certified True Copy so long as Beneficiary agrees to execute this letter agreement for Bank’s benefit.

In consideration of Bank’s willingness to issue the Certified True Copy, Beneficiary agrees as
follows:
1. If Beneficiary locates the Original Standby L/C, it will not draw any draft(s) or make any demand(s) upon Bank thereunder, but will promptly deliver to Bank the Original Standby L/C, marked "CANCELED", and signed and dated by its duly authorized representative,
for disposition by Bank.

2. Beneficiary represents and warrants that it has not encumbered, assigned, or otherwise transferred its interest in the Standby L/C or delivered the Original Standby L/C to any other person or entity.

3. Beneficiary will indemnify and save Bank harmless from and against any and all claims, judgments, demands, losses, damages, actions, liabilities, costs and expenses, including, without limitation, attorneys' fees, which Bank at any time may suffer, sustain or incur in connection with the missing Original Standby L/C (collectively, “Claims”), including, without limitation, any presentation for payment of any draft(s) or demand(s) drawn under the Original Standby L/C by a holder in due course or a bonafide purchaser for value of the Original Standby L/C, or any other draw requests, presentments or any other claims made on the Original Standby L/C regardless of the party making such draw requests, presentments or any other claims made (including Beneficiary and/or any of its agents, successors and assigns). This indemnity shall include, without limitation, the face amount of the Original Standby L/C if Bank is required by law to pay same to a holder in due course or a bonafide purchaser for value of the Original Standby L/C and/or any presentation thereunder or proceeds thereof. Beneficiary will pay, within thirty (30) days of receipt of written request from Bank, all sums requested by Bank as indemnity for Bank’s Claims.

4. Upon the effectiveness of this letter agreement, Beneficiary irrevocably releases Bank from any obligation to it under the Original Standby L/C.

Beneficiary has executed this letter agreement by its duly authorized representative on the date hereof and this letter agreement shall be deemed to be effective as of such date.

Yours truly,
_________________________________
(Beneficiary)

Authorized Signature: _______________
Name & Title: _____________________

ALL THE DETAILS SET FORTH HEREIN IN THIS LETTER OF CREDIT DRAFT IS APPROVED BY APPLICANT.  IF THERE IS ANY DISCREPANCY BETWEEN THE DETAILS OF THIS LETTER OF CREDIT DRAFT AND THE LETTER OF CREDIT APPLICATION, BETWEEN APPLICANT AND SILICON VALLEY BANK, THE DETAILS HEREOF SHALL PREVAIL.

___________________________                           _______________
Applicant’s  Authorized Signature                           DATE

E-6

SIGNATURE AUTHENTICATED

The signature of Beneficiary conforms to that
on file with us in the Signature Specimen Card
of the Beneficiary for Loans and Guarantee.

______________________________________
(Name of bank)
By:___________________________________
(Authorized Signature) **
______________________________________
(Title)
______________________________________
(Telephone Number)
______________________________________
(Address of bank)

** VERIFICATION OF BENEFICIARY’S
SIGNATURE(S) BY A NOTARY PUBLIC IS
UNACCEPTABLE.

ALL THE DETAILS SET FORTH HEREIN IN THIS LETTER OF CREDIT DRAFT IS APPROVED BY APPLICANT.  IF THERE IS ANY DISCREPANCY BETWEEN THE DETAILS OF THIS LETTER OF CREDIT DRAFT AND THE LETTER OF CREDIT APPLICATION, BETWEEN APPLICANT AND SILICON VALLEY BANK, THE DETAILS HEREOF SHALL PREVAIL.

___________________________                           _______________
Applicant’s  Authorized Signature                           DATE

E-7

EXHIBIT F – MEMORANDUM OF LEASE

RECORDING REQUESTED 
BY AND WHEN RECORDED 
MAIL THIS MEMORANDUM 
OF LEASE TO:

Stuart Kane LLP
620 Newport Center Drive, Suite 200 
Newport Beach, CA 92660 
Attention:  Josh C. Grushkin 

    
(Above Space for Recorder's Use Only)
MEMORANDUM OF LEASE
This Memorandum of Lease (this "Memorandum") is made as of __________, 2016, by and between PRA/LB, L.L.C., an Arizona limited liability company ("Landlord"), and DEXCOM INC., a Delaware corporation ("Tenant"), to evidence that certain Industrial Net Lease for Broadway 101 Commerce Park – Phase III (the "Lease") of even date herewith between Landlord and Tenant, pursuant to which Lease Landlord has leased a portion of that certain improved real property owned by Landlord and more particularly described in Exhibit "A" attached hereto and by this reference incorporated herein, and further described in the Lease as the "Premises". 
Landlord and Tenant have made this Memorandum to provide notice to any interested party of such demise and of the terms and provisions of the Lease.  Capitalized terms used in this Memorandum but not defined herein shall have the definitions set forth in the Lease.
NOW, THEREFORE, Landlord and Tenant declare as follows:
1.    Landlord has leased to Tenant and Tenant has leased from Landlord the Premises described in the Lease on the terms and conditions therein set forth, all as more fully described in the Lease.
2.    This Memorandum is subject to all of the terms, conditions and limitations set forth in the Lease and the terms of the Lease are hereby incorporated herein for all purposes with the same effect as though the terms and conditions of the Lease were set forth herein in their entirety.
3.    Landlord and Tenant acknowledge that, as further set forth in the Lease, (a) the initial expiration date of the Lease is contemplated to be March 31, 2028; (b) Tenant has the option to extend the Term beyond such initial expiration date pursuant to the Option to Extend; and (c) Tenant has the right to purchase the Premises pursuant to the Purchase Right and the Offer Right.  
4.    Upon the expiration or earlier termination of the Lease or any termination of Tenant’s right of possession of the Premises, Tenant shall, within twenty (20) days after written request from Landlord, execute and deliver to Landlord for recording a Termination of Memorandum of Lease in a form reasonably acceptable to the parties.  If Tenant fails to execute and deliver to Landlord for recording such a Termination of Memorandum of Lease within twenty (20) days after the expiration or earlier termination of the Lease or any earlier termination of Tenant’s right of possession of the Premises, Tenant grants to Landlord a power of attorney to execute and record a Termination of Memorandum of Lease within twenty (20) days after the expiration or earlier termination 

F-1

of the Lease or any termination of Tenant’s right of possession of the Premises, which power of attorney is coupled with an interest and is non-revocable.

[SIGNATURES APPEAR ON THE FOLLOWING PAGES]

F-2

IN WITNESS WHEREOF, Landlord and Tenant have executed this Memorandum as of the date first written above.

	
		
	LANDLORD:
	TENANT:

	PRA/LB, L.L.C., 
	DEXCOM, INC.,  

	an Arizona limited liability company
	a Delaware corporation

	By:   Pacific Realty Advisors, Inc., an Arizona corporation
	 

	            Its:  Manager
	 

	 
	 

	   By:___________________________
	By:    

	                  Kenn M. Francis
	Name:    

	                     Its:  President
	Its:    

F-3

STATE OF ARIZONA    )
)
County of Maricopa    )

On this ___ day of ________, 2016, before me personally appeared Kenn Francis, whose identity was proven to me on the basis of satisfactory evidence to be the person he/she claims to be, and acknowledged before me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity or entities upon behalf of which the person acted, executed the instrument.

(seal)
 
Notary Public

F-4

	
	
	A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

		
	State of California
	)

County of San Diego     )

On _____________, 2016, before me, ________________________, a notary public, personally appeared _________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ________________________________        (Seal)

F-5

EXHIBIT "A" 

LEGAL DESCRIPTION
[TO BE UPDATED, AT TENANT'S SOLE COST AND EXPENSE, TO DESCRIBE ONLY THE PREMISES; BELOW LEGAL DESCRIPTION IS FOR THE ENTIRE PROPERTY]
PARCEL 3, OF LOT SPLIT OF DOBSON & BROADWAY, A SPLIT OF LOT 7, BROADWAY 101 COMMERCE PARK PHASE II, ACCORDING TO BOOK 928 OF MAPS. PAGE 44, ACCORDING TO THE PLAT OF RECORD IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 1194 OF MAPS, PAGE 7.

F-6DXCM_06.30.16 Skanska Combined

                                                                                                                                                                                Exhibit 10.40

AIA® Document A102TM - 2007
Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price

AGREEMENT made as of the 2nd day of May in the year 2016
(In words, indicate day, month and year.)

BETWEEN the Owner:
(Name, legal status, address and other information)

DexCom, Inc.
6340 Sequence Drive
San Diego, CA  92121
Attn:  James Gillard

and the Contractor:
(Name, legal status, address and other information)

Skanska USA Building Inc.
4742 N. 24th Street, Suite 165
Phoenix, AZ  85016
Attn:  Ross Vroman

for the following Project:
(Name, location and detailed description)

Tenant Improvements at 
232 South Dobson Road,
Mesa, AZ  85202  »

The Architect:
(Name, legal status, address and other information)

Mansour Architecture Corporation
6498 Weathers Place, Suite 100
San Diego, CA 92121
Attn:  Anthony Mansour     · 

The Owner and Contractor agree as follows.

ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.
This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.
This document is not intended for use in competitive bidding.
AIA Document A201TM-2007, General Conditions of the Contract for Construction, is adopted in this document by reference. Do not use with other general conditions unless this document is modified.
Electronic copying of any portion of this AIA®  Document to another electronic file is prohibited and constitutes a violation of copyright laws as set forth in the footer of this document.

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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(1346722099)

TABLE OF ARTICLES

		
	1
	THE CONTRACT DOCUMENTS

		
	2
	THE WORK OF THIS CONTRACT

		
	3
	RELATIONSHIP OF THE PARTIES

		
	4
	DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

		
	5
	CONTRACT SUM

		
	6
	CHANGES IN THE WORK

		
	7
	COSTS TO BE REIMBURSED

		
	8
	COSTS NOT TO BE REIMBURSED

		
	9
	DISCOUNTS, REBATES AND REFUNDS

		
	10
	SUBCONTRACTS AND OTHER AGREEMENTS

		
	11
	ACCOUNTING RECORDS

		
	12
	PAYMENTS

		
	13
	DISPUTE RESOLUTION

		
	14
	TERMINATION OR SUSPENSION

		
	15
	MISCELLANEOUS PROVISIONS

		
	16
	ENUMERATION OF CONTRACT DOCUMENTS

		
	17
	INSURANCE AND BONDS

ARTICLE 1   THE CONTRACT DOCUMENTS
The Contract Documents consist of this Agreement, as modified herein by the parties, Conditions of the Contract (General, Supplementary and other Conditions), Drawings, Specifications, Addenda issued prior to execution of this Agreement, the Exhibits to this Agreement, other documents listed in this Agreement and Modifications issued after execution of this Agreement, all of which form the Contract, and are as fully a part of the Contract as if attached to this Agreement or repeated herein. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral. If anything in the other Contract Documents, other than a Modification, is inconsistent with this Agreement, then conflicts or discrepancies shall be resolved in the following descending order of priority:  (i) approved revisions and addenda, including the GMP Amendment, of later date take precedence over those of earlier date or original documents; (ii) this Agreement (including the exhibits; (iii) modifications to the General Conditions; (iv) the General Conditions; and (v) Drawings and Specifications, where Drawings govern Specifications for quantity and location and Specifications govern Drawings for quality and performance.  In the event of ambiguity in quantity or quality, the greater quantity and the better quality shall govern.  Work not particularly detailed or specified shall be performed in the same manner as similar portions of the Work that are detailed or specified.  Owner and Contractor entered into that certain Master Services Agreement dated as of January 12, 2016, which agreement concerns a 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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different subject matter than this Agreement, remains in full force and effect and is not superseded by the Contract Documents.

ARTICLE 2   THE WORK OF THIS CONTRACT
The Contractor shall fully execute the Work described in the Contract Documents, except as specifically indicated in the Contract Documents to be the responsibility of others.

§ 2.1  Contractor shall provide all general contractor services, and shall perform all the work required by the Contract Documents for the complete construction of the Project in accordance with the Contract Documents, which shall include, but not be limited to, relocation of existing utilities.  Contractor shall provide and furnish all materials, supplies, equipment and tools, implements, and all other facilities, and all other labor, supervision, transportation, utilities, storage, services, sales taxes, appliances and all other services as and when required for or in connection with the complete construction of the Project, including any off site construction shown on the Contract Documents (hereinafter collectively referred to as the "Work").  The phrase "the complete construction of the Project" means to perform the totality of the obligations imposed upon Contractor by the Contract Documents or reasonably inferable therefrom as necessary to complete the Work and the Project and to provide a fully complete and operational construction solution, in Contractor’s exercise of its best professional judgment, to the standards generally conveyed in the Contract Documents and customarily found in the construction industry for projects similar in size and scope to the Project.

ARTICLE 3   RELATIONSHIP OF THE PARTIES
The Contractor accepts the relationship of reliance and confidence established by this Agreement and covenants with the Owner to cooperate with Owner, Owner's project manager, Gary Ghio with G2 Facilities Management Consulting (“Project Manager”) (provided, however, Owner may designate a different Project Manager by written notice to Contractor), and the Architect, and to exercise the Contractor’s best skill, efforts 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.  Contractor shall not be required to provide professional services that constitute the practice of architecture or engineering.  Contractor shall not be responsible for the adequacy of the design criteria required by the Contract Documents.  

ARTICLE 4   DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION
§ 4.1 The date for the commencement of the Work (the "Commencement Date") shall be set forth in a Notice to Proceed (NTP) issued by Owner concurrent with execution of this Agreement. However, the NTP shall not be effective, and Contractor shall have no obligation to commence its Work, until Owner has fulfilled the following conditions precedent and has delivered to Contractor copies of the building permit required to be obtained by the Owner for the commencement of the Work at the site, if any, and certificates of insurance for all insurance required to be provided by Owner, including the builder’s risk insurance;  
(2)    evidence sufficient to reasonably satisfy Contractor of Owner’s financing for the Project; and
(3)    reasonable access to the site. 

If Owner does not issue an effective NTP, Contractor shall have no obligation to commence the Work, or any part of the Work, until Owner satisfies the above conditions precedent to the effectiveness of the NTP.
.
(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.)
(paragraph deleted)

§ 4.2 The Contract Time shall be measured from the Commencement Date, subject to adjustments in Contract Time as expressly provided in the Contract Documents.

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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(1346722099)

§ 4.3 The Contractor shall diligently prosecute the Work and achieve Substantial Completion of the entire Work  for the Project not later than the Substantial Completion date established in a written amendment to be signed by Owner and Contractor and delivered to each other setting forth the schedule for completion of each milestone of the Work, the deadline for Substantial Completion and the Guaranteed Maximum Price (the “GMP Amendment”), subject to adjustments of this Contract Time as provided in the Contract Documents (the "Substantial Completion Deadline").  Time is of the essence of this Agreement for meeting the milestones of Substantial and Final Completion.
(Insert number of calendar days. Alternatively, a calendar date may be used when coordinated with the date of commencement. If appropriate, insert requirements for earlier Substantial Completion of certain portions of the Work.)

	
		
	Portion of Work
	Substantial Completion date

	 
	 

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

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

Liquidated damages established as set forth in Section 4.5 below. 

§ 4.4  The Contractor agrees to complete all of the Work in accordance with the Contractor’s Schedule included in the GMP Amendment.   

§ 4.5 Liquidated Damages. The Owner and the Contractor acknowledge and agree that if the Contractor does not timely achieve Substantial Completion by the Substantial Completion Deadline set forth in the GMP Amendment, (a) the Owner will suffer substantial loss of income and revenue and other damages and losses, including, without limitation, loss of business and loss or damage to reputation, business relationships, goodwill, and loss of use of the property, and (b) the actual amount of damages which the Owner would suffer would be extremely difficult and impracticable to ascertain.  Accordingly, the Owner and the Contractor agree that:

(a)    If the Contractor does not timely achieve Substantial Completion by the deadline set forth in the GMP Amendment, then the following sums shall constitute a reasonable estimate of the amount of damages for such delay, and the Contractor shall pay such sums to the Owner as liquidated damages for each day or portion of a day that Substantial Completion is delayed beyond the deadline within thirty (30) calendar days upon Owner’s invoice to the Contractor:

One Thousand Dollars ($1,000.00) for each day of unexcused delay.  

(b)    In no event shall the liquidated damages, in the aggregate, exceed 10 percent (10%) of Contractors Fee.  The liquidated damages set forth above are the sole and exclusive remedy for Contractor’s failure to achieve Substantial Completion by the deadline set forth in the GMP Amendment.

Final completion shall occur no later than thirty (30) days after Substantial Completion.  Failure to achieve Final Completion before the expiration of such thirty (30)-day period will result in liquidated damages of Five Hundred Dollars ($500.00) per day for each day in excess of thirty (30) days after Substantial Completion until Final Completion is achieved, subject to the cap set forth above.

ARTICLE 5   CONTRACT SUM
§ 5.1 The Owner shall pay the Contractor the Contract Sum in current funds for the Contractor’s performance of the Contract, in accordance with, and subject to the terms of the conditions of the Contract Documents. The Contract 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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4

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Sum shall be the lesser of (a) Cost of the Work as defined in Article 7 plus the Contractor’s Fee and (b) the Guaranteed Maximum Price.  A Schedule of Billable Rates is attached hereto as Exhibit C and incorporated herein.

§ 5.1.1 The Contractor’s Fee:
(State a lump sum, percentage of Cost of the Work or other provision for determining the Contractor’s Fee.)

two and 65/100 percent (2.65%) of the Cost of Work.

§ 5.1.2 The method of adjustment of the Contractor’s Fee for changes in the Work:

In connection with any changes in the Work which increase the Contract Sum, the Contractor’s Fee shall be increased by an amount equal to two and 65/100 percent (2.65%) of that portion of the Cost of the Work incurred as a result of such changes in the Work, and in connection with any changes in the Work which decrease the Contract Sum, the Contractor’s Fee shall be reduced by an amount equal to two and 65/100 percent (2.65%) of that portion of the Cost of the Work reduced as a result of such changes in the Work.  

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

Limitations, if any, will be agreed upon by Contractor and Owner on a trade-by-trade basis (and may be set forth in the amendment to this Agreement which documents, if applicable, the agreed-upon Guaranteed Maximum Price). 

§ 5.1.4 Rental rates for Contractor-owned equipment shall not exceed the amounts set forth in Section 7.5.2 hereof.

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

	
			
	Item
	Units and Limitations
	Price Per Unit ($0.00)

	 
	 
	 

§ 5.2 GUARANTEED MAXIMUM PRICE
§ 5.2.1 The Contract Sum is guaranteed by the Contractor not to exceed a maximum amount (the "Guaranteed Maximum Price") established in the GMP Amendment, subject to additions and deductions by Change Order as provided in the Contract Documents. Costs which would cause the Guaranteed Maximum Price to be exceeded shall be paid by the Contractor without reimbursement by the Owner.  Contractor acknowledges and agrees that the Guaranteed Maximum Price includes all inflationary costs and adjustments, and labor and material escalations, in connection with the performance of the Work so long as Owner satisfies its express obligations under the Schedule and timely issues the NTP .  The Guaranteed Maximum Price shall not be adjusted due to any such inflationary costs and/or escalation events so long as Owner satisfies its express obligations under the Schedule and timely issues the NTP.  There shall be no shared savings clause in this Agreement.  All savings will accrue to the Owner.
(Insert specific provisions if the Contractor is to participate in any savings.)

§ 5.2.1.1 At a time to be mutually agreed upon by the Owner and the Contractor, the Contractor shall prepare a Guaranteed Maximum Price proposal for the Owner’s review and written acceptance. The Guaranteed Maximum Price in the proposal shall be the sum of the Contractor’s reasonable estimate of the Cost of the Work, including contingencies described in Section 5.2.1.4, and the Contractor’s Fee.

§ 5.2.1.2 To the extent that the Drawings and Specifications are anticipated to require further development, the Contractor shall provide in the Guaranteed Maximum Price for such further development consistent with the Contract Documents and reasonably inferable therefrom. Such further development does not include such things as 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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(1346722099)

changes in scope, systems, kinds and quality of materials, finishes or equipment, all of which, if required, shall be incorporated by Change Order.

§ 5.2.1.3 The Contractor shall include with the Guaranteed Maximum Price proposal a written statement of its basis, which shall include the following: 
		
	.1
	A list of the Drawings and Specifications, including all Addenda thereto, and the Conditions of the Contract;

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

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

		
	.4
	The anticipated date of Substantial Completion upon which the proposed Guaranteed Maximum Price is based (i.e., the proposed “Substantial Completion Deadline”); and

		
	.5
	A date by which the Owner must accept or reject the Guaranteed Maximum Price, which shall not be less than 30 days from the date of the Guaranteed Maximum Price proposal (it being agreed if Owner does not accept or reject the Guaranteed Maximum Price proposal in writing, it shall be deemed rejected). 

§ 5.2.1.4 In preparing the Contractor’s Guaranteed Maximum Price proposal, the Contractor shall include its contingency for the Contractor’s exclusive use (hereinafter the “Construction Contingency”) as necessary to cover those costs considered reimbursable as the Cost of the Work but not included in a Change Order, and to the extent not paid for by insurance, or Subcontractor defaults.  Subject to the prior written consent of Owner, which consent shall not be unreasonably withheld, the Construction Contingency shall be available for the Contractor’s exclusive use at any time to cover costs intended to be covered by the Contract Documents, including at the time of Final Payment, for reimbursement of costs and expenses (1) reasonably incurred by Contractor in performing the Work, (2) of a type that are reimbursable under this Agreement as a Cost of the Work, and (3) that are not otherwise the basis for a Change Order (it being understood that the Construction Contingency shall not be used to fund any Work which would otherwise be subject to a Change Order); including, by way of example, but not limited to, (a) Work items inadvertently omitted during the estimating and bidding process, (b) schedule recovery costs associated with normal weather, (c) cost increases due to unanticipated local labor and material market conditions, (d) interfacing omissions between and from the various categories of work; and (e) additional costs incurred due to the withdrawal or disqualification of a subcontractor bid forming the basis for the GMP prior to signing of a written subcontract, provided, however, Contractor shall not be entitled to reimbursement for any costs attributable to its negligence or willful misconduct or the failure of Contractor to perform its obligations under this Agreement.  Contractor shall furnish the Owner with a monthly Contingency Log showing all reimbursements from the Construction Contingency.  Costs and expenses reimbursable from the Construction Contingency shall not exceed the amount of the Construction Contingency identified as an element of the Guaranteed Maximum Price set forth in the GMP Amendment.  When the Construction Contingency is exhausted, all costs and expenses that would qualify for reimbursement from the Construction Contingency shall be borne by Contractor unless such costs and expenses are otherwise compensable under the terms of this Agreement and do not cause the Guaranteed Maximum Price to be exceeded.  Any amount remaining in the Construction Contingency at Final Payment shall be counted as savings that shall accrue solely to Owner.  

§ 5.2.1.5 The Contractor shall meet with the Owner to review the Guaranteed Maximum Price proposal. In the event that the Owner discovers any inconsistencies or inaccuracies in the information presented, it shall notify the Contractor, who shall promptly make appropriate adjustments to the Guaranteed Maximum Price proposal, its basis, or both, as the case may be. 

§ 5.2.1.6 If the Owner notifies the Contractor in writing that the Owner has accepted the Guaranteed Maximum Price proposal before the date specified in the Guaranteed Maximum Price proposal, the Guaranteed Maximum Price proposal shall be deemed effective without further acceptance from the Contractor. Following acceptance of a Guaranteed Maximum Price, the Owner and Contractor shall execute the Guaranteed Maximum Price Amendment 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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amending this Agreement, a copy of which the Owner shall provide to the Architect. The Guaranteed Maximum Price Amendment shall set forth the agreed upon Guaranteed Maximum Price with the information and assumptions upon which it is based. 

§ 5.2.1.7 The Contractor shall not incur any cost to be reimbursed as part of the Cost of the Work prior to the commencement of the Construction Phase, unless the Owner, in its sole and absolute discretion, provides prior written authorization for such costs “Initial Release Work.”)  Written authorization for Initial Release Work shall be provided by an Approval Letter in the form at Exhibit A.  All Initial Release Work performed pursuant to the Approval Letters shall be performed in accordance with the Contract Documents unless otherwise specified in the Approval Letter.  All Initial Release Work, if any, shall be deemed to be included in the scope of the Work pursuant to the Contract Documents.  The Approval Letters constitute the basis upon which Initial Release Work shall be performed and upon which the Contractor shall be paid for the Initial Release Work and, unless and until the GMP is agreed to by the Owner, the Contractor shall not proceed with any other Work.  The GMP shall include the cost of any Initial Release Work authorized pursuant to the Approval Letter issued prior to the establishment of the GMP.

§ 5.2.1.8 The Owner shall provide the revisions to the Drawings and Specifications to incorporate the agreed-upon assumptions and clarifications contained in the Guaranteed Maximum Price Amendment. The Owner shall promptly furnish those revised Drawings and Specifications to the Contractor as they are revised and approved by Owner.  The Contractor shall promptly notify the Owner of any inconsistencies between the Guaranteed Maximum Price Amendment and the revised Drawings and Specifications.

§ 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 bidding or proposal documents permit the Owner to accept other alternates subsequent to the execution of this Agreement, attach a schedule of such other alternates showing the amount for each and the date when the amount expires.)

To be set forth in GMP Amendment.  

§ 5.2.3 Allowances included in the Guaranteed Maximum Price, if any:
(Identify allowance and state exclusions, if any, from the allowance price.)

	
		
	Item
	Price

	 
	 

To be set forth in GMP Amendment.

§ 5.2.4 Not used.

§ 5.2.5 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 Section 7.3.3 of AIA Document A201–2007, General Conditions of the Contract for Construction.

§ 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 Section 7.3.3.3 of AIA Document A201–2007 and the term “costs” as used in Section 7.3.7 of AIA Document A201–2007 shall have the meanings assigned to them in AIA 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
User Notes:                                                                                                                                                                                                                                                                       

  
7

(1346722099)

Document A201–2007 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 A201–2007 shall mean the Cost of the Work as defined in Article 7 of this Agreement and the term “fee” shall mean the Contractor’s Fee as defined in Section 5.1.1 of this Agreement.

§ 6.4  No change in the Work, whether by way of alteration or addition to the Work, shall be the basis of an addition to the Guaranteed Maximum Price or a change in the Contract Time unless and until such alteration or addition has been authorized by a written Change Order or Construction Change Directive executed and issued in accordance with and in strict compliance with the requirements of the Contract Documents.  This requirement is of the essence of the Contract Documents.  Accordingly, no course of conduct or dealings between the parties, nor express or implied acceptance of alterations or additions to the Work, and no claim that the Owner has been unjustly enriched by any alteration or addition to the Work, whether there is in fact any such unjust enrichment, shall be the basis for any claim to an increase in the Guaranteed Maximum Price or change in the Contract Time.

ARTICLE 7   COSTS TO BE REIMBURSED
§ 7.1 COST OF THE WORK
§ 7.1.1 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 than the standard paid at the place of the Project except with prior written consent of the Owner. The Cost of the Work shall include only the items set forth in this Article 7.

§ 7.1.2 The "Lump Sum General Conditions” shall include the following categories of Work as further described in Exhibit C: 

		
	•
	Wages or salaries of on-site personnel directly employed by the Contractor to supervise the Work at the site. Wages or salaries of supervisory and administrative personnel directly employed by the Contractor engaged in the performance of the Work and located at the Site or working off-Site but only for that portion of their time required for the Work 

		
	•
	Travel, accommodations and meals for Contractor’s personnel necessarily and directly incurred in connection with the performance of the Work.  

		
	•
	Travel to Owners office and other ADC’s sites as specifically described in Exhibit C.

		
	•
	Expenses incurred in accordance with the Contractor’s standard written personnel policy for relocation and temporary living allowance of the Contractor’s personnel required for the Work.

		
	•
	Reasonable costs of expenses incurred in operating, maintaining and demobilizing the Site office, including the cost of office furniture, telephones, internet, postage, express delivery charges, computing equipment, software, printing equipment, office supplies, photocopying and other miscellaneous expenses as detailed in Exhibit C. 

		
	•
	Accounting and data processing costs related to the Work, including the cost of information technologies support services, check processing charges and document archiving. 

		
	•
	On-site meeting expenses

		
	•
	Preparation and management of the Contractor’s loss prevention program including safety orientations for all site personnel and visitors, site safety signage, the cost for the Contractor’s sponsored safety incentive program for all project participants, and any required drug testing.  

		
	•
	Personal protective equipment including, hardhats, safety glasses, safety vests, gloves for Contractor’s employees and visitors to the Site.

		
	•
	Preparation and management of the Contractor’s quality control program.

		
	•
	Preparation and periodic update of the construction master project schedule.

		
	•
	Drug testing for Skanska employees

		
	•
	Temporary jobsite signage

		
	•
	Blue print reproduction

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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8

(1346722099)

The Lump Sum General Conditions shall be adjusted as part of any adjustment of the Contract Sum due to changes, excused delays or other circumstances extending the Contract Time.  In such event, the lump sum amount for General Conditions shall be increased or decreased, as the case may be, by the additional or decreased General Conditions Costs incurred or saved by Contractor during the extended period, with the Schedule of Billable Rates attached hereto as Exhibit C being used to determine the supervisory and administrative personnel costs associated with the adjustment.    

Notwithstanding anything to the contrary in this Agreement, the Owner shall not be charged under any other provision of this Agreement for items covered under the Lump Sum General Conditions.  Where any open cost is subject to the Owner’s prior written approval, the Contractor shall obtain this approval prior to incurring the cost.  

§ 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 prior written approval, at off-site workshops are included in the Lump Sum General Conditions.

§ 7.2.2 Wages or salaries of the Contractor’s supervisory and administrative personnel when stationed at the site are included in the Lump Sum General Conditions.
(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 15, the personnel to be included, 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 are included in the Lump Sum General Conditions.

§ 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 Sections 7.2.1 through 7.2.3 are included in the Lump Sum General Conditions.

§ 7.2.5 Bonuses, profit sharing, incentive compensation and any other discretionary payments paid to anyone hired by the Contractor or paid to any Subcontractor or vendor, with the Owner’s prior written approval.

§ 7.3 SUBCONTRACT COSTS
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 Section 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 of transportation, 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 fully consumed in the performance of the Work. Costs of materials, supplies, temporary facilities, machinery, equipment and tools that are not fully consumed shall be based on the cost or value of the item at the time it is first used on the Project site less the value of the item when it is no longer used at the Project site. Costs for items not fully consumed by the Contractor shall mean fair market value.

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
User Notes:                                                                                                                                                                                                                                                                       

  
9

(1346722099)

§ 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 and costs of transportation, installation, minor repairs, dismantling and removal. The total rental cost of any Contractor-owned item may not exceed the purchase price of any comparable item. Rates of Contractor-owned equipment and quantities of equipment shall be subject to the Owner’s prior written approval.

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

§ 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 are included in the Lump Sum General Conditions.

§ 7.5.5 Costs of materials and equipment suitably stored off the site at a mutually acceptable location, subject to the Owner’s prior written approval.

§ 7.6 MISCELLANEOUS COSTS
§ 7.6.1 Contractor’s Controlled Insurance Program shall be charged at 1.89–% of the Cost of Work(excluding the insurance and SubGuard costs set forth in this Section).  Contractor’s Builder’s Risk Insurance shall be charged at 0.8% of the Cost of Work (excluding the insurance and SubGuard costs set forth in this Section).  SubGuard shall be charged at 0.9% of the Cost of Work (excluding the (i) Cost of Work for each contract of $250,000.00 or less with any Subcontractor or supplier, and (ii) insurance and SubGuard costs set forth in this Section).  

§ 7.6.2 Sales, use or similar taxes imposed by a governmental authority that are related to the Work and for which the Contractor is liable.

§ 7.6.3 Fees and assessments for permits (other than the building permit which Owner will obtain), licenses and inspections for which the Contractor is required by the Contract Documents to pay.

§ 7.6.4 Fees of laboratories for tests required by the Contract Documents, except those related to defective or nonconforming Work for which reimbursement is excluded by Section 13.5.3 of AIA Document A201–2007 or by other provisions of the Contract Documents, and which do not fall within the scope of Section 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 Section 3.17 of AIA Document A201–2007 or other provisions of the Contract Documents, then they shall not be included in the Cost of the Work.

§ 7.6.6  Intentionally Deleted.

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

§ 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 after the execution of this Agreement in the performance of the Work with the Owner’s prior approval, which shall not be unreasonably withheld.

§ 7.6.9 Subject to the Owner’s prior written approval, reasonable, out-of-pocket expenses incurred in accordance with the Contractor’s standard written personnel policy for relocation and temporary living allowances of the Contractor’s personnel required for the Work.

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
User Notes:                                                                                                                                                                                                                                                                       

  
10

(1346722099)

§ 7.6.10 That portion of the reasonable, out-of-pocket expenses of the Contractor’s supervisory or administrative personnel incurred while traveling in discharge of duties connected with, and necessary for, the Work.  Such expenses shall be subject to Owner’s prior written approval.

§ 7.7 OTHER COSTS AND EMERGENCIES
§ 7.7.1 Other reasonable, out-of-pocket 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 incurred in taking action to prevent threatened damage, injury or loss in case of an emergency affecting the safety of persons and property, as provided in Section 10.4 of AIA Document A201–2007 (not caused by the negligence or willful misconduct of Contractor and/or its Subcontractors of any tier).

§ 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 or its Subcontractor and only to the extent that the cost of repair or correction is not recovered by the Contractor from insurance, sureties, Subcontractors, suppliers, or others.

§ 7.8 RELATED PARTY TRANSACTIONS
§ 7.8.1 For purposes of Section 7.8, the term “related party” shall mean a parent, subsidiary, affiliate or other entity having common ownership or management with the Contractor; any entity in which any stockholder in, or management employee of, the Contractor owns any interest in excess of ten percent in the aggregate; or any person or entity which has the right to control the business or affairs of the Contractor. The term “related party” includes any member of the immediate family of any person identified above.

§ 7.8.2 If any of the costs to be reimbursed arise from a transaction between the Contractor and a related party, the Contractor shall notify the Owner in writing of the specific nature of the contemplated transaction, including the identity of the related party and the anticipated cost to be incurred, before any such transaction is consummated or cost incurred. If the Owner, after such written notification, authorizes the proposed transaction, then the cost incurred shall be included as a cost to be reimbursed, and the Contractor shall procure the Work, equipment, goods or service from the related party, as a Subcontractor, according to the terms of Article 10. If the Owner fails to authorize the transaction, in writing, the Contractor shall procure the Work, equipment, goods or service from some person or entity other than a related party according to the terms of Article 10.

ARTICLE 8   COSTS NOT TO BE REIMBURSED
§ 8.1 The Cost of the Work shall not include the items listed below:
		
	.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 Section 7.2. or as may be expressly provided in Article 15;

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

		
	.3
	Overhead and general expenses, except as may be expressly included in Article 7;

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

		
	.5
	Except as provided in Section 7.7.3 of this Agreement, costs due to the negligence or failure 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 to fulfill a specific responsibility of the Contract;

		
	.6
	Any cost not specifically and expressly described in Article 7; 

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

		
	.8
	Any cost that is counted more than once (e.g., an item that is part of the General Condition Items may not also be counted as part of the other Cost of Work);

		
	.9
	Amounts required to be paid by Contractor for federal, state or local income or franchise taxes;

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
User Notes:                                                                                                                                                                                                                                                                       

  
11

(1346722099)

		
	.10
	Unless otherwise agreed by Owner in writing, any acceleration costs, including any and all overtime wages, arising as a result of delay in carrying out the Work caused by Contractor or its Subcontractors of any tier; 

		
	.11
	Any costs or expenses in connection with any indemnity provided by Contractor pursuant to the Contract Documents;

		
	.12
	Costs associated with Contractor’s failure to obtain any and all applicable permits for which Contractor is responsible in a timely manner, as more fully described in the General Conditions; and

		
	.13
	The costs incurred by Contractor resulting from the failure of Contractor or its Subcontractors to coordinate their work with the work of Owner and its contractors, if any, or otherwise to fail to comply with written directives of Owner not in conflict with the Schedule.

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 and received payment 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 obtained.

§ 9.2 Amounts that accrue to the Owner in accordance with the provisions of Section 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 from whom, or entities from which, the Contractor shall obtain bids.  For each trade, Contractor shall obtain at least three (3) 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 When a specific bidder (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. If the Subcontract is awarded on a cost-plus a fee basis, the Contractor shall provide in the Subcontract for the Owner to receive the same audit rights with regard to the Subcontractor as the Owner receives with regard to the Contractor in Article 11, below.

ARTICLE 11   ACCOUNTING RECORDS
The Contractor shall keep full and detailed records and accounts related to the cost of the Work and exercise such controls as may be necessary for proper financial management under this Contract and to substantiate all costs incurred. The accounting and control systems shall be satisfactory to the Owner. The Owner and the Owner’s auditors shall, during regular business hours and upon reasonable notice, be afforded access to, and shall be permitted to audit and copy, the Contractor’s records and accounts, including complete documentation supporting accounting entries, books, correspondence, instructions, drawings, receipts, subcontracts, Subcontractor’s proposals, purchase orders, vouchers, memoranda and other data relating to this Contract.  Owner agrees that the lump sum amounts, rates, multipliers and other fixed percentages and amounts to which it has agreed in writing that Contractor may charge as a Cost of the Work are subject to Owner’s audit rights only for Owner to confirm that such rates, 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
User Notes:                                                                                                                                                                                                                                                                       

  
12

(1346722099)

quantities, hours, multipliers, percentages or amounts have been charged by Contractor in accordance with this Agreement, and that the composition of such rates, multipliers, percentages or amounts are not subject to audit by the Owner. The Contractor shall preserve these records for a period of three years after final payment, or for such longer period as may be required by law.

ARTICLE 12   PAYMENTS
§ 12.1 PROGRESS PAYMENTS
§ 12.1.1 Based upon monthly Applications for Payment submitted to the Architect, Project Manager and Owner by the Contractor, including any supporting documentation reasonably required by Owner and Certificates for Payment issued by the Architect, the Owner shall make progress payments on account of the Contract Sum to the Contractor as provided below and elsewhere in the Contract Documents.

§ 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:

On or before the twentieth (20th) day of the calendar month covered by an Application for Payment, the Owner (or its representative or Project Manager) and the Contractor shall meet to review a preliminary draft of the Application for Payment for such month (hereinafter referred to as a "Pencil Draw") prepared by the Contractor, which Pencil Draw shall be consistent with the requirements of the Contract Documents.  The Contractor shall promptly revise the Pencil Draw in accordance with any objection or recommendation of the Owner that is consistent with the requirements of the Contract Documents.  On or before the twenty-first (21st) day of such calendar month covered by an Application for Payment (or, if such day is not a business day, then the next succeeding business day), the Contractor and Owner shall walk the job to determine whether modification to the Pencil Draw should be made.  A final Pencil Draw shall then be submitted by the Contractor to the Owner as the Application for Payment for such month, which is due by the first (1st) day of the month immediately following the month in which the Pencil Draw was first submitted.  

§ 12.1.3 Provided that a complete Application for Payment is received by the Architect and the Owner, not later than the1st day of a month, the Owner shall make payment of the certified amount to the Contractor not later than the1st day of the following month. If an Application for Payment is received by the Architect after the application date fixed above, payment shall be made by the Owner not later than thirty (30) days after the Owner receives the Application for Payment, or such lesser time as is required by Arizona law.
(Federal, state or local laws may require payment within a certain period of time.)

§ 12.1.4 With each Application for Payment, the Contractor shall submit any evidence reasonably 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 present Application for Payment.  Further, with each Application for Payment, Contractor shall certify to Owner that except for claims previously submitted in writing, as of the date of each Application for Payment, Contractor has no claims for an increase in the Guaranteed Maximum Price.

§ 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 Owner and Architect may require. This schedule, unless objected to by the Owner or 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) 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
User Notes:                                                                                                                                                                                                                                                                       

  
13

(1346722099)

the share of the Guaranteed Maximum Price allocated to that portion of the Work. The Contractor shall ensure that each Application for Payment is accompanied by the following items:  (a) certification by the Contractor that the Work for which payment is being sought has been completed in accordance with the Contract Documents and all applicable permits; (b) a conditional waiver and release of lien upon progress payment that complies with the Arizona statutory waiver form, ARS § 33-1008, for the Contractor, each Subcontractor and each Sub-Subcontractor for which payment is being sought in the total amount of the progress payment being requested; (c) an unconditional waiver and release of lien upon progress payment that complies with the Arizona statutory waiver form, ARS § 33-1008 for the Contractor with respect to all Work previously billed and paid through the preceding Application for Payment; (d) an unconditional waiver and release of lien upon progress payment that complies with the Arizona statutory waiver form, ARS § 33-1008, for each Subcontractor and Sub-Subcontractor with respect to all Work previously billed and paid through the preceding Application for Payment; and (e) a log of all Change Orders and other Modifications issued through the date of the Application for Payment.

§ 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, less retainage of ten percent (10%).  Pending final determination of cost to the Owner of changes in the Work, amounts not in dispute shall be included as provided in Section 7.3.9 of the General Conditions;

		
	.2
	Add that portion of the Guaranteed Maximum Price properly allocable to materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work, or if approved in advance by the Owner, suitably stored off the site at a location agreed upon in writing, less retainage of five percent (5%);

		
	.3
	Add the Contractor’s Fee, less retainage of zero  percent ( 0 %).The Contractor’s Fee shall be computed upon the Cost of the Work at the rate stated in Section 5.1.1 or, if the Contractor’s Fee is stated as a fixed sum in that Section, shall be an amount that bears the same ratio to that fixed-sum fee as the Cost of the Work bears to a reasonable estimate of the probable Cost of the Work upon its completion;

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

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

		
	.6
	Subtract amounts, if any, for which the Architect (or Owner) has withheld or nullified a Certificate for Payment as provided in Section 9.5 of the General Conditions and as allowed by the Arizona Prompt Pay Act, § 32-1129.01 et seq., if applicable.

§ 12.1.8 The Owner and the Contractor shall agree upon a (1) mutually acceptable procedure for review and approval of payments to Subcontractors and (2) the percentage of retainage held on Subcontracts, and the Contractor shall execute subcontracts in accordance with those agreements. At Substantial Completion all retainage shall be released to Contractor less fifty percent (50%) of such retainage.

§ 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 Section 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 auditors acting in the sole interest of the Owner.

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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14

(1346722099)

§ 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 within thirty (30) days or such lesser time as is required by Arizona law.  
		
	.1
	the Contractor has fully performed the Contract (including all Punch List work) except for the Contractor’s responsibility to correct Work as provided in Section 12.2.2 of the General Conditions, and to satisfy other requirements, if any, which extend beyond final payment;

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

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

		
	.4
	a Temporary Certificate of Occupancy has been issued by the appropriate governmental agencies or all governmental sign-offs for Work; and

		
	.5
	a Conditional Waiver and Release of Lien Upon Final Payment has been issued by Contractor and all of its Subcontractors, materialmen, vendors and suppliers of all tiers.

Owner shall have no obligation to make final payment of the Contract Sum until Contractor has property served and recorded a Notice of Completion of all of the Work pursuant to applicable Arizona law.

§ 12.2.2  As a condition to Owner's obligation to pay Contractor the Final Payment, (a) final building inspections shall have been completed and sign-offs on building permits by the appropriate governmental agency shall have been delivered by Contractor to Owner, Architect and Project Manager, (b) the Project shall have been completed in accordance with the Contract Documents; (c) Contractor must have delivered to Owner and Project Manager a final certificate certifying Substantial Completion of the Project in accordance with the Contract Documents; and (d) as-built plans for the entire Project shall have been delivered to Owner in PDF and hard copy formats.

§ 12.2.3 If the Owner’s auditors 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 request mediation of the disputed amount without seeking an initial decision pursuant to Section 15.2 of A201–2007. A request for mediation shall be made by the Contractor within 30 days after the Contractor’s receipt of a copy of the Architect’s final Certificate for Payment. Failure to request mediation within this 30-day period shall result in the substantiated amount reported by the Owner’s auditors becoming binding on the Contractor. Pending a final resolution of the disputed amount, the Owner shall pay the Contractor the amount certified in the Architect’s final Certificate for Payment.

§ 12.2.4   The Owner’s final payment to the Contractor shall be made no later than thirty (30) days after the issuance of the Architect’s final Certificate for Payment and satisfaction of all other requirements under Sections 12.2.1 and 12.2.2.  

§ 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, 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 Section 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   DISPUTE RESOLUTION
§ 13.1 INITIAL DECISION MAKER
The Architect will serve as Initial Decision Maker pursuant to Section 15.2 of AIA Document A201–2007, unless the parties appoint below another individual, not a party to the Agreement, to serve as Initial Decision Maker.
(If the parties mutually agree, insert the name, address and other contact information of the Initial Decision Maker, if other than the Architect.)

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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15

(1346722099)

§ 13.2 BINDING DISPUTE RESOLUTION
For any Claim subject to, but not resolved by mediation pursuant to Section 15.3 of AIA Document A201–2007, the method of binding dispute resolution shall be as follows:
(Check the appropriate box. If the Owner and Contractor do not select a method of binding dispute resolution below, or do not subsequently agree in writing to a binding dispute resolution method other than litigation, Claims will be resolved by litigation in a court of competent jurisdiction.)

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

	 
	 
	 
	 
	 

	[
	 
	]
	 
	Litigation in a court of competent jurisdiction

	 
	 
	 
	 
	 

	[
	 
	]
	 
	Other (Specify)

	 
	 
	 
	 
	 

ARTICLE 14   TERMINATION OR SUSPENSION
§ 14.1 Subject to the provisions of Section 14.2 below, the Contract may be terminated by the Owner or the Contractor as provided in Article 14 of AIA Document A201–2007.

§ 14.2 If the Owner terminates the Contract for cause as provided in Article 14 of AIA Document A201–2007, the amount, if any, to be paid to the Contractor under Section 14.2.4 of AIA Document A201–2007 shall not cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed an amount calculated as follows:
		
	.1
	Take the Cost of the Work incurred by the Contractor to the date of termination;

		
	.2
	Add the Contractor’s Fee computed upon the Cost of the Work to the date of termination at the rate stated in Section 5.1.1 or, if the Contractor’s Fee is stated as a fixed sum in that Section, an amount that bears the same ratio to that fixed-sum Fee as the Cost of the Work at the time of termination bears to a reasonable estimate of the probable Cost of the Work upon its completion; and

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

§ 14.3 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 Section 14.2.1. 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 14, 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.

§ 14.4 The Work may be suspended by the Owner as provided in Article 14 of AIA Document A201–2007; in such case, the Guaranteed Maximum Price and Contract Time shall be increased as provided in Section 14.3.2 of AIA Document A201–2007, except that the term “profit” shall be understood to mean the Contractor’s Fee as described in Sections 5.1.1 and Section 6.4 of this Agreement.

ARTICLE 15   MISCELLANEOUS PROVISIONS
§ 15.1 Where reference is made in this Agreement to a provision of AIA Document A201–2007 or another Contract Document, the reference refers to that provision as amended or supplemented by other provisions of the Contract Documents.

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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16

(1346722099)

§ 15.2 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.)

   % 

§ 15.3 The Owner’s representative:
(Name, address and other information)

Gary Ghio
G2 Facilities Management Consulting

Telephone:
Email:

Unless and until Owner notifies Contractor to the contrary or otherwise provides Contractor with different instructions, Gary Ghio is hereby designated by Owner as its authorized representative to make decisions for, and receive information on behalf of, Owner in connection with the Work, provided, however, all written notices required to Owner under the Contract Documents shall also be given to Owner at its address on Page 1 of this Agreement and to the following:  Dexcom, 6340 Sequence Drive, San Diego, CA 92121, Attn: Timothy F. O’Brien, Director Legal Affairs.  In addition, all submissions or notices made by Contractor to the Architect shall simultaneously be made to Owner’s representative.

§ 15.4 The Contractor’s representative:
(Name, address and other information)

Kevin E. Devlin, Project Executive
Skanska USA Building Inc.
4742 N. 24th Street, Suite 165
Phoenix, AZ 85016
Mobile: 1 787 466 8204 Kevin.Devlin@skanska.com

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

§ 15.6 Other provisions.

§ 15.6.1  Contractor covenants that all the Work shall be done in a good and workmanlike manner and that all materials furnished and used in connection therewith shall be new and meet the criteria provided in the Contract Documents.  Contractor shall cause all materials and other parts of the Work to be readily available as and when required or needed for or in connection with the construction of the Project. 

§ 15.6.2  In performing its obligations under this Agreement, the Contractor shall be deemed an independent contractor and not an agent or employee of the Owner.

§ 15.6.3  Contractor agrees to make such revisions to this Agreement as may be reasonably required by Owner’s construction lender, if any, and Contractor agrees to comply with customary requirements of construction and permanent lenders which may be reasonably imposed as a condition to payments due under this Agreement.  Contractor further agrees to execute a mutually agreed upon consent of the Owner’s assignment of this Agreement to Owner’s lender within ten (10) days following a request therefor on such form as the lender may reasonably require.

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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17

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§ 15.6.4  If any term, covenant or condition of the Contract Documents, or the application thereof to any persons or circumstance shall to any extent be invalid or unenforceable, then the remainder of the Contract Documents or the application of the term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term, covenant and condition of the Contract Documents shall be valid and enforceable to the fullest extent permitted by law.

§ 15.6.5  Owner may designate from time to time by written notice to Contractor one or more Owner’s representatives or other parties to deal with Contractor on matters pertaining to administration of the provisions of the Contract Documents.  However, only those signatories designated in writing by Owner shall have the authority to approve Change Orders increasing or decreasing the Guaranteed Maximum Price or extending the Contract Time.

§ 15.6.6  The parties agree and declare that Contractor and Owner are separate and independent entities and that Contractor has full responsibility for performance of Work and direction of the work force, subject to and under the duty of Contractor to cooperate with Owner and other contractors. Contractor recognizes that in the performance of its Work it will be required to work side by side with other contractors and representatives of Owner on the job site.  Owner, Contractor and /or other contractors may or may not be signatory to collective bargaining agreements of the various labor organizations. Contractor agrees that should there be picketing or a threat of picketing by any labor organization at or near the site, (i) Contractor shall immediately notify Owner in writing of such circumstances and (ii) Owner may establish or require Contractor to establish a reserve gate system and may require Contractor’s and Owner’s employees, suppliers and subcontractors to use one or more designated gates. In that event, it shall be the affirmative obligation of Contractor as a material consideration of this Agreement to ensure that its employees, suppliers and Subcontractors use only the gate(s) or other entry way(s) so designated.  Notwithstanding the establishment or non-establishment of a reserve gate system, it shall be the continuing obligation of Contractor (and its Subcontractors) to properly staff the job with qualified and skilled workmen and employees without interruption or delay and without any increase to the Guaranteed Maximum Price.  Contractor agrees to cooperate fully and promptly with Owner and its representatives and attorneys with respect to any labor dispute that should arise on the site, including but not limited to the giving of testimony and evidence to the agent or judge of the National Labor Relations Board or in connection with proceedings in State or Federal court.  Contractor agrees to undertake or cause to be undertaken in a prompt and expeditious manner, all action involved to resolve and/or minimize the consequences of any labor dispute that should arise on the site.  Contractor hereby warrants that it is not now nor will Contractor be delinquent in the payment or reporting to any labor management benefit trust fund and further warrants that Contractor is not now nor will Contractor appear on any delinquency list published by any labor management benefit trust fund.  Contractor indemnifies, defends and holds Owner entirely harmless from and against all costs, claims, liabilities, damages, delays, losses and expenses (including attorneys’ fees and costs) arising directly or indirectly from Contractor’s failure to comply with the provisions of this Section 15.6.6.

§ 15.6.7  The Contractor and Owner entered into that certain Nondisclosure Agreement dated as of November 19, 2015 (“NDA”) in order to protect certain confidential information of Owner, as further set forth in the NDA.  Contractor and Owner hereby incorporate the terms, provisions and obligations of the NDA in this Agreement.

ARTICLE 16   ENUMERATION OF CONTRACT DOCUMENTS
§ 16.1 The Contract Documents, except for Modifications issued after execution of this Agreement, are enumerated in the sections below.

§ 16.1.1 The Agreement is this executed AIA Document A102–2007, Standard Form of Agreement Between Owner and Contractor.

§ 16.1.2 The General Conditions (as modified) are attached hereto as Exhibit C.

§ 16.1.3 The Supplementary and other Conditions of the Contract:

	
				
	Document
	Title
	Date
	Pages

	 
	 
	 
	 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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§ 16.1.4 The Specifications:
(Either list the Specifications here or refer to an exhibit attached to this Agreement.)
See list of Exhibits at 16.1.7.2. 

	
				
	Section
	Title
	Date
	Pages

	 
	 
	 
	 

§ 16.1.5 The Drawings:
(Either list the Drawings here or refer to an exhibit attached to this Agreement.)
See list of Exhibits at 16.1.7.2.   

	
			
	Number
	Title
	Date

	 
	 
	 

§ 16.1.6 The Addenda, if any:

	
			
	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 16.

§ 16.1.7 Additional documents, if any, forming part of the Contract Documents:
		
	.1
	AIA Document E201TM–2007, Digital Data Protocol Exhibit, if completed by the parties, or the following:

		
	.2
	Other documents, if any, listed below:

Exhibit A – Approval Letter
Exhibit B  Clarifications and Assumptions to GMP
Exhibit C – Lump Sum General Conditions & Schedule of Billable Rates
Exhibit D – Drawings
Exhibit E – Specifications
Exhibit F – CCIP Insurance Exhibit

ARTICLE 17   INSURANCE AND BONDS
 
§ 17.1.1 Contractor Controlled Insurance Program.  Contractor will satisfy the requirements of Section 11.1.1 of the General Conditions through a project specific Contractor Controlled Insurance Program (“CCIP”) as described in Exhibit F, which will afford similar coverage for the Subcontractors, in the minimum coverage amounts set forth below in this Article 17, with insurance written on an occurrence basis purchased from and maintained in a company or companies which have a Best’s Rating of “A/VIII” or above and which are lawfully authorized to do business in the State of Arizona.  The program will be administered through the Contractor and will be billed at the value set forth in the A102 Agreement, and will be included on all change orders though Final Completion.  The Contractor is responsible for all deductibles.  The CCIP will include coverage for completed operations through the statute of repose for the State of Arizona.  The Owner, Contractor and all tiers of Subcontractors that enter the Project site are 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
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19

(1346722099)

expected to be covered, except structural demolition and abatement Subcontractors, if there are any.  Any instances where work is contracted by the Owner directly (other than with Contractor) or with separate contractors are not covered by the CCIP.  The Owner is required to obtain insurance from those parties, if any.

No cost saving have been guaranteed to Owner by Contractor and Contractor is not responsible for deducts in regard to any accounting for the CCIP.  

§ 17.1.1.1 Workers’ Compensation
Coverage A.  Statutory Benefits
Coverage B.  Employers Liability

Bodily injury by accident:              $2,000,000 each accident
Bodily injury by disease:                  $2,000,000 policy limit
Bodily injury by disease:                $2,000,000 each employee

§ 17.1.1.2 Commercial General Liability
Commercial General Liability coverage (equivalent in coverage to ISO Form CG 00 01 with an edition date of at least 11/88) of not less than:

Each Occurrence Limit:                        $2,000,000
Personal Advertising Injury Limit:                    $2,000,000
Products/Completed Operations Aggregate Limit:            $4,000,000
General Aggregate Limit (other than Products/Completed Operations    $4,000,000

§ 17.1.1.3 Excess Liability Umbrella
Excess Liability or Umbrella coverage of not less than and including all above liability policies in the underlying.

Each Occurrence                            $25,000,000
General Aggregate                        $25,000,000

ALL OF 17.1 SUBJECT TO SKANSKA RISK MANAGEMENT REVIEW
§ 17.2 INSURANCE REQUIRED OF THE OWNER
The Owner shall purchase and maintain liability insurance, including waivers of subrogation, as set forth in Sections 11.2 of the General Conditions. 
This Agreement entered into as of the day and year first written above.

	
			
	 
	 
	 

	THE OWNER 
DexCom, Inc. 
a Delaware corporation

s/ Jess Roper

By:    Jess Roper
Its:     CFO
Date:  4/29/16

	 
	THE CONTRACTOR 
Skanska USA Building Inc.

s/ Ross A Vroman

By:     Ross A. Vroman
Its:      Area General Manager, EVP
Date:  5/2/16

	 
	 
	 

	
	
	AIA Document A102TM - 2007 (formerly A111TM - 1997). Copyright © 1920, 1925, 1951, 1958, 1961, 1963, 1967, 1974, 1978, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 13:15:24 on 01/04/2016 under Order No.3294902806_1 which expires on 12/13/2016, and is not for resale.
User Notes:                                                                                                                                                                                                                                                                       

  
20

(1346722099)

	 

 EXHIBIT A 

APPROVAL LETTER 
  
 

 
 AWARD APPROVAL LETTER NO. 014 

May 16, 2016 
 DexCom 

6340 Sequence Drive 
 San Diego, CA 92121    m

  

					
	 Attention:
 Project:
	  	 Gary Ghio
 DexCom Phoenix –
Phase One
 Phoenix, AZ

		
	Subject:	  	Subcontractor /Vendor Award Recommendation
		  	Bid Package No.:	  	4415014-012
		  	Trade:	  	Fire Sprinkler System
		  	Subcontractor:	  	Fire Protection Systems
		  	Award Amount:	  	$832,500

 In accordance with the Agreement, we submit as follows our Bid Package Report and Award recommendation for the above
Subcontract. We have included the final bid leveling sheet detailing the costs proposals provided. The award to Fire PS was based on the price, availability and schedule to complete the Fire Sprinkler scope items. 

Note, as directed by DexCom, this Approval Letter includes the design and installation of the sprinkler system. If the supply of materials and
install is wanted at a later date, an official AL will need to be signed. 
 Attached is the bid leveling sheet and proposals issued previously on January
08th, 2016 from the fire sprinkler bidders for your reference. Fire alarm, wiring of equipment, permits have been excluded. Also excluded are sprinklers under the equipment platform. Proposals are
based off of the 10/22/15 drawings and specifications. 
  

	1.0	Bid Submission Results and Analysis: 

  

					
	 Vendor:
	  	Firetrol Protection Systems	 
	 Fire PS
	  	$	832,500	  
	 Olympic
	  	$	880,028	  
	 Aero
	  	$	954,650	  
	 American
	  	$	968,200	  

  

	2.0	Pricing Details: 

  

	 	a)	Included/Excluded in the amount of this award is ALLOWANCE/Alternates: 

  

	 	1.	EXCLUDED ALLOWANCE – Fire/Jockey Pumps/Control Panel $205,000 

  

	 	2.	EXCLUDED ALLOWANCE – Sprinkler System under Equipment Platform per Fire Marshall $140,000 

  

	 	3.	EXCLUDED Alternate – Nitrogen Gen System $49,385 plus Skanska’s Markups 

  

	 	4.	EXCLUDED Alternate – Credit to not remove the underground ductile pipe noted on FP-101A and cap riser with blind flange at riser stub up. ($17,000) 

  
 Exhibit A - Approval Letter - Fire
Sprinkler System 1 

  

					
		 	Exhibit A	 	Page 1

 

 
  

 b) Recommended amount of this award. (Please refer to attached Bid Leveling Documentation for additional
breakdown.) 
 As directed by DexCom, the price below only includes the design costs associated to the fire sprinkler system. 

 

									
	 Fire PS (Design Only)
	  				 	$	45,000	  
	 CCIP
	  	 	1.88	% 	 	$	846.00	  
	 Subguard
	  	 	0.90	% 	 	$	405.00	  
	 Builders Risk
	  	 	1.25	% 	 	$	563.00	  
	 Skanska - Fee
	  	 	3.25	% 	 	$	1,521.00	  
	 TAX
	  				 	 	EXCLUDED	  
		  	 	Total:	  	 	$	48,335.00	  

 As issued previously, the complete system for the fire sprinkler system for design, supply and install is as follows: 

 

									
	 Fire PS
	  				 	$	832,500	  
	 CCIP
	  	 	1.88	% 	 	$	15,651.00	  
	 Subguard
	  	 	0.90	% 	 	$	7,493.00	  
	 Builders Risk
	  	 	1.25	% 	 	$	10,406.00	  
	 Skanska - Fee
	  	 	3.25	% 	 	$	28,147.00	  
	 TAX
	  				 	 	EXCLUDED	  
		  	 	Total:	  	 	$	894,197.00	  

  

	**	Note: Taxes have been excluded from this AL. A specific AL for taxes will be issued if taxes are ever to be included. 

  

	3.0	Alternates. The Award Recommendation amount includes the following alternates (as noted above): 

  

	 	x	The Award Recommendation amount does not incorporate any alternates 

 OR 

 

	 	 ̈	The Award Recommendation amount includes the following alternates/allowances: 

  

	 	5.	EXCLUDED ALLOWANCE – Fire/Jockey Pumps/Control Panel $205,000 

 Please refer to
attached Bid Leveling Documentation for additional breakdown: 
 We have evaluated the Sub-contractors proposal, and have determined that the
Sub-contractor has included the full scope of work. Any deviations from the original drawings, specifications, bid package documents or subcontract documents are clearly delineated in the revised scope of work which shall become part of the
subcontract documents. The following documents shall be incorporated into the subcontract documents: 
  

					
	 A
	  	 CM’s standard form of subcontract agreement with no changes
	  	
			
	 B
	  	 CM’s project schedule dated
	  	 N/A

			
	 C
	  	 Site Logistics Plan dated
	  	 N/A

			
	 D
	  	 Issue for Construction specifications dated
	  	 10/22/2015

			
	 E
	  	 Pre-Bid Meeting Minutes dated
	  	 Dec. 2015

			
	 F
	  	 Meeting minutes from Scope review meeting dated
	  	 N/A

			
	 G
	  	 Bid Addendum (a) No(s). 2
	  	 Dated

			
	 H
	  	 Other items as appropriate
	  	

  
 Exhibit A - Approval Letter - Fire
Sprinkler System 2 

  

					
		 	Exhibit A	 	Page 2

 

 
  

	4.0	Schedule. We have reviewed the subcontractor’s proposal, and proposed execution of the scope, and confirm that the subcontractor will work to the Project Schedule as defined in the Contract Documents. Please note
key schedule dates/durations: 

  

	5.0	M/WBE Participation. 

 The recommended Contractor is not a M/WBE and has submitted a
M/WBE utilization plan, which lists 0% Dollars ($0) of M/WBE participation. 
 We hereby recommend that the award of this sub-contract
is made to Fire PS for the purchase order price of: 
  

									
	 Forty Eight Thousand Three Hundred Thirty Five
	  	$	48,335.00	  	  	 	Dollars	  

  
 In making this
recommendation, we have carried out certain checks and procedures to satisfy ourselves as to the present capability of (Firetrol) to perform the sub-contract work; details of these are given on the attached Bid Recording Sheet. 

If you are in agreement with the above recommendation, please sign where indicated below and return one signed copy of this letter authorizing us to award the
subcontract. Upon receipt of this signed approval letter we will incorporate the committed sub-contract price and pending items into our next Anticipated Cost Report. 
  

					
	Sincerely,	 	DexCom
		 	 
	 Todd Kadjan
 Project Manager
	 	Approved By:	  	  

		 	 
		 	Date:	  	  

	 Cc:   Kevin Devlin, Skanska USA Building

 Ian Miles, Aligned Energy
	 	 	  	 

  
 Exhibit A - Approval Letter - Fire
Sprinkler System 3 

  

					
		 	Exhibit A	 	Page 3

 EXHIBIT B 

CLARIFICATIONS AND ASSUMPTIONS TO GMP 
  

 
 Exhibit B 
 GMP Assumptions
& Clarifications 
  

	 	-	N/A – to be issued when GMP is established 

  

					
		 	Exhibit B	 	Page 1

 EXHIBIT C 

LUMP SUM GENERAL CONDITIONS & SCHEDULE OF BILLABLE RATES 
  

 
 EXHIBIT “C” 

SCHEDULE OF BILLABLE RATES 
  

					
	 Project Executive
	  	$	135/hr	  
	 Project Manager
	  	$	100/hr	  
	 Superintendent
	  	$	110/hr	  
	 Preconstruction Director
	  	$	100/hr	  
	 MEP Coordinator
	  	$	135/hr	  
	 Mechanical Estimator
	  	$	100/hr	  
	 C/S/A Estimator
	  	$	100/hr	  
	 Electrical Estimator
	  	$	100/hr	  
	 Accounting
	  	$	70/hr	  
	 Director of Accounting
	  	$	80/hr	  

  

					
		  	Page 1 of 1	  	
	 Alternates, Unit Prices, and Labor Rates

(05/2009 ed. Rev. 1)
	  		  	

  

					
		 	Exhibit C	 	Page 1

 EXHIBIT C 
  

 
 DEXCOM Preconstruction & Construction General Conditions, General Requirements & Closeout, Start-up &
Commission Support 
  

																																																																													
	Description	 	 	 	 	 	 	 	 	 	 	2016	 
	 	 	 	 	 	 	 	 	 	 	 	Jan	 	 	Feb	 	 	Mar	 	 	Apr	 	 	May	 	 	Jun	 	 	Jul	 	 	Aug	 	 	Sep	 	 	Oct	 	 	Nov	 	 	Dec	 	 	Jan	 	 	Feb	 	 	Mar	 	 	Apr	 
	 Preconstruction GC’s
	 	 	Rate	  	 	 	Unit	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Mechanical Estimator
	 	$	100.00	  	 	 	hour	  	 				 	 	70	  	 	 	40	  	 	 	40	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 C/S/A Estimator
	 	$	100.00	  	 	 	hour	  	 				 	 	30	  	 	 	30	  	 	 	20	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Electrical Estimator
	 	$	100.00	  	 	 	hour	  	 				 	 	30	  	 	 	30	  	 	 	20	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Admin
	 	$	55.00	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Accountant
	 	$	70.00	  	 	 	hour	  	 				 	 	8	  	 	 	8	  	 	 	8	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Director of accounting
	 	$	80.00	  	 	 	hour	  	 				 	 	4	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 IT
	 	$	45.00	  	 	 	hour	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 VDC Budget
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 VDC Director
	 	$	110.00	  	 	 	Hour	  	 				 	 	19	  	 	 	5	  	 	 	5	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 VDC Manager
	 	$	75.00	  	 	 	Hour	  	 				 	 	20	  	 	 	20	  	 	 	20	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 VDC travel
	 	$	1,100.00	  	 	 	Per Trip	  	 				 	 	1	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
																				
	 General travel to SAN (single day)
	 	$	600.00	  	 	 	Per Trip	  	 				 	 	10	  	 	 	5	  	 	 	5	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 General travel to SAN (with overnight)
	 	$	1,100.00	  	 	 	Per Trip	  	 				 	 	7	  	 	 	5	  	 	 	5	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Meeting Expenses
	 	$	750.00	  	 	 	ea	  	 				 	 	2	  	 	 	2	  	 	 	2	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Blueprints
	 	$	250.00	  	 	 	per month	  	 				 	 	2	  	 	 	2	  	 	 	2	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 FEDEX
	 	$	175.00	  	 	 	per month	  	 				 	 	1	  	 	 	1	  	 	 	1	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Project Management Software
	 	$	150.00	  	 	 	ea	  	 				 	 	2	  	 	 	2	  	 	 	2	  	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Construction GC’s
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Project Executive
	 	$	135.00	  	 	 	hour	  	 				 				 				 				 				 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  	 	 	70	  
	 Project Manager
	 	$	100.00	  	 	 	hour	  	 				 				 				 				 				 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  
	 Project Engineer
	 	$	85.00	  	 	 	hour	  	 				 				 				 				 				 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  
	 Superintendent
	 	$	110.00	  	 	 	hour	  	 				 				 				 				 				 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  
	 Precon Dir/Coordination Specialist
	 	$	100.00	  	 	 	hour	  	 				 				 				 				 				 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  	 	 	40	  
	 Safety
	 	$	75.00	  	 	 	hour	  	 				 				 				 				 				 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  
	 QA/QC - TOP Manager
	 	$	75.00	  	 	 	hour	  	 				 				 				 				 				 	 	40	  	 	 	88	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	40	  
	 Admin
	 	$	55.00	  	 	 	hour	  	 				 				 				 				 				 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	175	  	 	 	155	  	 	 	20	  
	 Accountant
	 	$	70.00	  	 	 	hour	  	 				 				 				 				 				 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  	 	 	15	  
	 Director of accounting
	 	$	80.00	  	 	 	hour	  	 				 				 				 				 				 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  	 	 	5	  
	 IT
	 	$	 45.00	  	 	 	hour	  	 				 				 				 				 				 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  
																				
	 VDC Budget
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 VDC Director
	 	$	110.00	  	 	 	Hour	  	 				 				 				 				 				 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  	 	 	8	  
	 VDC Manager
	 	$	75.00	  	 	 	Hour	  	 				 				 				 				 				 	 	20	  	 	 	64	  	 	 	64	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  	 	 	20	  
	 VDC travel
	 	$	2,500.00	  	 	 	Per Trip	  	 				 				 				 				 				 	 	2	  	 				 				 				 				 				 				 				 				 				 				 			
																				
	 Check Processing
	 	$	175.00	  	 	 	per million	  	 	 	29	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Archiving
	 	$	135.00	  	 	 	per million	  	 	 	29	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Meeting Expenses
	 	$	750.00	  	 	 	ea	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 Legal Costs for Contract Nego
	 	$	5,000.00	  	 	 	LS	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Job Meetings
	 	$	150.00	  	 	 	per month	  	 				 				 				 				 				 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  
	 Blueprints
	 	$	250.00	  	 	 	per month	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 FEDEX
	 	$	175.00	  	 	 	per month	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 Water
	 	$	200.00	  	 	 	per month	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 VDC software license
	 	$	 950.00	  	 	 	per month	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 Project Management Software
	 	$	150.00	  	 	 	ea	  	 				 				 				 				 				 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  	 	 	3	  
	 Office Supplies
	 	$	200.00	  	 	 	per month	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 WIFI
	 	$	250.00	  	 	 	per month	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 Computers/Printers
	 	$	5,000.00	  	 	 	LS	  	 	 	2	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Owner Connectivity
	 	$	5,000.00	  	 	 	Is	  	 	 	1	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Prolog for 5 users
	 	$	350.00	  	 				 	 	5	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Safety Orientation
	 	$	50.00	  	 	 	ea	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 Hardhats
	 	$	50.00	  	 	 	ea	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 Safety Glasses
	 	$	50.00	  	 	 	ea	  	 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 OSHA PPE
	 	$	250.00	  	 	 	ea	  	 				 				 				 				 				 	 	1	  	 				 				 				 				 				 				 				 				 				 				 			
	 Safety Equipment
	 	$	150.00	  	 	 	ea	  	 				 				 				 				 				 				 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  	 	 	1	  
	 Fuel/Oil/Truck
	 	$	900.00	  	 	 	ea	  	 				 				 				 				 				 				 	 	2	  	 	 	2	  	 	 	2	  	 	 	2	  	 	 	2	  	 	 	2	  	 	 	2	  	 	 	2	  	 	 	2	  	 	 	2	  	 	 	2	  
	 GR’s - FROM GC’s
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Jobsite signage
	 	$	3,000.00	  	 	 	LS	  	 	 	1	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Office Furniture (In Existing Facility)
	 	$	15,000.00	  	 	 	LS	  	 	 	1	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Field Toilets
	 	$	350.00	  	 	 	ea	  	 				 				 				 				 				 	 	2	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  
	 Temporary Fencing (access control)
	 				 	 	LS	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Office Cleaning
	 	$	150.00	  	 	 	ea	  	 				 				 				 				 				 	 	2	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	4	  
																				
	 Permits
	 	 	By Owner	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Subguard
	 	 	0.90	% 	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Dumpsters - Below
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Laborer - Below
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 GR’s - FROM Logistics
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 General Conditions — Laborers
	 	 	32.50	  	 	 	HR	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Cleanroom Protocol — Consumables
	 	 	15,000.00	  	 	 	MO	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Final Clean — Cleanroom — 2ea
	 	 	3.00	  	 	 	SF	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Final Clean — Site
	 	 	25,000.00	  	 	 	LS	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 HEPA Filter — Replacement
	 	 	150.00	  	 	 	EA	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 SuperClean — Certification
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 General Requirements — Misc Equipment Dumpsters
	 	 	650.00	  	 	 	EA	  	 				 				 				 				 				 	 	2	  	 	 	4	  	 	 	4	  	 	 	4	  	 	 	6	  	 	 	6	  	 	 	6	  	 	 	6	  	 	 	6	  	 	 	6	  	 	 	6	  	 	 	4	  
																				
	 Start-up & Commission - FROM Logistics
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
																				
	 Closeout, Start-up, Functional Testing & Commissioning Support
	 	$	1.00	  	 	 	LS	  	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			
	 TOTALS
	 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 				 			

  

					
		 	Exhibit C	 	Page 2

																																																					
	Description	 	 	 	 	 	 	 	 	 	 	Total MH	 	 	Cost	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	=sum(D:P)	 	 	=T x B	 	 	Precon
Allowance	 	 	GC-Original	 	 	Re-Allocation
1-28-16	 	 	4-19-16	 	 	Logistics -
Original	 	 	Logistics -
Revised	 	 	General
Req. 1-28-16	 	 	General
Req. 4-19-16	 
	 Preconstruction GC’s
	 	 	Rate	  	 	 	Unit	  	 				 				 				 				 				 				 				 				 				 				 			
	 Mechanical Estimator
	 	$	100.00	  	 	 	hour	  	 				 	 	150	  	 	$	15,000.00	  	 	$	15,000.00	  	 				 				 				 				 				 				 			
	 C/S/A Estimator
	 	$	100.00	  	 	 	hour	  	 				 	 	80	  	 	$	 8,000.00	  	 	$	 8,000.00	  	 				 				 				 				 				 				 			
	 Electrical Estimator
	 	$	100.00	  	 	 	hour	  	 				 	 	80	  	 	$	8,000.00	  	 	$	8,000.00	  	 				 				 				 				 				 				 			
	 Admin
	 	$	55.00	  	 				 				 	 	0	  	 	$	—  	  	 	$	—  	  	 				 				 				 				 				 				 			
	 Accountant
	 	$	70.00	  	 	 	hour	  	 				 	 	24	  	 	$	1,680.00	  	 	$	1,680.00	  	 				 				 				 				 				 				 			
	 Director of accounting
	 	$	80.00	  	 	 	hour	  	 				 	 	4	  	 	$	320.00	  	 	$	320.00	  	 				 				 				 				 				 				 			
	 IT
	 	$	45.00	  	 	 	hour	  	 				 	 	0	  	 	$	—  	  	 	$	—  	  	 				 				 				 				 				 				 			
	 VDC Budget
	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 VDC Director
	 	$	110.00	  	 	 	Hour	  	 				 	 	29	  	 	$	3,190.00	  	 	$	3,190.00	  	 				 				 				 				 				 				 			
	 VDC Manager
	 	$	75.00	  	 	 	Hour	  	 				 	 	60	  	 	$	4,500.00	  	 	$	 4,500.00	  	 				 				 				 				 				 				 			
	 VDC travel
	 	$	1,100.00	  	 	 	Per Trip	  	 				 	 	1	  	 	$	1,100.00	  	 	$	1,100.00	  	 				 				 				 				 				 				 			
														
	 General travel to SAN (single day)
	 	$	600.00	  	 	 	Per Trip	  	 				 	 	20	  	 	$	12,000.00	  	 	$	12,000.00	  	 				 				 				 				 				 				 			
	 General travel to SAN (with overnight)
	 	$	1,100.00	  	 	 	Per Trip	  	 				 	 	17	  	 	$	18,700.00	  	 	$	18,700.00	  	 				 				 				 				 				 				 			
	 Meeting Expenses
	 	$	750.00	  	 	 	ea	  	 				 	 	6	  	 	$	4,500.00	  	 	$	4,500.00	  	 				 				 				 				 				 				 			
	 Blueprints
	 	$	250.00	  	 	 	per month	  	 				 	 	6	  	 	$	1,500.00	  	 	$	1,500.00	  	 				 				 				 				 				 				 			
	 FEDEX
	 	$	175.00	  	 	 	per month	  	 				 	 	3	  	 	$	525.00	  	 	$	525.00	  	 				 				 				 				 				 				 			
	 Project Management Software
	 	$	150.00	  	 	 	ea	  	 				 	 	6	  	 	$	900.00	  	 	$	900.00	  	 				 				 				 				 				 				 			
	 Construction GC’s
	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Project Executive
	 	$	135.00	  	 	 	hour	  	 				 	 	840	  	 	$	113,400.00	  	 				 	$	68,040.00	  	 	$	 68,040.00	  	 	$	113,400.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 Project Manager
	 	$	100.00	  	 	 	hour	  	 				 	 	2,100	  	 	$	210,000.00	  	 				 	$	122,300.00	  	 	$	122,300.00	  	 	$	210,000.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 Project Engineer
	 	$	85.00	  	 	 	hour	  	 				 	 	2,100	  	 	$	178,500.00	  	 				 	$	103,955.00	  	 	$	103,955.00	  	 	$	178,500.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 Superintendent
	 	$	110.00	  	 	 	hour	  	 				 	 	2,100	  	 	$	231,000.00	  	 				 	$	134,530.00	  	 	$	134,530.00	  	 	$	231,000.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 Precon Dir/Coordination Specialist
	 	$	100.00	  	 	 	hour	  	 				 	 	480	  	 	$	48,000.00	  	 				 	$	28,000.00	  	 	$	28,000.00	  	 	$	48,000.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 Safety
	 	$	75.00	  	 	 	hour	  	 				 	 	240	  	 	$	18,000.00	  	 				 	$	11,100.00	  	 	$	11,100.00	  	 	$	18,000.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 QA/QC - TOP Manager
	 	$	75.00	  	 	 	hour	  	 				 	 	1,743	  	 	$	130,725.00	  	 				 	$	65,100.00	  	 	$	65,100.00	  	 	$	130,725.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 Admin
	 	$	55.00	  	 	 	hour	  	 				 	 	1,945	  	 	$	106,975.00	  	 				 	$	59,950.00	  	 	$	59,950.00	  	 	$	106,975.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 Accountant
	 	$	70.00	  	 	 	hour	  	 				 	 	180	  	 	$	12,600.00	  	 				 	$	8,400.00	  	 	$	8,400.00	  	 	$	12,600.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 Director of accounting
	 	$	80.00	  	 	 	hour	  	 				 	 	60	  	 	$	4,800.00	  	 				 	$	3,200.00	  	 	$	3,200.00	  	 	$	4,800.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 IT
	 	$	 45.00	  	 	 	hour	  	 				 	 	96	  	 	$	4,320.00	  	 				 	$	4,320.00	  	 	$	4,320.00	  	 	$	4,320.00	  	 	$	—  	  	 	$	—  	  	 				 			
														
	 VDC Budget
	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 VDC Director
	 	$	110.00	  	 	 	Hour	  	 				 	 	96	  	 	$	10,560.00	  	 				 	$	7,040.00	  	 	$	7,040.00	  	 	$	10,560.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 VDC Manager
	 	$	75.00	  	 	 	Hour	  	 				 	 	328	  	 	$	24,600.00	  	 				 	$	18,600.00	  	 	$	18,600.00	  	 	$	24,600.00	  	 	$	—  	  	 	$	—  	  	 				 			
	 VDC travel
	 	$	2,500.00	  	 	 	Per Trip	  	 				 	 	2	  	 	$	5,000.00	  	 				 	$	5,000.00	  	 	$	5,000.00	  	 	$	5,000.00	  	 	$	—  	  	 	$	—  	  	 				 			
														
	 Check Processing
	 	$	175.00	  	 	 	per million	  	 	 	29	  	 	 	29	  	 	$	5,075.00	  	 				 	$	3,150.00	  	 	$	3,150.00	  	 	$	5,075.00	  	 				 				 				 			
	 Archiving
	 	$	135.00	  	 	 	per million	  	 	 	29	  	 	 	29	  	 	$	3,915.00	  	 				 	$	2,430.00	  	 	$	2,430.00	  	 	$	3,915.00	  	 				 				 				 			
	 Meeting Expenses
	 	$	750.00	  	 	 	ea	  	 				 	 	12	  	 	$	9,000.00	  	 				 	$	6,000.00	  	 	$	6,000.00	  	 	$	9,000.00	  	 				 				 				 			
	 Legal Costs for Contract Nego
	 	$	5,000.00	  	 	 	LS	  	 				 	 	0	  	 	$	—  	  	 				 	$	—  	  	 	$	—  	  	 	$	—  	  	 				 				 				 			
	 Job Meetings
	 	$	150.00	  	 	 	per month	  	 				 	 	36	  	 	$	5,400.00	  	 				 	$	3,150.00	  	 	$	3,150.00	  	 	$	5,400.00	  	 				 				 				 			
	 Blueprints
	 	$	250.00	  	 	 	per month	  	 				 	 	12	  	 	$	3,000.00	  	 				 	$	2,000.00	  	 	$	2,000.00	  	 	$	3,000.00	  	 				 				 				 			
	 FEDEX
	 	$	175.00	  	 	 	per month	  	 				 	 	12	  	 	$	2,100.00	  	 				 	$	1,400.00	  	 	$	1,400.00	  	 	$	2,100.00	  	 				 				 				 			
	 Water
	 	$	200.00	  	 	 	per month	  	 				 	 	12	  	 	$	2,400.00	  	 				 	$	1,600.00	  	 	$	1,600.00	  	 	$	2,400.00	  	 				 				 				 			
	 VDC software license
	 	$	 950.00	  	 	 	per month	  	 				 	 	12	  	 	$	11,400.00	  	 				 	$	7,600.00	  	 	$	7,600.00	  	 	$	11,400.00	  	 				 				 				 			
	 Project Management Software
	 	$	150.00	  	 	 	ea	  	 				 	 	36	  	 	$	5,400.00	  	 				 	$	3,600.00	  	 	$	3,600.00	  	 	$	5,400.00	  	 				 				 				 			
	 Office Supplies
	 	$	200.00	  	 	 	per month	  	 				 	 	12	  	 	$	2,400.00	  	 				 	$	1,600.00	  	 	$	1,600.00	  	 	$	2,400.00	  	 				 				 				 			
	 WIFI
	 	$	250.00	  	 	 	per month	  	 	 	2	  	 	 	12	  	 	$	3,000.00	  	 				 	$	2,000.00	  	 	$	2,000.00	  	 	$	3,000.00	  	 				 				 				 			
	 Computers/Printers
	 	$	5,000.00	  	 	 	LS	  	 	 	1	  	 	 	2	  	 	$	10,000.00	  	 				 	$	5,000.00	  	 	$	5,000.00	  	 	$	10,000.00	  	 				 				 				 			
	 Owner Connectivity
	 	$	5,000.00	  	 	 	Is	  	 	 	5	  	 	 	1	  	 	$	5,000.00	  	 				 	$	5,000.00	  	 	$	5,000.00	  	 	$	5,000.00	  	 				 				 				 			
	 Prolog for 5 users
	 	$	350.00	  	 				 				 	 	5	  	 	$	1,750.00	  	 				 	$	 1,750.00	  	 	$	1,750.00	  	 	$	 1,750.00	  	 				 				 				 			
	 Safety Orientation
	 	$	50.00	  	 	 	ea	  	 				 	 	12	  	 	$	600.00	  	 				 	$	400.00	  	 	$	400.00	  	 	$	600.00	  	 				 				 				 			
	 Hardhats
	 	$	50.00	  	 	 	ea	  	 				 	 	12	  	 	$	600.00	  	 				 	$	400.00	  	 	$	400.00	  	 	$	600.00	  	 				 				 				 			
	 Safety Glasses
	 	$	50.00	  	 	 	ea	  	 				 	 	12	  	 	$	600.00	  	 				 	$	400.00	  	 	$	400.00	  	 	$	600.00	  	 				 				 				 			
	 OSHA PPE
	 	$	250.00	  	 	 	ea	  	 				 	 	1	  	 	$	250.00	  	 				 	$	250.00	  	 	$	250.00	  	 	$	250.00	  	 				 				 				 			
	 Safety Equipment
	 	$	150.00	  	 	 	ea	  	 				 	 	11	  	 	$	1,650.00	  	 				 	$	1,050.00	  	 	$	1,050.00	  	 	$	1,650.00	  	 				 				 				 			
	 Fuel/Oil/Truck
	 	$	900.00	  	 	 	ea	  	 				 	 	22	  	 	$	19,800.00	  	 				 	$	 12,600.00	  	 	$	12,600.00	  	 	$	19,800.00	  	 				 				 				 			
	 GR’s - FROM GC’s
	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 Jobsite signage
	 	$	3,000.00	  	 	 	LS	  	 	 	1	  	 	 	1	  	 	$	3,000.00	  	 				 	$	3,000.00	  	 				 				 	$	—  	  	 	$	—  	  	 	$	3,000.00	  	 	$	3,000.00	  
	 Office Furniture (In Existing Facility)
	 	$	15,000.00	  	 	 	LS	  	 	 	1	  	 	 	1	  	 	$	15,000.00	  	 				 	$	15,000.00	  	 				 				 	$	—  	  	 	$	—  	  	 	$	15,000.00	  	 	$	15,000.00	  
	 Field Toilets
	 	$	350.00	  	 	 	ea	  	 				 	 	46	  	 	$	16,100.00	  	 				 	$	9,800.00	  	 				 				 	$	—  	  	 	$	—  	  	 	$	9,800.00	  	 	$	16,100.00	  
	 Temporary Fencing (access control)
	 				 	 	LS	  	 				 	 	0	  	 	$	—  	  	 				 	$	—  	  	 				 				 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  
	 Office Cleaning
	 	$	150.00	  	 	 	ea	  	 				 	 	46	  	 	$	6,900.00	  	 				 	$	4,200.00	  	 				 				 	$	—  	  	 	$	—  	  	 	$	4,200.00	  	 	$	6,900.00	  
														
	 Permits
	 	 	By Owner	  	 				 				 	 	0	  	 				 				 				 				 				 				 				 				 			
	 Subguard
	 	 	0.90	% 	 				 				 	 	0	  	 				 				 				 				 				 				 				 				 			
	 Dumpsters - Below
	 				 				 				 	 	0	  	 				 				 				 				 				 				 				 				 			
	 Laborer - Below
	 				 				 				 	 	0	  	 				 				 				 				 				 				 				 				 			
														
	 GR’s - FROM Logistics
	 				 				 				 				 				 				 				 				 				 				 				 				 			
	 General Conditions — Laborers
	 	 	32.50	  	 	 	HR	  	 				 	 	4,160	  	 	$	135,200.00	  	 				 				 				 				 	$	270,400.00	  	 				 	$	135,200.00	  	 	$	135,200.00	  
	 Cleanroom Protocol — Consumables
	 	 	15,000.00	  	 	 	MO	  	 				 	 	6	  	 	$	90,000.00	  	 				 				 				 				 	$	90,000.00	  	 				 	$	90,000.00	  	 	$	90,000.00	  
	 Final Clean — Cleanroom — 2ea
	 	 	3.00	  	 	 	SF	  	 				 	 	28,000	  	 	$	84,000.00	  	 				 				 				 				 	$	84,000.00	  	 				 	$	84,000.00	  	 	$	84,000.00	  
	 Final Clean — Site
	 	 	25,000.00	  	 	 	LS	  	 				 	 	1	  	 	$	25,000.00	  	 				 				 				 				 	$	25,000.00	  	 				 	$	25,000.00	  	 	$	25,000.00	  
	 HEPA Filter — Replacement
	 	 	150.00	  	 	 	EA	  	 				 	 	351	  	 	$	52,650.00	  	 				 				 				 				 	$	52,650.00	  	 				 	$	52,650.00	  	 	$	52,650.00	  
	 SuperClean — Certification
	 				 				 				 	 	0	  	 				 				 				 				 				 	 	By Owner	  	 	 	By Owner	  	 	 	By Owner	  	 	$	—  	  
	 General Requirements — Misc Equipment Dumpsters
	 	 	650.00	  	 	 	EA	  	 				 	 	60	  	 	$	39,000.00	  	 				 				 				 				 	$	50,000.00	  	 				 	$	 20,800.00	  	 	$	39,000.00	  
														
	 Start-up & Commission - FROM Logistics
	 				 				 				 				 				 				 				 				 				 				 				 				 			
														
	 Closeout, Start-up, Functional Testing & Commissioning Support
	 	$	1.00	  	 	 	LS	  	 				 				 				 				 				 				 				 				 	$	160,900.00	  	 				 			
		 				 				 				 				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 
	 TOTALS
	 				 				 				 				 	 	1,738,585	  	 	 	79,915	  	 	 	732,915	  	 	 	700,915	  	 	 	1,191,820	  	 	 	572,050	  	 	 	160,900	  	 	 	439,650	  	 	 	466,850	  
		 				 				 				 				 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 	 	  
	  
	 

  

					
		 	Exhibit C	 	Page 3

 EXHIBIT D 

DRAWINGS 
  
 

 
 Exhibit D – Drawings 

N/A – Drawing List to be issued when GMP is established. 

  

					
		  	Exhibit D	  	Page 1

 EXHIBIT E 

SPECIFICATIONS 
  
 

 
 Exhibit E – Specifications 

N/A – no final specifications have been issued on the project to date. 

  

					
		  	Exhibit E	  	Page 1

 EXHIBIT F 

CCIP INSURANCE EXHIBIT 
 FORMS 

 

	
	  

Forward the completed Enrollment Application to the Aon administrator identified at the bottom of page 2 of this form. The administrator
prior to the start of your work on-site must receive this form.
  

 EXHIBIT 1 – Sample Enrolled Off-Site Certificate of Insurance 

 

													
	ACORD©                    
            CERTIFICATE OF INSURANCE	 	 	 	 	 	ISSUE DATE: CURRENT DATE      
	 PRODUCER

Insurance Agent’s Name And Address
	 	 	 	THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE
CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW
	  

TELEPHONE #
	 		 	COMPANIES AFFORDING COVERAGE
	INSURED	 	 	 	COMPANY A LETTER	 	        INSURANCE CARRIER	 	 
	Subcontractor’s Name and Address	 		 	COMPANY B LETTER	 	 	 	 	 	 
	Sample Certificate for Enrolled Parties	 	COMPANY C LETTER	 	 	 	 	 	 
	Required Insurance	 		 	COMPANY D LETTER	 		 		 	 
	COVERAGES
	THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE
LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE
INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
	
CO  

LTR  
	 	 TYPE OF

INSURANCE
	 	POLICY NO. 	 	
POLICY EFF. 

DATE 

MM/DD/YY 
	 	
POLICY EXP. 

DATE 

MM/DD/YY 
	 	ALL LIMITS
	A  	 	GENERAL LIABILITY	 	Policy Number 	 	 	 	 	 	GENERAL AGGREGATE	 	$2,000,000      
	 	 	
x  COMMERCIAL GEN. LIABILITY
	 	 	 	 	 	 	PRODUCTS-COMP/OPS AGGREGATE	 	$2,000,000
	 	 	
 ̈   CLAIMS MADE    x OCCUR.
	 	 	 	 	 	 	PERSONAL & ADVERTISING INJURY	 	$1,000,000
	 	 	
 ̈   OWNER’S & 
CONTRACTOR’S PROT. 
	 	 	 	 	 	 	EACH OCCURRENCE	 	$1,000,000
	 	 	
x  PER PROJECT AGGREGATE

       ENDORSEMENT
	 	 	 	 	 	 	 FIRE DAMAGE (Any one fire)

MEDICAL EXPENSE (Any one person)
	 
	 	 	 	 	 	 	 	 	 	 
	A  	 	AUTOMOBILE LIABILITY	 	Policy Number 	 	 	 	 	 	COMBINED SINGLE LIMIT	 	$1,000,000
	 	 	
x  ANY AUTO
	 	 	 	 	 	 	BODILY INJURY (Per person)	 	 
	 	 	
 ̈  ALL OWNED AUTOS
	 	 	 	 	 	 	BODILY INJURY (Per accident)	 	 
	 	 	
 ̈  SCHEDULED AUTOS
	 	 	 	 	 	 	PROPERTY DAMAGE	 	 
	 	 	
x  HIRED AUTOS
	 	 	 	 	 	 	 	 	 
	 	 	
x  NON-OWNED AUTOS
	 	 	 	 	 	 	 	 	 
	A  	 	EXCESS LIABILITY	 	Policy Number 	 	 	 	 	 	EACH OCCURRENCE	 	$5,000,000
	 	 	
x  UMBRELLA
	 	 	 	 	 	 	AGGREGATE	 	$5,000,000
	 	 	
 ̈  OTHER THAN UMBRELLA FORM
	 	 	 	 	 	 	 	 	 
	  

A  
	 	  

WORKERS’ COMPENSATION
 AND

EMPLOYER’S LIABILITY
	 	Policy Number 	 	 	 	 	 	STATUTORY LIMITS x Florida	 	 
	 	 	 	 	 	 	 	(Each accident)	 	$500,000
	 	 	 	 	 	 	 	 	(Disease-policy limit)	 	$500,000
	 	 	 	 	 	 	 	 	 	 	(Disease-each employee)	 	$500,000
	A  	 	OTHER: EQUIPMENT FLOATER	 	Policy Number 	 	 	 	 	 	Limit equal to Full Coverage of Subcontractor’s owned or rented machinery, equipment, tools, & temporary structures not
designed to become a permanent part of the Work
	DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS: RE: Work performed at the Skanska USA Building ABC Project.
Certificate Holders are Additional Insureds on a Primary and Non-contributing basis on the General Liability (ISO endorsement CG 20 10-11/85 or its equivalent), Automobile and Excess/Umbrella Liability Policies. Waiver of Subrogation in favor of
Certificate Holders applies to all policies. GL and WC coverage apply off-site.
	 CERTIFICATE HOLDER

 
 Skanska USA Building Inc., Skanska USA, Inc. Indemnified Parties, any other parties as
required by the Owner contract, Skanska Inc., and their respective directors, officers, employees and affiliates and ALL ENROLLED PARTIES
 c/o Aon
Risk Services, Inc.
 4 Overlook Point

Lincolnshire, IL 60069
	 	 CANCELLATION

 
 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED BEFORE THE EXPIRATION DATE THEREOF,
THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON
THE COMPANY, ITS AGENTS OR REPRESENTATIVES.

	Attention:	 	 	 	AUTHORIZED REPRESENTATIVE
	 	 		 	 	 	By: (original signature)
	ACORD 25-S (3/93)	 	 	 	 	 	 	 	© ACORD CORPORATION 1993

  
  

Skanska USA Building Inc. CCIP Insurance Manual – Exhibit G1 

  

					
		  	Exhibit F	  	Page 1

 FORMS 

EXHIBIT 2 – Sample Excluded On/Off-Site Certificate of Insurance 
  

													
	ACORD©                    
            CERTIFICATE OF INSURANCE	 	 	 	ISSUE DATE: CURRENT DATE      
	 PRODUCER

Insurance Agent’s Name and Address
	 	 	 	THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE
CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW
	TELEPHONE #	 		 	COMPANIES AFFORDING COVERAGE
	INSURED	 	 	 	COMPANY A LETTER	 	        INSURANCE CARRIER	 	 
	Name and Address	 		 	COMPANY B LETTER	 	 	 	 	 	 
	Sample Certificate for Excluded Parties	 	COMPANY C LETTER	 	 	 	 	 	 
	Required Insurance	 		 	COMPANY D LETTER	 		 		 	 
	COVERAGES
	THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE
LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE
INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
	
CO  

LTR  
	 	 TYPE OF

INSURANCE
	 	POLICY NO. 	 	
POLICY EFF. 

DATE 

MM/DD/YY 
	 	
POLICY EXP. 

DATE 

MM/DD/YY 
	 	ALL LIMITS
	A  	 	GENERAL LIABILITY	 	Policy Number 	 	 	 	 	 	GENERAL AGGREGATE	 	$2,000,000      
	 	 	
x  COMMERCIAL GEN. LIABILITY
	 	 	 	 	 	 	PRODUCTS-COMP/OPS AGGREGATE	 	$2,000,000
	 	 	
 ̈   CLAIMS MADE    x OCCUR.
	 	 	 	 	 	 	PERSONAL & ADVERTISING INJURY	 	$1,000,000
	 	 	
 ̈   OWNER’S & 
CONTRACTOR’S PROT. 
	 	 	 	 	 	 	EACH OCCURRENCE	 	$1,000,000
	 	 	
x  PER PROJECT AGGREGATE

       ENDORSEMENT
	 	 	 	 	 	 	 FIRE DAMAGE (Any one fire)

MEDICAL EXPENSE (Any one person)
	 	 
	 	 	 	 	 	 	 	 	 	 
	A  	 	AUTOMOBILE LIABILITY	 	Policy Number 	 	 	 	 	 	COMBINED SINGLE LIMIT	 	$1,000,000
	 	 	
x  ANY AUTO
	 	 	 	 	 	 	BODILY INJURY (Per person)	 	 
	 	 	
 ̈   ALL OWNED AUTOS
	 	 	 	 	 	 	BODILY INJURY (Per accident)	 	 
	 	 	
 ̈   SCHEDULED AUTOS
	 	 	 	 	 	 	PROPERTY DAMAGE	 	 
	 	 	
x  HIRED AUTOS
	 	 	 	 	 	 	 	 	 
	 	 	
x  NON-OWNED AUTOS
	 	 	 	 	 	 	 	 	 
	A  	 	EXCESS LIABILITY	 	Policy Number 	 	 	 	 	 	EACH OCCURRENCE	 	$5,000,000
	 	 	
x  UMBRELLA
	 	 	 	 	 	 	AGGREGATE	 	$5,000,000
	 	 	
 ̈   OTHER THAN UMBRELLA FORM
	 	 	 	 	 	 	 	 	 
	A  	 	 WORKERS’ COMPENSATION

AND
 EMPLOYER’S
LIABILITY
	 	Policy Number 	 	 	 	 	 	STATUTORY LIMITS x Florida	 	 
	 	 	 	 	 	 	 	 	(Each accident)	 	$500,000
	 	 	 	 	 	 	 	 	(Disease-policy limit)	 	$500,000
	 	 	 	 	 	 	 	 	 	(Disease-each employee)	 	$500,000
	A  	 	OTHER: EQUIPMENT FLOATER	 	Policy Number 	 	 	 	 	 	Limit equal to Full Coverage of Subcontractor’s owned or rented machinery, equipment, tools, & temporary structures not
designed to become a permanent part of the Work
	DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/SPECIAL ITEMS: RE: Work performed at the Skanska USA Building ABC Project.
Certificate Holders are Additional Insureds on a Primary and Non-contributing basis on the General Liability (ISO endorsement CG 20 10-11/85 or its equivalent – attached a copy with this Certificate of Insurance), Automobile and Excess/Umbrella
Liability Policies. Waiver of Subrogation in favor of Certificate Holders applies to all policies. ALL COVERAGES LISTED APPLY ON AND OFF-SITE FOR ALL OPERATIONS OF THE INSURED.
	  

 
 Skanska USA Building Inc., Skanska USA, Inc. Indemnified Parties, any other parties as
required by the Owner contract, Skanska Inc., and their respective directors, officers, employees and affiliates and ALL ENROLLED PARTIES
 c/o Aon Risk
Services, Inc.
 4 Overlook Point
 Lincolnshire, IL 60069

 
	 	 CANCELLATION

 
 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED BEFORE THE EXPIRATION DATE THEREOF,
THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON
THE COMPANY, ITS AGENTS OR REPRESENTATIVES.

	Attention:	 	 	 	AUTHORIZED REPRESENTATIVE
	 	 		 	 	 	By: (original signature)
	ACORD 25-S (3/93)	 	 	 	 	 	 	 	© ACORD CORPORATION 1993

  
  

Skanska USA Building Inc. CCIP Insurance Manual – Exhibit G1 

  

					
		  	Exhibit F	  	Page 2

 

AIA® Document A201TM - 2007
General Conditions of the Contract for Construction

for the following PROJECT:
(Name and location or address)
Tenant Improvements at
232 South Dobson Road,
  Mesa, AZ  85202

THE OWNER:
(Name, legal status and address)
DexCom, Inc.
6340 Sequence Drive
San Diego, CA  92121
Attn:  James Gillard

THE CONTRACTOR:
(Name, legal status, address and other information)

Skanska USA Building Inc.
4742 N. 24th Street, Suite 165
Phoenix, AZ  85016
Attn:  Ross Vroman

THE ARCHITECT:
(Name, legal status and address)

ADDITIONS AND DELETIONS: The author of this document has added information needed for its completion. The author may also have revised the text of the original AIA standard form. An Additions and Deletions Report that notes added information as well as revisions to the standard form text is available from the author and should be reviewed.
This document has important legal consequences. Consultation with an attorney is encouraged with respect to its completion or modification.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
User Notes: 

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TABLE OF ARTICLES

		
	1
	GENERAL PROVISIONS

		
	2
	OWNER

		
	3
	CONTRACTOR

		
	4
	ARCHITECT

		
	5
	SUBCONTRACTORS

		
	6
	CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS

		
	7
	CHANGES IN THE WORK

		
	8
	TIME

		
	9
	PAYMENTS AND COMPLETION

		
	10
	PROTECTION OF PERSONS AND PROPERTY

		
	11
	INSURANCE AND BONDS

		
	12
	UNCOVERING AND CORRECTION OF WORK

		
	13
	MISCELLANEOUS PROVISIONS

		
	14
	TERMINATION OR SUSPENSION OF THE CONTRACT

		
	15
	CLAIMS AND DISPUTES

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
User Notes: 

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INDEX
(Topics and numbers in bold are section headings.)

Acceptance of Nonconforming Work
9.6.6, 9.9.3, 12.3
Acceptance of Work
9.6.6, 9.8.2, 9.9.3, 9.10.1, 9.10.3, 12.3
Access to Work
3.16, 6.2.1, 12.1
Accident Prevention
10
Acts and Omissions
3.2, 3.3.2, 3.12.8, 3.18, 4.2.3, 8.3.1, 9.5.1, 10.2.5, 10.2.8, 13.4.2, 13.7, 14.1, 15.2
Addenda
1.1.1, 3.11
Additional Costs, Claims for
3.7.4, 3.7.5, 6.1.1, 7.3.7.5, 10.3, 15.1.4
Additional Inspections and Testing
9.4.2, 9.8.3, 12.2.1, 13.5
Additional Insured
11.1.4
Additional Time, Claims for
3.2.4, 3.7.4, 3.7.5, 3.10.2, 8.3.2, 15.1.5
Administration of the Contract
3.1.3, 4.2, 9.4, 9.5
Advertisement or Invitation to Bid
1.1.1
Aesthetic Effect
4.2.13
Allowances
3.8, 7.3.8
All-risk Insurance
11.3.1, 11.3.1.1
Applications for Payment
4.2.5, 7.3.9, 9.2, 9.3, 9.4, 9.5.1, 9.6.3, 9.7, 9.10, 11.1.3
Approvals
2.1.1, 2.2.2, 2.4, 3.1.3, 3.10.2, 3.12.8, 3.12.9, 3.12.10, 4.2.7, 9.3.2, 13.5.1
Arbitration
8.3.1, 11.3.10, 13.1, 15.3.2, 15.4 
ARCHITECT
4
Architect, Definition of
4.1.1
Architect, Extent of Authority
2.4, 3.12.7, 4.1, 4.2, 5.2, 6.3, 7.1.2, 7.3.7, 7.4, 9.2, 9.3.1, 9.4, 9.5, 9.6.3, 9.8, 9.10.1, 9.10.3, 12.1, 12.2.1, 13.5.1, 13.5.2, 14.2.2, 14.2.4, 15.1.3, 15.2.1
Architect, Limitations of Authority and Responsibility
2.1.1, 3.12.4, 3.12.8, 3.12.10, 4.1.2, 4.2.1, 4.2.2, 4.2.3, 4.2.6, 4.2.7, 4.2.10, 4.2.12, 4.2.13, 5.2.1, 7.4, 9.4.2, 9.5.3, 9.6.4, 15.1.3, 15.2
Architect’s Additional Services and Expenses
2.4, 11.3.1.1, 12.2.1, 13.5.2, 13.5.3, 14.2.4
Architect’s Administration of the Contract
3.1.3, 4.2, 3.7.4, 15.2, 9.4.1, 9.5
Architect’s Approvals
2.4, 3.1.3, 3.5, 3.10.2, 4.2.7
Architect’s Authority to Reject Work
3.5, 4.2.6, 12.1.2, 12.2.1

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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Architect’s Copyright
1.1.7, 1.5
Architect’s Decisions
3.7.4, 4.2.6, 4.2.7, 4.2.11, 4.2.12, 4.2.13, 4.2.14, 6.3, 7.3.7, 7.3.9, 8.1.3, 8.3.1, 9.2, 9.4.1, 9.5, 9.8.4, 9.9.1, 13.5.2, 15.2, 15.3
Architect’s Inspections
3.7.4, 4.2.2, 4.2.9, 9.4.2, 9.8.3, 9.9.2, 9.10.1, 13.5
Architect’s Instructions
3.2.4, 3.3.1, 4.2.6, 4.2.7, 13.5.2
Architect’s Interpretations
4.2.11, 4.2.12
Architect’s Project Representative
4.2.10
Architect’s Relationship with Contractor
1.1.2, 1.5, 3.1.3, 3.2.2, 3.2.3, 3.2.4, 3.3.1, 3.4.2, 3.5, 3.7.4, 3.7.5, 3.9.2, 3.9.3, 3.10, 3.11, 3.12, 3.16, 3.18, 4.1.2, 4.1.3, 4.2, 5.2, 6.2.2, 7, 8.3.1, 9.2, 9.3, 9.4, 9.5, 9.7, 9.8, 9.9, 10.2.6, 10.3, 11.3.7, 12, 13.4.2, 13.5, 15.2
Architect’s Relationship with Subcontractors
1.1.2, 4.2.3, 4.2.4, 4.2.6, 9.6.3, 9.6.4, 11.3.7
Architect’s Representations
9.4.2, 9.5.1, 9.10.1
Architect’s Site Visits
3.7.4, 4.2.2, 4.2.9, 9.4.2, 9.5.1, 9.9.2, 9.10.1, 13.5
Asbestos
10.3.1
Attorneys’ Fees
3.18.1, 9.10.2, 10.3.3
Award of Separate Contracts
6.1.1, 6.1.2
Award of Subcontracts and Other Contracts for Portions of the Work
5.2
Basic Definitions
1.1
Bidding Requirements
1.1.1, 5.2.1, 11.4.1
Binding Dispute Resolution
9.7, 11.3.9, 11.3.10, 13.1, 15.2.5, 15.2.6.1, 15.3.1, 15.3.2, 15.4.1
Boiler and Machinery Insurance
11.3.2
Bonds, Lien
7.3.7.4, 9.10.2, 9.10.3
Bonds, Performance, and Payment
7.3.7.4, 9.6.7, 9.10.3, 11.3.9, 11.4
Building Permit
3.7.1
Capitalization
1.3
Certificate of Substantial Completion
9.8.3, 9.8.4, 9.8.5
Certificates for Payment
4.2.1, 4.2.5, 4.2.9, 9.3.3, 9.4, 9.5, 9.6.1, 9.6.6, 9.7, 9.10.1, 9.10.3, 14.1.1.3, 14.2.4, 15.1.3
Certificates of Inspection, Testing or Approval
13.5.4
Certificates of Insurance
9.10.2, 11.1.3
Change Orders
1.1.1, 2.4, 3.4.2, 3.7.4, 3.8.2.3, 3.11, 3.12.8, 4.2.8, 5.2.3, 7.1.2, 7.1.3, 7.2, 7.3.2, 7.3.6, 7.3.9, 7.3.10, 8.3.1, 9.3.1.1, 9.10.3, 10.3.2, 11.3.1.2, 11.3.4, 11.3.9, 12.1.2, 15.1.3
Change Orders, Definition of
7.2.1

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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CHANGES IN THE WORK
2.2.1, 3.11, 4.2.8, 7, 7.2.1, 7.3.1, 7.4, 8.3.1, 9.3.1.1, 11.3.9
Claims, Definition of
15.1.1
CLAIMS AND DISPUTES
3.2.4, 6.1.1, 6.3, 7.3.9, 9.3.3, 9.10.4, 10.3.3, 15, 15.4
Claims and Timely Assertion of Claims
15.4.1
Claims for Additional Cost
3.2.4, 3.7.4, 6.1.1, 7.3.9, 10.3.2, 15.1.4
Claims for Additional Time
3.2.4, 3.7.4, 6.1.1, 8.3.2, 10.3.2, 15.1.5
Concealed or Unknown Conditions, Claims for
3.7.4
Claims for Damages
3.2.4, 3.18, 6.1.1, 8.3.3, 9.5.1, 9.6.7, 10.3.3, 11.1.1, 11.3.5, 11.3.7, 14.1.3, 14.2.4, 15.1.6
Claims Subject to Arbitration
15.3.1, 15.4.1
Cleaning Up
3.15, 6.3
Commencement of the Work, Conditions Relating to
2.2.1, 3.2.2, 3.4.1, 3.7.1, 3.10.1, 3.12.6, 5.2.1, 5.2.3, 6.2.2, 8.1.2, 8.2.2, 8.3.1, 11.1, 11.3.1, 11.3.6, 11.4.1, 15.1.4
Commencement of the Work, Definition of
8.1.2
Communications Facilitating Contract Administration
3.9.1, 4.2.4
Completion, Conditions Relating to
3.4.1, 3.11, 3.15, 4.2.2, 4.2.9, 8.2, 9.4.2, 9.8, 9.9.1, 9.10, 12.2, 13.7, 14.1.2
COMPLETION, PAYMENTS AND
9
Completion, Substantial
4.2.9, 8.1.1, 8.1.3, 8.2.3, 9.4.2, 9.8, 9.9.1, 9.10.3, 12.2, 13.7
Compliance with Laws
1.6, 3.2.3, 3.6, 3.7, 3.12.10, 3.13, 4.1.1, 9.6.4, 10.2.2, 11.1, 11.3, 13.1, 13.4, 13.5.1, 13.5.2, 13.6, 14.1.1, 14.2.1.3, 15.2.8, 15.4.2, 15.4.3
Concealed or Unknown Conditions
3.7.4, 4.2.8, 8.3.1, 10.3
Conditions of the Contract
1.1.1, 6.1.1, 6.1.4
Consent, Written
3.4.2, 3.7.4, 3.12.8, 3.14.2, 4.1.2, 9.3.2, 9.8.5, 9.9.1, 9.10.2, 9.10.3, 11.3.1, 13.2, 13.4.2, 15.4.4.2
Consolidation or Joinder
15.4.4
CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS
1.1.4, 6
Construction Change Directive, Definition of
7.3.1
Construction Change Directives
1.1.1, 3.4.2, 3.12.8, 4.2.8, 7.1.1, 7.1.2, 7.1.3, 7.3, 9.3.1.1
Construction Schedules, Contractor’s
3.10, 3.12.1, 3.12.2, 6.1.3, 15.1.5.2
Contingent Assignment of Subcontracts
5.4, 14.2.2.2
Continuing Contract Performance
15.1.3
Contract, Definition of
1.1.2
CONTRACT, TERMINATION OR SUSPENSION OF THE
5.4.1.1, 11.3.9, 14

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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Contract Administration
3.1.3, 4, 9.4, 9.5
Contract Award and Execution, Conditions Relating to
3.7.1, 3.10, 5.2, 6.1, 11.1.3, 11.3.6, 11.4.1
Contract Documents, Copies Furnished and Use of
1.5.2, 2.2.5, 5.3
Contract Documents, Definition of
1.1.1
Contract Sum
3.7.4, 3.8, 5.2.3, 7.2, 7.3, 7.4, 9.1, 9.4.2, 9.5.1.4, 9.6.7, 9.7, 10.3.2, 11.3.1, 14.2.4, 14.3.2, 15.1.4, 15.2.5
Contract Sum, Definition of
9.1
Contract Time
3.7.4, 3.7.5, 3.10.2, 5.2.3, 7.2.1.3, 7.3.1, 7.3.5, 7.4, 8.1.1, 8.2.1, 8.3.1, 9.5.1, 9.7, 10.3.2, 12.1.1, 14.3.2, 15.1.5.1, 15.2.5
Contract Time, Definition of
8.1.1
CONTRACTOR
3
Contractor, Definition of
3.1, 6.1.2
Contractor’s Construction Schedules
3.10, 3.12.1, 3.12.2, 6.1.3, 15.1.5.2
Contractor’s Employees
3.3.2, 3.4.3, 3.8.1, 3.9, 3.18.2, 4.2.3, 4.2.6, 10.2, 10.3, 11.1.1, 11.3.7, 14.1, 14.2.1.1
Contractor’s Liability Insurance
11.1
Contractor’s Relationship with Separate Contractors and Owner’s Forces
3.12.5, 3.14.2, 4.2.4, 6, 11.3.7, 12.1.2, 12.2.4
Contractor’s Relationship with Subcontractors
1.2.2, 3.3.2, 3.18.1, 3.18.2, 5, 9.6.2, 9.6.7, 9.10.2, 11.3.1.2, 11.3.7, 11.3.8
Contractor’s Relationship with the Architect
1.1.2, 1.5, 3.1.3, 3.2.2, 3.2.3, 3.2.4, 3.3.1, 3.4.2, 3.5, 3.7.4, 3.10, 3.11, 3.12, 3.16, 3.18, 4.1.3, 4.2, 5.2, 6.2.2, 7, 8.3.1, 9.2, 9.3, 9.4, 9.5, 9.7, 9.8, 9.9, 10.2.6, 10.3, 11.3.7, 12, 13.5, 15.1.2, 15.2.1
Contractor’s Representations
3.2.1, 3.2.2, 3.5, 3.12.6, 6.2.2, 8.2.1, 9.3.3, 9.8.2
Contractor’s Responsibility for Those Performing the Work
3.3.2, 3.18, 5.3, 6.1.3, 6.2, 9.5.1, 10.2.8
Contractor’s Review of Contract Documents
3.2
Contractor’s Right to Stop the Work
9.7
Contractor’s Right to Terminate the Contract
14.1, 15.1.6
Contractor’s Submittals
3.10, 3.11, 3.12.4, 4.2.7, 5.2.1, 5.2.3, 9.2, 9.3, 9.8.2, 9.8.3, 9.9.1, 9.10.2, 9.10.3, 11.1.3, 11.4.2
Contractor’s Superintendent
3.9, 10.2.6
Contractor’s Supervision and Construction Procedures
1.2.2, 3.3, 3.4, 3.12.10, 4.2.2, 4.2.7, 6.1.3, 6.2.4, 7.1.3, 7.3.5, 7.3.7, 8.2, 10, 12, 14, 15.1.3
Contractual Liability Insurance
11.1.1.8, 11.2
Coordination and Correlation
1.2, 3.2.1, 3.3.1, 3.10, 3.12.6, 6.1.3, 6.2.1
Copies Furnished of Drawings and Specifications
1.5, 2.2.5, 3.11
Copyrights
1.5, 3.17
Correction of Work
2.3, 2.4, 3.7.3, 9.4.2, 9.8.2, 9.8.3, 9.9.1, 12.1.2, 12.2

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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Correlation and Intent of the Contract Documents
1.2
Cost, Definition of
7.3.7
Costs
2.4, 3.2.4, 3.7.3, 3.8.2, 3.15.2, 5.4.2, 6.1.1, 6.2.3, 7.3.3.3, 7.3.7, 7.3.8, 7.3.9, 9.10.2, 10.3.2, 10.3.6, 11.3, 12.1.2, 12.2.1, 12.2.4, 13.5, 14
Cutting and Patching
3.14, 6.2.5 
Damage to Construction of Owner or Separate Contractors
3.14.2, 6.2.4, 10.2.1.2, 10.2.5, 10.4, 11.1.1, 11.3, 12.2.4
Damage to the Work
3.14.2, 9.9.1, 10.2.1.2, 10.2.5, 10.4, 11.3.1, 12.2.4
Damages, Claims for
3.2.4, 3.18, 6.1.1, 8.3.3, 9.5.1, 9.6.7, 10.3.3, 11.1.1, 11.3.5, 11.3.7, 14.1.3, 14.2.4, 15.1.6
Damages for Delay
6.1.1, 8.3.3, 9.5.1.6, 9.7, 10.3.2
Date of Commencement of the Work, Definition of
8.1.2
Date of Substantial Completion, Definition of
8.1.3
Day, Definition of
8.1.4
Decisions of the Architect
3.7.4, 4.2.6, 4.2.7, 4.2.11, 4.2.12, 4.2.13, 15.2, 6.3, 7.3.7, 7.3.9, 8.1.3, 8.3.1, 9.2, 9.4, 9.5.1, 9.8.4, 9.9.1, 13.5.2, 14.2.2, 14.2.4, 15.1, 15.2
Decisions to Withhold Certification
9.4.1, 9.5, 9.7, 14.1.1.3
Defective or Nonconforming Work, Acceptance, Rejection and Correction of
2.3, 2.4, 3.5, 4.2.6, 6.2.5, 9.5.1, 9.5.2, 9.6.6, 9.8.2, 9.9.3, 9.10.4, 12.2.1
Definitions
1.1, 2.1.1, 3.1.1, 3.5, 3.12.1, 3.12.2, 3.12.3, 4.1.1, 15.1.1, 5.1, 6.1.2, 7.2.1, 7.3.1, 8.1, 9.1, 9.8.1
Delays and Extensions of Time
3.2, 3.7.4, 5.2.3, 7.2.1, 7.3.1, 7.4, 8.3, 9.5.1, 9.7, 10.3.2, 10.4, 14.3.2, 15.1.5, 15.2.5
Disputes
6.3, 7.3.9, 15.1, 15.2
Documents and Samples at the Site
3.11
Drawings, Definition of
1.1.5
Drawings and Specifications, Use and Ownership of
3.11
Effective Date of Insurance
8.2.2, 11.1.2
Emergencies
10.4, 14.1.1.2, 15.1.4
Employees, Contractor’s
3.3.2, 3.4.3, 3.8.1, 3.9, 3.18.2, 4.2.3, 4.2.6, 10.2, 10.3.3, 11.1.1, 11.3.7, 14.1, 14.2.1.1
Equipment, Labor, Materials or
1.1.3, 1.1.6, 3.4, 3.5, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1, 4.2.6, 4.2.7, 5.2.1, 6.2.1, 7.3.7, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1, 10.2.4, 14.2.1.1, 14.2.1.2
Execution and Progress of the Work
1.1.3, 1.2.1, 1.2.2, 2.2.3, 2.2.5, 3.1, 3.3.1, 3.4.1, 3.5, 3.7.1, 3.10.1, 3.12, 3.14, 4.2, 6.2.2, 7.1.3, 7.3.5, 8.2, 9.5.1, 9.9.1, 10.2, 10.3, 12.2, 14.2, 14.3.1, 15.1.3
Extensions of Time
3.2.4, 3.7.4, 5.2.3, 7.2.1, 7.3, 7.4, 9.5.1, 9.7, 10.3.2, 10.4, 14.3, 15.1.5, 15.2.5
Failure of Payment
9.5.1.3, 9.7, 9.10.2, 13.6, 14.1.1.3, 14.2.1.2

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
User Notes: 

7
(1500995949)

Faulty Work
(See Defective or Nonconforming Work)
Final Completion and Final Payment
4.2.1, 4.2.9, 9.8.2, 9.10, 11.1.2, 11.1.3, 11.3.1, 11.3.5, 12.3, 14.2.4, 14.4.3
Financial Arrangements, Owner’s
2.2.1, 13.2.2, 14.1.1.4
Fire and Extended Coverage Insurance
11.3.1.1
GENERAL PROVISIONS
1
Governing Law
13.1
Guarantees (See Warranty)
Hazardous Materials
10.2.4, 10.3
Identification of Subcontractors and Suppliers
5.2.1
Indemnification
3.17, 3.18, 9.10.2, 10.3.3, 10.3.5, 10.3.6, 11.3.1.2, 11.3.7
Information and Services Required of the Owner
2.1.2, 2.2, 3.2.2, 3.12.4, 3.12.10, 6.1.3, 6.1.4, 6.2.5, 9.6.1, 9.6.4, 9.9.2, 9.10.3, 10.3.3, 11.2, 11.4, 13.5.1, 13.5.2, 14.1.1.4, 14.1.4, 15.1.3
Initial Decision
15.2
Initial Decision Maker, Definition of
1.1.8
Initial Decision Maker, Decisions
14.2.2, 14.2.4, 15.2.1, 15.2.2, 15.2.3, 15.2.4, 15.2.5
Initial Decision Maker, Extent of Authority
14.2.2, 14.2.4, 15.1.3, 15.2.1, 15.2.2, 15.2.3, 15.2.4, 15.2.5
Injury or Damage to Person or Property
10.2.8, 10.4
Inspections
3.1.3, 3.3.3, 3.7.1, 4.2.2, 4.2.6, 4.2.9, 9.4.2, 9.8.3, 9.9.2, 9.10.1, 12.2.1, 13.5
Instructions to Bidders
1.1.1
Instructions to the Contractor
3.2.4, 3.3.1, 3.8.1, 5.2.1, 7, 8.2.2, 12, 13.5.2
Instruments of Service, Definition of
1.1.7
Insurance
3.18.1, 6.1.1, 7.3.7, 9.3.2, 9.8.4, 9.9.1, 9.10.2, 11
Insurance, Boiler and Machinery
11.3.2
Insurance, Contractor’s Liability
11.1
Insurance, Effective Date of
8.2.2, 11.1.2
Insurance, Loss of Use
11.3.3
Insurance, Owner’s Liability
11.2
Insurance, Property
10.2.5, 11.3
Insurance, Stored Materials
9.3.2
INSURANCE AND BONDS
11

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
User Notes: 

8
(1500995949)

Insurance Companies, Consent to Partial Occupancy
9.9.1
Intent of the Contract Documents
1.2.1, 4.2.7, 4.2.12, 4.2.13, 7.4
Interest
13.6
Interpretation
1.2.3, 1.4, 4.1.1, 5.1, 6.1.2, 15.1.1
Interpretations, Written
4.2.11, 4.2.12, 15.1.4
Judgment on Final Award
15.4.2
Labor and Materials, Equipment
1.1.3, 1.1.6, 3.4, 3.5, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1, 4.2.6, 4.2.7, 5.2.1, 6.2.1, 7.3.7, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1, 10.2.4, 14.2.1.1, 14.2.1.2
Labor Disputes
8.3.1
Laws and Regulations
1.5, 3.2.3, 3.6, 3.7, 3.12.10, 3.13, 4.1.1, 9.6.4, 9.9.1, 10.2.2, 11.1.1, 11.3, 13.1, 13.4, 13.5.1, 13.5.2, 13.6, 14, 15.2.8, 15.4
Liens
2.1.2, 9.3.3, 9.10.2, 9.10.4, 15.2.8
Limitations, Statutes of
12.2.5, 13.7, 15.4.1.1
Limitations of Liability
2.3, 3.2.2, 3.5, 3.12.10, 3.17, 3.18.1, 4.2.6, 4.2.7, 4.2.12, 6.2.2, 9.4.2, 9.6.4, 9.6.7, 10.2.5, 10.3.3, 11.1.2, 11.2, 11.3.7, 12.2.5, 13.4.2
Limitations of Time
2.1.2, 2.2, 2.4, 3.2.2, 3.10, 3.11, 3.12.5, 3.15.1, 4.2.7, 5.2, 5.3, 5.4.1, 6.2.4, 7.3, 7.4, 8.2, 9.2, 9.3.1, 9.3.3, 9.4.1, 9.5, 9.6, 9.7, 9.8, 9.9, 9.10, 11.1.3, 11.3.1.5, 11.3.6, 11.3.10, 12.2, 13.5, 13.7, 14, 15
Loss of Use Insurance
11.3.3
Material Suppliers
1.5, 3.12.1, 4.2.4, 4.2.6, 5.2.1, 9.3, 9.4.2, 9.6, 9.10.5
Materials, Hazardous
10.2.4, 10.3
Materials, Labor, Equipment and
1.1.3, 1.1.6, 1.5.1, 3.4.1, 3.5, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1, 4.2.6, 4.2.7, 5.2.1, 6.2.1, 7.3.7, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1.2, 10.2.4, 14.2.1.1, 14.2.1.2
Means, Methods, Techniques, Sequences and Procedures of Construction
3.3.1, 3.12.10, 4.2.2, 4.2.7, 9.4.2
Mechanic’s Lien
2.1.2, 15.2.8
Mediation
8.3.1, 10.3.5, 10.3.6, 15.2.1, 15.2.5, 15.2.6, 15.3, 15.4.1
Minor Changes in the Work
1.1.1, 3.12.8, 4.2.8, 7.1, 7.4
MISCELLANEOUS PROVISIONS
13
Modifications, Definition of
1.1.1
Modifications to the Contract
1.1.1, 1.1.2, 3.11, 4.1.2, 4.2.1, 5.2.3, 7, 8.3.1, 9.7, 10.3.2, 11.3.1
Mutual Responsibility
6.2
Nonconforming Work, Acceptance of
9.6.6, 9.9.3, 12.3
Nonconforming Work, Rejection and Correction of
2.3, 2.4, 3.5, 4.2.6, 6.2.4, 9.5.1, 9.8.2, 9.9.3, 9.10.4, 12.2.1

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
User Notes: 

9
(1500995949)

Notice
2.2.1, 2.3, 2.4, 3.2.4, 3.3.1, 3.7.2, 3.12.9, 5.2.1, 9.7, 9.10, 10.2.2, 11.1.3, 12.2.2.1, 13.3, 13.5.1, 13.5.2, 14.1, 14.2, 15.2.8, 15.4.1
Notice, Written
2.3, 2.4, 3.3.1, 3.9.2, 3.12.9, 3.12.10, 5.2.1, 9.7, 9.10, 10.2.2, 10.3, 11.1.3, 11.3.6, 12.2.2.1, 13.3, 14, 15.2.8, 15.4.1
Notice of Claims
3.7.4, 10.2.8, 15.1.2, 15.4
Notice of Testing and Inspections
13.5.1, 13.5.2
Observations, Contractor’s
3.2, 3.7.4
Occupancy
2.2.2, 9.6.6, 9.8, 11.3.1.5
Orders, Written
1.1.1, 2.3, 3.9.2, 7, 8.2.2, 11.3.9, 12.1, 12.2.2.1, 13.5.2, 14.3.1
OWNER
2
Owner, Definition of
2.1.1
Owner, Information and Services Required of the
2.1.2, 2.2, 3.2.2, 3.12.10, 6.1.3, 6.1.4, 6.2.5, 9.3.2, 9.6.1, 9.6.4, 9.9.2, 9.10.3, 10.3.3, 11.2, 11.3, 13.5.1, 13.5.2, 14.1.1.4, 14.1.4, 15.1.3
Owner’s Authority
1.5, 2.1.1, 2.3, 2.4, 3.4.2, 3.8.1, 3.12.10, 3.14.2, 4.1.2, 4.1.3, 4.2.4, 4.2.9, 5.2.1, 5.2.4, 5.4.1, 6.1, 6.3, 7.2.1, 7.3.1, 8.2.2, 8.3.1, 9.3.1, 9.3.2, 9.5.1, 9.6.4, 9.9.1, 9.10.2, 10.3.2, 11.1.3, 11.3.3, 11.3.10, 12.2.2, 12.3, 13.2.2, 14.3, 14.4, 15.2.7
Owner’s Financial Capability
2.2.1, 13.2.2, 14.1.1.4
Owner’s Liability Insurance
11.2
Owner’s Relationship with Subcontractors
1.1.2, 5.2, 5.3, 5.4, 9.6.4, 9.10.2, 14.2.2
Owner’s Right to Carry Out the Work
2.4, 14.2.2
Owner’s Right to Clean Up
6.3
Owner’s Right to Perform Construction and to Award Separate Contracts
6.1
Owner’s Right to Stop the Work
2.3
Owner’s Right to Suspend the Work
14.3
Owner’s Right to Terminate the Contract
14.2
Ownership and Use of Drawings, Specifications and Other Instruments of Service
1.1.1, 1.1.6, 1.1.7, 1.5, 2.2.5, 3.2.2, 3.11, 3.17, 4.2.12, 5.3
Partial Occupancy or Use
9.6.6, 9.9, 11.3.1.5
Patching, Cutting and
3.14, 6.2.5
Patents
3.17
Payment, Applications for
4.2.5, 7.3.9, 9.2, 9.3, 9.4, 9.5, 9.6.3, 9.7, 9.8.5, 9.10.1, 14.2.3, 14.2.4, 14.4.3
Payment, Certificates for
4.2.5, 4.2.9, 9.3.3, 9.4, 9.5, 9.6.1, 9.6.6, 9.7, 9.10.1, 9.10.3, 13.7, 14.1.1.3, 14.2.4
Payment, Failure of
9.5.1.3, 9.7, 9.10.2, 13.6, 14.1.1.3, 14.2.1.2
Payment, Final
4.2.1, 4.2.9, 9.8.2, 9.10, 11.1.2, 11.1.3, 11.4.1, 12.3, 13.7, 14.2.4, 14.4.3

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
User Notes: 

10
(1500995949)

Payment Bond, Performance Bond and
7.3.7.4, 9.6.7, 9.10.3, 11.4
Payments, Progress
9.3, 9.6, 9.8.5, 9.10.3, 13.6, 14.2.3, 15.1.3
PAYMENTS AND COMPLETION
9
Payments to Subcontractors
5.4.2, 9.5.1.3, 9.6.2, 9.6.3, 9.6.4, 9.6.7, 14.2.1.2
PCB
10.3.1
Performance Bond and Payment Bond
7.3.7.4, 9.6.7, 9.10.3, 11.4
Permits, Fees, Notices and Compliance with Laws
2.2.2, 3.7, 3.13, 7.3.7.4, 10.2.2
PERSONS AND PROPERTY, PROTECTION OF
10
Polychlorinated Biphenyl
10.3.1
Product Data, Definition of
3.12.2
Product Data and Samples, Shop Drawings
3.11, 3.12, 4.2.7
Progress and Completion
4.2.2, 8.2, 9.8, 9.9.1, 14.1.4, 15.1.3
Progress Payments
9.3, 9.6, 9.8.5, 9.10.3, 13.6, 14.2.3, 15.1.3
Project, Definition of
1.1.4
Project Representatives
4.2.10
Property Insurance
10.2.5, 11.3
PROTECTION OF PERSONS AND PROPERTY
10
Regulations and Laws
1.5, 3.2.3, 3.6, 3.7, 3.12.10, 3.13, 4.1.1, 9.6.4, 9.9.1, 10.2.2, 11.1, 11.4, 13.1, 13.4, 13.5.1, 13.5.2, 13.6, 14, 15.2.8, 15.4
Rejection of Work
3.5, 4.2.6, 12.2.1
Releases and Waivers of Liens
9.10.2
Representations
3.2.1, 3.5, 3.12.6, 6.2.2, 8.2.1, 9.3.3, 9.4.2, 9.5.1, 9.8.2, 9.10.1
Representatives
2.1.1, 3.1.1, 3.9, 4.1.1, 4.2.1, 4.2.2, 4.2.10, 5.1.1, 5.1.2, 13.2.1
Responsibility for Those Performing the Work
3.3.2, 3.18, 4.2.3, 5.3, 6.1.3, 6.2, 6.3, 9.5.1, 10
Retainage
9.3.1, 9.6.2, 9.8.5, 9.9.1, 9.10.2, 9.10.3
Review of Contract Documents and Field Conditions by Contractor
3.2, 3.12.7, 6.1.3
Review of Contractor’s Submittals by Owner and Architect
3.10.1, 3.10.2, 3.11, 3.12, 4.2, 5.2, 6.1.3, 9.2, 9.8.2
Review of Shop Drawings, Product Data and Samples by Contractor
3.12
Rights and Remedies
1.1.2, 2.3, 2.4, 3.5, 3.7.4, 3.15.2, 4.2.6, 5.3, 5.4, 6.1, 6.3, 7.3.1, 8.3, 9.5.1, 9.7, 10.2.5, 10.3, 12.2.2, 12.2.4, 13.4, 14, 15.4
Royalties, Patents and Copyrights
3.17

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
User Notes: 

11
(1500995949)

Rules and Notices for Arbitration
15.4.1
Safety of Persons and Property
10.2, 10.4
Safety Precautions and Programs
3.3.1, 4.2.2, 4.2.7, 5.3, 10.1, 10.2, 10.4
Samples, Definition of
3.12.3
Samples, Shop Drawings, Product Data and
3.11, 3.12, 4.2.7
Samples at the Site, Documents and
3.11
Schedule of Values
9.2, 9.3.1
Schedules, Construction
3.10, 3.12.1, 3.12.2, 6.1.3, 15.1.5.2
Separate Contracts and Contractors
1.1.4, 3.12.5, 3.14.2, 4.2.4, 4.2.7, 6, 8.3.1, 12.1.2
Shop Drawings, Definition of
3.12.1
Shop Drawings, Product Data and Samples
3.11, 3.12, 4.2.7
Site, Use of
3.13, 6.1.1, 6.2.1
Site Inspections
3.2.2, 3.3.3, 3.7.1, 3.7.4, 4.2, 9.4.2, 9.10.1, 13.5
Site Visits, Architect’s
3.7.4, 4.2.2, 4.2.9, 9.4.2, 9.5.1, 9.9.2, 9.10.1, 13.5
Special Inspections and Testing
4.2.6, 12.2.1, 13.5
Specifications, Definition of
1.1.6
Specifications
1.1.1, 1.1.6, 1.2.2, 1.5, 3.11, 3.12.10, 3.17, 4.2.14
Statute of Limitations
13.7, 15.4.1.1
Stopping the Work
2.3, 9.7, 10.3, 14.1
Stored Materials
6.2.1, 9.3.2, 10.2.1.2, 10.2.4
Subcontractor, Definition of
5.1.1
SUBCONTRACTORS
5
Subcontractors, Work by
1.2.2, 3.3.2, 3.12.1, 4.2.3, 5.2.3, 5.3, 5.4, 9.3.1.2, 9.6.7
Subcontractual Relations
5.3, 5.4, 9.3.1.2, 9.6, 9.10, 10.2.1, 14.1, 14.2.1
Submittals
3.10, 3.11, 3.12, 4.2.7, 5.2.1, 5.2.3, 7.3.7, 9.2, 9.3, 9.8, 9.9.1, 9.10.2, 9.10.3, 11.1.3
Submittal Schedule
3.10.2, 3.12.5, 4.2.7
Subrogation, Waivers of
6.1.1, 11.3.7
Substantial Completion
4.2.9, 8.1.1, 8.1.3, 8.2.3, 9.4.2, 9.8, 9.9.1, 9.10.3, 12.2, 13.7
Substantial Completion, Definition of
9.8.1

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
User Notes: 

12
(1500995949)

Substitution of Subcontractors
5.2.3, 5.2.4
Substitution of Architect
4.1.3
Substitutions of Materials
3.4.2, 3.5, 7.3.8
Sub-subcontractor, Definition of
5.1.2
Subsurface Conditions
3.7.4
Successors and Assigns
13.2
Superintendent
3.9, 10.2.6
Supervision and Construction Procedures
1.2.2, 3.3, 3.4, 3.12.10, 4.2.2, 4.2.7, 6.1.3, 6.2.4, 7.1.3, 7.3.7, 8.2, 8.3.1, 9.4.2, 10, 12, 14, 15.1.3
Surety
5.4.1.2, 9.8.5, 9.10.2, 9.10.3, 14.2.2, 15.2.7
Surety, Consent of
9.10.2, 9.10.3
Surveys
2.2.3
Suspension by the Owner for Convenience
14.3
Suspension of the Work
5.4.2, 14.3
Suspension or Termination of the Contract
5.4.1.1, 14
Taxes
3.6, 3.8.2.1, 7.3.7.4
Termination by the Contractor
14.1, 15.1.6
Termination by the Owner for Cause
5.4.1.1, 14.2, 15.1.6
Termination by the Owner for Convenience
14.4
Termination of the Architect
4.1.3
Termination of the Contractor
14.2.2
TERMINATION OR SUSPENSION OF THE CONTRACT
14
Tests and Inspections
3.1.3, 3.3.3, 4.2.2, 4.2.6, 4.2.9, 9.4.2, 9.8.3, 9.9.2, 9.10.1, 10.3.2, 11.4.1, 12.2.1, 13.5
TIME
8
Time, Delays and Extensions of
3.2.4, 3.7.4, 5.2.3, 7.2.1, 7.3.1, 7.4, 8.3, 9.5.1, 9.7, 10.3.2, 10.4, 14.3.2, 15.1.5, 15.2.5
Time Limits
2.1.2, 2.2, 2.4, 3.2.2, 3.10, 3.11, 3.12.5, 3.15.1, 4.2, 5.2, 5.3, 5.4, 6.2.4, 7.3, 7.4, 8.2, 9.2, 9.3.1, 9.3.3, 9.4.1, 9.5, 9.6, 9.7, 9.8, 9.9, 9.10, 11.1.3, 12.2, 13.5, 13.7, 14, 15.1.2, 15.4
Time Limits on Claims
3.7.4, 10.2.8, 13.7, 15.1.2
Title to Work
9.3.2, 9.3.3
Transmission of Data in Digital Form
1.6
UNCOVERING AND CORRECTION OF WORK
12

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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Uncovering of Work
12.1
Unforeseen Conditions, Concealed or Unknown
3.7.4, 8.3.1, 10.3
Unit Prices
7.3.3.2, 7.3.4
Use of Documents
1.1.1, 1.5, 2.2.5, 3.12.6, 5.3
Use of Site
3.13, 6.1.1, 6.2.1
Values, Schedule of
9.2, 9.3.1
Waiver of Claims by the Architect
13.4.2
Waiver of Claims by the Contractor
9.10.5, 13.4.2, 15.1.6
Waiver of Claims by the Owner
9.9.3, 9.10.3, 9.10.4, 12.2.2.1, 13.4.2, 14.2.4, 15.1.6
Waiver of Consequential Damages
14.2.4, 15.1.6
Waiver of Liens
9.10.2, 9.10.4
Waivers of Subrogation
6.1.1, 11.3.7
Warranty
3.5, 4.2.9, 9.3.3, 9.8.4, 9.9.1, 9.10.4, 12.2.2, 13.7
Weather Delays
15.1.5.2
Work, Definition of
1.1.3
Written Consent
1.5.2, 3.4.2, 3.7.4, 3.12.8, 3.14.2, 4.1.2, 9.3.2, 9.8.5, 9.9.1, 9.10.2, 9.10.3, 11.4.1, 13.2, 13.4.2, 15.4.4.2
Written Interpretations
4.2.11, 4.2.12
Written Notice
2.3, 2.4, 3.3.1, 3.9, 3.12.9, 3.12.10, 5.2.1, 8.2.2, 9.7, 9.10, 10.2.2, 10.3, 11.1.3, 12.2.2, 12.2.4, 13.3, 14, 15.4.1
Written Orders
1.1.1, 2.3, 3.9, 7, 8.2.2, 12.1, 12.2, 13.5.2, 14.3.1, 15.1.2

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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ARTICLE 1   GENERAL PROVISIONS
§ 1.1 BASIC DEFINITIONS
§ 1.1.1 THE CONTRACT DOCUMENTS
The Contract Documents are enumerated in the Agreement between the Owner and Contractor (hereinafter the Agreement) and consist of the Agreement, Conditions of the Contract (General, Supplementary and other Conditions), Drawings, Specifications, Addenda issued prior to execution of the Contract, other documents listed in the Agreement and Modifications issued after execution of the Contract. A Modification is (1) a written amendment to the Contract signed by both parties, (2) a Change Order, (3) a Construction Change Directive or (4) a written order for a minor change in the Work issued by the  Owner or Architect. Unless specifically enumerated in the Agreement, the Contract Documents do not include the advertisement or invitation to bid, Instructions to Bidders, sample forms, other information furnished by the Owner in anticipation of receiving bids or proposals, the Contractor’s bid or proposal, or portions of Addenda relating to bidding requirements. 

§ 1.1.2 THE CONTRACT
The Contract Documents form the Contract for Construction. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral. Except as set forth in Section 5.3 and 5.4, below, the Contract may be amended or modified only by a Modification. The Contract Documents shall not be construed to create a contractual relationship of any kind (1) between the Contractor and the Architect or the Architect’s consultants, (2) between the Owner and a Subcontractor or a Sub-subcontractor, (3) between the Owner and the Architect or the Architect’s consultants or (4) between any persons or entities other than the Owner and the Contractor. The Architect shall, however, be entitled to performance and enforcement of obligations under the Contract intended to facilitate performance of the Architect’s duties.

§ 1.1.3 THE WORK
The term “Work” means the construction and services required by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment and services provided or to be provided by the Contractor to fulfill the Contractor’s obligations. The Work may constitute the whole or a part of the Project.

§ 1.1.4 THE PROJECT
The Project is the total construction of which the Work performed under the Contract Documents may be the whole or a part and which may include construction by the Owner and by separate contractors.

§ 1.1.5 THE DRAWINGS
The Drawings are the graphic and pictorial portions of the Contract Documents showing the design, location and dimensions of the Work, generally including plans, elevations, sections, details, schedules and diagrams.

§ 1.1.6 THE SPECIFICATIONS
The Specifications are that portion of the Contract Documents consisting of the written requirements for materials, equipment, systems, standards and workmanship for the Work, and performance of related services.

§ 1.1.7 INSTRUMENTS OF SERVICE
Instruments of Service are representations, in any medium of expression now known or later developed, of the tangible and intangible creative work performed by the Architect and the Architect’s consultants under their respective professional services agreements. Instruments of Service may include, without limitation, studies, surveys, models, sketches, drawings, specifications, and other similar materials.

§ 1.1.8 INITIAL DECISION MAKER
The Initial Decision Maker is the person identified in the Agreement to render initial decisions on Claims in accordance with Section 15.2 and certify termination of the Agreement under Section 14.2.2. 

§ 1.1.9 THE GUARANTEED MAXIMUM PRICE
The Guaranteed Maximum Price or “GMP” as used herein shall refer to the Contractor’s Guaranteed Maximum Price as defined in Section 5.2 of the Agreement.  Except for its use in Sections 9.1, 9.4.2 and 14.2.4, the term “Contract Sum” as used in this A201TM–2007, as modified, refers to the Guaranteed Maximum Price as defined in Section 5.2 of the Agreement.

§ 1.2 CORRELATION AND INTENT OF THE CONTRACT DOCUMENTS
§ 1.2.1 The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work by the Contractor. The Contract Documents are complementary, and what is required by one shall be as binding as if required by all; performance by the Contractor shall be required only to the extent consistent with the Contract Documents and reasonably inferable from them as being necessary to produce the indicated results. 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 1.2.2 Organization of the Specifications into divisions, sections and articles, and arrangement of Drawings shall not control the Contractor in dividing the Work among Subcontractors or in establishing the extent of Work to be performed by any trade.  Contractor represents that the Subcontractors, manufacturers and suppliers engaged or to be engaged by Contractor are and will be familiar with the requirements of the Contract Documents for performance by them of their obligations.

§ 1.2.3 Unless otherwise stated in the Contract Documents, words that have well-known technical or construction industry meanings are used in the Contract Documents in accordance with such recognized meanings.

§ 1.3 CAPITALIZATION
Terms capitalized in these General Conditions include those that are (1) specifically defined, (2) the titles of numbered articles or (3) the titles of other documents published by the American Institute of Architects.

§ 1.4 INTERPRETATION
In the interest of brevity the Contract Documents frequently omit modifying words such as “all” and “any” and articles such as “the” and “an,” but the fact that a modifier or an article is absent from one statement and appears in another is not intended to affect the interpretation of either statement.

§ 1.5 OWNERSHIP AND USE OF DRAWINGS, SPECIFICATIONS AND OTHER INSTRUMENTS OF SERVICE
§ 1.5.1 All Drawings, Specifications, and other documents prepared by the Architect are and shall remain the property of Owner, and Owner shall retain all common law, statutory and other reserved rights with respect thereto. They shall not be used by Contractor on any other project without the prior written consent of Owner, and Contractor shall take such action as may be necessary to prevent their use on any other project or for additions to the Project outside the scope of the Work by any Subcontractor, Sub-subcontractor, or material or equipment supplier. Contractor, Subcontractors, Subsubcontractors, and material and equipment suppliers are granted a limited license to use and reproduce applicable portions of the Drawings, Specifications, and other documents prepared by Architect appropriate to and for use in the execution of their Work under the Contract Documents. All copies made under this license shall bear the statutory copyright notice, if any, shown on the originals. Submittals or distributions necessary to meet official regulatory requirements or for other purposes relating to completion of the Project are not to be construed as a publication in derogation of the Owner's copyright or other reserved rights.

§ 1.5.2 Contractor acknowledges that it has taken measures reasonably necessary to verify and ascertain the nature and location of the Work, and that it has investigated and satisfied itself as to all general and local conditions that may affect the Work or its cost, including but not limited to:  (a) conditions relating to transportation, handling, storage and disposal of materials and equipment; (b) availability of labor, power, water and other utilities, and roads; (c) uncertainties of weather, river stages, and similar physical characteristics of the site and its surroundings; and (d) character of equipment and other facilities required relative to the Work, both prior to commencement of the Work at the site and during the performance of the Work.  Contractor further acknowledges that it has fully satisfied itself as to the nature, character, quality and quantity of surface conditions, materials or obstacles to be encountered to the extent that such information is reasonably available from the local municipality and other public bodies, and from the Contract Documents.  

§ 1.5.3 Owner assumes no responsibility for any conclusions or interpretations made by Contractor based on the information made available by Owner, unless such information is included in the Contract Documents.

§ 1.6 TRANSMISSION OF DATA IN DIGITAL FORM
If the parties intend to transmit Instruments of Service or any other information or documentation in digital form, they shall endeavor to establish necessary protocols governing such transmissions, unless otherwise already provided in the Agreement or the Contract Documents, and such protocols, when agreed, shall be incorporated into the Contract Documents by amendment.

ARTICLE 2   OWNER
§ 2.1 GENERAL
§ 2.1.1 The Owner is the person or entity identified as such in the Agreement and is referred to throughout the Contract Documents as if singular in number. The Owner shall designate in writing a representative who shall have express authority to bind the Owner with respect to all matters requiring the Owner’s approval or authorization. Except as otherwise provided in Section 4.2.1, the Architect does not have such authority. The term “Owner” means the Owner or the Owner’s authorized representative.

§ 2.1.2 The Owner shall furnish to the Contractor within fifteen days after receipt of a written request, information necessary and relevant for the Contractor to evaluate, give notice of or enforce mechanic’s lien rights. Such information shall include a 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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correct statement of the record legal title to the property on which the Project is located, usually referred to as the site, and the Owner’s interest therein.

§ 2.2 INFORMATION AND SERVICES REQUIRED OF THE OWNER
§ 2.2.1 Prior to and after commencement of the Work, but not more than once every three (3) months, the Contractor may request in writing that the Owner provide reasonable evidence that the Owner has made financial arrangements or has the financial ability to fulfill the Owner’s obligations under the Contract. The Owner shall furnish such evidence within fifteen (15) days after written request thereof from Contractor as a condition precedent to commencement of the Work.  Thereafter, the furnishing of such evidence shall be a condition precedent to continuation of the Work if the request is made because (1) the Owner fails to make payments to the Contractor as the Contract Documents require; (2) a change in the Work materially increases the Contract Sum; or (3) the Contractor identifies in writing a reasonable concern regarding the Owner’s ability to make payment when due. The Owner shall furnish such evidence or as a condition precedent to commencement or continuation of the Work or the portion of the Work affected by a material change. After the Owner furnishes the evidence, the Owner shall not materially vary such financial arrangements, if applicable, without prior notice to the Contractor. 

§ 2.2.2 Except for permits and fees that are the responsibility of the Contractor under the Contract Documents, including those required under Section 3.7.1, the Owner shall secure and pay for necessary approvals, easements, assessments and charges required for construction, use or occupancy of permanent structures or for permanent changes in existing facilities.

§ 2.2.3 The Owner shall furnish surveys describing physical characteristics, legal limitations and utility locations for the site of the Project, and a legal description of the site. The Contractor shall be entitled to rely on the accuracy of information furnished by the Owner but shall exercise proper precautions relating to the safe performance of the Work.  Owner does not assume any responsibility whatsoever with respect to the sufficiency or accuracy of surveys or reports of borings made, or of the logs of test borings, or other investigations, or of the interpretations made thereof, and there is no warranty or guaranty, expressed or implied, that the conditions indicated by such investigations, borings, logs or information are representative of those existing throughout the Project site, or any part thereof, or the concealed conditions may be different from those described or may not have been identified.

§ 2.2.4 The Owner shall furnish information or services required of the Owner by the Contract Documents with reasonable promptness. The Owner shall also furnish any other information or services under the Owner’s control and relevant to the Contractor’s performance of the Work with reasonable promptness after receiving the Contractor’s written request for such information or services.

§ 2.2.5 Unless otherwise provided in the Contract Documents, the Owner shall furnish to the Contractor one copy of the Contract Documents for purposes of making reproductions pursuant to Section 1.5.2.

§ 2.3 OWNER’S RIGHT TO STOP THE WORK
If the Contractor fails to correct Work that is not in accordance with the requirements of the Contract Documents as required by Section 12.2 or repeatedly fails to carry out Work in accordance with the Contract Documents, the Owner may, after giving Contractor written notice and a reasonable opportunity to cure, but such notice shall only be required for the first such failure as to any particular issue or obligation, issue a written order to the Contractor to stop the Work, or any portion thereof, until the cause for such order has been eliminated; however, the right of the Owner to stop the Work shall not give rise to a duty on the part of the Owner to exercise this right for the benefit of the Contractor or any other person or entity, except to the extent required by Section 6.1.3.  Owner's exercise of the right described in this Section 2.3 shall not give rise to any extension of the Contract Time nor shall the Contract Sum include any sums, costs, or charges directly attributable to Owner's exercise of this right.

§ 2.4 OWNER’S RIGHT TO CARRY OUT THE WORK
If the Contractor defaults or neglects to carry out the Work in accordance with the Contract Documents and fails within a ten-day period after receipt of written notice from the Owner to commence and continue correction of such default or neglect with diligence and promptness, the Owner may, without prejudice to other remedies the Owner may have, correct such deficiencies. In such case an appropriate Change Order shall be issued deducting from payments then or thereafter due the Contractor the reasonable cost of correcting such deficiencies, including Owner’s expenses and compensation for the Architect’s additional services made necessary by such default, neglect or failure.  If payments then or thereafter due the Contractor are not sufficient to cover such amounts, the Contractor shall pay the difference to the Owner, upon receipt of a written demand accompanied by documentation substantiating the amounts claimed.

§ 2.5 At all times prior to the completion of the Work, Owner, Architect, Project Manager, Owner's lender(s) (“Lender(s)”), if any, and all of their employees and agents, subject to Contractor’s reasonable requirements, shall have the right to have full 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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access and use of the Work site. Owner's right hereunder shall include, without limitation, making inspections of the Work, including inspections carried out by Owner's agents (such as without limitation, Project Manager, Architect, engineers or other professional inspectors), stationing a Project director, a job supervisor and other personnel employed by Owner at the Work site, showing the Work to prospective concessionaires, tenants, lenders and other interested persons, and carrying out the work of fixturing the improvements comprising the Work for Owner's purposes in using the completed Work. Such use shall not constitute acceptance of the Work or any part thereof, or waive any of Owner's rights under the Contract Documents.

§ 2.6 Owner will not be responsible for and will not have control or charge over construction means, methods, techniques, sequences or procedures, or for safety precautions and programs in connection with the Work, and Owner will not be responsible for Contractor's failure to carry out the Work in accordance with the Contract Documents and applicable laws, rules and regulations. Owner will not be responsible for or have control or charge over the acts or omissions of Contractor, Subcontractors, or any of their agents or employees, or any other person performing any of the Work.

§ 2.7 Owner has the authority to reject the Work which does not conform to the Contract Documents. Whenever, in its opinion, Owner considers it necessary or advisable for implementation of the intent of the Contract Documents, Owner will have the authority to require special inspection or testing of the Work in accordance with Section 13.5.2 whether or not such Work is then fabricated, installed or completed. However, neither Owner's authority to act under this Section 2.7, nor any decision made by Owner in good faith, either to exercise or not to exercise such authority, shall give rise to any duty or responsibility of Owner to Contractor, any Subcontractor, any of their agents or employees, or any other person performing any of the Work.

§ 2.8 In the event Owner reasonably determines that the progress of Work affecting the critical path of construction is behind the progress anticipated in the schedule for the Work set forth in the GMP Amendment (the “Schedule”) , and Contractor is not entitled to receive an extension of the Contract Time in accordance with Contract Documents, Contractor shall submit to Owner for its approval a “Recovery Plan” which will indicate the manner in which Contractor intends to get the Work back on schedule in accordance with the Schedule. The cost of preparing the Recovery Plan shall be borne solely by Contractor, and shall not be the subject of a Change Order or the use of any contingency funds. In addition, Owner may require Contractor to take such actions as Owner reasonably deems necessary to expedite progress of the Work in conformance with the progress anticipated by the Schedule, which actions may include, without limitation, increasing the number of workmen performing the Work, utilizing overtime work and requiring additional work shifts.  Such action by Owner to place Contractor back on schedule shall not entitle Contractor to receive any additional compensation for these activities unless Contractor would be entitled to receive an extension of Contract Time and Contractor has made such a request, all in accordance with Section 8.3.1, below.

ARTICLE 3   CONTRACTOR
§ 3.1 GENERAL
§ 3.1.1 The Contractor is the person or entity identified as such in the Agreement and is referred to throughout the Contract Documents as if singular in number. The Contractor shall be lawfully licensed, if required in the jurisdiction where the Project is located. The Contractor shall designate in writing a representative who shall have express authority to bind the Contractor with respect to all matters under this Contract. The term “Contractor” means the Contractor or the Contractor’s authorized representative.

§ 3.1.2 The Contractor shall perform the Work in accordance with the Contract Documents.

§ 3.1.3 The Contractor shall not be relieved of obligations to perform the Work in accordance with the Contract Documents either by activities or duties of the Architect in the Architect’s administration of the Contract, or by tests, inspections or approvals required or performed by persons or entities other than the Contractor, unless the Contract Documents require the Contractor to rely upon such administration, tests, inspections or approvals.

§ 3.2 REVIEW OF CONTRACT DOCUMENTS AND FIELD CONDITIONS BY CONTRACTOR
§ 3.2.1 Execution of the Contract by the Contractor is a representation that the Contractor has visited the site, become generally familiar with local conditions under which the Work is to be performed and correlated personal observations with requirements of the Contract Documents.  Contractor and each Subcontractor shall evaluate and satisfy themselves as to the conditions and limitations under which the Work is to be performed, including without limitation, (1) the location, condition, layout, nature of the Project site and surrounding areas, (2) generally prevailing climactic conditions, (3) anticipated labor supply and cost, (4) availability and costs of materials, tools and equipment and (5) other similar issues. Owner assumes no responsibility or liability for the safety of the Project site or any improvements located at the Project site.  The Owner shall not be required to make any adjustment in either the Contract Sum or the Contract Time in connection with any failure by the Contractor or any Subcontractor to comply with the requirements of this Section 3.2.1. The Contract Sum includes provisions for all Work that may be performed by Contractor to overcome patent site and soil conditions and, except as expressly provided in Section 3.7.4, 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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below, claims for additional compensation or extension of time because of the Contractor’s failure to familiarize himself with such conditions will not be allowed.

§ 3.2.2 Because the Contract Documents are complementary, the Contractor shall, before starting each portion of the Work, carefully study and compare the various Contract Documents relative to that portion of the Work, as well as the information furnished by the Owner pursuant to Section 2.2.3, shall take field measurements of any existing conditions related to that portion of the Work, and shall observe any conditions at the site affecting it.  Contractor shall at once report to Architect, Project Manager and Owner errors, inconsistencies or omissions discovered.  If Contractor fails to so report such discovered errors, inconsistencies or omissions, or those that it discovered in the exercise of reasonable care, it shall be responsible for the cost of correction or, at Owner’s option, the reduction in value of any defective portion of the Work thereafter performed.  Contractor further acknowledges that it has visited the site, examined all conditions affecting the Work, is fully familiar with all of the conditions thereon and affecting the same, and having carefully examined all Drawings, Specifications, and documents.  These obligations are for the purpose of facilitating coordination and construction by the Contractor and are not for the purpose of discovering errors, omissions, or inconsistencies in the Contract Documents; however, the Contractor shall promptly report to the Architect any errors, inconsistencies or omissions discovered by or made known to the Contractor as a request for information in such form as the Architect may require. It is recognized that the Contractor’s review is made in the Contractor’s capacity as a contractor and not as a licensed design professional, unless otherwise specifically provided in the Contract Documents. 

§ 3.2.3 Except as otherwise provided in the Contract Documents, the Contractor is not required to ascertain that the Contract Documents are in accordance with applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of public authorities, but the Contractor shall promptly report to the Owner,  Project Manager and Architect any nonconformity discovered by or made known to the Contractor as a request for information in such form as the Architect may require.

§ 3.2.4 If the Contractor believes that additional cost or time is involved because of clarifications or instructions the Architect issues in response to the Contractor’s notices or requests for information pursuant to Sections 3.2.2 or 3.2.3, the Contractor shall make Claims as provided in Article 15.  If the Contractor fails to perform the obligations of Sections 3.2.2 or 3.2.3, it shall pay such costs and damages to the Owner as would have been avoided if the Contractor had performed such obligations. If the Contractor performs those obligations, the Contractor shall not be liable to the Owner or Architect for damages resulting from errors, inconsistencies or omissions in the Contract Documents, for differences between field measurements or conditions and the Contract Documents, or for nonconformities of the Contract Documents to applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities.

§ 3.2.5 Any ambiguities, missing information, illegible words or numbers or discrepancies discovered by Contractor shall be promptly submitted to Owner, Project Manager and Architect for a recommendation before products are ordered or construction initiated for that portion of the Work. Contractor shall perform the Work reflecting the correction of such errors, inconsistencies, and omissions subject to Owner's execution of appropriate Change Orders.
§ 3.2.5.1 Work ordered, fabricated or constructed by Contractor, when the Contract Documents do not clearly specify in detail the Work to be done or where the Work conflicts with the Contract Documents without such Change Orders, shall be corrected by Contractor at its own expense.
§ 3.2.5.2 Recommendations of Architect with regard to such ambiguities or discrepancies shall not make Architect an arbitrator to establish responsibilities of Subcontractors to Contractor with regard to such portions of the Work.

§ 3.2.6 Contractor shall notify Architect, Project Manager and Owner in writing, of materials, systems, procedures or methods of construction either shown on the Drawings or specified in the Specifications which Contractor believes are incorrect or inappropriate for the purposes intended, or for which Contractor objects to furnishing the warranties required by the Contract Documents. Architect and Owner will make a determination of such matters in writing, Contractor shall be responsible for any additional costs resulting from its failure to so notify Architect, Project Manager and Owner that such materials, systems, procedures and methods, are incorrect or inappropriate.

§ 3.2.7 Dimensions indicated on the Drawings are required dimensions, regardless of measurement per given scale. Contractor shall verify at site necessary levels, measurements, etc., for complete fabrication, assembly and installation, fitting of equipment, fixtures and the Work. Where dimensions are not indicated and exact location is not apparent, Contractor shall promptly notify Architect, Project Manager and Owner's Representative, and Architect shall compute the required measurements. 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 3.3 SUPERVISION AND CONSTRUCTION PROCEDURES
§ 3.3.1 The Contractor shall supervise and direct the Work, using the Contractor’s best skill and attention. The Contractor shall be solely responsible for, and have control over, construction means, methods, techniques, sequences and procedures and for coordinating all portions of the Work under the Contract, unless the Contract Documents give other specific instructions concerning these matters. If the Contract Documents give specific instructions concerning construction means, methods, techniques, sequences or procedures, the Contractor shall evaluate the jobsite safety thereof and, except as stated below, shall be fully and solely responsible for the jobsite safety of such means, methods, techniques, sequences or procedures (excluding any separate work performed by a third party under a separate contract directly with Owner).  If the Contractor determines that such means, methods, techniques, sequences or procedures may not be safe, the Contractor shall give timely written notice to the Owner and Architect and shall not proceed with that portion of the Work without further written instructions from the Architect, and the GMP or Contract Time or both shall be equitably adjusted. If the Contractor is then instructed to proceed with the required means, methods, techniques, sequences or procedures without acceptance of changes proposed by the Contractor, the Owner shall be solely responsible for any loss or damage arising solely from those Owner-required means, methods, techniques, sequences or procedures. 

The Contractor shall engage workers who are skilled in performing the Work, and all Work shall be performed with care and skill and in a good workmanlike manner under the full-time supervision of an approved superintendent.  The Contractor shall be liable for all property damage, including repairs and replacements of the Work, which proximately result from the breach of this duty.  The Contractor shall advise the Owner:

a)    if a specified product deviates from good construction practices.

b)    If following the Specifications will affect any warranties; or

c)    any objections which the Contractor may have to the Specifications.

§ 3.3.2 The Contractor shall be responsible to the Owner for acts and omissions of the Contractor’s employees, Subcontractors and their agents and employees, and other persons or entities performing portions of the Work for, or on behalf of, the Contractor or any of its Subcontractors.

§ 3.3.3 The Contractor shall be responsible for inspection of portions of Work already performed to determine that such portions are in proper condition to receive subsequent Work.

§ 3.3.4 In addition to Section 10.2, below, Contractor shall institute and supervise reasonable precautions to prevent damage, injury or loss to (i) all employees involved with the Work and other persons who may be affected thereby, including, without limitation, invitees, licensees, trespassers and persons on adjacent properties, (ii) all the Work and all materials and equipment to be incorporated therein, including those in storage on or off site under the care, custody or control of Contractor or any Subcontractor, (iii) Owner's personal and real property and other property at the Work site or adjacent thereto, including without limitation, fixtures, carpets, and other related items, and (iv) all of Owner's employees, agents and representatives.  Contractor shall at all times take such precautions as may be necessary to shore, brace, secure and protect the Work and shall protect such parts of the Work and shall provide and maintain such security, including, without limitation, rules, guards, fences, lights and signs, as may be necessary or required to comply with this Section 3.3.4.  Contractor shall further post necessary danger signs and other warnings against hazards, promulgate and enforce safety codes, rules and regulations and notify owners, lessees and users of adjacent property. Contractor shall particularly ensure and be responsible for compliance with all applicable state and federal safety laws, ordinances, rules, regulations and lawful orders of all governmental authorities and other persons or entities having jurisdiction. In any emergency threatening the Work or adjoining property, Contractor may act pursuant to Section 10.4. Contractor shall not be responsible for the costs of such emergency work, unless the emergency was due to Contractor's own fault or neglect.  The Contractor shall inspect all materials delivered to the Project and shall reject any materials that will not conform with the Contract Documents when properly installed.

§ 3.3.5 Contractor shall not cause or permit any disruption to the streets and utilities serving any occupied portion of the Project, the remainder of the Project, or other properties without Owner's prior consent, which may be conditioned upon restrictions in the time, place and manner of such disruption.

§ 3.4 LABOR AND MATERIALS
§ 3.4.1 Unless otherwise provided in the Contract Documents, the Contractor shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, and temporary water, heat, utilities (including connections), transportation, and other facilities and services necessary for proper execution and completion of the Work, whether temporary or permanent and whether or not incorporated or to be incorporated in the Work.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 3.4.2 Contractor may make substitutions only with the consent of the Owner, after evaluation by the Architect and in accordance with a Change Order or Construction Change Directive.

§ 3.4.3 The Contractor shall enforce strict discipline and good order among the Contractor’s employees and other persons carrying out the Work. The Contractor shall not permit employment of unfit persons or persons not properly skilled in tasks assigned to them.

§ 3.4.4 Where the Contract Documents refer to particular construction means, methods, techniques, sequences or procedures or indicate or imply that such are to be used on the Work, such mention is intended only to indicate that the operations of Contractor shall be such as to produce the quality of work implied by the operations described, but that the actual determination of whether the described operations may be safely or suitably employed on the Work shall be the responsibility of Contractor, who shall notify Architect, Project Manager and Owner in writing of the actual means, methods, techniques, sequences or procedures which will be employed on the Work, if these differ from those mentioned in the Contract Documents. All loss, damage, or liability, or cost of correcting defective work arising from the employment of any construction means, methods, techniques, sequences or procedures shall be borne by the Contractor, notwithstanding that such construction means, methods, techniques, sequences or procedures are referred to, indicated or implied by the Contract Documents.

§ 3.4.5 Any material specified by reference to the number, symbol, or title of a specific standard such as that of the American Society for Testing materials (ASTM), a Product or Commercial Standard, Federal Specification or other similar standards, shall comply with the requirements of the dated revisions stated in the Specifications, or where the Specifications contain no revision date, shall comply with the requirements of the latest revision thereof and any supplement or amendment thereto, in effect on the date of receipt of bids. The standards referred to, except as specifically modified in the Specifications, shall have the same force as if they were printed in full context within the Specifications.

§ 3.4.6 Contractor shall coordinate all Work of like material in order to produce harmony of matching finishes, textures, colors, etc., throughout the various components of the Project.

§ 3.4.7 Where it is required in the Specifications that materials, products, processes, equipment or the like be installed or applied in accord with manufacturer's instructions, directions, or specifications or words to this effect, it shall be construed to mean that said application or installation shall be in strict accord with current printed instructions furnished by the manufacturer of the material concerned for use under conditions similar to those at the job site. Unless otherwise stated, Contractor shall furnish one (1) copy of instructions to Owner and one (1) copy to Architect.

§ 3.5 WARRANTY
Subject to the provisions of Section 12.2 herein, the Contractor warrants to the Owner that materials and equipment furnished under the Contract will be of good quality and new unless the Contract Documents require or permit otherwise. The Contractor further warrants that the Work will conform to the requirements of the Contract Documents and will be free from defects, except for those inherent in the quality of the Work the Contract Documents require or permit. Work, materials, or equipment not conforming to these requirements shall be defective. The Contractor’s warranty excludes remedy for damage or defect caused by abuse, alterations to the Work not executed by the Contractor, improper or insufficient maintenance, improper operation, or normal wear and tear and normal usage.  If required by the Owner, the Contractor shall furnish satisfactory evidence as to the kind and quality of materials and equipment.  Contractor agrees to assign to Owner at the time of final completion of the Work, any and all manufacturer's warranties relating to material and labor used in the Work and further agrees to perform the Work in such a manner so as to preserve any and all such manufacturer's warranties. Contractor shall furnish seventy-two (72) hour callback service for the equipment provided by Contractor for a period of one (1) year after final payment and acceptance of the Work. Provided, however, Contractor shall provide twenty-four (24) hours emergency call back service for all pumping systems, emergency generator, electric switch gear, smoke exhaust fans, chillers and a domestic water heaters.  

§ 3.5.2  During the warranty period, Owner shall (i) establish and conduct a reasonable maintenance and repair program in and around the property; (ii) comply in all respects with the requirements set forth in the manufacturers’ warranties on all equipment, fixtures and systems; (iii) notify Contractor in writing within ten (10) business days after Owner has actual knowledge of any defect or deficiency which Owner believes is covered by Contractor’s warranty; and (iv) provide to Contractor such reasonable access necessary to inspect the work during the warranty period and correct or replace any defect covered by Contractor’s warranty.  Contractor shall not be liable for any damages that could have been prevented but occurred as a result of Owner’s failure to give Contractor such notice pursuant to this Section.

§ 3.6 TAXES

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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The Contractor shall pay, as a Cost of the Work, sales, consumer, use and similar taxes for the Work provided by the Contractor that are legally enacted when bids are received or negotiations concluded, whether or not yet effective or merely scheduled to go into effect.

§ 3.7 PERMITS, FEES, NOTICES AND COMPLIANCE WITH LAWS
§ 3.7.1 Unless otherwise provided in the Contract Documents, the Contractor shall secure and pay for the building permit as well as for other permits, fees, licenses, and inspections by government agencies necessary for proper execution and completion of the Work that are customarily secured after execution of the Contract and legally required at the time bids are received or negotiations concluded.  Unless otherwise provided in the Contract Documents, the Owner shall secure and pay for all non-construction-related permits as well as any permits necessary for the operation of the facility post-completion.

§ 3.7.2 The Contractor shall comply with and give notices required by applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders, and all other requirements of public authorities applicable to performance of the Work.  If Contractor fails to give such notice, Contractor shall be liable for and shall indemnify and hold harmless Owner, Project Manager, and their respective employees, officers, and agents, against any resulting fines, penalties, liabilities, judgments or damages, including reasonable attorneys' fees, imposed on or incurred by the parties indemnified hereunder.

§ 3.7.3 If the Contractor performs Work knowing it to be contrary to applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders or other requirements of public authorities, the Contractor shall assume appropriate responsibility for such Work and shall bear the costs attributable to correction, and shall, in addition to Owner's other remedies, pay all costs of correction, and reimburse Owner for any diminution in value of the Project and expenses incurred by Owner as a result of Contractor's actions.  Contractor shall send all notices, make all necessary arrangements, and provide all labor and materials required to protect and maintain in operation of all public utilities within the Project site or affected by the Work.

§ 3.7.4 Concealed or Unknown Conditions. If the Contractor encounters conditions at the site that are (1) subsurface or otherwise concealed physical conditions that differ materially from those indicated in the Contract Documents or (2) unknown physical conditions of an unusual nature, that differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents, the Contractor shall promptly provide notice to the Owner and the Architect before conditions are disturbed and in no event later than 21 days after first observance of the conditions. The Architect will promptly investigate such conditions and, if the Architect determines that they differ materially and cause an increase or decrease in the Contractor’s cost of, or time required for, performance of any part of the Work, will recommend an equitable adjustment in the Contract Sum, Guaranteed Maximum Price, Contract Time, or any of them. If the Architect determines that the conditions at the site are not materially different from those indicated in the Contract Documents and that no change in the terms of the Contract is justified, the Architect shall promptly notify the Owner and Contractor in writing, stating the reasons. If either party disputes the Architect’s determination or recommendation, that party may proceed as provided in Article 15. 

§ 3.7.5 If, in the course of the Work, the Contractor encounters human remains or recognizes the existence of burial markers, archaeological sites or wetlands not indicated in the Contract Documents, the Contractor shall immediately suspend any operations that would affect them and shall notify the Owner and Architect. Upon receipt of such notice, the Owner shall promptly take any action necessary to obtain governmental authorization required to resume the operations. The Contractor shall continue to suspend such operations until otherwise instructed by the Owner but shall continue with all other operations that do not affect those remains or features. Requests for adjustments in the Contract Sum, Guaranteed Maximum Price, and Contract Time arising from the existence of such remains or features may be made as provided in Article 15.

§ 3.8 ALLOWANCES
§ 3.8.1 The Contractor shall include in the Contract Sum all allowances stated in the Contract Documents. Items covered by allowances shall be supplied for such amounts and by such persons or entities as the Owner may direct, but the Contractor shall not be required to employ persons or entities to whom the Contractor has reasonable objection.

§ 3.8.2 Unless otherwise provided in the Contract Documents,
		
	.1
	Allowances shall cover the cost to the Contractor of materials and equipment delivered at the site and all required taxes, less applicable trade discounts;

		
	.2
	Contractor’s and its Subcontractors’ (of every tier), and suppliers’ costs for unloading and handling at the site, labor, installation costs, overhead, profit and other expenses contemplated for stated allowance amounts shall be included in the Contract Sum but not in the allowances; and

		
	.3
	Whenever costs are more than or less than allowances, the Contract Sum and Guaranteed Maximum Price shall be adjusted accordingly by Change Order. The amount of the Change Order shall reflect (1) the difference 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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between actual costs and the allowances under Section 3.8.2.1 and (2) changes in Contractor’s costs under Section 3.8.2.2.

§ 3.8.3 Materials and equipment under an allowance shall be selected by the Owner with reasonable promptness so as not to delay the Work.

§ 3.9 SUPERINTENDENT
§ 3.9.1 The Contractor shall employ a competent superintendent approved in writing by Owner and necessary assistants who shall be in attendance at the Project site during performance of the Work.  Contractor shall notify Owner in writing of any proposed change in such personnel, including the reason therefore, prior to making any change.  Such personnel shall not be changed except with the consent of Owner, unless such personnel cease to be in the employ of Contractor.  Ross Vroman and Kevin Devlin of Contractor shall, subject to change by prior written notice from Contractor to Owner, represent Contractor, and written communications given to them shall be binding on Contractor.

§ 3.9.2 The Contractor, as soon as practicable after award of the Contract, shall furnish in writing to the Owner, Project Manager and Architect the name and qualifications of a proposed superintendent.  The Owner, Project Manager and Architect may reply within 14 days to the Contractor in writing stating (1) whether the Owner, Project Manager or the Architect have reasonable objection to the proposed superintendent or (2) that the Owner, Project Manager and Architect requires additional time to review.  Failure of the Owner, Project Manager and Architect to reply within the 14 day period shall constitute notice of no reasonable objection. 

§ 3.9.3 The Contractor shall not employ a proposed superintendent to whom the Owner, Project Manager or Architect has made reasonable and timely objection. The Contractor shall not change the superintendent without the Owner’s consent, which shall not unreasonably be withheld or delayed. 

§ 3.10 CONTRACTOR’S CONSTRUCTION SCHEDULES
§ 3.10.1 The Contractor, promptly after the Agreement is executed by both Owner and Contractor, shall prepare and submit for the Owner’s, Project Manager’s and Architect’s information a Contractor’s construction schedule for the Work. The schedule shall not exceed time limits current under the Contract Documents, shall be revised at appropriate intervals as required by the conditions of the Work and Project, shall be related to the entire Project to the extent required by the Contract Documents, and shall provide for expeditious and practicable execution of the Work.

§ 3.10.2 The Contractor shall prepare a submittal schedule, promptly after being awarded the Contract and thereafter as necessary to maintain a current submittal schedule, and shall submit the submittal schedule for the Architect’s approval. The Architect’s approval shall not unreasonably be delayed or withheld. The submittal schedule shall (1) be coordinated with the Contractor’s construction schedule, and (2) allow the Architect reasonable time to review submittals. If the Contractor fails to submit a submittal schedule, the Contractor shall not be entitled to any increase in Contract Sum or extension of Contract Time based on the time required for review of submittals.

§ 3.10.3 The Contractor shall perform the Work in general accordance with the most recent schedules submitted to the Owner and Architect. 

§ 3.11 DOCUMENTS AND SAMPLES AT THE SITE
The Contractor shall maintain at the site for the Owner one copy of the Drawings, Specifications, Addenda, Change Orders and other Modifications, in good order and marked currently to indicate field changes and selections made during construction, and one copy of approved Shop Drawings, Product Data, Samples and similar required submittals. These shall be available to the Owner and Architect and shall be delivered to the Owner upon completion of the Work as a record of the Work as constructed.  The Contractor shall also maintain all approved permit drawings and other documents at the site, so as to make them accessible to inspectors and the Owner at all times that the Work is in progress. Such documents shall be delivered to the Owner before final payment.

§ 3.12 SHOP DRAWINGS, PRODUCT DATA AND SAMPLES
§ 3.12.1 Shop Drawings are drawings, diagrams, schedules and other data specially prepared for the Work by the Contractor or a Subcontractor, Sub-subcontractor, manufacturer, supplier or distributor to illustrate some portion of the Work.

§ 3.12.2 Product Data are illustrations, standard schedules, performance charts, instructions, brochures, diagrams and other information furnished by the Contractor to illustrate materials or equipment for some portion of the Work. 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 3.12.3 Samples are physical examples that illustrate materials, equipment or workmanship and establish standards by which the Work will be judged.

§ 3.12.4 Shop Drawings, Product Data, Samples and similar submittals are not Contract Documents. Their purpose is to demonstrate the way by which the Contractor proposes to conform to the information given and the design concept expressed in the Contract Documents for those portions of the Work for which the Contract Documents require submittals. Review by the Architect is subject to the limitations of Section 4.2.7. Informational submittals upon which the Architect is not expected to take responsive action may be so identified in the Contract Documents. Submittals that are not required by the Contract Documents may be returned by the Architect without action.

§ 3.12.5 The Contractor shall review for compliance with the Contract Documents, and submit for approval to the Architect Shop Drawings, Product Data, Samples and similar submittals required by the Contract Documents in accordance with the submittal schedule approved by the Architect or, in the absence of an approved submittal schedule, with reasonable promptness and in such sequence as to cause no delay in the Work or in the activities of the Owner or of separate contractors.

§ 3.12.6 By submitting Shop Drawings, Product Data, Samples and similar submittals, the Contractor represents to the Owner and Architect that the Contractor has (1) reviewed them, and (2) checked and coordinated the information contained within such submittals with the requirements of the Work and of the Contract Documents.

§ 3.12.7 The Contractor shall perform no portion of the Work for which the Contract Documents require submittal and review of Shop Drawings, Product Data, Samples or similar submittals until the respective submittal has been approved by the Architect.

§ 3.12.8 The Work shall be in accordance with approved submittals except that the Contractor shall not be relieved of responsibility for deviations from requirements of the Contract Documents by the Architect’s approval of Shop Drawings, Product Data, Samples or similar submittals unless the Contractor has specifically informed the Architect in writing of such deviation at the time of submittal and (1) the Architect has given written approval to the specific deviation as a minor change in the Work, or (2) a Change Order or Construction Change Directive has been issued authorizing the deviation. The Contractor shall not be relieved of responsibility for errors or omissions in Shop Drawings, Product Data, Samples or similar submittals by the Architect’s approval thereof.

§ 3.12.9 The Contractor shall direct specific attention, in writing or on resubmitted Shop Drawings, Product Data, Samples or similar submittals, to revisions other than those requested by the Architect on previous submittals. In the absence of such written notice, the Architect’s approval of a resubmission shall not apply to such revisions.

§ 3.12.10 The Contractor shall not be required to provide professional services that constitute the practice of architecture or engineering including, but not limited to, seismic engineering design and/or structural design required as a result of construction sequences. The Contractor shall not be required to provide professional services in violation of applicable law. If professional design services or certifications by a design professional related to systems, materials or equipment are specifically required of the Contractor by the Contract Documents, the Owner and the Architect will specify all performance and design criteria that such services must satisfy. The Contractor shall cause such services or certifications to be provided by a properly licensed design professional, whose signature and seal shall appear on all drawings, calculations, specifications, certifications, Shop Drawings and other submittals prepared by such professional. Shop Drawings and other submittals related to the Work designed or certified by such professional, if prepared by others, shall bear such professional’s written approval when submitted to the Architect. The Owner and the Architect shall be entitled to rely upon the adequacy, accuracy and completeness of the services, certifications and approvals performed or provided by such design professionals, provided the Owner and Architect have specified to the Contractor all performance and design criteria that such services must satisfy. Pursuant to this Section 3.12.10, the Architect will review, approve or take other appropriate action on submittals only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents. The Contractor shall not be responsible for the adequacy of the performance and design criteria specified in the Contract Documents.

§ 3.13 USE OF SITE
The Contractor shall confine operations at the site to areas permitted by applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities and the Contract Documents and shall not unreasonably encumber the site with materials or equipment.

§ 3.14 CUTTING AND PATCHING
§ 3.14.1 The Contractor shall be responsible for cutting, fitting or patching required to complete the Work or to make its parts fit together properly. All areas requiring cutting, fitting and patching shall be restored to the condition existing prior to the cutting, fitting and patching, unless otherwise required by the Contract Documents. 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 3.14.2 The Contractor shall not damage or endanger a portion of the Work or fully or partially completed construction of the Owner or separate contractors by cutting, patching or otherwise altering such construction, or by excavation. The Contractor shall not cut or otherwise alter such construction by the Owner or a separate contractor except with written consent of the Owner and of such separate contractor; such consent shall not be unreasonably withheld. The Contractor shall not unreasonably withhold from the Owner or a separate contractor the Contractor’s consent to cutting or otherwise altering the Work.

§ 3.14.3 The Contractor shall locate, protect, and save from injury utilities of all kinds, either above or below grade, (i) of which Contractor has actual knowledge, (ii) that are set forth in plans given to, or obtained by, Contractor or (iii) that are marked by Underground Service Alert, inside or outside of any structure, found in the areas affected by its work.  Contractor shall be responsible for all damage caused to such utility by the operation of equipment or delivery of materials or as the direct or indirect result of any of its work and shall repair all such damage at its expense and as a part of the work included in the Contract Documents.  The Contractor shall not be entitled to any increase in the Contract Sum or the Contract Time on account of such damage to any utility, so long as Contractor either had actual knowledge of such utility, such utility was set forth in plans given to, or obtained by, Contractor, or such utility was marked by Underground Service Alert.

§ 3.15 CLEANING UP
§ 3.15.1 The Contractor shall keep the premises and surrounding area free from accumulation of waste materials or rubbish caused by operations under the Contract. At completion of the Work, the Contractor shall remove waste materials, rubbish, the Contractor’s tools, construction equipment, machinery and surplus materials from and about the Project.

§ 3.15.2 If the Contractor fails to clean up as provided in the Contract Documents, the Owner may do so and Owner shall be entitled to reimbursement from the Contractor.

§ 3.15.3 Contractor shall be responsible for broken glass, and at or before completion of the Work, as directed by Owner, shall replace such damaged or broken glass.  After broken glass has been replaced, Contractor shall remove all labels, wash, and policy both sides of all glass.  Further, in addition to general broom cleaning, Contractor shall perform the final cleaning for all trades immediately upon completion of the Work, which shall include, but not limited to, the following:  (a) remove temporary protections; (b) remove marks, stains, fingerprints and other soil or dirt from painted, decorated, and natural finished woodwork and other Work; (c) remove spots, mortar, plaster, soil and paint from ceramic tile, marble, and other finish materials and wash or wipe clean; (d) clean fixtures, cabinet work and equipment, removing stains, paint, dirt, and dust and leave in undamaged, new condition; (e) clean aluminum in accordance with recommendations of the manufacturer; and (f) clean resilient floors thoroughly with a well rinsed mop containing only enough moisture to clean off any surface dirt or dust and buff dry by machine to bring the surfaces to sheen.

§ 3.15.4 Costs incurred by Owner under this Section 3.15 shall be deducted from amounts otherwise due to Contractor, or at Owner's option, reimbursed by Contractor to Owner immediately following Owner's demand.

§ 3.16 ACCESS TO WORK
The Contractor shall provide the Owner and Architect access to the Work in preparation and progress wherever located.

§ 3.17 ROYALTIES, PATENTS AND COPYRIGHTS
The Contractor shall pay all royalties and license fees. The Contractor shall defend suits or claims for infringement of copyrights and patent rights and shall hold the Owner and Architect harmless from loss on account thereof, but shall not be responsible for such defense or loss when a particular design, process or product of a particular manufacturer or manufacturers is required by the Contract Documents, or where the copyright violations are contained in Drawings, Specifications or other documents prepared by the Owner or Architect. However, if the Contractor has reason to know that the required design, process or product is an infringement of a copyright or a patent, the Contractor shall be responsible for such loss unless such information is promptly furnished to the Architect.

§ 3.18 INDEMNIFICATION
§ 3.18.1 To the fullest extent permitted by law the Contractor shall indemnify, defend and hold harmless the Owner, Project Manager, Owner’s Lender and agents and employees of any of them (collectively, the “Indemnitees”) from and against claims, damages, losses and expenses, including but not limited to attorneys’ fees, brought by or alleged by a third party arising out of or resulting from performance of the Work, provided that such claim, damage, loss or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), but only to the extent caused by the negligent acts or omissions of the Contractor, a Subcontractor, anyone directly or indirectly employed by them or anyone for whose acts they may be liable. Such obligation shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist as to a party or person described in this Section 3.18.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 3.18.2 In claims against any person or entity indemnified under this Section 3.18 by an employee of the Contractor, a Subcontractor, anyone directly or indirectly employed by them or anyone for whose acts they may be liable, the indemnification obligation under Section 3.18.1 shall not be limited by a limitation on amount or type of damages, compensation or benefits payable by or for the Contractor or a Subcontractor under workers’ compensation acts, disability benefit acts or other employee benefit acts.

§ 3.18.3 Contractor shall include in all agreements with Subcontractors clauses substantially similar to Subparagraph 3.18.1 where the Subcontractor agrees to indemnify Contractor and Indemnitees.

§ 3.19 LENDER’S CERTIFICATE

§ 3.19.1 Within ten (10) days of Owner's request, Contractor shall execute and deliver to Owner and its lender(s) having an interest in the Project, a certificate addressed to Owner and such lender(s) concerning the compliance of the Work with the Contract Documents and applicable laws and regulations, the status of completion of the Work, the status of payments and defaults, and such other matters as such lender(s) may request. Such requests shall not be made an unreasonable number of times. 

§ 3.20 REPRESENTATIONS AND WARRANTIES
§ 3.20.1 Contractor represents and warrants the following to Owner (in addition to the other representations and warranties contained in the Contract Documents), which representations and warranties shall survive any termination of the Owner-Contractor Agreement and the final completion of the Work:

§ 3.20.1.1 that it is financially solvent, able to pay its debts as they mature and possessed of sufficient working capital to complete the Work and perform its obligations under Contract Documents;

§ 3.20.1.2 that it is able to furnish the tools, materials, supplies, equipment, and labor required to complete the Work and perform its obligations under the Contract Documents and has sufficient experience and competence to do so; and

§ 3.20.1.3 that it is authorized to do business in the State of Arizona and properly licensed by all necessary governmental authorities having jurisdiction over it and over the Work and the site of the Project.

§ 3.21 PUBLICITY
§ 3.21.1 The Contractor shall not divulge information concerning this Project to anyone (including, without limitation, information in applications for permits, variances, etc.) without the Owner's prior written consent.  The Contractor shall obtain a similar agreement from firms, subcontractors, suppliers, and others employed by the Contractor.  The Owner reserves the right to release all information as well as to time its release, form, and content.  This requirement shall survive the expiration of the Contract. Contractor’s ultimate parent company, Skanska AB, the shares of which are publicly traded on the NASDAQ OMX Stockholm, will be required by applicable securities laws and regulations to issue one or more press releases concerning this Agreement if the total amount of this Agreement exceeds $35,000,000.00.  Attached hereto as Schedule 1 is a press release in form approved by Owner for such a press release in the event the total amount of this Agreement exceeds $35,000,000.00, provided, however, the Contractor shall give the Owner five (5) business days’ prior written notice of issuance of it.  Contractor shall give Owner any other press release(s) at least five (5) business days prior to issuance for Owner to review and approve by written notice to Contractor, provided that such approval shall not to be unreasonably withheld, conditioned or delayed. 

§ 3.22 LENDER’S ARCHITECT
§ 3.22.1 If the Owner's lender requires the services of an inspecting architect or other representative, the Owner may require the concurrence of such inspecting architect or lender's representative in each instance where the approval of the Owner or the Architect herein is required by any provision of the Contract Documents.  The Contractor shall fully cooperate with such inspecting architect or lender representative.

ARTICLE 4   ARCHITECT
§ 4.1 GENERAL
§ 4.1.1 The Owner shall retain an architect lawfully licensed to practice architecture or an entity lawfully practicing architecture in the jurisdiction where the Project is located. That person or entity is identified as the Architect in the Agreement and is referred to throughout the Contract Documents as if singular in number. 

	
	
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§ 4.1.2 Duties, responsibilities and limitations of authority of the Architect as set forth in the Contract Documents shall not be restricted, modified or extended without written consent of the Owner, Contractor and Architect. Consent shall not be unreasonably withheld.

§ 4.1.3 If the employment of the Architect is terminated, the Owner shall employ a successor architect as to whom the Contractor has no reasonable objection and whose status under the Contract Documents shall be that of the Architect.

§ 4.2 ADMINISTRATION OF THE CONTRACT
§ 4.2.1 The Architect will provide administration of the Contract as described in the Contract Documents and will be an Owner’s representative during construction until the date the Architect issues the final Certificate for Payment. The Architect will have authority to act on behalf of the Owner only to the extent provided in the Contract Documents.

§ 4.2.2 The Architect will visit the site at intervals appropriate to the stage of construction, or as otherwise agreed with the Owner, to become generally familiar with the progress and quality of the portion of the Work completed, and to determine in general if the Work observed is being performed in a manner indicating that the Work, when fully completed, will be in accordance with the Contract Documents. However, the Architect will not be required to make exhaustive or continuous on-site inspections to check the quality or quantity of the Work. The Architect will not have control over, charge of, or responsibility for, the construction means, methods, techniques, sequences or procedures, or for the safety precautions and programs in connection with the Work, since these are solely the Contractor’s rights and responsibilities under the Contract Documents, except as provided in Section 3.3.1.

§ 4.2.3 On the basis of the site visits, the Architect will keep the Owner reasonably informed about the progress and quality of the portion of the Work completed, and report to the Owner (1) known deviations from the Contract Documents and from the most recent construction schedule submitted by the Contractor, and (2) defects and deficiencies observed in the Work. The Architect will not be responsible for the Contractor’s failure to perform the Work in accordance with the requirements of the Contract Documents. The Architect will not have control over or charge of and will not be responsible for acts or omissions of the Contractor, Subcontractors, or their agents or employees, or any other persons or entities performing portions of the Work.

§ 4.2.4 COMMUNICATIONS FACILITATING CONTRACT ADMINISTRATION
Except as otherwise provided in the Contract Documents or when direct communications have been specially authorized, the Owner and Contractor shall endeavor to communicate with each other through the Architect about matters arising out of or relating to the Contract. Communications by and with the Architect’s consultants shall be through the Architect. Communications by and with Subcontractors and material suppliers shall be through the Contractor. Communications by and with separate contractors shall be through the Owner.

§ 4.2.5 Based on the Architect’s evaluations of the Contractor’s Applications for Payment, the Architect will review and certify the amounts due the Contractor and will issue Certificates for Payment in such amounts.

§ 4.2.6 The Architect has authority to reject Work that does not conform to the Contract Documents. Whenever the Architect considers it necessary or advisable, the Architect will have authority to require inspection or testing of the Work in accordance with Sections 13.5.2 and 13.5.3, whether or not such Work is fabricated, installed or completed. However, neither this authority of the Architect nor a decision made in good faith either to exercise or not to exercise such authority shall give rise to a duty or responsibility of the Architect to the Contractor, Subcontractors, material and equipment suppliers, their agents or employees, or other persons or entities performing portions of the Work.

§ 4.2.7 The Architect will review and approve, or take other appropriate action upon, the Contractor’s submittals such as Shop Drawings, Product Data and Samples, but only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents. The Architect’s action will be taken in accordance with the submittal schedule approved by the Architect or, in the absence of an approved submittal schedule, with reasonable promptness so as not to delay the Work. Review of such submittals is not conducted for the purpose of determining the accuracy and completeness of other details such as dimensions and quantities, or for substantiating instructions for installation or performance of equipment or systems. The Architect’s review of the Contractor’s submittals shall not relieve the Contractor of the obligations under Sections 3.3, 3.5 and 3.12. The Architect’s review shall not constitute approval of safety precautions or, unless otherwise specifically stated by the Architect, of any construction means, methods, techniques, sequences or procedures. The Architect’s approval of a specific item shall not indicate approval of an assembly of which the item is a component. 

§ 4.2.8 The Architect will prepare Change Orders and Construction Change Directives, and may authorize minor changes in the Work as provided in Section 7.4. The Architect will investigate and make determinations and recommendations regarding concealed and unknown conditions as provided in Section 3.7.4.

	
	
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§ 4.2.9 The Architect will conduct inspections to determine the date or dates of Substantial Completion and the date of final completion; issue Certificates of Substantial Completion pursuant to Section 9.8; receive and forward to the Owner, for the Owner’s review and records, written warranties and related documents required by the Contract and assembled by the Contractor pursuant to Section 9.10; and issue a final Certificate for Payment pursuant to Section 9.10.

§ 4.2.10 If the Owner and Architect agree, the Architect will provide one or more project representatives to assist in carrying out the Architect’s responsibilities at the site. The duties, responsibilities and limitations of authority of such project representatives shall be as set forth in an exhibit to be incorporated in the Contract Documents.

§ 4.2.11 The Architect will interpret and decide matters concerning performance under, and requirements of, the Contract Documents on written request of either the Owner or Contractor. The Architect’s response to such requests will be made in writing within any time limits agreed upon or otherwise with reasonable promptness. 

§ 4.2.12 Interpretations and decisions of the Architect will be consistent with the intent of, and reasonably inferable from, the Contract Documents and will be in writing or in the form of drawings. When making such interpretations and decisions, the Architect will endeavor to secure faithful performance by both Owner and Contractor, will not show partiality to either and will not be liable for results of interpretations or decisions rendered in good faith.

§ 4.2.13 [Intentionally Deleted.]

§ 4.2.14 The Architect will review and respond to requests for information about the Contract Documents. The Architect’s response to such requests will be made in writing within any time limits agreed upon or otherwise with reasonable promptness so as not to delay the Progress of the Work.  If appropriate, the Architect will prepare and issue supplemental Drawings and Specifications in response to the requests for information.

ARTICLE 5   SUBCONTRACTORS
§ 5.1 DEFINITIONS
§ 5.1.1 A Subcontractor is a person or entity who has a direct contract with the Contractor to perform a portion of the Work at the site. The term “Subcontractor” is referred to throughout the Contract Documents as if singular in number and means a Subcontractor or an authorized representative of the Subcontractor. The term “Subcontractor” does not include a separate contractor or subcontractors of a separate contractor.

§ 5.1.2 A Sub-subcontractor is a person or entity who has a direct or indirect contract with a Subcontractor to perform a portion of the Work at the site. The term “Sub-subcontractor” is referred to throughout the Contract Documents as if singular in number and means a Sub-subcontractor or an authorized representative of the Sub-subcontractor.

§ 5.2 AWARD OF SUBCONTRACTS AND OTHER CONTRACTS FOR PORTIONS OF THE WORK
§ 5.2.1 Contractor, as soon as practicable after award of the Contract, shall furnish in writing to the Owner, with copies to, Architect and Project Manager, the names of persons or entities (including those who are to furnish materials or equipment fabricated to a special design) proposed for each principal portion of the Work. The Owner and Architect may reply within 14 days to the Contractor in writing stating (1) whether the Owner or the Architect have reasonable objection to any such proposed person or entity or (2) that the Owner or Architect requires additional time for review. Failure of the Owner or Architect to reply within the 14-day period shall constitute notice of no reasonable objection.

§ 5.2.2 The Contractor shall not contract with a proposed person or entity to whom the Owner or Architect has made reasonable and timely objection. The Contractor shall not be required to contract with anyone to whom the Contractor has made reasonable objection.

§ 5.2.3 If the Owner or Architect has reasonable objection to a person or entity proposed by the Contractor, the Contractor shall propose another to whom the Owner or Architect has no reasonable objection. If the proposed but rejected Subcontractor was reasonably capable of performing the Work, the Contract Sum and Contract Time shall be increased or decreased by the difference, if any, occasioned by such change, and an appropriate Change Order shall be issued before commencement of the substitute Subcontractor’s Work. However, no increase in the Contract Sum, Guaranteed Maximum Price or Contract Time shall be allowed for such change unless the Contractor has acted promptly and responsively in submitting names as required.

§ 5.2.4 The Contractor shall not substitute a Subcontractor, person or entity previously selected if the Owner or Architect makes reasonable objection to such substitution.

	
	
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§ 5.2.5 All portions of the Work that the Contractor's organization does not perform with its own personnel shall be performed under Subcontracts or by other appropriate agreements with Contractor. Prior to awarding a portion of the Work to any proposed Subcontractor, Contractor shall deliver to Owner a copy of any proposed Subcontractor's bid. All Subcontracts shall conform to the requirements of the Contract Documents. Contractor shall deliver to Owner copies of all Subcontracts both prior to and following their execution.

§ 5.3 SUBCONTRACTUAL RELATIONS
§ 5.3.1 By appropriate agreement, written where legally required for validity, the Contractor shall require each Subcontractor, to the extent of the Work to be performed by the Subcontractor, to be bound to the Contractor by terms of the Contract Documents, and to assume toward the Contractor all the obligations and responsibilities, including the responsibility for safety of the Subcontractor’s Work, which the Contractor, by these Documents, assumes toward the Owner. Each subcontract agreement shall preserve and protect the rights of the Owner and Architect under the Contract Documents with respect to the Work to be performed by the Subcontractor so that subcontracting thereof will not prejudice such rights, and shall allow to the Subcontractor, unless specifically provided otherwise in the subcontract agreement, the benefit of all rights, remedies and redress against the Contractor that the Contractor, by the Contract Documents, has against the Owner. Where appropriate, the Contractor shall require each Subcontractor to enter into similar agreements with Sub-subcontractors. The Contractor shall make available to each proposed Subcontractor, prior to the execution of the subcontract agreement, copies of the Contract Documents to which the Subcontractor will be bound.  Subcontractors will similarly make copies of applicable portions of such documents available to their respective proposed Sub-subcontractors.

§ 5.3.2 All Work performed for Contractor by a Subcontractor shall be pursuant to an appropriate written agreement between Contractor and the Subcontractor (and where appropriate between Subcontractors and Sub-subcontractors) which shall include a schedule of value approved by Owner, and which shall contain provisions that:

§ 5.3.2.1 provide that Owner is an express third party beneficiary of the subcontract, and preserve and protect the rights of Owner under the Contract with respect to the Work to be performed under the subcontract so that the subcontracting thereof will not prejudice such right;

§ 5.3.2.2 require such Work be performed in accordance with the requirements of the Contract Documents;

§ 5.3.2.3 include the Subcontractor's acknowledgment that Contractor has assigned its interest in the subcontract to Owner, which assignment shall become effective upon Contractor's default under the Contract Documents and Subcontractor's receipt of notification from Owner that (a) Contractor is in default under the Contract Documents or Owner has terminated the Contract; and (b) the assignment is effective;

§ 5.3.2.4 require submission to Contractor of applications for payment under each subcontract to which Contractor is a party, in reasonable time to enable the Contractor to apply for payment in accordance with Article 9 of the General Conditions and Article 12 of the Agreement;

§ 5.3.2.5 require that all claims for additional costs, extensions of time, damages for delays or otherwise with respect to subcontracted portions of the Work shall be submitted to Contractor (via any Subcontractor or Sub-subcontractor where appropriate) in sufficient time so that Contractor may comply in the manner provided in the Contract Documents for like claims by Contractor upon Owner; and

§ 5.3.2.6 waive all rights Contractor and Subcontractor may have against one another for damages caused by fire or other perils covered by property insurance.

§ 5.4 CONTINGENT ASSIGNMENT OF SUBCONTRACTS
§ 5.4.1 Each subcontract agreement for a portion of the Work is assigned by the Contractor to the Owner, provided that
		
	.1
	assignment is effective only after termination of the Contract by the Owner pursuant to Article 14 and only for those subcontract agreements that the Owner accepts by notifying the Subcontractor and Contractor in writing; and

		
	.2
	assignment is subject to the prior rights of the surety, if any, obligated under bond relating to the Contract.

When the Owner accepts in writing the assignment of a subcontract agreement, the Owner, on a going forward basis, assumes the Contractor’s rights and obligations under the subcontract.  In no event shall Owner have any obligation to cure the Contractor’s breach of the subcontract.

§ 5.4.2 [Intentionally Deleted]

	
	
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§ 5.4.3 Upon such assignment to the Owner under this Section 5.4, the Owner may further assign the subcontract to a successor contractor or other entity. 

§ 5.4.4 Upon such assignment, the Owner shall defend, indemnify and hold Contractor harmless against any and all claims of Subcontractors arising after the effective date of such assignment based on acts occurring thereafter whose Subcontracts have been assigned to the Owner.

ARTICLE 6   CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS
§ 6.1 OWNER’S RIGHT TO PERFORM CONSTRUCTION AND TO AWARD SEPARATE CONTRACTS
§ 6.1.1 The Owner reserves the right to perform construction or operations related to the Project with the Owner’s own forces, and to award separate contracts in connection with other portions of the Project or other construction or operations on the site under Conditions of the Contract identical or substantially similar to these including those portions related to insurance and waiver of subrogation. If the Contractor claims that delay or additional cost is involved because of such action by the Owner, the Contractor shall make such Claim as provided in Article 15.

§ 6.1.2 When separate contracts are awarded for different portions of the Project or other construction or operations on the site, the term “Contractor” in the Contract Documents in each case shall mean the Contractor who executes each separate Owner-Contractor Agreement.

§ 6.1.3 The Owner shall provide for coordination of the activities of the Owner’s own forces and of each separate contractor with the Work of the Contractor, who shall cooperate with them. The Contractor shall participate with other separate contractors and the Owner in reviewing their construction schedules. The Contractor shall make any revisions to the construction schedule deemed necessary after a joint review and mutual agreement, and Contract Sum and Contract Time will be equitably adjusted as is appropriate.  The construction schedules shall then constitute the schedules to be used by the Contractor, separate contractors and the Owner until subsequently revised.

§ 6.1.4 Unless otherwise provided in the Contract Documents, when the Owner performs construction or operations related to the Project with the Owner’s own forces, the Owner shall be deemed to be subject to the same obligations and to have the same rights that apply to the Contractor under the Conditions of the Contract, including, without excluding others, those stated in Article 3, this Article 6 and Articles 10, 11 and 12.

§ 6.2 MUTUAL RESPONSIBILITY
§ 6.2.1 The Contractor shall afford the Owner and separate contractors reasonable opportunity for introduction and storage of their materials and equipment and performance of their activities, and shall connect and coordinate the Contractor’s construction and operations with theirs as required by the Contract Documents.

§ 6.2.2 If part of the Contractor’s Work depends for proper execution or results upon construction or operations by the Owner or a separate contractor, the Contractor shall, prior to proceeding with that portion of the Work, promptly report to the Architect apparent discrepancies or defects in such other construction that would render it unsuitable for such proper execution and results. Failure of the Contractor so to report shall constitute an acknowledgment that the Owner’s or separate contractor’s completed or partially completed construction is fit and proper to receive the Contractor’s Work, except as to defects not then reasonably discoverable.

§ 6.2.3 The Contractor shall reimburse the Owner for costs the Owner incurs that are payable to a separate contractor because of the Contractor’s delays, improperly timed activities or defective construction. The Owner shall be responsible to the Contractor for costs the Contractor incurs because of a separate contractor’s delays, improperly timed activities, damage to the Work or defective construction.

§ 6.2.4 The Contractor shall promptly remedy damage the Contractor wrongfully causes to completed or partially completed construction or to property of the Owner or separate contractors as provided in Section 10.2.5.

§ 6.2.5 The Owner and each separate contractor shall have the same responsibilities for cutting and patching as are described for the Contractor in Section 3.14.

§ 6.3 OWNER’S RIGHT TO CLEAN UP
If a dispute arises among the Contractor, separate contractors and the Owner as to the responsibility under their respective contracts for maintaining the premises and surrounding area free from waste materials and rubbish, the Owner may clean up and the Architect will allocate reasonably the cost among those responsible.

	
	
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ARTICLE 7   CHANGES IN THE WORK
§ 7.1 GENERAL
§ 7.1.1 Changes in the Work may be accomplished after execution of the Contract, and without invalidating the Contract, by Change Order, Construction Change Directive or order for a minor change in the Work, subject to the limitations stated in this Article 7 and elsewhere in the Contract Documents.

§ 7.1.2 A Change Order shall be based upon agreement among the Owner, Contractor and Architect; a Construction Change Directive requires agreement by the Owner and Architect and may or may not be agreed to by the Contractor; an order for a minor change in the Work may be issued by the Architect alone.

§ 7.1.3 Changes in the Work shall be performed under applicable provisions of the Contract Documents, and the Contractor shall proceed promptly, unless otherwise provided in the Change Order, Construction Change Directive or order for a minor change in the Work.

§ 7.1.4 Owner shall order changes in the Work by giving Contractor a written change order request (“Change Order Request”), setting forth in detail the nature of the requested change. Contractor shall, as soon as reasonably possible, but not later than ten (10) days following receipt of a Change Order Request, furnish to Owner a statement setting forth in detail, with suitable breakdown by trades and work classifications, the changes, if any, in the Contract Sum attributable to the changes set forth in such Change Order Request, the proposed adjustment, if any, to the Contract Time resulting from such Change Order Request and any proposed adjustments of time and costs related to unchanged Work resulting from such Change Order Request.  If Owner approves such changes in writing, a change order (“Change Order”) shall be executed and the Contract Sum and Contract Time shall be adjusted as set forth in such Change Order. Failure to agree on the price of any Change Order shall not excuse Contractor from proceeding with the prosecution of the Work as changed (provided Owner issues a Construction Change Directive) for an amount equal to the amount undisputed by Owner for such a Change Order, with Contractor reserving its rights to claim additional compensation for the disputed portion of such Change Order work.

§ 7.1.5 Owner and Contractor shall be entitled to receive a Change Order equitably adjusting (either by decrease or increase) the Guaranteed Maximum Price or the Contract Time or both for adverse or beneficial cost and schedule impacts to the Work from the a change in any applicable law, including the interpretation or application thereof, after the date the GMP is established.

§ 7.2 CHANGE ORDERS
§ 7.2.1 A Change Order is a written instrument prepared by the Architect and signed by the Owner, Contractor and Architect stating their agreement upon all of the following:
		
	.1
	The change in the Work;

		
	.2
	The amount of the adjustment, if any, in the Contract Sum and Guaranteed Maximum Price; and

		
	.3
	The extent of the adjustment, if any, in the Contract Time.

§ 7.2.2 Agreement on any Change Order shall constitute a final settlement of all matters relating to the change in the Work which is the subject of the Change Order, including, but not limited to, all direct and indirect costs associated with such change and any and all adjustments to the Contract Sum and the Contract Time. In the event a Change Order increases the Contract Sum, Contractor shall include the Work covered by such Change Orders in Applications for Payment as if such Work were originally part of the Contract Documents.

§ 7.3 CONSTRUCTION CHANGE DIRECTIVES
§ 7.3.1 A Construction Change Directive is a written order prepared by the Architect and signed by the Owner and Architect, directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum, Guaranteed Maximum Price, or Contract Time, or any of them. The Owner may by Construction Change Directive, without invalidating the Contract, order changes in the Work within the general scope of the Contract consisting of additions, deletions or other revisions, the Contract Sum, Guaranteed Maximum Price and Contract Time being adjusted accordingly.

§ 7.3.2 A Construction Change Directive shall be used in the absence of total agreement on the terms of a Change Order. 

§ 7.3.3 If the Construction Change Directive provides for an adjustment to the Contract Sum, the adjustment shall be based on one of the following methods:
		
	.1
	Mutual acceptance of a lump sum properly itemized and supported by sufficient substantiating data to permit evaluation;

		
	.2
	Unit prices stated in the Contract Documents or subsequently agreed upon;

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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	.3
	Cost to be determined in a manner agreed upon by the parties, plus the Contractor’s Fee set forth in Section 5.1.1 of the Agreement; or

		
	.4
	As provided in Section 7.3.7.

§ 7.3.4 If unit prices are stated in the Contract Documents or subsequently agreed upon, and if quantities originally contemplated are materially changed in a proposed Change Order or Construction Change Directive so that application of such unit prices to quantities of Work proposed will cause substantial inequity to the Owner or Contractor, the applicable unit prices shall be equitably adjusted.

§ 7.3.5 Upon receipt of a Construction Change Directive, the Contractor shall promptly proceed with the change in the Work involved and advise the Architect of the Contractor’s agreement or disagreement with the method, if any, provided in the Construction Change Directive for determining the proposed adjustment in the Contract Sum, Guaranteed Maximum Price or Contract Time.

§ 7.3.6 A Construction Change Directive signed by the Contractor indicates the Contractor’s agreement therewith, including adjustment in Contract Sum, Guaranteed Maximum Price and Contract Time or the method for determining them. Such agreement shall be effective immediately and shall be recorded as a Change Order.

§ 7.3.7 If the Contractor does not respond promptly or disagrees with the method for adjustment in the Contract Sum, the Architect shall determine the method and the adjustment on the basis of reasonable expenditures and savings of those performing the Work attributable to the change, including, in case of an increase in the Contract Sum, an amount for overhead and profit as set forth in the Agreement, or if no such amount is set forth in the Agreement, a reasonable amount. In such case, and also under Section 7.3.3.3, the Contractor shall keep and present, in such form as the Architect may prescribe, an itemized accounting together with appropriate supporting data. Unless otherwise provided in the Contract Documents, costs for the purposes of this Section 7.3.7 shall be limited to the following:
		
	.1
	Costs of labor, including social security, old age and unemployment insurance, fringe benefits required by agreement or custom, and workers’ compensation insurance;

		
	.2
	Costs of materials, supplies and equipment, including cost of transportation, whether incorporated or consumed;

		
	.3
	Rental costs of machinery and equipment, exclusive of hand tools, whether rented from the Contractor or others;

		
	.4
	Costs of premiums for all bonds and insurance, permit fees, and sales, use or similar taxes related to the Work; 

		
	.5
	Additional costs of supervision and field office personnel directly attributable to the change; and

		
	.6
	Any additional costs allowed by Article 6 of the Agreement.

§ 7.3.8 The amount of credit to be allowed by the Contractor to the Owner for a deletion or change that results in a net decrease in the Contract Sum shall be actual net cost as confirmed by the Architect. When both additions and credits covering related Work or substitutions are involved in a change, the allowance for overhead and profit shall be figured on the basis of net increase, if any, with respect to that change.

§ 7.3.9 Pending final determination of the total cost of a Construction Change Directive to the Owner, the Contractor may request payment for Work completed under the Construction Change Directive in Applications for Payment. The Architect will make an interim determination for purposes of monthly certification for payment for those costs and certify for payment the amount that the Architect determines, in the Architect’s professional judgment, to be reasonably justified. The Architect’s interim determination of cost shall adjust the Contract Sum and Guaranteed Maximum Price on the same basis as a Change Order, subject to the right of either party to disagree and assert a Claim in accordance with Article 15. 

§ 7.3.10 When the Owner and Contractor agree with a determination made by the Architect concerning the adjustments in the Contract Sum, Guaranteed Maximum Price and Contract Time, or otherwise reach agreement upon the adjustments, such agreement shall be effective immediately and the Architect will prepare a Change Order. Change Orders may be issued for all or any part of a Construction Change Directive.

§ 7.4 MINOR CHANGES IN THE WORK
The Architect has authority to order minor changes in the Work not involving adjustment in the Contract Sum, Guaranteed Maximum Price or extension of the Contract Time and not inconsistent with the intent of the Contract Documents. Such changes will be effected by written order signed by the Architect and shall be binding on the Owner and Contractor, subject to the right of Contractor to reasonably disagree and assert a Claim in accordance with Article 15. 

ARTICLE 8   TIME
§ 8.1 DEFINITIONS

	
	
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§ 8.1.1 Unless otherwise provided, Contract Time is the period of time, including authorized adjustments, allotted in the Contract Documents for Substantial Completion of the Work.

§ 8.1.2 The date of commencement of the Work is the date established in the Agreement.

§ 8.1.3 The date of Substantial Completion is the date certified by the Architect in accordance with Section 9.8.

§ 8.1.4 The term “day” as used in the Contract Documents shall mean calendar day unless otherwise specifically defined.

§ 8.2 PROGRESS AND COMPLETION
§ 8.2.1 Time limits stated in the Contract Documents are of the essence of the Contract with respect to its obligation to achieve Substantial and Final Completion of the Work as adjusted by change order. By executing the Agreement the Contractor confirms that the Contract Time, subject to adjustments as provided for in the Contract Documents, is a reasonable period for performing the Work.

§ 8.2.2 The Contractor shall not knowingly, except by agreement or instruction of the Owner in writing, prematurely commence operations on the site or elsewhere prior to the effective date of insurance required by Article 11 to be furnished by the Contractor and Owner. The date of commencement of the Work shall not be changed by the effective date of such insurance. 

§ 8.2.3 The Contractor shall proceed expeditiously with adequate forces and shall achieve Substantial Completion within the Contract Time, subject to adjustments as provided for in the Contract Documents.

§ 8.3 DELAYS AND EXTENSIONS OF TIME
§ 8.3.1 If Contractor is delayed in the performance of the Work by any act or neglect of Owner or Architect, or by an employee, agent or representative of Owner or by changes ordered in the Work, or by the combined action of workmen (either those employed on the Work or in any industry essential to the conduct of the Work) not caused by or resulting from default, negligence or collusion on the part of Contractor or its Subcontractors of every tier, or if Contractor is delayed by separate contractors, or by unusually severe weather conditions not reasonably anticipatable for the locale, or by fire, unavoidable casualty, acts of God, “Excusable Labor Disputes” or “Excusable Transportation Delays” (as those terms are defined below), or national emergency, then the Contract Time shall be extended by Change Order for a period equal to the length of such delay as measured on the critical path of the Schedule if, within fourteen (14) days after the commencement of any such delay, or fourteen (14) days after Contractor learned of the delay, whichever is later, Contractor delivers to Owner a written notice of such delay stating the nature thereof, and within fourteen (14) days following the expiration of any such delay, provides a written request for extension of the Contract Time by reason of such delay and such extension is approved by Owner, which approval shall not be unreasonably withheld; provided, however, that no such extension shall be given unless the delay for which a request for extension is made is included in those items for which an extension of the Contract Time is appropriate pursuant to the provisions of this Subparagraph 8.3.1. As used herein, the term “Excusable Labor Dispute” shall be defined as any labor dispute directed against an entire industry, or any labor dispute that is not directed solely against the Project, the Contractor or any of its Subcontractors or suppliers, and which prevents Contractor from obtaining labor or materials necessary for performance of the Work and actually delays the performance of the Work; provided, however, that suitable substitute materials or labor are not reasonably obtainable. As used herein, the term “Excusable Transportation Delay” shall be defined as any labor dispute directed against an entire industry, or any labor dispute that is not directed solely against the Project, the Contractor or any of its Subcontractors or suppliers, or other delay not within the reasonable control of Contractor which prevents the transportation of necessary materials to the Project and actually delays the performance of the Work; provided, however, that suitable substitute transportation for such materials is not reasonably available. In the event Contractor fails to deliver to Owner either or both of the above-described written notices within the required fourteen (14) day period, then the extension of the Contract Time attributable to the delay for which such notices are required shall be decreased by one (1) day for each day (beyond the applicable fourteen (14) day period) Contractor fails to deliver any required notice to Owner.  In the case of a continuing cause of delay of a particular nature, Contractor shall be required to make only one such request for extension with respect thereto. No delay of the Contract Time (or right on the part of Contractor to secure any such delay) pursuant to this Section 8.3.1 shall prejudice any right Owner may have under the Contract, or otherwise, to terminate the Contract.

§ 8.3.2 In addition to the increased time due to a delay set forth in Section 8.3.1, Contractor shall be entitled to a commensurate increase in the Contract Sum and Guaranteed Maximum Price for delays which impact the Schedule.

§ 8.3.3 This Section 8.3 does not preclude recovery of damages for delay by either party under other provisions of the Contract Documents.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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ARTICLE 9   PAYMENTS AND COMPLETION
§ 9.1 CONTRACT SUM
The Contract Sum is stated in the Agreement and, including authorized adjustments, is the total amount payable by the Owner to the Contractor for performance of the Work under the Contract Documents.

§ 9.2 SCHEDULE OF VALUES
Where the Contract is based on a stipulated sum or Guaranteed Maximum Price, the Contractor shall submit to the Architect, before the first Application for Payment, a schedule of values allocating the entire Contract Sum to the various portions of the Work and 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.  The schedule of values shall not constitute, or be construed as, a line item Guaranteed Maximum Price.

§ 9.3 APPLICATIONS FOR PAYMENT
§ 9.3.1 At least ten days before the date established for each progress payment, the Contractor shall submit to the Architect an itemized Application for Payment prepared in accordance with the schedule of values, if required under Section 9.2, for completed portions of the Work. Such application shall be notarized, if required, and supported by such data substantiating the Contractor’s right to payment as the Owner or Architect may require, such as copies of requisitions from Subcontractors and material suppliers, and shall reflect retainage if provided for in the Contract Documents.

§ 9.3.1.1 As provided in Section 7.3.9, such applications may include requests for payment on account of changes in the Work that have been properly authorized by Construction Change Directives, or by interim determinations of the Architect, but not yet included in Change Orders.

§ 9.3.1.2 Applications for Payment shall not include requests for payment for portions of the Work for which the Contractor does not intend to pay a Subcontractor or material supplier, unless such Work has been performed by others whom the Contractor intends to pay. 

§ 9.3.2 Unless otherwise provided in the Contract Documents, payments shall be made on account of materials and equipment delivered and suitably stored at the site for subsequent incorporation in the Work. If approved in writing and in advance by the Owner and Lender, payment may similarly be made for materials and equipment suitably stored off the site at a location agreed upon in writing. Payment for materials and equipment stored on or off the site shall be conditioned upon compliance by the Contractor with procedures reasonably satisfactory to the Owner and Lender to establish the Owner’s title to such materials and equipment or otherwise protect the Owner’s interest, and the Lender’s security interest therein, and shall include the costs of applicable insurance, storage and transportation to the site for such materials and equipment stored off the site in third party warehouses.

§ 9.3.3 The Contractor warrants that title to all Work covered by an Application for Payment will pass to the Owner no later than the time of payment. The Contractor further warrants that upon submittal of an Application for Payment all Work for which Certificates for Payment have been previously issued and payments received from the Owner shall, to the best of the Contractor’s knowledge, information and belief, be free and clear of liens, claims, security interests or encumbrances in favor of the Contractor, Subcontractors, material suppliers, or other persons or entities making a claim by reason of having provided labor, materials and equipment relating to the Work.

§ 9.4 CERTIFICATES FOR PAYMENT
§ 9.4.1 The Architect will, within seven days after receipt of the Contractor’s Application for Payment, either issue to the Owner a Certificate for Payment, with a copy to the Contractor, for such amount as the Architect determines is properly due, or notify the Contractor and Owner in writing of the Architect’s reasons for withholding certification in whole or in part as provided in Section 9.5.1.

§ 9.4.2 The issuance of a Certificate for Payment will constitute a representation by the Architect to the Owner, based on the Architect’s evaluation of the Work and the data comprising the Application for Payment, that, to the best of the Architect’s knowledge, information and belief, the Work has progressed to the point indicated and that the quality of the Work is in accordance with the Contract Documents. The foregoing representations are subject to an evaluation of the Work for conformance with the Contract Documents upon Substantial Completion, to results of subsequent tests and inspections, to correction of minor deviations from the Contract Documents prior to completion and to specific qualifications expressed by the Architect. The issuance of a Certificate for Payment will further constitute a representation that the Contractor is entitled to payment in the amount certified. However, the issuance of a Certificate for Payment will not be a representation that the Architect has (1) made exhaustive or continuous on-site inspections to check the quality or quantity of the Work, (2) reviewed construction means, methods, techniques, sequences or procedures, (3) reviewed copies of requisitions received from 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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Subcontractors and material suppliers and other data requested by the Owner to substantiate the Contractor’s right to payment, or (4) made examination to ascertain how or for what purpose the Contractor has used money previously paid on account of the Contract Sum.

§ 9.5 DECISIONS TO WITHHOLD CERTIFICATION
§ 9.5.1 The Architect may withhold a Certificate for Payment in whole or in part, to the extent reasonably necessary to protect the Owner, if in the Architect’s opinion the representations to the Owner required by Section 9.4.2 cannot be made. If the Architect is unable to certify payment in the amount of the Application, the Architect will notify the Contractor and Owner as provided in Section 9.4.1. If the Contractor and Architect cannot agree on a revised amount, the Architect will promptly issue a Certificate for Payment for the amount for which the Architect is able to make such representations to the Owner. The Architect may also withhold a Certificate for Payment or, because of subsequently discovered evidence, may nullify the whole or a part of a Certificate for Payment previously issued, to such extent as may be necessary to protect the Owner from loss for which the Contractor is responsible, including loss resulting from acts and omissions described in Section 3.3.2, because of
		
	.1
	defective Work not remedied;

		
	.2
	third party claims filed or reasonable evidence indicating probable filing of such claims unless security acceptable to the Owner is provided by the Contractor;

		
	.3
	failure of the Contractor to make payments properly to Subcontractors or for labor, materials or equipment;

		
	.4
	reasonable evidence that the Work cannot be completed for the unpaid balance of the Contract Sum;

		
	.5
	damage to the Owner or a separate contractor;

		
	.6
	reasonable evidence that the Work will not be completed within the Contract Time, and that the unpaid balance would not be adequate to cover actual or liquidated damages for the anticipated delay; or

		
	.7
	material failure to carry out the Work in accordance with the Contract Documents. 

Notwithstanding the issuance of a Certificate for Payment, the Owner, may withhold payment for the reasons described in Sections 9.5.1.1 - 9.5.1.7, but shall make payment of amounts that are not in dispute.

§ 9.5.2 When the above reasons for withholding certification are removed, certification will be made for amounts previously withheld. All non-disputed amounts shall be paid to the Contractor within the time requirements of the
Contract Documents.  In no event will Owner withhold more than 150% of any disputed amount or of the amount reasonably necessary to correct or address the reason for withholding.  The Owner shall not be deemed to be in default of the Contract by reason of withholding payment while any of the grounds above in Section 9.5.1 remain uncured. 

§ 9.5.3 If the Architect withholds certification for payment under Section 9.5.1.3, the Owner may, at its sole option, and after providing five (5) days prior written notice to Contractor, issue joint checks to the Contractor and to any Subcontractor or material or equipment suppliers to whom the Contractor failed to make payment for Work properly performed or material or equipment suitably delivered. If the Owner makes payments by joint check, the Owner shall notify the Architect and the Architect will reflect such payment on the next Certificate for Payment. 

§ 9.6 PROGRESS PAYMENTS
§ 9.6.1 After the Architect has issued a Certificate for Payment, the Owner shall make payment in the manner and within the time provided in the Contract Documents, and shall so notify the Architect.

§ 9.6.2 The Contractor shall pay each Subcontractor no later than seven days after receipt of payment from the Owner the amount to which the Subcontractor is entitled, reflecting percentages actually retained from payments to the Contractor on account of the Subcontractor’s portion of the Work. The Contractor shall, by appropriate agreement with each Subcontractor, require each Subcontractor to make payments to Sub-subcontractors in a similar manner.

§ 9.6.3 The Architect will, on request, furnish to a Subcontractor, if practicable, information regarding percentages of completion or amounts applied for by the Contractor and action taken thereon by the Architect and Owner on account of portions of the Work done by such Subcontractor.

§ 9.6.4 The Owner has the right to request written evidence from the Contractor that the Contractor has properly paid Subcontractors and material and equipment suppliers amounts paid by the Owner to the Contractor for subcontracted Work. If the Contractor fails to furnish such evidence within seven days, the Owner shall have the right to contact Subcontractors to ascertain whether they have been properly paid. Neither the Owner nor Architect shall have an obligation to pay or to see to the payment of money to a Subcontractor, except as may otherwise be required by law.

§ 9.6.5 Contractor payments to material and equipment suppliers shall be treated in a manner similar to that provided in Sections 9.6.2, 9.6.3 and 9.6.4.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 9.6.6 A Certificate for Payment, a progress payment, or partial or entire use or occupancy of the Project by the Owner shall not constitute acceptance of Work not in accordance with the Contract Documents.

§ 9.6.7 Unless the Contractor provides the Owner with a payment bond in the full penal sum of the Contract Sum, payments received by the Contractor for Work properly performed by Subcontractors and suppliers shall be held by the Contractor for those Subcontractors or suppliers who performed Work or furnished materials, or both, under contract with the Contractor for which payment was made by the Owner. Nothing contained herein shall require money to be placed in a separate account and not commingled with money of the Contractor, shall create any fiduciary liability or tort liability on the part of the Contractor for breach of trust or shall entitle any person or entity to an award of punitive damages against the Contractor for breach of the requirements of this provision.

§ 9.6.8 With each Application for Payment, Contractor shall furnish a conditional progress waiver and release of lien for itself, each Subcontractor who furnished labor, equipment, materials or services to the Project, and each materialman and vendor who furnished materials to the Project during the period covered by the Application for Payment. Upon each payment by Owner, Contractor shall execute, and cause all such materialman, vendors and Subcontractors to execute an unconditional progress waiver and release of lien acknowledging receipt of all payments due through the period covered by the previous Application for Payment for which payment was received by the Contractor. The conditional and unconditional lien releases shall be in statutory form, and provided Owner is making progress payments in accordance with the Contract Documents, Contractor shall deliver the executed unconditional releases to Owner with its next succeeding Application for Payment, including the Final Application for Payment to assure an effective waiver of mechanics' or materialmen's liens in compliance with the laws of the State of Arizona.  In addition to providing lien releases, and provided Owner is making required progress payments in accordance with the Contract Documents, Contractor shall indemnify and hold Owner and Lender harmless from and against any and all liens and charges of every type, nature, kind or description which may at any time be filed or claimed against the Project, or any portion thereof, or the improvements situated thereon, including attorneys' fees, as a consequence, direct or indirect, of any act or omission of Contractor, its agents, servants, employees, suppliers, subcontractors, or any or all of them. Prior to commencement of Work as reasonably required by Owner or Lender, Contractor shall furnish to Owner and Lender an affidavit, subordination and lien waiver agreement executed by Contractor and each Subcontractor which has furnished and supplied or will furnish or supply materials and services in connection with the prosecution of the Work, which agreement shall be in a commercially reasonable form. To the extent not inconsistent with existing law, each party executing such agreement shall, prior to commencement of Work, agree to subordinate all of its liens for Work to be performed or materials to be furnished pursuant to the Contract Documents to the liens and security interests securing payment of any loan made for the Project by Lender, and shall furnish a release of all liens for Work performed and materials furnished up to the date of execution of such agreement to the extent such party has been paid. Further, each such party shall certify that all amounts owing to such party for the Work through the date of such agreement have been paid in full, or if not paid in full, such agreement shall set forth such amounts which have not been paid through the date of such agreement.

§ 9.6.9 If any lien, bonded stop notice or claim is recorded or served in connection with the Work for which the Contractor has been paid, Contractor shall, immediately and at its own expense, record or file, or cause to be recorded or filed, in the office of the county recorder in which the lien or claim was recorded, or with the person(s) on whom the bonded stop notice was served, a bond executed by a good and sufficient surety, and approved by Owner, in a sum equal to one hundred fifty percent (150%) of the amount of such lien, bonded stop notice or claim, which bond shall guarantee the payment of any amounts which the claimant may recover on the lien, bonded stop notice or claim, together with the claimant's costs of suit in the action if the claimant recovers therein.

§ 9.6.10 If Contractor fails to cause any lien to be removed in connection with the Work for which the Contractor has been paid (if payment is past due) from the Project or any bonded stop notices or other notices to be negated, Owner may employ whatever means it may, in its reasonable discretion, to cause the lien to be removed, and the effect of any bonded stop notices or other notices to be negated. Contractor shall, upon demand, reimburse Owner for all costs, including without limitation actual attorneys' fees incurred by Owner in connection with any suit, lien or bonded stop notice. Owner may offset any such costs against amounts otherwise owing to Contractor hereunder.

§ 9.7 FAILURE OF PAYMENT
§ 9.7.1 If the Architect does not issue a Certificate for Payment, through no fault of the Contractor, within seven days after receipt of the Contractor’s Application for Payment, or if the Owner does not pay the Contractor within seven days after the date established in the Contract Documents the amount certified by the Architect or awarded by binding dispute resolution, then the Contractor may, upon seven additional days’ written notice to the Owner and Architect, stop the Work until payment of the amount owing has been received. The Contract Time shall be extended appropriately and the Contract Sum shall be increased 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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by the amount of the Contractor’s reasonable costs of shut-down, delay and start-up, plus interest as provided for in the Contract Documents.

§ 9.7.2 If Owner is entitled to reimbursement or payment from Contractor under or pursuant to the Contract Documents, such payments shall be made within thirty (30) days after demand by Owner. Notwithstanding anything contained in the Contract Documents to the contrary, if Contractor fails to promptly make any payment due Owner, or Owner incurs any costs and expenses to cure any default of Contractor or to correct defective Work, Owner shall have an absolute right to offset such amount against the Contract Sum and may, in Owner's sole discretion, elect either to: (1) deduct an amount equal to that which Owner is entitled from any payment then or thereafter due Contractor from Owner, or (2) issue a written notice to Contractor reducing the Contract Sum by an amount equal to that which Owner is entitled.

§ 9.8 SUBSTANTIAL COMPLETION
§ 9.8.1 Substantial Completion is the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended use and a temporary certificate of occupancy (or its functional equivalent) has been issued by the appropriate governmental agency.

§ 9.8.2 When the Contractor considers that the Work, or a portion thereof which the Owner agrees to accept separately, is substantially complete, the Contractor shall prepare and submit to the Architect a comprehensive list of items to be completed or corrected prior to final payment. Failure to include an item on such list does not alter the responsibility of the Contractor to complete all Work in accordance with the Contract Documents.

§ 9.8.3 Upon receipt of the Contractor’s list, the Owner and Architect will make an inspection to determine whether the Work or designated portion thereof is substantially complete. If the Architect’s inspection discloses any item, whether or not included on the Contractor’s list, which is not sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work or designated portion thereof for its intended use, the Contractor shall, before issuance of the Certificate of Substantial Completion, complete or correct such item upon notification by the Architect. In such case, the Contractor shall then submit a request for another inspection by the Architect to determine Substantial Completion.

§ 9.8.4 When the Work or designated portion thereof is substantially complete, the Architect will prepare a Certificate of Substantial Completion that shall establish the date of Substantial Completion, shall establish responsibilities of the Owner and Contractor for security, maintenance, heat, utilities, damage to the Work and insurance, and shall fix the time within which the Contractor shall finish all items on the list accompanying the Certificate. Warranties required by the Contract Documents shall commence on the date of Substantial Completion of the Work or designated portion thereof unless otherwise provided in the Certificate of Substantial Completion.

§ 9.8.5 The Certificate of Substantial Completion shall be submitted to the Owner and Contractor for their written acceptance of responsibilities assigned to them in such Certificate. Upon such acceptance and consent of surety, if any, the Owner shall make payment of retainage applying to such Work or designated portion thereof. Such payment shall be adjusted for Work that is incomplete or not in accordance with the requirements of the Contract Documents.

§ 9.9 PARTIAL OCCUPANCY OR USE
§ 9.9.1 The Owner may occupy or use any completed or partially completed portion of the Work at any stage when such portion is designated by separate agreement with the Contractor, provided such occupancy or use is consented to by the insurer as required under Section 11.3.1.5 and authorized by public authorities having jurisdiction over the Project. Such partial occupancy or use may commence whether or not the portion is substantially complete, provided the Owner and Contractor have accepted in writing the responsibilities assigned to each of them for payments, retainage, if any, security, maintenance, heat, utilities, damage to the Work and insurance, and have agreed in writing concerning the period for correction of the Work and commencement of warranties required by the Contract Documents. When the Contractor considers a portion substantially complete, the Contractor shall prepare and submit a list to the Architect as provided under Section 9.8.2. Consent of the Contractor to partial occupancy or use shall not be unreasonably withheld. The stage of the progress of the Work shall be determined by written agreement between the Owner and Contractor or, if no agreement is reached, by decision of the Architect.

§ 9.9.2 Immediately prior to such partial occupancy or use, the Owner, Contractor and Architect shall jointly inspect the area to be occupied or portion of the Work to be used in order to determine and record the condition of the Work.

§ 9.9.3 Unless otherwise agreed upon, partial occupancy or use of a portion or portions of the Work shall not constitute acceptance of Work not complying with the requirements of the Contract Documents.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 9.10 FINAL COMPLETION AND FINAL PAYMENT
§ 9.10.1 Upon receipt of the Contractor’s written notice that the Work is ready for final inspection and acceptance and upon receipt of a final Application for Payment, the Owner and Architect will promptly (but in no event later than ten (10) days after receipt of said notice and final Application for Payment and Contractor’s written request to Owner for final inspection) make such inspection and, when the Architect finds the Work acceptable under the Contract Documents and the Contract fully performed, the Architect will promptly issue a final Certificate for Payment stating that to the best of the Architect’s knowledge, information and belief, and on the basis of the Architect’s on-site visits and inspections, the Work has been completed in accordance with terms and conditions of the Contract Documents and that the entire balance found to be due the Contractor and noted in the final Certificate is due and payable. The Architect’s final Certificate for Payment will constitute a further representation that conditions listed in Section 9.10.2 as precedent to the Contractor’s being entitled to final payment have been fulfilled.

§ 9.10.2 Neither final payment nor any remaining retained percentage shall become due until the Contractor submits to the Architect (1) an affidavit that payrolls, bills for materials and equipment, and other indebtedness connected with the Work for which the Owner or the Owner’s property might be responsible or encumbered (less amounts withheld by Owner) have been paid or otherwise satisfied, (2) a certificate evidencing that insurance required by the Contract Documents to remain in force after final payment is currently in effect and Contractor shall not allow such insurance to be cancelled or to expire until it gives Owner at least 30 days’ prior written notice thereof, (3) a written statement that the Contractor knows of no substantial reason that the insurance will not be renewable to cover the period required by the Contract Documents, (4) consent of surety, if any, to final payment, (5), if required by the Owner, other data establishing payment or satisfaction of obligations, such as receipts, releases and waivers of liens, claims, security interests or encumbrances arising out of the Contract, to the extent and in such form as may be designated by the Owner, and (6) all warranties, guarantees, operating manuals and record drawings for the Project. If a Subcontractor refuses to furnish a release or waiver required by the Owner, the Contractor may furnish a bond satisfactory to the Owner to indemnify the Owner against such lien. If such lien remains unsatisfied after payments are made, the Contractor shall refund to the Owner all money that the Owner may be compelled to pay in discharging such lien, including all costs and reasonable attorneys’ fees.  Contractor’s obligations hereunder with respect to liens shall not apply to the extent the Owner’s breach of any payment obligations under the Contract Documents has resulted in such lien.

§ 9.10.3 If, after Substantial Completion of the Work, final completion thereof is materially delayed through no fault of the Contractor or by issuance of Change Orders affecting final completion, and the Owner and Architect so confirms, the Owner shall, upon application by the Contractor and certification by the Architect, and without terminating the Contract, make payment of the balance due for that portion of the Work fully completed and accepted. If the remaining balance for Work not fully completed or corrected is less than retainage stipulated in the Contract Documents, and if bonds have been furnished, the written consent of surety to payment of the balance due for that portion of the Work fully completed and accepted shall be submitted by the Contractor to the Owner and Architect prior to certification of such payment. Such payment shall be made under terms and conditions governing final payment, except that it shall not constitute a waiver of claims.

§ 9.10.4 The making of final payment shall constitute a waiver of Claims by the Owner except those arising from
		
	.1
	liens, Claims, security interests or encumbrances arising out of the Contract and unsettled;

		
	.2
	failure of the Work to comply with the requirements of the Contract Documents; or

		
	.3
	terms of special warranties required by the Contract Documents.

§ 9.10.5 Acceptance of final payment by the Contractor, a Subcontractor or material supplier shall constitute a waiver of claims by that payee except those previously made in writing and identified by that payee as unsettled at the time of final Application for Payment.

ARTICLE 10   PROTECTION OF PERSONS AND PROPERTY
§ 10.1 SAFETY PRECAUTIONS AND PROGRAMS
The Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the performance of the Contract. 

§ 10.2 SAFETY OF PERSONS AND PROPERTY
§ 10.2.1 The Contractor shall take reasonable precautions for safety of, and shall provide reasonable protection to prevent damage, injury or loss to
		
	.1
	employees on the Work and other persons who may be affected thereby;

		
	.2
	the Work and materials and equipment to be incorporated therein, whether in storage on or off the site, under care, custody or control of the Contractor or the Contractor’s Subcontractors or Sub-subcontractors; and

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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	.3
	other property at the site or adjacent thereto, such as trees, shrubs, lawns, walks, pavements, roadways, structures and utilities not designated for removal, relocation or replacement in the course of construction.

§ 10.2.2 The Contractor shall comply with and give notices required by applicable laws, statutes, ordinances, codes, rules and regulations, and lawful orders of public authorities bearing on safety of persons or property or their protection from damage, injury or loss.  If the Contractor fails to give such notices or fails to comply with such laws, ordinances, rules, regulations, and lawful orders, it shall to the extent due to such failures be liable for and shall indemnify, defend (at Contractor's sole cost, and with legal counsel reasonably approved by Owner) and hold harmless the Owner, Project Manager and their respective employees, officers, and agents, against any resulting fines, penalties, judgments, or damages, including reasonable attorneys' fees, imposed on or incurred by Owner.

§ 10.2.3 The Contractor shall erect and maintain, as required by existing conditions and performance of the Contract, reasonable safeguards for safety and protection, including posting danger signs and other warnings against hazards, promulgating safety regulations and notifying owners and users of adjacent sites and utilities.  The Contractor shall promptly report to the Owner in writing all accidents arising out of or in connection with the Work that cause death, personal injury, or property damage.  The report shall give full details, including statements of witnesses, hospital reports, and other information in the possession of the Contractor.  In addition, in the event of any serious injury or damage, the Contractor shall immediately notify the Owner by telephone of such accident.

§ 10.2.4 When use or storage of explosives or other hazardous materials or equipment or unusual methods are necessary for execution of the Work, the Contractor shall exercise utmost care and carry on such activities under supervision of properly qualified personnel.

§ 10.2.5 The Contractor shall promptly remedy damage and loss (other than damage or loss insured under property insurance required by the Contract Documents) to property referred to in Sections 10.2.1.2 and 10.2.1.3 caused in whole or in part by the Contractor, a Subcontractor, a Sub-subcontractor, or anyone directly or indirectly employed by any of them, or by anyone for whose acts they may be liable and for which the Contractor is responsible under Sections 10.2.1.2 and 10.2.1.3, except damage or loss attributable to the extent of the negligence or willful misconduct of the Owner or Architect or anyone directly or indirectly employed by either of them, or by anyone for whose acts either of them may be liable, and not attributable to the fault or negligence of the Contractor. The foregoing obligations of the Contractor are in addition to the Contractor’s obligations under Section 3.18.

§ 10.2.6 The Contractor shall designate a responsible member of the Contractor’s organization at the site whose duty shall be the prevention of accidents. This person shall be the Contractor’s superintendent unless otherwise designated by the Contractor in writing to the Owner and Architect.

§ 10.2.7 The Contractor shall not permit any part of the construction or site to be loaded so as to cause damage or create an unsafe condition.

§ 10.2.8 INJURY OR DAMAGE TO PERSON OR PROPERTY
If either party suffers injury or damage to person or property because of an act or omission of the other party, or of others for whose acts such party is legally responsible, written notice of such injury or damage, whether or not insured, shall be given to the other party within a reasonable time not exceeding 21 days after discovery. The notice shall provide sufficient detail to enable the other party to investigate the matter. 

§ 10.3 HAZARDOUS MATERIALS
§ 10.3.1 The Contractor is responsible for compliance with any requirements included in the Contract Documents regarding hazardous materials. If the Contractor encounters a hazardous material or substance not addressed in the Contract Documents and if reasonable precautions will be inadequate to prevent foreseeable bodily injury or death to persons resulting from a material or substance, including but not limited to asbestos or polychlorinated biphenyl (PCB), encountered on the site by the Contractor, the Contractor shall, upon recognizing the condition, immediately stop Work in the affected area and report the condition to the Owner and Architect in writing.

§ 10.3.2 Upon receipt of the Contractor’s written notice, the Owner shall obtain the services of a licensed laboratory to verify the presence or absence of the material or substance reported by the Contractor and, in the event such material or substance is found to be present, to cause it to be rendered harmless. Unless otherwise required by the Contract Documents, the Owner shall furnish in writing to the Contractor and Architect the names and qualifications of persons or entities who are to perform tests verifying the presence or absence of such material or substance or who are to perform the task of removal or safe containment of such material or substance. The Contractor and the Architect will promptly reply to the Owner in writing stating whether or 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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not either has reasonable objection to the persons or entities proposed by the Owner. If either the Contractor or Architect has an objection to a person or entity proposed by the Owner, the Owner shall propose another to whom the Contractor and the Architect have no reasonable objection. When the material or substance has been rendered harmless, Work in the affected area shall resume upon written agreement of the Owner and Contractor. By Change Order, the Contract Time shall be extended appropriately and the Contract Sum and Guaranteed Maximum Price shall be increased in the amount of the Contractor’s reasonable additional costs of shut-down, delay and start-up.

§ 10.3.3 To the fullest extent permitted by law, the Owner shall defend, indemnify and hold harmless the Contractor, Subcontractors, Architect, Architect’s consultants and agents and employees of any of them from and against claims, damages, losses and expenses, including but not limited to attorneys’ fees, arising out of or resulting from performance of the Work in the affected area if in fact the material or substance presents the risk of bodily injury or death as described in Section 10.3.1 and has not been rendered harmless, provided that such claim, damage, loss or expense is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than the Work itself), except to the extent that such damage, loss or expense is due to the fault or negligence of the party seeking indemnity.

§ 10.3.4 The Owner shall not be responsible under this Section 10.3 for materials or substances the Contractor brings to the site unless such materials or substances are required by the Contract Documents. The Owner shall be responsible for materials or substances required by the Contract Documents, except to the extent of the Contractor’s fault or negligence in the use and handling of such materials or substances.

§ 10.3.5 The Contractor shall indemnify the Owner for the cost and expense the Owner incurs (1) for remediation of a material or substance the Contractor brings to the site and negligently handles, or (2) where the Contractor fails to perform its obligations under Section 10.3.1, except to the extent that the cost and expense are due to the Owner’s fault or negligence.

§ 10.3.6 If, without negligence on the part of the Contractor, the Contractor is held liable by a government agency for the cost of remediation of a hazardous material or substance solely by reason of performing Work as required by the Contract Documents, the Owner shall indemnify and defend the Contractor for all cost and expense thereby incurred.

§ 10.4 EMERGENCIES
In an emergency affecting safety of persons or property, the Contractor shall act, at the Contractor’s discretion, to prevent threatened damage, injury or loss. Additional compensation or extension of time claimed by the Contractor on account of an emergency shall be determined as provided in Article 15 and Article 7.

ARTICLE 11   INSURANCE AND BONDS
§ 11.1 CONTRACTOR’S LIABILITY INSURANCE  THIS ARTICLE 11 IS STILL SUBJECT TO REVIEW BY SKANSKA RISK MANAGEMENT
§ 11.1.1 The Contractor shall purchase from and maintain in a company or companies to which Owner has no reasonable objection, which have a Best’s Rating of “A/VIII” or above and which are lawfully authorized to do business in the jurisdiction in which the Project is located such insurance as will protect the Contractor from claims set forth below which may arise out of or result from the Contractor’s operations and completed operations under the Contract and for which the Contractor may be legally liable, whether such operations be by the Contractor or by a Subcontractor or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable:
		
	.1
	Claims under workers’ compensation, disability benefit and other similar employee benefit acts that are applicable to the Work to be performed;

		
	.2
	Claims for damages because of bodily injury, occupational sickness or disease, or death of the Contractor’s employees;

		
	.3
	Claims for damages because of bodily injury, sickness or disease, or death of any person other than the Contractor’s employees;

		
	.4
	Claims for damages insured by usual personal injury liability coverage;

		
	.5
	Claims for damages, other than to the Work itself, because of injury to or destruction of tangible property;

		
	.6
	Claims for damages because of bodily injury, death of a person or property damage arising out of ownership, maintenance or use of a motor vehicle;

		
	.7
	Claims for bodily injury or property damage arising out of completed operations; and

		
	.8
	Claims involving contractual liability insurance applicable to the Contractor’s obligations under Section 3.18.

§ 11.1.2 The insurance required by Section 11.1.1 shall be written for not less than limits of liability specified in the Contract Documents or required by law, whichever coverage is greater. Coverages, shall be written on an occurrence basis, shall be maintained without interruption from the date of commencement of the Work until the date of final payment and termination of any coverage required to be maintained after final payment, and, with respect to the Contractor’s completed operations 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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coverage, until the expiration of the period for correction of Work or for such other period for maintenance of completed operations coverage as specified in the Contract Documents.

§ 11.1.3 Certificates of insurance reasonably acceptable to the Owner, and copies of the insurance policies if requested in writing, shall be filed with the Owner and the additional insureds at least ten (10) days prior to commencement of the Work and thereafter upon renewal or replacement of each required policy of insurance. An additional certificate evidencing continuation of liability coverage, including coverage for completed operations, shall be submitted with the final Application for Payment as required by Section 9.10.2 and thereafter upon renewal or replacement of such coverage until the expiration of the time required by Section 11.1.2. Information concerning reduction of coverage on account of revised limits or claims paid under the General Aggregate, or both, shall be furnished by the Contractor with reasonable promptness upon Owner’s written request.  Upon receipt of any notice of cancellation or alteration, Contractor, within ten (10) days, shall procure other policies of insurance, similar in all material respects to the policy or policies, about to be canceled or altered; and, if Contractor fails to provide, procure and deliver acceptable policies of insurance or satisfactory evidence thereof, in accordance with the terms hereof, then at Owner 's option, Owner may obtain such insurance at the cost and expense of Contractor without the need of any notice to Contractor.  The Contractor shall provide written notification to the Owner of the cancellation or expiration of any insurance required by Section 11.1.  The Contractor shall provide such written notice within five (5) days of the date the Contractor is first aware of the cancellation or expiration, or is first aware that the cancellation or expiration is threatened or otherwise may occur, whichever comes first.

§ 11.1.4 The Contractor shall cause the commercial liability coverage required by the Contract Documents to include (1) the Owner, the Lender, as additional insureds for claims caused in whole or in part by the Contractor’s negligent acts or omissions during the Contractor’s operations; and (2) the Owner as an additional insured for claims caused in whole or in part by the Contractor’s negligent acts or omissions during the Contractor’s completed operations.

§ 11.2 OWNER’S LIABILITY INSURANCE
The Owner shall be responsible for purchasing and maintaining the Owner’s usual liability insurance.

§ 11.3 PROPERTY INSURANCE
§ 11.3.1 Unless otherwise provided, the Owner shall purchase and maintain, in a company or companies lawfully authorized to do business in the jurisdiction in which the Project is located, property insurance written on a builder’s risk “all-risk” or equivalent policy form in the amount of the initial Contract Sum, plus value of subsequent Contract Modifications and cost of materials supplied or installed by others, comprising total value for the entire Project at the site on a replacement cost basis without optional deductibles. Such property insurance shall be maintained, unless otherwise provided in the Contract Documents or otherwise agreed in writing by all persons and entities who are beneficiaries of such insurance, until final payment has been made as provided in Section 9.10 or until no person or entity other than the Owner has an insurable interest in the property required by this Section 11.3 to be covered, whichever is later. This insurance shall include the Owner, the Contractor, Subcontractors and Sub-subcontractors in as insured.

§ 11.3.1.1 Property insurance shall be on an “all-risk” or equivalent policy form and shall include, without limitation, insurance against the perils of fire (with extended coverage) and physical loss or damage including, without duplication of coverage, theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, falsework, testing and startup, temporary buildings and debris removal including demolition occasioned by enforcement of any applicable legal requirements, and shall cover reasonable compensation for Architect’s and Contractor’s services and expenses required as a result of such insured loss.

§ 11.3.1.2 If the Owner does not intend to purchase such property insurance required by the Contract and with all of the coverages in the amount described above, the Owner shall so inform the Contractor in writing prior to commencement of the Work. The Contractor may then effect insurance that will protect the interests of the Contractor, Subcontractors and Sub-subcontractors in the Work, and by appropriate Change Order the cost thereof shall be charged to the Owner. If the Contractor is damaged by the failure or neglect of the Owner to purchase or maintain insurance as described above, without so notifying the Contractor in writing, then the Owner shall bear all reasonable costs properly attributable thereto.

§ 11.3.1.3 If the property insurance requires deductibles, the Owner shall pay costs not covered because of such deductibles, unless the loss was caused by Contractor and/or its Subcontractors of any tier, then Contractor shall be responsible for a deductible up to Ten Thousand Dollars and Zero Cents ($10,000.00).

§ 11.3.1.4 This property insurance shall cover portions of the Work stored off the site, and also portions of the Work in transit.

§ 11.3.1.5 Partial occupancy or use in accordance with Section 9.9 shall not commence until the insurance company or companies providing property insurance have consented to such partial occupancy or use by endorsement or otherwise. The 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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Owner and the Contractor shall take reasonable steps to obtain consent of the insurance company or companies and shall, without mutual written consent, take no action with respect to partial occupancy or use that would cause cancellation, lapse or reduction of insurance.

§ 11.3.2 BOILER AND MACHINERY INSURANCE [Intentionally Deleted]

§ 11.3.3 LOSS OF USE INSURANCE [Intentionally Deleted]

§ 11.3.4 [Intentionally Deleted]

§ 11.3.5 If during the Project construction period the Owner insures properties, real or personal or both, at or adjacent to the site by property insurance under policies separate from those insuring the Project, or if after final payment property insurance is to be provided on the completed Project through a policy or policies other than those insuring the Project during the construction period, the Owner shall waive all rights in accordance with the terms of Section 11.3.7 for damages caused by fire or other causes of loss covered by this separate property insurance. All separate policies shall provide this waiver of subrogation by endorsement or otherwise.

§ 11.3.6 Before an exposure to loss may occur, the Owner shall file with the Contractor a copy of each policy that includes insurance coverages required by this Section 11.3. Each policy shall contain all generally applicable conditions, definitions, exclusions and endorsements related to this Project.  Each policy, to the extent the issuing insurance company will so provide without additional material cost, shall contain a provision that the policy will not be canceled or allowed to expire, and that its limits will not be reduced, until at least 30 days’ prior written notice has been given to the Contractor.

§ 11.3.7 WAIVERS OF SUBROGATION
The Owner and Contractor waive all rights against (1) each other and any of their subcontractors, sub-subcontractors, agents and employees, each of the other, and (2) the Architect, Architect’s consultants, separate contractors described in Article 6, if any, and any of their subcontractors, sub-subcontractors, agents and employees, for damages caused by fire or other causes of loss to the extent covered and paid by property insurance obtained pursuant to this Section 11.3 or other property insurance applicable to the Work, except such rights as they have to proceeds of such insurance held by the Owner as fiduciary. The Owner or Contractor, as appropriate, shall require of the Architect, Architect’s consultants, separate contractors described in Article 6, if any, and the subcontractors, sub-subcontractors, agents and employees of any of them, by appropriate agreements, written where legally required for validity, similar waivers each in favor of other parties enumerated herein. The policies shall provide such waivers of subrogation by endorsement or otherwise. A waiver of subrogation shall be effective as to a person or entity even though that person or entity would otherwise have a duty of indemnification, contractual or otherwise, did not pay the insurance premium directly or indirectly, and whether or not the person or entity had an insurable interest in the property damaged.

§ 11.3.8 A loss insured under the Owner’s property insurance shall be adjusted by the Owner as fiduciary and made payable to the Owner as fiduciary for the insureds, as their interests may appear, subject to requirements of any applicable mortgagee clause and of Section 11.3.10. The Contractor shall pay Subcontractors their just shares of insurance proceeds received by the Contractor, and by appropriate agreements, written where legally required for validity, shall require Subcontractors to make payments to their Sub-subcontractors in similar manner.

§ 11.3.9 If required in writing by a party in interest, the Owner as fiduciary shall, upon occurrence of an insured loss, give bond for proper performance of the Owner’s duties. The cost of required bonds shall be charged against proceeds received as fiduciary. The Owner shall deposit in a separate account proceeds so received, which the Owner shall distribute in accordance with such agreement as the parties in interest may reach, or as determined in accordance with the method of binding dispute resolution selected in the Agreement between the Owner and Contractor. If after such loss no other special agreement is made and unless the Owner terminates the Contract for convenience, replacement of damaged property shall be performed by the Contractor after notification of a Change in the Work in accordance with Article 7.  Owner shall not have any responsibility to any party other than Contractor with respect to the proceeds of any insurance policy.  After a loss, Owner may choose to terminate the Contract for convenience as described herein, or continue with the construction of the Project.  If after such loss no other special agreement is made and unless Owner terminates the Contract for convenience, replacement of damaged property shall be performed by Contractor after notification of a change in the Work in accordance with Article 7.

§ 11.3.10 The Owner as fiduciary shall have power to adjust and settle a loss with insurers unless one of the parties in interest shall object in writing within five days after occurrence of loss to the Owner’s exercise of this power; if such objection is made, the dispute shall be resolved in the manner selected by the Owner and Contractor as the method of binding dispute resolution in the Agreement. If the Owner and Contractor have selected arbitration as the method of binding dispute resolution, the Owner as 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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fiduciary shall make settlement with insurers or, in the case of a dispute over distribution of insurance proceeds, in accordance with the directions of the arbitrators. 

§ 11.4 PERFORMANCE BOND AND PAYMENT BOND
§ 11.4.1 The Owner, as an addition to the Cost of the Work and Guaranteed Maximum Price, shall have the right to require the Contractor to furnish bonds covering faithful performance of the Contract and payment of obligations arising thereunder as stipulated in bidding requirements or specifically required in the Contract Documents on the date of execution of the Contract.

§ 11.4.2 Upon the request of any person or entity appearing to be a potential beneficiary of bonds covering payment of obligations arising under the Contract, the Contractor shall promptly furnish a copy of the bonds or shall authorize a copy to be furnished.

ARTICLE 12   UNCOVERING AND CORRECTION OF WORK
§ 12.1 UNCOVERING OF WORK
§ 12.1.1 If a portion of the Work is covered contrary to the Architect’s request or to requirements specifically expressed in the Contract Documents, it must, if requested in writing by the Architect, be uncovered for the Architect’s examination and be replaced at the Contractor’s expense without change in the Contract Time.

§ 12.1.2 If a portion of the Work has been covered that the Architect has not specifically requested to examine prior to its being covered, the Architect may request to see such Work and it shall be uncovered by the Contractor. If such Work is in accordance with the Contract Documents, costs of uncovering and replacement shall, by appropriate Change Order, be at the Owner’s expense. If such Work is not in accordance with the Contract Documents, such costs and the cost of correction shall be at the Contractor’s expense unless the condition was caused by the Owner or a separate contractor in which event the Owner shall be responsible for payment of such costs.

§ 12.2 CORRECTION OF WORK
§ 12.2.1 BEFORE OR AFTER SUBSTANTIAL COMPLETION
The Contractor shall promptly correct Work rejected by the Architect or failing to conform to the requirements of the Contract Documents, whether discovered before or after Substantial Completion and whether or not fabricated, installed or completed. Costs of correcting such rejected Work, including additional testing and inspections, the cost of uncovering and replacement, and compensation for the Architect’s services and expenses made necessary thereby, shall be at the Contractor’s expense, except as may be reimbursable from the Construction Contingency.

§ 12.2.2 AFTER SUBSTANTIAL COMPLETION
§ 12.2.2.1 In addition to the Contractor’s obligations under Section 3.5, if, within one year after the date of Substantial Completion of the Work or designated portion thereof or after the date for commencement of warranties established under Section 9.9.1, any of the Work is found to be not in accordance with the requirements of the Contract Documents, the Contractor shall correct it promptly at Contractor’s sole expense after receipt of written notice from the Owner to do so unless the Owner has previously given the Contractor a written acceptance of such condition. The Owner shall give such notice promptly after discovery of the condition. During the one-year period for correction of Work, if the Owner fails promptly to notify the Contractor in writing, as required under Section 3.5.2, and give the Contractor an opportunity to make the correction, the Owner waives the rights to require correction by the Contractor and to make a claim for breach of warranty. If the Contractor fails to correct nonconforming Work within a reasonable time during that period after receipt of notice from the Owner or Architect, the Owner may correct it in accordance with Section 2.4.

§ 12.2.2.2 The one-year period for correction of Work shall be extended with respect to portions of Work first performed after Substantial Completion by the period of time between Substantial Completion and the actual completion of that portion of the Work.

§ 12.2.2.3 The one-year period for correction of Work shall not be extended by corrective Work performed by the Contractor pursuant to this Section 12.2.

§ 12.2.3 The Contractor shall remove from the site portions of the Work that are not in accordance with the requirements of the Contract Documents and are neither corrected by the Contractor nor accepted by the Owner.

§ 12.2.4 The Contractor shall bear the cost of correcting destroyed or damaged construction, whether completed or partially completed, of the Owner or separate contractors caused by the Contractor’s correction or removal of Work that is not in accordance with the requirements of the Contract Documents.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 12.2.5 Nothing contained in this Section 12.2 shall be construed to establish a period of limitation with respect to other obligations the Contractor has under the Contract Documents. Establishment of the one-year period for correction of Work as described in Section 12.2.2 relates only to the specific obligation of the Contractor to correct the Work, and has no relationship to the time within which the obligation to comply with the Contract Documents may be sought to be enforced, nor to the time within which proceedings may be commenced to establish the Contractor’s liability with respect to the Contractor’s obligations other than specifically to correct the Work.

§ 12.2.6 Nothing contained in this Contract shall in any way limit the right of Owner to assert claims for damages resulting from patent or latent defects in the Work for the period of limitations prescribed by Arizona law, and the foregoing shall be in addition to any other rights and remedies Owner may have hereunder or at law or in equity.

§ 12.3 ACCEPTANCE OF NONCONFORMING WORK
If the Owner prefers to accept Work that is not in accordance with the requirements of the Contract Documents, the Owner may do so instead of requiring its removal and correction, in which case the Contract Sum will be reduced as appropriate and equitable. Such adjustment shall be effected whether or not final payment has been made.

ARTICLE 13   MISCELLANEOUS PROVISIONS
§ 13.1 GOVERNING LAW
The Contract shall be governed by the law of the State of Arizona except that, if the parties have selected arbitration as the method of binding dispute resolution, the Federal Arbitration Act shall govern Section 15.4.

§ 13.2 SUCCESSORS AND ASSIGNS
§ 13.2.1 The Owner and Contractor respectively bind themselves, their partners, successors, assigns and legal representatives to covenants, agreements and obligations contained in the Contract Documents.  Contractor may not assign, in whole or in part, the Contract without first obtaining the written consent of the Owner, which consent may be withheld in Owner’s sole discretion.

§ 13.2.2 The Owner may, without consent of the Contractor, assign the Contract to a lender providing construction financing for the Project, if the lender assumes the Owner’s rights and obligations under the Contract Documents. The Contractor shall execute all consents reasonably required to facilitate such assignment.

§ 13.3 WRITTEN NOTICE
Written notice shall be deemed to have been duly served if delivered in person to the individual, to a member of the firm or entity, or to an officer of the corporation for which it was intended; or if delivered at, or sent by registered or certified mail or by courier service providing proof of delivery to, the last business address known to the party giving notice. 

§ 13.4 RIGHTS AND REMEDIES
§ 13.4.1 Duties and obligations imposed by the Contract Documents and rights and remedies available thereunder shall be in addition to and not a limitation of duties, obligations, rights and remedies otherwise imposed or available by law.

§ 13.4.2 No action or failure to act by the Owner, Architect or Contractor shall constitute a waiver of a right or duty afforded them under the Contract, nor shall such action or failure to act constitute approval of or acquiescence in a breach there under, except as may be specifically agreed in writing.

§ 13.4.3 Notwithstanding any other provision to the contrary contained in the Contract Documents, provided that Owner continues to make payments of amounts not in dispute in accordance with the provisions of the Contract Documents, during all disputes, actions or claims and other matters in question arising out of, or relating to, the Contract Documents or the breach thereof, Contractor shall carry on the Work and maintain the Schedule, unless otherwise agreed between Contractor and Owner in writing.

§ 13.5 TESTS AND INSPECTIONS
§ 13.5.1 Tests, inspections and approvals of portions of the Work shall be made as required by the Contract Documents and by applicable laws, statutes, ordinances, codes, rules and regulations or lawful orders of public authorities. Unless otherwise provided, the Contractor shall make arrangements for such tests, inspections and approvals with an independent testing laboratory or entity acceptable to the Owner, or with the appropriate public authority, and shall bear all related costs of tests, inspections and approvals.  The Contractor shall give the Architect timely notice of when and where tests and inspections are to be made so that the Architect may be present for such procedures. The Owner shall bear costs of (1) tests, inspections or approvals that do not become requirements until after bids are received or negotiations concluded, and (2) tests, inspections or 

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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approvals where building codes or applicable laws or regulations prohibit the Owner from delegating their cost to the Contractor.

§ 13.5.2 If the Architect, Owner or public authorities having jurisdiction determine that portions of the Work require additional testing, inspection or approval not included under Section 13.5.1, the Architect will, upon written authorization from the Owner, instruct the Contractor to make arrangements for such additional testing, inspection or approval by an entity acceptable to the Owner, and the Contractor shall give timely notice to the Architect of when and where tests and inspections are to be made so that the Architect may be present for such procedures. Such costs, except as provided in Section 13.5.3, shall be at the Owner’s expense.

§ 13.5.3 If such procedures for testing, inspection or approval under Sections 13.5.1 and 13.5.2 reveal failure of the portions of the Work to comply with requirements established by the Contract Documents, all costs made necessary by such failure including those of repeated procedures and compensation for the Architect’s services and expenses shall be at the Contractor’s expense.

§ 13.5.4 Required certificates of testing, inspection or approval shall, unless otherwise required by the Contract Documents, be secured by the Contractor and promptly delivered to the Architect.

§ 13.5.5 If the Architect is to observe tests, inspections or approvals required by the Contract Documents, the Architect will do so promptly and, where practicable, at the normal place of testing.

§ 13.5.6 Tests or inspections conducted pursuant to the Contract Documents shall be made promptly to avoid unreasonable delay in the Work.

§ 13.6 INTEREST
Payments due and unpaid under the Contract Documents shall bear interest from the date payment is due at the rate of six percent (6%) per annum, not to exceed the maximum rate permitted by law.

§ 13.7 TIME LIMITS ON CLAIMS
The Owner and Contractor shall commence all claims and causes of action, whether in contract, tort, breach of warranty or otherwise, against the other arising out of or related to the Contract in accordance with the requirements of the final dispute resolution method selected in the Agreement within the time period specified by applicable law, but in any case not more than 10 years after the date of Substantial Completion of the Work. The Owner and Contractor waive all claims and causes of action not commenced in accordance with this Section 13.7.

§ 13.8 CONFIDENTIALITY
§13.8.1 The Contractor and Owner entered into that certain Nondisclosure Agreement dated as of November 19, 2015 (“NDA”) in order to protect certain confidential information of Owner, as further set forth in the NDA.  Contractor and Owner hereby incorporate the terms, provisions and obligations of the NDA in these General Conditions.

ARTICLE 14   TERMINATION OR SUSPENSION OF THE CONTRACT
§ 14.1 TERMINATION BY THE CONTRACTOR
§ 14.1.1 The Contractor may terminate the Contract if the Work is stopped for a period of 30 consecutive days through no act or fault of the Contractor or a Subcontractor, Sub-subcontractor or their agents or employees or any other persons or entities performing portions of the Work under direct or indirect contract with the Contractor, for any of the following reasons:
		
	.1
	Issuance of an order of a court or other public authority having jurisdiction that requires all Work to be stopped;

		
	.2
	An act of government, such as a declaration of national emergency that requires all Work to be stopped;

		
	.3
	Because the Architect has not issued a Certificate for Payment and has not notified the Contractor of the reason for withholding certification as provided in Section 9.4.1, or because the Owner has not made payment on a Certificate for Payment within the time stated in the Contract Documents; or

		
	.4
	The Owner has failed to furnish to the Contractor promptly, upon the Contractor’s request, reasonable evidence as required by Section 2.2.1.

§ 14.1.2 The Contractor may terminate the Contract if, through no act or fault of the Contractor or a Subcontractor, Sub-subcontractor or their agents or employees or any other persons or entities performing portions of the Work under direct or indirect contract with the Contractor, repeated suspensions, delays or interruptions of the entire Work by the Owner as described in Section 14.3 constitute in the aggregate more than 100 percent of the total number of days scheduled for completion, or 120 days in any 365-day period, whichever is less.

	
	
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§ 14.1.3 If one of the reasons described in Section 14.1.1 or 14.1.2 exists, the Contractor may, upon seven days’ written notice to the Owner and Architect, terminate the Contract (provided, however, if Owner commences the cure within such seven (7)-day period and thereafter diligently pursues such cure to completion, no default shall be deemed to have occurred) and recover from the Owner payment for Work executed, including Contractor’s Fee and general conditions costs on such work, costs incurred by reason of such termination, and damages.

§ 14.1.4 If the Work is stopped for a period of 60 consecutive days through no act or fault of the Contractor or a Subcontractor or their agents or employees or any other persons performing portions of the Work under contract with the Contractor because the Owner has repeatedly failed to fulfill the Owner’s obligations under the Contract Documents with respect to matters important to the progress of the Work, the Contractor may, upon seven additional days’ written notice to the Owner and the Architect, terminate the Contract and recover from the Owner as provided in Section 14.1.3.

§ 14.2 TERMINATION BY THE OWNER FOR CAUSE
§ 14.2.1 The Owner may terminate the Contract if the Contractor
		
	.1
	repeatedly refuses or fails to supply enough properly skilled workers or proper materials;

		
	.2
	fails to make payment to Subcontractors for materials or labor in accordance with the respective agreements between the Contractor and the Subcontractors;

		
	.3
	repeatedly disregards applicable laws, statutes, ordinances, codes, rules and regulations, or lawful orders of a public authority; or

		
	.4
	otherwise is guilty of substantial breach of a provision of the Contract Documents.

§ 14.2.2 When any of the above reasons exist, the Owner may, by written notice, demand that the Contractor cure the default.  If Contractor fails to commence and diligently pursue curing the default within seven (7) days after receipt of said written notice, the Owner, upon certification by the Initial Decision Maker that sufficient cause exists to justify such action, may without prejudice to any other rights or remedies of the Owner, terminate employment of the Contractor and may, subject to any prior rights of the surety:
		
	.1
	Exclude the Contractor from the site and take possession of all materials, and equipment stored on the site that are intended to be incorporated into the Work;

		
	.2
	Accept assignment of subcontracts pursuant to Section 5.4; and

		
	.3
	Finish the Work by whatever reasonable method the Owner may deem expedient. Upon written request of the Contractor, the Owner shall furnish to the Contractor a detailed accounting of the costs incurred by the Owner in finishing the Work.

§ 14.2.3 When the Owner terminates the Contract for one of the reasons stated in Section 14.2.1, the Contractor shall not be entitled to receive further payment until the Work is finished.

§ 14.2.4 If the unpaid balance of the Contract Sum exceeds costs of finishing the Work, including compensation for the Architect’s services and expenses made necessary thereby, and other damages incurred by the Owner and not expressly waived, such excess shall be paid to the Contractor. If such costs and direct damages exceed the unpaid balance, the Contractor shall pay the difference to the Owner. The amount to be paid to the Contractor or Owner, as the case may be, shall be certified by the Initial Decision Maker, upon application, and this obligation for payment shall survive termination of the Contract.  The costs of finishing the Work include, without limitation, all reasonable attorneys' fees, additional insurance premiums, additional interest because of any delay in completing the Work, and all other direct costs incurred by the Owner by reason of the termination of the Contractor as stated herein.

§ 14.3 SUSPENSION BY THE OWNER FOR CONVENIENCE
§ 14.3.1 The Owner may, without cause, order the Contractor in writing to suspend, delay or interrupt the Work in whole or in part for such period of time as the Owner may determine.

§ 14.3.2 The Contract Sum, Guaranteed Maximum Price and Contract Time shall be adjusted for increases in the cost and time caused by suspension, delay or interruption as described in Section 14.3.1.  Adjustment of the Contract Sum and Guaranteed Maximum Price shall include profit. No adjustment shall be made to the extent
		
	.1
	that performance is, was or would have been so suspended, delayed or interrupted by another cause for which the Contractor is responsible; or

		
	.2
	that an equitable adjustment is made or denied under another provision of the Contract.

§ 14.4 TERMINATION BY THE OWNER FOR CONVENIENCE
§ 14.4.1 The Owner may, at any time, terminate the Contract for the Owner’s convenience and without cause.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 14.4.2 Upon receipt of written notice from the Owner of such termination for the Owner’s convenience, the Contractor shall
		
	.1
	cease operations as directed by the Owner in the notice;

		
	.2
	take actions necessary, or that the Owner may direct, for the protection and preservation of the Work; and

		
	.3
	except for Work directed to be performed prior to the effective date of termination stated in the notice, terminate all existing subcontracts and purchase orders and enter into no further subcontracts and purchase orders.

§ 14.4.3 In case of such termination for the Owner’s convenience, the Contractor shall be entitled to receive payment for Work executed, and costs incurred by reason of such termination, including termination payments to subcontractors and demobilization costs, along with Contractor’s Fee on the Work not executed.

ARTICLE 15   CLAIMS AND DISPUTES
§ 15.1 CLAIMS
§ 15.1.1 DEFINITION
A Claim is a demand or assertion by one of the parties seeking, as a matter of right, payment of money, or other relief with respect to the terms of the Contract. The term “Claim” also includes other disputes and matters in question between the Owner and Contractor arising out of or relating to the Contract. The responsibility to substantiate Claims shall rest with the party making the Claim.

§ 15.1.2 NOTICE OF CLAIMS
Claims by either the Owner or Contractor must be initiated by written notice to the other party and to the Initial Decision Maker with a copy sent to the Architect, if the Architect is not serving as the Initial Decision Maker. Claims by either party must be initiated within 21 days after occurrence of the event giving rise to such Claim or within 21 days after the claimant first recognizes the condition giving rise to the Claim, whichever is later. 

§ 15.1.3 CONTINUING CONTRACT PERFORMANCE
Pending final resolution of a Claim, except as otherwise agreed in writing or as provided in Section 9.7 and Article 14, the Contractor shall proceed diligently with performance of the Contract and the Owner shall continue to make payments in accordance with the Contract Documents. The Architect will prepare Change Orders and issue Certificates for Payment in accordance with the decisions of the Initial Decision Maker. 

§ 15.1.4 CLAIMS FOR ADDITIONAL COST
If the Contractor wishes to make a Claim for an increase in the Contract Sum and/or the Guaranteed Maximum Price, written notice as provided herein shall be given before proceeding to execute the Work. Prior notice is not required for Claims relating to an emergency endangering life or property arising under Section 10.4.

§ 15.1.5 CLAIMS FOR ADDITIONAL TIME
§ 15.1.5.1 If the Contractor wishes to make a Claim for an increase in the Contract Time, written notice as provided herein shall be given. The Contractor’s Claim shall include an estimate of cost and of probable effect of delay on progress of the Work. In the case of a continuing delay, only one Claim is necessary.

§ 15.1.5.2 If adverse weather conditions are the basis for a Claim for additional time, such Claim shall be documented by data substantiating that weather conditions were abnormal for the period of time, could not have been reasonably anticipated and had an adverse effect on the scheduled construction.

§ 15.1.6 CLAIMS FOR CONSEQUENTIAL DAMAGES
The Contractor and Owner waive Claims against each other for consequential, indirect, special, punitive or exemplary damages arising out of or relating to this Contract. This mutual waiver includes, without limitation
		
	.1
	damages incurred by the Owner for rental expenses, for losses of use, income, profit, financing, business and reputation, and for loss of management or employee productivity or of the services of such persons; and

		
	.2
	damages incurred by the Contractor for principal office expenses including the compensation of personnel stationed there, for losses of financing, business and reputation, and for loss of profit except anticipated profit arising directly from the Work.

This mutual waiver is applicable, without limitation, to all consequential, indirect, special, punitive or exemplary damages due to either party’s termination in accordance with Article 14. Nothing contained in this Section 15.1.6 shall be deemed to preclude an award of liquidated damages, when applicable, in accordance with the requirements of the Contract Documents.

§ 15.2 INITIAL DECISION

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 15.2.1 Claims, excluding those arising under Sections 10.3, 10.4, 11.3.9, and 11.3.10, shall be referred to the Initial Decision Maker for initial decision. The Architect will serve as the Initial Decision Maker, unless otherwise indicated in the Agreement. Except for those Claims excluded by this Section 15.2.1, an initial decision shall be required as a condition precedent to mediation of any Claim arising prior to the date final payment is due, unless 30 days have passed after the Claim has been referred to the Initial Decision Maker with no decision having been rendered. Unless the Initial Decision Maker and all affected parties agree, the Initial Decision Maker will not decide disputes between the Contractor and persons or entities other than the Owner.

§ 15.2.2 The Initial Decision Maker will review Claims and within ten days of the receipt of a Claim take one or more of the following actions: (1) request additional supporting data from the claimant or a response with supporting data from the other party, (2) reject the Claim in whole or in part, (3) approve the Claim, (4) suggest a compromise, or (5) advise the parties that the Initial Decision Maker is unable to resolve the Claim if the Initial Decision Maker lacks sufficient information to evaluate the merits of the Claim or if the Initial Decision Maker concludes that, in the Initial Decision Maker’s sole discretion, it would be inappropriate for the Initial Decision Maker to resolve the Claim. 

§ 15.2.3 In evaluating Claims, the Initial Decision Maker may, but shall not be obligated to, consult with or seek information from either party or from persons with special knowledge or expertise who may assist the Initial Decision Maker in rendering a decision. The Initial Decision Maker may request the Owner to authorize retention of such persons at the Owner’s expense.

§ 15.2.4 If the Initial Decision Maker requests a party to provide a response to a Claim or to furnish additional supporting data, such party shall respond, within ten days after receipt of such request, and shall either (1) provide a response on the requested supporting data, (2) advise the Initial Decision Maker when the response or supporting data will be furnished or (3) advise the Initial Decision Maker that no supporting data will be furnished. Upon receipt of the response or supporting data, if any, the Initial Decision Maker will either reject or approve the Claim in whole or in part.

§ 15.2.5 The Initial Decision Maker will render an initial decision approving or rejecting the Claim, or indicating that the Initial Decision Maker is unable to resolve the Claim. This initial decision shall (1) be in writing; (2) state the reasons therefor; and (3) notify the parties and the Architect, if the Architect is not serving as the Initial Decision Maker, of any change in the Contract Sum or Contract Time or both. The initial decision shall be final and binding on the parties but subject to mediation and, if the parties fail to resolve their dispute through mediation, to binding dispute resolution.

§ 15.2.6 Either party may file for mediation of an initial decision at any time, subject to the terms of Section 15.2.6.1.

§ 15.2.6.1 Either party may, within 30 days from the date of an initial decision, demand in writing that the other party file for mediation within 60 days of the initial decision. If such a demand is made and the party receiving the demand fails to file for mediation within the time required, then both parties waive their rights to mediate or pursue binding dispute resolution proceedings with respect to the initial decision.  

§ 15.2.7 In the event of a Claim against the Contractor, the Owner may, but is not obligated to, notify the surety, if any, of the nature and amount of the Claim. If the Claim relates to a possibility of a Contractor’s default, the Owner may, but is not obligated to, notify the surety and request the surety’s assistance in resolving the controversy.

§ 15.2.8 If a Claim relates to or is the subject of a mechanic’s lien, the party asserting such Claim may proceed in accordance with applicable law to comply with the lien notice or filing deadlines. 

§ 15.3 MEDIATION
§ 15.3.1 Claims, disputes, or other matters in controversy arising out of or related to the Contract except those waived as provided for in Sections 9.10.4, 9.10.5, and 15.1.6 shall be subject to mediation as a condition precedent to binding dispute resolution, excluding any equitable proceeding for emergency relief to prevent irreparable harm or the filing of any lawsuit or recording of any legal document that may be necessary to preserve a party’s rights under applicable law.. 

§ 15.3.2 The parties shall endeavor to resolve their Claims by mediation which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in accordance with its Construction Industry Mediation Procedures in effect on the date of the Agreement. A request for mediation shall be made in writing, delivered to the other party to the Contract, and filed with the person or entity administering the mediation. The request may be made concurrently with the filing of binding dispute resolution proceedings but, in such event, mediation shall proceed in advance of binding dispute resolution proceedings, which shall be stayed pending mediation for a period of 60 days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. If an arbitration is stayed pursuant to this Section 15.3.2, the parties may nonetheless proceed to the selection of the arbitrator(s) and agree upon a schedule for later proceedings.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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§ 15.3.3 The parties shall share the mediator’s fee and any filing fees equally.  The mediation shall be held in the City of San Diego, California, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof.

§ 15.4 ARBITRATION
§ 15.4.1 If the parties have selected arbitration as the method for binding dispute resolution in the Agreement, any Claim subject to, but not resolved by, mediation shall be subject to arbitration which, unless the parties mutually agree otherwise, shall be administered by the American Arbitration Association in the City of San Diego, California, in accordance with its Construction Industry Arbitration Rules in effect on the date of the Agreement, and venue for such proceedings shall be in the City of San Diego, California.  A demand for arbitration shall be made in writing, delivered to the other party to the Contract, and filed with the person or entity administering the arbitration. The party filing a notice of demand for arbitration must assert in the demand all Claims then known to that party on which arbitration is permitted to be demanded. 

§ 15.4.1.1 A demand for arbitration shall be made no earlier than concurrently with the filing of a request for mediation, but in no event shall it be made after the date when the institution of legal or equitable proceedings based on the Claim would be barred by the applicable statute of limitations. For statute of limitations purposes, receipt of a written demand for arbitration by the person or entity administering the arbitration shall constitute the institution of legal or equitable proceedings based on the Claim.

§ 15.4.2 The award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.

§ 15.4.3 The foregoing agreement to arbitrate and other agreements to arbitrate with an additional person or entity duly consented to by parties to the Agreement shall be specifically enforceable under applicable law in any court having jurisdiction thereof.

§ 15.4.4 CONSOLIDATION OR JOINDER
§ 15.4.4.1 Either party, at its sole discretion, may consolidate an arbitration conducted under this Agreement with any other arbitration to which it is a party provided that (1) the arbitration agreement governing the other arbitration permits consolidation, (2) the arbitrations to be consolidated substantially involve common questions of law or fact, and (3) the arbitrations employ materially similar procedural rules and methods for selecting arbitrator(s). 

§ 15.4.4.2 Either party, at its sole discretion, may include by joinder persons or entities substantially involved in a common question of law or fact whose presence is required if complete relief is to be accorded in arbitration, provided that the party sought to be joined consents in writing to such joinder. Consent to arbitration involving an additional person or entity shall not constitute consent to arbitration of any claim, dispute or other matter in question not described in the written consent.

§ 15.4.4.3 The Owner and Contractor grant to any person or entity made a party to an arbitration conducted under this Section 15.4, whether by joinder or consolidation, the same rights of joinder and consolidation as the Owner and Contractor under this Agreement.

	
	
	AIA Document A201TM - 2007 Copyright © 1911, 1915, 1918, 1937, 1951, 1958, 1961, 1963, 1966, 1970, 1976, 1987, 1997 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA®  Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA®  Document, or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This draft was produced by AIA software at 16:06:04 on 04/28/2016 under Order No.5763238807_1 which expires on 09/23/2016, and is not for resale.
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