Document:

Exhibit 10.1

 

CONSTRUCTION AGREEMENT

 

THIS CONSTRUCTION AGREEMENT (this “Agreement”) is made as of 13th day of October, 2014, by and between O.COM LAND LLC, a Utah limited liability company (“Owner”), and OKLAND CONSTRUCTION COMPANY INC., a Utah Corporation (“Contractor”), with respect to preconstruction and construction services in connection with, and the construction by Contractor of an approximately 240,000 square foot corporate headquarters building, an amenities building and an approximately 1000 stall parking structure, inclusive of all site appropriations, base, shell and core structure, interior improvements and any applicable commissioning, to be located on approximately 13.99 acres of 7290 South Grandeur View Way, Midvale City, Utah and approximately 5.0 acres at 731 West Junction View Drive, Midvale City, Utah (the “Project”).  The architect for the Project is EDA (“Architect”).

 

ARTICLE I

 

THE WORK TO BE DONE AND THE DOCUMENTS FORMING THE CONTRACT

 

The Contractor agrees to provide all services, labor, materials, supplies, appliances, tools, equipment, and supervision and to do all things necessary to construct and complete the Work (as defined below).  Contractor and Owner agree that the Work is to be performed for the Guaranteed Maximum Price (as defined in Paragraph II.I below) and in accordance with the Construction Schedule (as defined in Paragraph III.B below).  As used in this Agreement, the term “Work” shall mean the construction and services required by the Contract Documents (as defined below), 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.  This Agreement, including all exhibits hereto, the Drawings and Specifications (as such terms are defined in Paragraph II.I below), and any addenda or amendments made in writing and executed by the parties hereto subsequent to the execution of this Agreement, together with all Change Orders (as such term is defined in Paragraph V.A below), are referred to collectively herein as the “Contract Documents” and together form the “Contract.”

 

ARTICLE II

 

PRECONSTRUCTION SERVICES

 

A.            The services to be provided under this Article II, together with the preconstruction phase services described on Exhibit A attached hereto, constitute Contractor’s “Preconstruction Phase” services. Contractor hereby acknowledges and agrees that, if the Owner so elects, construction of the Work in accordance with Article III below (the “Construction Phase”) may commence before the Preconstruction Phase is completed, in which case both phases will proceed concurrently.  For the Preconstruction Phase services, Contractor’s compensation shall be as set forth in Exhibit B attached hereto.  No reimbursable costs shall be allowed with respect to the Preconstruction Phase services, and the compensation set forth on Exhibit B shall constitute Contractor’s total compensation for Preconstruction Phase services.  Payments shall be made monthly following presentation of the Contractor’s invoice and, where applicable, payments shall be in proportion to services performed.

 

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B.            The Contractor shall provide a preliminary evaluation of the Owner’s program and Project budget requirements, each in terms of the other.  The Contractor shall jointly schedule and attend regular meetings with the Owner and Architect.  The Contractor shall consult with the Owner and Architect regarding site use and improvements and the selection of materials, building systems and equipment.  The Contractor shall provide recommendations on construction feasibility; actions designed to minimize adverse effects of labor or material shortages; time requirements for procurement, installation and construction completion; and factors related to construction cost, including estimates of alternative designs or materials, preliminary budgets and possible economies.

 

C.            When Owner’s Project requirements have been sufficiently identified, the Contractor shall prepare, and periodically update, a preliminary Project schedule consistent with the schedule of Project milestones attached as Exhibit C to this Agreement (the “Project Milestones”) for review by the Owner, the Architect and engineers or other consultants hired or retained directly by Owner (collectively, “Owner’s Consultants”), and for the Owner’s approval. The Contractor shall obtain approval of the Architect and Owner’s Consultants for the portion of the preliminary Project schedule relating to the performance of their respective services.  The Contractor shall coordinate and integrate the preliminary Project schedule with the services and activities of the Owner, Architect, Owner’s Consultants and Contractor. As design proceeds, the preliminary Project schedule shall be updated to indicate proposed activity sequences and durations, milestone dates for receipt and approval of pertinent information, submittal of a Guaranteed Maximum Price proposal, preparation and processing of shop drawings and samples, delivery of materials or equipment requiring long-lead-time procurement, Owner’s occupancy and/or utilization requirements showing portions of the Project having occupancy and/or utilization priority, and proposed date of Substantial Completion (as defined in Article X).  If preliminary Project schedule updates indicate that previously approved schedules may not be met, the Contractor shall make appropriate recommendations to the Owner and Architect.

 

D.            At Owner’s request, the Contractor shall make recommendations to the Owner and Architect regarding the phased issuance of Drawings and Specifications to facilitate phased construction of the Work, taking into consideration such factors as economies, time of performance, availability of labor and materials, and provisions for temporary facilities.

 

E.            When the Owner has sufficiently identified the Project requirements and the Architect has prepared other basic design criteria, the Contractor shall prepare, for the review of the Architect and Owner’s Consultants and approval of the Owner, a preliminary cost estimate utilizing area, volume or similar conceptual estimating techniques.  When Schematic Design Documents have been prepared by the Architect and approved by the Owner, the Contractor shall prepare, for the review of the Architect and Owner’s Consultants and approval of the Owner, a more detailed estimate with supporting data. During the preparation of the Design Development Documents, the Contractor shall update and refine this estimate at appropriate intervals as designated by the Owner.  When Design Development Documents have been prepared by the Architect and approved by the Owner, the Contractor shall prepare a detailed estimate with supporting data for review by the Architect and Owner’s Consultants and approval by the Owner.  During the preparation of the Construction Documents, the Contractor shall update and refine this estimate at appropriate intervals as designated by the Owner. If any

 

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estimate submitted to the Owner exceeds previously approved estimates or the Owner’s budget, the Contractor shall make appropriate recommendations to the Owner and Architect.

 

F.             The Contractor shall seek to develop subcontractor interest in the Project and shall furnish to the Owner, Architect and Owner’s Consultants for their information a list of possible subcontractors, including suppliers who are to furnish materials or equipment fabricated to a special design, from whom proposals will be requested for each principal portion of the Work.  The Owner or Architect will promptly reply in writing to the Contractor if the Architect, any of Owner’s Consultants or Owner has any objection to any such subcontractor or supplier.  The receipt of such list shall not require the Owner, Architect or Owner’s Consultants to investigate the qualifications of proposed subcontractors or suppliers, nor shall it waive the right of the Owner, Architect or Owner’s Consultants later to object to or reject any proposed subcontractor or supplier.

 

G.            The Contractor shall recommend to the Owner, Architect and Owner’s Consultants a schedule for procurement of long-lead-time items which will constitute part of the Work as required to meet the Project schedule. If such long-lead-time items are procured by the Owner, they shall be procured on terms and conditions reasonably acceptable to the Contractor.  Upon the Owner’s acceptance of the Contractor’s Guaranteed Maximum Price proposal, all contracts for such items shall be assigned by the Owner to the Contractor, who shall accept responsibility for such items as if procured by the Contractor.  The Contractor shall expedite the delivery of long-lead-time items.

 

H.            The Contractor does not warrant or guarantee estimates and schedules except as may be included as part of the Guaranteed Maximum Price and the final Project schedule and Construction Schedule approved by the Owner.  The recommendations and advice of the Contractor concerning design alternatives shall be subject to the review and approval of the Owner and the Owner’s professional consultants.  It is not the Contractor’s responsibility to ascertain that the Drawings and Specifications are in accordance with applicable Laws (as defined in Paragraph VI.B below).  However, if the Contractor recognizes that portions of the Drawings and Specifications are at variance therewith, the Contractor shall promptly notify the Architect and Owner in writing.

 

I.             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.  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.  The Contractor shall prepare various bid packages identifying an estimated Cost of the Work as the plans and specifications are developed and provided to the Contractor in order to facilitate the time of construction of the Work. Upon the completion of the final bid package the Contractor shall incorporate all bid packages into a “Guaranteed Maximum Price” (“GMP”), which shall be the sum of the estimated Cost of the Work and the Contractor’s Fee. As the Drawings and Specifications may not be fully complete at the time the bid packages are prepared, the Contractor shall provide in the bid packages for further development of the Drawings and Specifications by the Architect that is consistent with the Contract Documents and reasonably inferable therefrom. Such further development does not include such things as material changes

 

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in scope, systems, kinds and quality of materials, finishes or equipment, all of which, if required, shall be incorporated by Change Order.  The estimated Cost of the Work shall include a proposed Contractor’s contingency (as approved by the Owner and set forth in the Amendment, as such term is defined in Paragraph II.L below, the “Contingency”) which shall consist of a sum reasonably and in good faith established by the Contractor to cover costs arising as a result of the further development of the Drawings and Specifications which are properly reimbursable as a Cost of the Work but are not the basis for a Change Order to the GMP.  The contingency shall not exceed 2% of the Cost of the Work. Owner and Contractor shall jointly administer the Contingency; however Owner shall not unreasonably withhold approval of its use.  Such Contingency is not to be used for scope changes or upgrades in quality, nor is it to be used for the convenience of Contractor in the ordinary scheduling or execution of the Work.

 

J.             The Contractor shall include with the bid packages and the GMP a written statement of its basis, which shall include:

 

1.             A list of the Drawings and Specifications, including all addenda thereto, which were used in preparation of the bid packages and the GMP.

 

2.             A list of allowances and a statement of their basis included in the bid packages and the GMP.

 

3.             A list of the clarifications and assumptions reasonably and in good faith made by the Contractor in the preparation of the bid packages and the GMP to supplement the information contained in the Drawings and Specifications.

 

4.             The proposed bid packages and the GMP, including a statement of the estimated cost organized by trade categories, allowances, contingency, and other items and the Contractor’s Fee that comprise the bid packages and the GMP.

 

5.             The date of Substantial Completion upon which the bid packages and the GMP is based, and a schedule of the issuance dates of the Drawings and Specifications upon which the date of Substantial Completion and the bid packages and the GMP are based.

 

K.            The Contractor shall meet with the Owner, Architect and, at Owner’s election, Owner’s Consultants to review the bid packages and the GMP and the written statement of its basis. In the event that the Owner or Architect discovers any inconsistencies or inaccuracies in the information presented, they shall promptly notify the Contractor, who shall make appropriate adjustments to the bid packages and the GMP, its basis, or both.

 

L.            Unless the Owner accepts the bid packages and the GMP in writing on or before the date specified in the bid packages and the GMP for such acceptance (which date shall in no event be earlier than ten (10) days following Owner’s receipt of such bid packages and the GMP) and so notifies the Contractor, the bid packages and the GMP shall not be effective without written acceptance by both the Owner and the Contractor. Prior to the Owner’s acceptance of the Contractor’s bid packages and the GMP for such bid packages, the Contractor shall not incur any cost to be reimbursed as part of the Cost of the Work, except as the Owner may specifically authorize in writing. Upon acceptance by the Owner of the bid packages, the GMP, and its basis, as well as the date by which the Contractor shall achieve Substantial Completion of the entire

 

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Work, shall be set forth in an amendment to this Agreement, substantially in the form of Exhibit D attached hereto, and executed by both the Owner and the Contractor (the “Amendment”).

 

M.           The Owner shall authorize and cause the Architect to revise the Drawings and Specifications to the extent necessary to reflect the agreed-upon assumptions and clarifications contained in the Amendment. Such revised Drawings and Specifications shall be furnished to the Contractor in accordance with schedules agreed to by the Owner, Architect and Contractor. The Contractor shall promptly notify the Architect and Owner if such revised Drawings and Specifications are inconsistent with the agreed-upon assumptions and clarifications.

 

ARTICLE III

 

CONSTRUCTION PHASE

 

A.            The Construction Phase shall commence when the Contractor undertakes construction Work at the site.

 

B.            Promptly after the Owner’s acceptance of the GMP proposal, the Contractor shall prepare and submit for Owner’s approval a critical path method construction schedule for the entire Work (the “Construction Schedule”), which Construction Schedule shall be consistent with the Project Milestones and the Project schedule.  The Construction Schedule shall be attached as an exhibit to the Amendment.  The Construction Schedule shall not exceed time limits current under the Contract Documents (including, without limitation, the date for Substantial Completion), shall define major construction milestones, their sequences and elapsed completion time from date of this Agreement, shall include order and delivery dates for all long lead time materials and equipment, shall be related to the entire Project to the extent required by the Contract Documents, shall be revised (with the Owner’s approval) at appropriate intervals as required by conditions of the Work and the Project and shall provide for expeditious and practicable execution of the Work.  Contractor shall comply with the Construction Schedule, as such may be periodically updated, for the processing of all governmental approvals and permits, the pre-purchasing of materials and equipment and the attainment of designated milestones. In addition, Contractor shall prepare and keep current, for the Owner’s approval, a submittal schedule for all shop drawings, details, samples, equipment data and other submittal information required herein.

 

C.            The Contractor agrees to keep the Owner continually informed as to the progress of the Work, and the Contractor shall provide monthly written reports to the Owner and Architect on the progress of the entire Work. The Contractor shall maintain a daily log containing a record of weather, Subcontractors working on the site, number of workers, Work accomplished, problems encountered and other similar relevant data as the Owner may reasonably require. The log shall be available to the Owner and Architect. Throughout the performance of the Work, the Contractor will confer and cooperate with the Owner and will plan and execute the Work so as to ensure the timely and efficient completion thereof.

 

D.            The Contractor shall develop a system of cost control for the Work, including regular monitoring of actual costs for activities in progress and estimates for uncompleted tasks

 

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and proposed changes. The Contractor shall identify variances between actual and estimated costs and report the variances to the Owner and Architect at regular intervals.

 

E.            If Contractor shall be delayed at any time in the progress of the Work by any negligent or wrongful act of Owner or Architect (including, without limitation, Architect’s failure to comply with its contractual obligations with respect to design milestones or completion of the Drawings and Specifications), or any agent or employee of either, or by any contractor independently employed by Owner, or by changes in the Work ordered by Owner, or by labor disputes, fire, unusual delay in transportation, unavoidable casualties, or inclement weather, or by other causes beyond Contractor’s reasonable control, or by any other cause which Architect and Owner decide justify the delay (collectively, events of “Excusable Delay”), then the time allowed for the Work to be Substantially Completed shall be extended by the period of such delay; provided, however, that Contractor shall deliver written notice to Architect and Owner, within five (5) business days after the cause of such delay is known, or reasonably should be known, to Contractor, of the fact and estimated extent of such delay, and Contractor shall cause its Subcontractors (as defined in Article VIII below) to give similar notice of any such delay. In the case of a continuing cause of delay, only one claim is necessary as long as it is submitted within five (5) business days from the date that the cause first became known, or reasonably should have become known, to Contractor.  Extensions of time for inclement weather will not be granted unless the cumulative number of days of inclement weather exceeds the average number of inclement weather days as reported by the National Weather Service and such inclement weather causes a delay in the critical path of the Work.

 

F.             In accordance with the Project Milestones, the Construction Phase (inclusive of any applicable commissioning) shall have a duration of ninety-eight (98) weeks, and Contractor shall Substantially Complete the Work on or before that date which is one hundred (100) weeks following the commencement of the Construction Phase, subject to modification if the plans and specifications are not provided to the Contractor in a manner sufficient to not hinder or slow the prosecution of the Work by the Contractor. Owner and Contractor hereby acknowledge and agree that the Owner’s actual damages in the event the Work is not Substantially Completed within such one hundred (100) week time period would be extremely difficult or impracticable to determine.  After negotiation, the parties have agreed that the following amounts constitute a reasonable estimate of the damages Owner would incur in such event.  Therefore, if the Work is not Substantially Completed on or before that date which is one hundred (100) weeks following the commencement of the Construction Phase, Contractor shall pay to Owner as liquidated damages, and not as a penalty, an amount equal to Five Hundred Dollars ($500) per calendar day for the first fourteen (14) days, then Two Thousand Dollars ($2,000) per calendar day thereafter, for each day beyond such one hundred (100) week period that it takes for the Work to be Substantially Completed.

 

ARTICLE IV

 

COST OF THE WORK

 

A.            Owner agrees to reimburse Contractor for the Cost of the Work (as defined in Paragraph IV.E below), and to pay to Contractor the Contractor’s Fee (as defined in Paragraph IV.C below).  Contractor guarantees that the maximum price to the Owner for the

 

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Cost of the Work and the Contractor’s Fee (collectively, the “Contract Sum”), subject to authorized adjustments, shall not exceed the Guaranteed Maximum Price, hereinafter sometimes referred to as the “GMP.”

 

B.            Allowances for items of equipment and materials (each, an “Allowance”), inclusive of the Contractor’s Fee applicable to the Cost of the Work for each such Allowance, are included in the GMP to the extent the Contract Documents are not sufficiently specific to permit Subcontractor or vendor pricing for such items.  From time to time after commencement of performance of the Work, Owner shall cause Drawings and Specifications for the Allowances, or portions thereof, to be delivered to Contractor. Such Drawings and Specifications shall be deemed to be part of the Contract Documents.  Contractor shall obtain bids for all Allowance items in accordance with the procedure set forth in Article VIII below.  If the actual Cost of the Work with respect to an item covered by an Allowance is greater than the Allowance, the Contractor shall be paid the actual Cost of the Work for such item and the Contractor’s Fee shall be increased proportionately to reflect the increase in the Cost of the Work.  The Guaranteed Maximum Price shall be increased by the aggregate amount of such excess costs and fees.  If the actual Cost of the Work for an item is less than the Allowance for that item, the Guaranteed Maximum Price shall be decreased by the aggregate of the difference between the Allowance and the actual Cost of the Work for such item, plus an amount reflecting the proportionate decrease in the Contractor’s Fee resulting from the decrease in the Cost of the Work.  Any such increases or decreases in the Guaranteed Maximum Price and payments relating thereto shall be confirmed in a Change Order pursuant to the provisions of Article V below.

 

C.            In consideration of the performance of this Agreement, Owner agrees to pay to Contractor in current funds as compensation for its Construction Phase services and for Contractor’s profit and overhead (including, without limitation, all off-site personnel costs except to the extent the same are expressly designated a Cost of the Work pursuant to the provisions of this Agreement) a Construction Manager and General Contractor’s fee equal to One Million Three Hundred Twenty Thousand Five Hundred Dollars ($1,320,500) (the “Contractor’s Fee”). The Contractor’s Fee shall be payable in pro rata installments in accordance with the progress payment provisions of Article VII (including provisions for retention).

 

D.            In the event the Cost of the Work plus the Contractor’s Fee shall equal a sum which is less than the Guaranteed Maximum Price, as adjusted pursuant to the terms of this Agreement, the resulting savings shall be returned one hundred percent (100%) to Owner.

 

E.            The term “Cost of the Work” shall mean only those costs actually, reasonably and necessarily incurred by Contractor in the proper performance of the Work at rates no higher than the standard paid at the place of the Project, including, without limitation the following:

 

1.             Application, permit, license, and testing fees required commencing and performing the Work, with the exception of testing fees related to defective or nonconforming Work.

 

2.             Losses, expenses, damages and costs reasonably sustained or incurred by Contractor in connection with the Work, including rebuilding or restoring the Work, when not compensated by insurance or third parties.

 

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3.             Rental charges of all machinery and equipment, exclusive of hand tools, used for the performance of the Work and not customarily owned by construction workers, whether rented from the Contractor or others, including installations, repairs and replacements, dismantling, removal, and costs of lubrication, transportation and delivery thereof. Notwithstanding the foregoing, any rented machinery or equipment shall be subject to the prior written approval of Owner. The rental rates for such machinery and equipment shall not exceed eighty percent (80%) of the blue book rates for such machinery and equipment, and the total rental charges shall not exceed the fair market value of such machinery and equipment.  Equipment rental rates shall in no event exceed the rates set forth on Exhibit E attached hereto.

 

4.             All sales, use, gross receipts and other taxes related to purchases made in connection with the Work which are imposed by any governmental authority and for which Contractor is liable.  Contractor shall provide monthly reports to Owner throughout the Construction Phase evidencing all such taxes paid with respect to the Work.

 

5.             Costs of insurance policies required to be furnished by Contractor under the Contract, including the costs of all insurance policies referenced in Paragraph XIII.C.2 of this Agreement (other than workers’ compensation insurance, the cost of which shall be included in Contractor’s labor rates), which costs shall be a fixed amount equal to 0.6% of the Cost of the Work (exclusive of insurance and bond costs); and costs of bonds required to be furnished by Contractor under the Contract in the amounts specified in the Schedule of Values which is to be attached as an exhibit to the Amendment (the “Schedule of Values”).

 

6.             The following costs incurred by Contractor, as specified in the Schedule of Values:

 

(a)           All labor costs billed at the rates specified in Exhibit H with respect to personnel in the direct employ of Contractor in the performance of the Work.  Any portion of the Work performed by Contractor’s own forces shall be billed for material and supplies at actual direct costs (as evidenced by invoices), Contractor’s equipment billed at the rates specified in Exhibit E, and Contractor’s employees billed per the rates specified in Exhibit H plus a mark-up of seven percent (7%) of such cost as identified herein

 

(b)           Salaries and related standard fringe benefits of Contractor’s employees whether or not stationed at the Project site, prorated to reflect only such portion of their time as they have devoted to the Work, in accordance with and as more particularly set forth in Exhibit F and Exhibit H attached hereto.

 

(c)           Costs of all materials, supplies and equipment used in connection with or incorporated into the Work, including costs of transportation and storage thereof.

 

(d)           Costs, including transportation and maintenance, of all materials, supplies, equipment, temporary facilities and, to the extent not actually or customarily owned by the Contractor’s or any Subcontractor’s own forces, hand tools which are employed or consumed in the performance of the Work.  All purchases of such materials, supplies, equipment, temporary facilities and hand tools shall be recorded in a log maintained at the Project site or Contractor’s principal office and shall be subject to inspection by Owner upon demand. Any

 

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such materials, supplies, equipment or tools not owned by the workmen which are used, but not consumed, in the performance of the Work shall remain the property of the Contractor upon completion of the Work; provided, however, that with respect to any such equipment or tools which cost in excess of $250 and have a useful life of more than one year, the cost of same shall be adjusted as appropriate on the basis of their market value.

 

(e)           Miscellaneous expenses such as facsimiles, telephone services, express mail, and similar petty cash items directly related to the Work and customarily incurred in projects of this nature.

 

(f)            Costs (excluding promotional expenses, costs of safety awards and incentives, medical expenses, drug testing expenses) incurred in connection with job safety requirements for the performance of the Work such as handrails, ramps, barricades, warning lights, and required scaffolding, and costs incurred due to an emergency affecting the safety of persons or property.

 

(g)           Costs of removal of debris and the final building clean up.

 

(h)           Amounts due to all Subcontractors under subcontracts related to the performance of the Work plus any costs incurred by the Contractor in taking over, in whole or in part, the work of a Subcontractor or the costs incurred in replacing a Subcontractor for cause. The Contractor is entitled to an appropriate adjustment in the Guaranteed Maximum Price due to such occurrences.

 

(i)            Costs for electronic equipment and software charged at a rate of $1.81 per employee hour billed to this Project of those employees identified in Article IV.E.6. (b) above.

 

(j)            Cost for cellular smart phones equipment and service charged at a rate of $143.00 per employee per month (prorated if less than full time) of those employees identified in Article IV.E.6.(b) above.

 

(k)           Cost for Vela [BIM360Field] Quality Control, Issue Tracking, Punch List software, service and equipment, for use by Okland, Owner, Architects and interface with subcontractors at a fixed cost of $23,116.

 

F.             The term Cost of the Work shall not include any of the following:

 

1.             Salaries of the off-site employees of Contractor except as expressly set forth in Paragraph IV.E.6 above. Interns, quality assurance employees, IT personnel shall not be included as a Cost of the Work unless written authorization is granted by the Owner.

 

2.             Overhead or general expenses of any kind, except as may be expressly provided otherwise in this Agreement.

 

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3.             Contractor’s capital expenses, including interest on Contractor’s capital employed either in construction plants or in expenditures on the Work, except as may be expressly provided otherwise in this Agreement.

 

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

 

5.             Rental costs of machinery and equipment, except as expressly provided in Paragraph IV.E above.

 

6.             Costs due to any warranty work required from Contractor or due to the fault or negligence of, or the breach of this Agreement or any other agreement related to the Work by, Contractor, any Subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, including, but not limited to, costs for the correction of damaged, defective or nonconforming Work, disposal and replacement of materials and equipment incorrectly ordered or supplied, making good damage to property not forming part of the Work, or repair of casualty losses not included in Paragraph IV.E above.

 

7.             Fines, penalties, assessments and other costs related to the failure of Contractor or any Subcontractor to comply with any provision of this Agreement and with all applicable provisions of the Federal Occupational Safety and Health Act, any state equivalent thereof, federal and state fair employment laws, and federal and state wage and hours laws.

 

8.             Any cost not specifically and expressly described in Paragraph IV.E.

 

9.             Cost of overtime premium required to meet the Construction Schedule.  Contractor may work overtime and be paid for overtime provided that such overtime does not require a Change Order or cause the Guaranteed Maximum Price to be exceeded, and provided further that such overtime shall not be a charge against the Contingency without Owner’s prior written approval in each instance. Contractor shall be reimbursed by Owner for overtime if requested by Owner to accelerate the Construction Schedule and/or to make up days lost by issues beyond Contractor’s or any Subcontractor’s control.

 

10.          Cost of consultants unless approved by Owner in writing (with the exception of costs of design-build subcontractor consultants included in the applicable subcontract sums).

 

11.          Costs that would cause the Guaranteed Maximum Price to be exceeded.

 

12.          Amounts to be paid by Contractor for federal, state or local income and franchise taxes.

 

13.          Increases in the Cost of the Work caused by events of Excusable Delay, except to the extent otherwise provided by way of Change Order.

 

14.          Salaries of corporate officers, directors, key administrators, or sales personnel of Contractor, except as expressly provided in Paragraph IV.E above.

 

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15.                               Any costs due to weather delays, provided that the cumulative number of days of inclement weather does not exceed the average number of inclement weather days as reported by the National Weather Service.

 

16.                               Costs of General Conditions that are specifically identified in Part (a) of Exhibit G attached hereto in excess of the lump sum aggregate amount therefor as set forth in such Exhibit G; and costs of General Conditions that are not specifically identified in Part (a) of Exhibit G attached hereto in excess of the amount therefor as set forth in the Schedule of Values.

 

G.                                    The following items shall be credited against the Cost of the Work or shall be reimbursed by Contractor to Owner:

 

1.                                      Proceeds of any sale by Contractor of surplus materials, construction equipment, and temporary structures which have been charged to the Cost of the Work (other than as a rental charge), whether such sale is made to Owner, to Contractor, or to a third party, plus the fair market value of non-expendable tools purchased by the Contractor.

 

2.                                      Discounts obtained on payments made by the Contractor shall accrue to the Owner, provided that either (a) before making the payment, the Contractor included the subject payment in an Application for Payment and received payment from the Owner, or (b) the Owner has deposited funds with the Contractor with which to make the payment. The Contractor shall obtain all possible trade and time discounts on bills for materials, supplies and equipment furnished, and shall pay said bills within the discount periods, provided that Owner timely pays Contractor pursuant to the terms of this Agreement.

 

3.                                      The full amount of any deposits originally funded by or charged to Owner, which have been returned to the Contractor.

 

H.                                   Contractor shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management under this Agreement, and Contractor’s accounting and control systems shall be satisfactory to Owner. Owner and Owner’s accountants shall have access to, and shall be permitted to copy and audit, Contractor’s records, books, correspondence, instructions, drawings, receipts, subcontracts, purchase orders, vouchers, memoranda and other data relating to this Agreement, and Contractor shall preserve such items for a period of five (5) years after final payment, or for such longer period as may be required by law.

 

ARTICLE V

 

CHANGES IN THE WORK

 

A.                                    Owner may from time to time, by written instructions or drawings issued to the Contractor, make changes in the Work, issue additional instructions, require additional work, or direct the omission of work previously ordered, and the provisions of this Agreement shall apply to all such changes, modifications, additions and omissions with the same effect as if they were embodied in the original Drawings and Specifications.  Any such change, modification, addition or omission shall be documented by a “Change Order.”  A Change Order shall consist of a written document signed by Owner and Contractor describing the change in the Work, the

 

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amount of adjustment, if any, to the Guaranteed Maximum Price and the adjustment, if any, to the date of Substantial Completion.

 

B.                                    Owner may request changes in the Work by giving Contractor a written Change Order request (“Change Order Request”), setting forth the nature of the requested change. Upon receipt of a Change Order Request, Contractor shall promptly furnish to Owner a statement setting forth in detail (with a labor and material breakdown by trade and work classification) Contractor’s good faith estimate of (i) the changes, be they additive or deductive in nature, in the Guaranteed Maximum Price attributable to the changes set forth in such Change Order Request, and (ii) the adjustment, if any, to the date of Substantial Completion resulting from such Change Order Request.  Upon approval by Owner, a Change Order shall be issued and the Guaranteed Maximum Price and, if applicable, the date of Substantial Completion shall be adjusted as set forth in such Change Order.

 

C.                                    If a Change Order results in additional costs in order to prosecute the Work, Owner shall pay to Contractor the amount of such additional costs and the Guaranteed Maximum Price specified in Article IV shall be increased by the amount of such additional costs. If a Change Order results in a decrease in the Cost of the Work, the Guaranteed Maximum Price shall be decreased by the amount of the decrease. Additional costs shall be limited to (a) costs of labor; (b) costs of materials, supplies and equipment; (c) rental costs of machinery and equipment, exclusive of hand tools; and (d) additional costs of supervision and field office personnel directly attributable to the change all subject to the provisions of Article IV E applicable generally to Cost of the Work. Contractor shall be paid in accordance with Article VII for Work done pursuant to a Change Order as such Work progresses, said payments to include a pro rata portion of the overhead and profit fee based on the percentage of completion of the Work done under the Change Order. Retention will be held on any such Change Order Work in accordance with Article VII. Except for the addition to the Work of the data center build-out, for changes in the Work, the Contractor’s Fee shall not be adjusted unless such changes result in major, reasonably unforeseeable and unplanned-for changes in the Work that total more than Four Million Dollars ($4,000,000) in aggregate (“Major Change”), in which case the Contractor’s fee will be increased by One and Nine Tenths Percent (1.9%) of the amount of the Major Change. For the addition of the data center build-out to the Work the Contractor’s fee will be increased by One and Nine Tenths Percent (1.9%) of the amount of the cost of the data center build-out.

 

D.                                    Should concealed or latent conditions be encountered in performance of the Work, or should concealed or unknown conditions be at variance with the conditions indicated on the Drawings and Specifications, or should unknown physical conditions or concealed or unknown conditions of an unusual nature which differ materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement be encountered, then, subject to Owner’s approval of Architect’s confirmation of such concealed or latent conditions (which approval will not be unreasonably withheld), Contractor shall be compensated for any additional costs resulting from any such conditions from the Contingency (but in no event to exceed an amount equal to ten percent (10%) of the Contingency) and then by Change Order in accordance with this Article V (and the Guaranteed Maximum Price shall be adjusted accordingly), and the time for completion of the Work shall be equitably adjusted upon claim by either party made within twenty (20) days after the first

 

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observance of the conditions.  Notwithstanding anything to the contrary contained herein, Contractor shall not be compensated for additional costs resulting from any conditions that Contractor discovers if, following such discovery, Contractor proceeds with the Work without first notifying Owner of such conditions and receiving written notice from Owner to proceed with the Work. Contractor shall promptly report errors, inconsistencies or omissions discovered by Contractor to Architect and Owner.

 

ARTICLE VI

 

CONTRACTOR’S DUTIES AND STATUS

 

A.                                    Contractor recognizes the relationship of trust and confidence established between Contractor and the Owner by this Agreement. Contractor covenants with the Owner to furnish its best skill and judgment and to cooperate with the Architect in promoting the interest of the Owner. Contractor agrees to (a) furnish efficient business administration and superintendence, (b) keep upon the Work at all times an adequate supply of skilled and qualified workmen and materials; (c) secure the execution of the Work in an expeditious and economical manner; and (d) maintain quality standards commensurate with nationally known contractors. Owner and Architect shall at all times have access to the Work for review thereof.  In addition to the obligations set forth in Article III above and this Article VI, Contractor’s Construction Phase services shall include those set forth on Exhibit A attached hereto.

 

B.                                    The Contractor shall carefully study and compare the Contract Documents with each other and with information furnished by the Owner and shall at once report to the Architect and Owner errors, inconsistencies or omissions discovered, including, without limitation, any variance from applicable laws, statutes, ordinances, building codes, rules, regulations or lawful orders of public authorities or from any recorded covenants of which the Contractor has knowledge or should have knowledge in the exercise of reasonable care (all of the foregoing, collectively, “Laws”).  The Contractor shall not be liable to the Owner or Architect for damage resulting solely from errors, inconsistencies or omissions in the Contract Documents unless the Contractor recognized (or, utilizing a standard of due care and diligence, should have recognized) such error, inconsistency or omission and knowingly failed to report it to the Architect and Owner.  If the Contractor performs any construction activity knowing it involves error, inconsistency or omission (including, without limitation, any variance from applicable Laws) in the Contract Documents without such notice to the Architect and Owner, the Contractor shall assume appropriate responsibility for such performance and shall bear the attributable costs for correction.  Nothing in this paragraph shall relieve the Contractor from responsibility to use good faith efforts in its examination and review of the existing conditions at the Project site, the Construction Schedule, and the Contract Documents, to the end that errors, omissions or inconsistencies in the Contract Documents that are discovered by the Contractor in the course of the Contractor’s required duties hereunder shall be promptly reported to the Architect and Owner.

 

C.                                    Before ordering any materials or doing any Work, Contractor and each of its Subcontractors shall verify all measurements at the site and shall be responsible for the correctness of same.  It shall be understood as part of this Agreement that Contractor and each of its Subcontractors visited the site and examined the environs and satisfied themselves as to the

 

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conditions under which they would be required to perform the Work.  No allowance shall be made on behalf of Contractor or any Subcontractor for any failure to so acquaint themselves with working conditions except concealed and unforeseeable conditions.

 

D.                                    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.

 

E.                                     The Contractor shall be responsible to the Owner for acts and omissions of the Contractor’s employees, Subcontractors and their agents and employees, and any other persons performing portions of the Work under a contract with or through the Contractor or claiming by, through or under the Contractor and for any damages, losses, costs and expenses resulting from such acts or omissions.

 

F.                                      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 other than the Contractor.

 

G.                                    The Contractor shall be responsible for inspection of portions of Work already performed under the Contract to determine that such portions are in proper condition to receive subsequent Work; provided, however, that Contractor shall not be responsible for retaining outside inspection agencies in connection with such inspection.

 

H.                                   If any of the Work is required to be inspected or approved by any public authority, the Contractor shall cause such inspection or approval to be performed. No inspection performed or not performed by the Owner shall be a waiver of any of the Contractor’s obligations hereunder or be construed as an approval or acceptance of the Work or any part thereof.

 

I.                                        Unless otherwise provided in the Contract Documents, the Contractor shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation, and other facilities and services necessary for proper execution and completion of the Work, whether temporary or permanent in nature and whether or not incorporated or to be incorporated in the Work.  Without limiting the generality of the foregoing, unless otherwise directed by Owner in writing, Contractor shall be responsible for all required infrastructure and utility connections with respect to the Work (including, without limitation, water, gas, electrical and sewer) and for procuring all applicable governmental authorizations and approvals in connection with the same. Unless otherwise provided in the Contract Documents, the Contractor shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation, and other facilities arid 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.

 

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J.                                        The Contractor shall enforce strict discipline and good order among the Contractor’s employees and other persons carrying out the Contract. The Contractor shall not permit employment of unfit persons or persons not skilled in tasks assigned to them.  By notice to the Contractor, the Owner shall have the right to require the Contractor to remove and replace any personnel assigned to the Project which are unacceptable to Owner in Owner’s reasonable discretion.  Any substitutions of personnel, whether due to termination of employment, request of Owner or otherwise, shall be subject to Owner’s prior written approval.

 

K.                                   Owner shall notify Contractor if at any time the work of any Subcontractor is unsatisfactory to Owner or Owner believes that any Subcontractor is careless, incompetent, unskilled or otherwise objectionable; and Contractor, upon Contractor’s reasonable determination that Owner’s concerns are valid and cannot otherwise be remedied, shall dismiss such Subcontractor in accordance with standard construction industry labor practices.

 

L.                                     Contractor shall construct and complete the Project in accordance with the Contract Documents.  Contractor represents and warrants that it is an experienced general contractor and that it has inspected and is familiar with all visible conditions at the Project site. It shall be the obligation of Contractor to review the Contract Documents to determine and to notify the Owner and the Architect of any discrepancy with building codes and regulations of which the Contractor has knowledge.  The Contractor shall not violate any zoning, setback or other locational requirements of applicable Laws.  If the Contractor observes that portions of the Contract Documents are at variance with applicable Laws, the Contractor promptly shall notify the Owner and Architect in writing, and necessary changes shall be accomplished by appropriate Change Order.  If Contractor performs any Work, which it knows is contrary to applicable Laws, the Contractor shall assume appropriate responsibility therefor and shall bear the costs and expenses attributable thereto.

 

M.                                 Contractor shall prepare as part of the Work all shop and other detailed drawings that are required to enable Contractor to perform the Work.  Before submitting shop drawings for review, Contractor shall check drawings of all Subcontractors for conformity with Contract requirements, and Contractor shall see that all work contiguous with and having bearing on the Work indicated on the shop drawings is accurately and distinctly illustrated.  Contractor shall stamp the drawings as evidence that such drawings have been checked, approved or corrected. Such stamp shall constitute Contractor’s warranty to Owner and Architect that (a) Contractor has utilized reasonable efforts expected of highly experienced contractors to insure that such drawings are in strict conformity with the Drawings and Specifications, and (b) such submitted shop and other drawings have been coordinated with other components of the Work.  Architect will review and approve shop drawings and other submissions for general conformance with the design concept only and such review shall not relieve Contractor and each Subcontractor from the responsibility for adherence to this Agreement concerning quantity and quality of materials and workmanship, nor shall it relieve Contractor of the responsibility for the accuracy and completeness of other details, such as dimensions and tolerance, or for proper assembly, installation and performance.

 

N.                                    Owner reserves the right to perform construction or operations related to the Project with 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; provided, however, that

 

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Owner shall use all reasonable efforts to ensure that the exercise of such right does not interfere with the Construction Schedule or create labor disputes.

 

O.                                    The Contractor shall comply with and give notices required by applicable Laws bearing on performance of the Work.

 

P.                                      Notwithstanding the fact that a dispute, controversy or question shall have arisen in the interpretation of any provision of this Agreement or any of the other Contract Documents, the performance of any Work, the delivery of any material, the payment of any monies to Contractor, or otherwise, Contractor agrees that it will not directly or indirectly stop or delay the Work, or any part thereof, or stop or delay the delivery of any materials on its part required to be furnished under this Agreement, pending the determination of such dispute or controversy. Owner shall continue to make payments for Work that is not the subject of a dispute.

 

Q.                                    Contractor at all times shall keep the Project free from accumulation of waste materials or rubbish caused by its operations.  Contractor shall be responsible for managing all waste generated by the Work, including, without limitation, the management, treatment, neutralization, removal and disposal of such waste in accordance with all applicable Laws. At the completion of the Work, Contractor shall remove all of Contractor’s waste materials and rubbish from and about the Project, as well as all of Contractor’s tools, construction equipment, machinery and surplus materials, and shall leave the Work clean and ready for use and occupancy in accord with the standards of a first class facility. If the Contractor fails to clean up as provided in the Contract Documents, the Owner, upon three (3) business days notice to Contractor, may do so and the cost thereof shall be charged to the Contractor who shall pay such cost immediately upon demand by Owner.

 

R.                                    The Contractor shall maintain a neat, clean, and complete set of Drawings and Specifications on the job, which shall be kept current on a regular basis, for the purposes of marking in all deviations from the original Drawings and Specifications and creating a detailed and accurate set of Drawings and Specifications reflecting the as-built condition of the Work (the “As-Built Drawings and Specifications”).  There shall be noted therein the actual locations of underground lines, stub outs, and similar items.  Contractor shall deliver to Owner copies of the As-Built Drawings and Specifications in accordance with Paragraph X.D below, and the As-Built Drawings and Specifications shall constitute the sole property of Owner.

 

S.                                      Contractor shall take all necessary precautions required in order not to jeopardize the health and/or safety of Contractor’s personnel or property, Owner’s or other contractors’ personnel or property, or members of the general public or their property.  Contractor shall handle and store equipment and materials in a safe and orderly manner and so as not to hinder access to other portions of the Project site.  Contractor shall perform the Work in accordance with all applicable Laws relating to health and/or safety of persons or property (including, without limitation, the occupational health and safety legislation applicable to the place of the Work, and the standards and regulations issued thereunder), shall implement all practices, procedures and programs customarily implemented by construction contractors for projects of a similar nature, and shall take such other actions as may be deemed prudent by Owner or Owner’s insurance carriers to protect the health and/or safety of persons and property; provided that, to the extent the requirements of applicable Laws and the requirements of Owner differ, the more

 

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stringent shall apply.  The Contractor further agrees, in addition to the obligations set forth herein and elsewhere in the Contract, to comply with all applicable Laws and practices pertaining to employment standards, human rights, occupational health and safety, labor relations, workers’ compensation, pay equity and employment equity and all other Laws applicable to its employees.

 

T.                                     The Contractor is responsible for compliance with the Contract Documents regarding Hazardous Substances (as defined below).  If Contractor encounters a Hazardous 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 such Hazardous Substance, Contractor shall immediately stop Work in the affected area and report the condition to Owner and Architect in writing.  Work in the affected area shall resume upon written notice by Owner to Contractor that such Hazardous Substance has been removed or otherwise mitigated.  Notwithstanding anything to the contrary contained in this Agreement, the Contractor will develop and follow procedures for the storage, use and disposal of Hazardous Substances, which procedures are to be in accordance with all applicable environmental Laws and the Owner’s reasonable instructions provided to the Contractor from time to time. The Contractor will perform monitoring activities and file environmental test results as required by Law and maintain a copy of such results at the place of the Work for the Owner’s review upon request.  Unless the Owner notifies the Contractor otherwise, the Contractor must obtain the Owner’s prior written approval before bringing on to the place of the Work any Hazardous Substance or causing any hazardous condition at the place of the Work. The Contractor will request the Owner’s prior written approval by submitting to the Owner a Material Safety Data Sheet (“MSDS”) for the place of the Work listing the types and volumes of the Hazardous Substances the Contractor intends to bring to the place of the Work and the types of hazardous conditions the Contractor intends to cause at the place of the Work.  The Contractor will inform the Owner of any changes in the components of the controlled substances through the issuance of an updated MSDS.  All MSDS’s on file with the Owner will be updated as required by Law, regardless of whether the substances have changed or not.

 

The Contractor will immediately notify the Owner of any notice it receives from any governmental authority of any actual or potential violation of any environmental Law and will cooperate with the Owner in responding to such notice and in correcting or contesting such violation.

 

For purposes of this Agreement, “Hazardous Substances” means any and all substances, materials and/or wastes now or hereafter identified as hazardous or toxic by any federal, state or local Law related to the protection of the environment or worker safety and health and applicable to the Work, including without limitation all explosive or regulated radioactive materials, toxic substances, petroleum (including crude oil or any faction thereof) or petroleum distillates, insecticides, pesticides, special wastes, including asbestos, industrial substances or wastes, polychlorinated biphenyls and any constituent of any such substances or wastes.

 

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ARTICLE VII

 

PROGRESS PAYMENTS

 

Owner agrees to make progress payments to Contractor for the Construction Phase services according to the following procedures.

 

A.                                    The Schedule of Values shall be used as a basis for Contractor’s Applications for Payment (as defined in Paragraph VII.B below).

 

B.                                    Contractor, on or before the first day of each month during the Construction Phase, shall deliver to Owner and Architect an application for payment (“Application for Payment”) showing as of the end of the month covered by the Application for Payment the percentage of completion of the Work performed under this Agreement, the value of said completed Work based on the Schedule of Values, and the amount due and owing to Contractor under the terms of this Agreement, including amounts due under any fully executed Change Orders. Each Application for Payment shall be submitted on AIA forms G702 and G703 or similar, and shall contain such supporting data as Owner may reasonably require.  Without limiting the generality of the foregoing, with each Application for Payment Contractor shall submit any other evidence (such as, but not limited to, payrolls, petty cash accounts, receipted invoices and/or invoices with check vouchers attached) required by Owner or Architect to demonstrate that cash disbursements already made by Contractor on account of the Cost of the Work equal or exceed (1) progress payments already received by 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; plus (4) retainage applicable to prior progress payments.  In addition, Contractor’s Applications for Payment shall be submitted together with: (a) conditional waivers and releases of liens, stop notices and bond rights for the current Application for Payment, and unconditional waivers and releases of liens, stop notices and bond rights for all prior payments, from Contractor, all Subcontractors, and anyone having lien rights, stop notice rights or rights against a bond for the Project, all of which waivers and releases shall be on forms approved by Owner and in compliance with applicable Laws; (b) Contractor’s Declaration to Procure Payment, in a form approved by Owner, listing all persons and firms who have furnished subcontract work, equipment or materials to the Contractor for the Project and stating that full payment for all such work, equipment and materials has been made except as otherwise stated therein; and (c) such additional documents as the Owner may reasonably require.  Materials and equipment shall be considered completed items of Work for purposes of an Application for Payment, and may be included therein.  Contractor shall not make advance payments to Contractor’s Subcontractors (including, without limitation, materialmen or suppliers) without Owner’s prior written approval.

 

C.                                    Within forty-five (45) days after receipt by Owner of an approved Application for Payment, and provided Contractor is not in default under this Agreement, Owner shall pay to Contractor the amount approved for payment; provided, however, that if any item on the Application for Payment is disputed, Contractor promptly shall be notified of such dispute and shall submit verification of such item or a revised Application for Payment.  This procedure, however, shall not be deemed cause for any delay in making a progress payment within forty-five (45) days of the Application for Payment with regard to all undisputed items.

 

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D.                                    There shall be a five percent (5%) retention on progress payments for the Work per Utah State Statute. All funds retained shall be released in accordance with Article X.

 

E.                                     Should Contractor neglect or refuse to pay, within thirty (30) days after it falls due, any bill legitimately incurred and due by it hereunder which has been paid on a progress payment basis, Owner, after giving five (5) days written notice to Contractor of its intention to do so, shall have the right but not the obligation to pay such bill directly.  In such event, said payment shall be treated as a progress payment made for the benefit of Contractor.

 

F.                                      Contractor shall promptly pay each Subcontractor (including, without limitation, any materialman and supplier), upon receipt of payment from Owner, out of the amount paid to Contractor on account of such Subcontractor’s portion of the Work, the amount to which such Subcontractor is entitled, reflecting percentages actually retained from payments to Contractor on account of such Subcontractor’s portion of the Work. Contractor shall, by appropriate agreement with each Subcontractor, require such Subcontractor to make payments to sub-subcontractors in similar manner.

 

G.                                    Each Application 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 (a) the percentage of that portion of the Work actually completed as of the date the Application for Payment is submitted to Owner; or (b) the percentage obtained by dividing (i) 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 (ii) the share of the Guaranteed Maximum Price allocated to that portion of the Work in the Schedule of Values.  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 (including materials and equipment actually incorporated into the Work as of the date the Application for Payment is submitted to Owner) 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 five percent (5%) in accordance with Paragraph VII.D above.

 

2.                                      Add the Contractor’s Fee, less retainage of five percent (5%).  The amount of the Contractor’s Fee shall be computed upon the Cost of the Work described in the two preceding clauses at the rate stated in Article IV.

 

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

 

4.                                      Subtract the shortfall, if any, indicated by Contractor in the documentation required to substantiate prior Applications for Payment, or resulting from errors subsequently discovered by the Owner’s accountants in such documentation.

 

5.                                      Subtract amounts, if any, for which Architect or Owner has withheld or nullified a Certificate for Payment.

 

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H.                                   Except with Owner’s prior approval, payments to Subcontractors included in Contractor’s Applications for Payment shall not exceed an amount for each Subcontractor calculated as follows:

 

1.                                      Take that portion of the subcontract sum properly allocable to completed Work (including materials and equipment actually incorporated into the Work as of the date the Application for Payment is submitted to Owner) as determined by multiplying the percentage of completion of each portion of the Subcontractor’s Work by the share of the total subcontract sum allocated to that portion of the Work in the Subcontractor’s Schedule of Values, less retainage of five percent (5%).

 

2.                                      Subtract the aggregate of previous payments made by Contractor to the Subcontractor.

 

3.                                      Subtract amounts, if any, for which Architect or Owner has withheld or nullified a Certificate for Payment by Owner to Contractor for reasons that are the fault of the Subcontractor.

 

4.                                      Add, upon Substantial Completion of the entire Work of Contractor, a sum sufficient to increase the total payments to the Subcontractor to one hundred percent (100%) of the subcontract sum, less amounts, if any, for incomplete Work and unsettled claims. The subcontract sum is the total amount stipulated in the subcontract to be paid by Contractor to the Subcontractor for the Subcontractor’s performance of the subcontract.

 

I.                                        The initial payment to Contractor hereunder is conditioned upon Contractor’s having obtained all requisite consents, approvals, licenses and permits of governmental authorities required to be obtained by Contractor and necessary and appropriate to perform the Work in accordance with the Contract Documents (or, to the extent such consents, approvals, licenses and permits have not yet been obtained, the lack of which would not have a material adverse effect on the Work or be contrary to applicable Law, the Contractor provides satisfactory evidence to Owner of Contractor’s ability to obtain such consents, approvals, licenses and permits as and when needed to perform the Work).

 

J.                                        Nothing contained in this Article VII shall be construed to affect the right to reject in whole or in part any of the Work, should such Work later be found not to comply with the provisions of this Agreement or any of the other Contract Documents. All progress payments are subject to review and correction on subsequent progress payments and/or on the final payment, to such extent as may be necessary in the reasonable opinion of Owner to protect Owner from loss arising from the default of Contractor or the existence of claims. Payment by Owner and acceptance by Contractor of progress payments based on periodic estimates of quantities of Work performed shall not, in any way, constitute acceptance of the estimated quantities used as the basis for computing the amounts of the progress payments.

 

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ARTICLE VIII

 

SUBCONTRACTORS

 

All portions of the Work shall be performed by Contractor or under subcontracts entered into by Contractor. Owner may require Contractor to obtain bids for portions of the Work that Contractor desires to self-perform from qualified Subcontractors.  Decisions on who will perform such work will be made by Owner. As used herein, the term “Subcontractor” shall mean a person or entity who has a contract with or through the Contractor to perform a portion of the Work, or to supply materials or equipment with respect to the Work, and includes subcontractors at every tier, including design-build subcontractors, material and equipment suppliers, vendors and sub-subcontractors, but does not include a separate contractor of Owner or subcontractors of a separate contractor.  Owner shall have the right to approve all Subcontractors.  The Contractor shall require each Subcontractor, of whatever tier, to agree in writing to be bound by the terms of the Contract Documents insofar as they apply to such Subcontractor’s performance of the Work.  Each subcontract, whether between Contractor and a Subcontractor or between any Subcontractor and a lower-tier Subcontractor, shall state that the Owner and its successors and assigns are intended third-party beneficiaries of such subcontract and shall contain an indemnity and hold harmless in favor of the Owner and its officers, employees, agents, successors and assigns against all claims, damages, losses, costs and expenses, including reasonable attorneys’ fees, caused by the negligent acts or omissions of the Subcontractor or its employees, agents or consultants in connection with the Work.  Contractor shall be fully responsible for all portions of the Work performed by Subcontractors, and Contractor shall be liable for all acts and omissions of any Subcontractor.  Unless otherwise approved by the Owner, Contractor shall obtain a minimum of three (3) responsive bids from Subcontractors, including suppliers of materials or equipment fabricated especially for the Work (except that work normally done by the Contractor may be negotiated with Owner at Owner’s request), all of which bids shall be presented to the Contractor as sealed bids. Each bidder shall be required to furnish its hourly rates for regular and overtime labor (including full labor burden) with its bid.  Contractor shall summarize the bid results for each component of the Work in a spreadsheet format, including all analysis and adjustments necessary to permit a meaningful comparison among bidders and against the most recent itemized budget for the Work approved by Owner.  Contractor shall also provide, as appropriate, comments concerning each Subcontractor under consideration, including financial strength, past performance, current workload and other relevant factors, and a recommendation as to Subcontractor selection.  The Owner will then determine which bids will be accepted.  Owner shall have, at Owner’s request, the right to review the bid invitations and bid packages prepared by Contractor.  With the approval of the Owner, the Contractor may negotiate with selected Subcontractors.  All negotiated prices and scope must be approved in advance by the Owner.  Contractor will receive warranties from all Subcontractors in accordance with the Contract Documents and contractor licensing requirements.  Each subcontract agreement is assigned by Contractor to Owner, provided that such assignment shall be effective only after any termination of this Agreement pursuant to Article XIV below and only for those subcontract agreements that Owner accepts by notifying the Subcontractor in writing.  In connection with any such assignment, Owner shall not assume any obligation of Contractor to the Subcontractor incurred prior to the termination of this Agreement pursuant to Article XIV below.

 

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ARTICLE IX

 

TITLE TO THE WORK

 

Owner shall have title to all completed Work and all materials, equipment, tools and supplies for which payment has been made by Owner under the terms of this Agreement.  The Contractor warrants that title to all such Work, materials, equipment, tools and supplies shall pass to the Owner upon the earlier of incorporation into the Work or the time of payment therefor by Owner.  The Contractor further warrants that upon submittal of an Application for Payment all Work for which Certificates of 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 (including, without limitation, material suppliers), or other persons or entities making a claim by reason of having provided labor, materials and/or equipment relating to the Work.

 

ARTICLE X

 

ACCEPTANCE AND FINAL PAYMENT

 

A.                                    When the Work is Substantially Complete and Contractor has obtained a temporary certificate of occupancy for the Project, the Contractor will notify Owner and Architect that the Project is ready for final inspection and acceptance. Owner and Architect shall, within ten (10) days following receipt of Contractor’s notice, make such inspection. In the event that Architect and Owner shall find the Work to have been performed in accordance and in conformity with this Agreement and the other Contract Documents, Architect shall promptly issue a Certificate of Substantial Completion which shall set forth:

 

1.                                      A statement that the Work has been performed and is Substantially Completed in accordance and in conformity with this Agreement and has been accepted by the Owner and the Architect. For the purposes of this Agreement, “Substantially Completed” or “Substantial Completion” means completion of the Work in accordance with this Agreement and the other Contract Documents, including common service areas, mechanical equipment, and all utilities so as to permit occupancy and use of the Project for its intended use, subject only to minor corrective work or “punch list” work not rendering the premises unfit for occupancy, such as replacements of broken or defective materials, adjustments to mechanical system or elevators, and the like. Such minor corrective work or “punch list” work shall be completed within thirty (30) days after issuance of the Certificate of Substantial Completion, or such other period as Owner and Contractor may mutually agree (the “Punch List Period”). If any Punch List Work remains uncompleted at the expiration of the Punch List Period, then, in Owner’s sole discretion, Owner may elect to complete the Punch List Work and, upon such election, shall retain any retention amount Owner then holds to pay for the completion of the Punch List Work.

 

2.                                      The total unpaid balance of the amount due to Contractor hereunder, including any amounts due under Change Orders, the Contingency fund and any retained amounts.

 

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B.                                    If the inspection by Architect and Owner discloses any item that is not in accordance with the requirements of this Agreement or any of the other Contract Documents, Contractor shall, before issuance of the Certificate of Substantial Completion, complete or correct such item(s) upon notification from Architect or Owner. Contractor shall then submit a request for another inspection by Architect and Owner to determine Substantial Completion. All warranties shall commence on the date of Substantial Completion of the Work unless otherwise provided in the Certificate of Substantial Completion.

 

C.                                    Except to the extent that applicable law requires payment to be made earlier, Within forty-five (45) days following issuance of the Certificate of Substantial Completion, and provided Contractor is not in default under this Agreement, Owner shall pay to Contractor such amount as is shown by the Certificate of Substantial Completion to be the unpaid balance of the Cost of Work, the Contractor’s Fee and any amounts due under Change Orders, including any retained amounts, and any other amounts due hereunder; provided however, that:

 

1.                                      Except to the extent limited by applicable law, If any mechanic’s or materialman’s lien has at that time been recorded, Owner may withhold one and one-half (1-1/2) times the amount thereof until the lien or claim is removed and released of record or until the Owner is indemnified against such claim by bond or other means reasonably satisfactory to Owner; and

 

2.                                      So long as any Work remains uncompleted hereunder, Owner shall retain an amount equal to one hundred fifty percent (150%) of the value of such uncompleted work based on the Schedule of Values and/or Architect’s certification, which shall be paid only when such work is completed to the reasonable satisfaction of Architect and Owner; and

 

3.                                      As a condition precedent to payment to Contractor under this paragraph, Contractor shall deliver to Owner (a) such evidence of Contractor’s full payment of all Subcontractors (with the exception of retentions and final payments which are to be paid out of the final payment by Owner to Contractor) and the absence of any liens generated by the Work as may be required by Owner, including, without limitation, conditional waivers and releases of lien upon final payment, in a form acceptable to Owner and in compliance with applicable Laws, from Contractor and all Subcontractors (including, without limitation, suppliers and vendors) with remaining lien rights respecting the Project, (b) maintenance and operating manuals for all equipment, (c) all warranties and guaranties in connection with the Work, and (d) as-built drawings for the Project.  Final payment, at Owner’s option, may be made in the form of checks made jointly payable to Contractor and any Subcontractor entitled to payment out of the funds provided by the final payment.  Contractor shall provide evidence satisfactory to Owner establishing the identities of such persons and the amounts of the final payment to which they are respectively entitled.

 

D.                                    All plans and specifications, drawings, computations, sketches, test data, survey results, models, photographs, renderings, plans, shop and proposal drawings and material relating to the Work and prepared by Contractor or any other person or entity under contractor, (i) are the property of Owner, (ii) shall not be retained by Contractor or any Subcontractor (including, without limitation, any supplier or materialman) after the completion of the Work, (iii) shall be delivered to Owner upon request by Owner or as elsewhere provided herein (and Contractor shall

 

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see that all such material is obtained from Subcontractors and delivered to Owner) and (iv) shall not be used by Contractor or any other person or entity under Contractor (including, without limitation, any Subcontractor) in any way connected with any other work.  Prior to final payment by Owner, Contractor shall deliver to Owner two complete sets of coordinated and bound As-Built Drawings and Specifications covering all of the Work, and a complete set of As-Built Drawings and Specifications in electronic format approved in advance by Owner, plus all operating manuals and warranties relating to the Work. However, Contractor or any Subcontractor may retain copies of items referenced in this paragraph only for contractual document retention requirements.

 

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

 

ARTICLE XI

 

LIENS

 

Contractor agrees to make prompt payment to all Subcontractors (including, without limitation, laborers, materialmen and suppliers) performing labor upon or furnishing materials for the Work, subject only to receipt of timely payment from Owner for such labor and materials through the progress payments to which Contractor is then entitled.  Contractor agrees to keep the Project and the Project site free and clear of any and all liens and claims of such Subcontractors, laborers, materialmen and suppliers, subject to Owner’s performance of its own payment obligations; and, except to the extent limited by applicable law, if any such lien shall be filed at any time during the progress of the Work, Owner may withhold one and one-half (1-1/2) times the amount of such lien from payments otherwise due Contractor until the same is discharged and released of record or until the Owner is indemnified by bond or other means reasonably satisfactory to Owner.  At Owner’s request, Contractor shall bond any lien filed against the Project or the Project site by any Subcontractor.  Subject to the Owner’s fulfillment of its obligations as specified in the Contract Documents, the Contractor will indemnify Owner from and hold Owner harmless against all liens and claims of liens for such materials, equipment, labor and other costs, or any of them, filed against the Project or the Project site or any part thereof, and from and against all expense and liability in connection therewith, including, but not limited to, court costs and reasonable attorneys’ fees resulting or arising therefrom in connection with the Contractor’s Work.  The foregoing indemnity shall survive any termination of the Contract.  The Contractor shall assure that a Notice of Commencement pursuant to Utah Code Ann. 38-1-31 is timely filed with the Utah State Construction Registry Database (the “Database”) and, upon final completion as defined in Utah Code Ann. 38-1-7, shall file a Notice of Completion with the Database as provided in Utah Code Ann. 38-1-33.

 

ARTICLE XII

 

OWNER’S OCCUPANCY BEFORE COMPLETION OF WORK

 

Owner shall have the right to occupy any part or parts of the Project, and to install its own fixtures and equipment thereon prior to completion of the Work by Contractor, provided,

 

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however, that any such occupancy or use of a portion or portions of the Work shall not constitute acceptance of Work not complying with the requirements of this Agreement.  Any such occupancy shall be consistent with the Contractor’s sequence for completing the Work in the occupied part or parts or in other areas of the Project, and shall not materially interfere with the completion of such Work. Contractor shall coordinate its efforts with any occupancy prior to completion of the Work, and shall give reasonable notice to Owner of any damage or delay likely to arise as a result of such occupancy; Owner shall assume the risk of any such damage or delay as set forth in Contractor’s notice.

 

ARTICLE XIII

 

INSURANCE

 

A.                                    Contractor’s Safety Responsibility.  Contractor shall take all reasonable and legally required precautions for the safety of employees and all other persons in or about the Project and at any other location where any portion of the Work is being performed, including, without limitation, the maintenance of fences, barricades, warning lights, scaffolds, walkways and ladders which are adequate for safety of such employees and other persons. Contractor shall also exercise due care in order to protect all work and material against loss, injury or destruction and shall take all precautionary measures reasonably required for such purpose.

 

B.                                    Loss or Damage to Work.  With the exception of any loss or damage to the Work for which Owner is reimbursed under the insurance coverage described in Paragraph XIII.E.2(a) below, Contractor shall be responsible for any loss or damage to the Work to be performed and furnished under this Agreement however caused, until final acceptance and payment by Owner.  Contractor shall be responsible for loss of or damage to materials, tools, equipment, appliances or other personal property owned, rented or used by Contractor or any Subcontractor or anyone employed or retained by them in the performance of the Work from whatever cause.

 

C.                                    Contractor’s Indemnification and Insurance.

 

1.                                      Indemnification. Contractor agrees to indemnify, defend (with counsel reasonably satisfactory to Owner), and hold Owner and Owner’s officers, directors, agents and employees harmless from and against all liability, claims, demands, causes of action, damages, losses, or expenses (including reasonable attorneys’ fees) of any kind or nature arising out of or resulting from or in connection with the performance of the Work, provided that such claim, damage, loss or expenses 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, regardless of whether or not such claim, damage, loss or expense is caused in part by a party indemnified hereunder. The obligations of Contractor under this paragraph shall not extend to the liability of the Architect, engineers or other consultants hired or retained directly by Owner, or their respective agents or employees, arising out of (i) the preparation or approval of maps, drawings, opinions, reports, surveys, Change Orders, designs, or specifications, or (ii) the giving or the failure to give directions or instructions by the Architect, engineers or other consultants hired or retained by Owner, or their respective agents or employees, to the extent that such giving or failure to give

 

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directions or instructions is a cause of the injury or damage. This indemnification shall survive any termination of the Contract. Contractor agrees that Owner shall have the right to control and participate in the defense of any such claim, demand, suit or cause of action, and that such suit will not be settled without Owner’s prior written consent, which consent shall not be unreasonably withheld. If, in Owner’s reasonable judgment, a conflict exists in the interests of Owner and Contractor in such demand, suit or cause of action, Owner may retain its own counsel whose reasonable fees shall be paid by Contractor.

 

2.                                      Contractor’s Insurance. Contractor and its Subcontractors shall price all Work with the insurance coverage required pursuant to this Paragraph XIII.C.3 and Paragraph XIII.C.4 below, as applicable.  Prior to the commencement of the Work, or any portion thereof, Contractor shall procure the following insurance coverage with respect to performance of the Work.  Such insurance shall be issued by insurance carriers satisfactory to Owner and rated at least A- / IX in the current edition of Best’s insurance guides, with minimum limits as set forth below. Such insurance shall be maintained in full force and effect until Substantial Completion and final acceptance and payment by Owner:

 

(a)                                 Statutory Workers’ Compensation Insurance as required by state law and Employer’s Liability Insurance with a minimum limit of $1,000,000.

 

(b)                                 Commercial General Liability Insurance including Completed Operations and Contractual Liability Insurance against the liability assumed in this Agreement with the following minimum limits for bodily and personal injury and property damage on an occurrence basis:

 

$2,000,000 per occurrence;

 

$2,000,000 aggregate per project.

 

(c)                                  Comprehensive Automobile Liability Insurance covering owned, non-owned and hired automobiles used in connection with the Work covering bodily injury and property damage with a minimum limit of $1,000,000 per accident.

 

(d)                                 Commercial Umbrella Insurance providing excess limits for the Employer’s Liability, Commercial General Liability and Automobile Liability policies, with a minimum limit of $2,000,000 each occurrence and $25,000,000 annual aggregate.

 

(e)                                  Professional Liability Insurance for any portion of the Work to be performed on a design/build basis, with a minimum limit of $2,000,000 per claim.

 

Prior to commencing the Work, the Contractor shall furnish a certificate, satisfactory to Owner, from each insurance company showing that the above insurance is in force, stating policy numbers, dates of expiration and limits of liability, and further providing that the insurance will not be canceled or changed until the expiration of at least thirty (30) days after written notice of such cancellation or change has been mailed to and received by Owner. Owner shall be named as an additional insured under the Commercial General Liability, Comprehensive Automobile Liability.  Further, the certificate shall show that the Contractor’s insurance is primary.

 

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Contractor is required to provide through yearly policy renew Completed Operations insurance coverage in effect covering loss sustained during a period of four (4) years following Substantial Completion.  In addition, the Professional Liability insurance shall be kept in force for a period of four (4) years following Substantial Completion through yearly policy renewal by the Contractor. Contractor will provide certificates evidencing such insurance for each of the following (4) years as specified in the preceding paragraph. Contractor’s insurance policies shall include a severability of interest or cross-liability endorsement and provide that an act or omission of one of the named or additional insureds shall not reduce or void coverage to another named or additional insured.  With the exception of the Professional Liability policy (which may be issued on a claims-made basis), such insurance shall afford coverage for all claims based on any act, omission, injury or damage from which a claim occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period.  Contractor’s insurance policies shall also contain endorsements: (i) deleting any employee exclusion on personal injury coverage, and (ii) including employees as additional insureds.  Contractor’s insurance policies shall be primary and any insurance maintained by Owner shall be excess insurance only.  If Contractor fails to procure and maintain the insurance required herein, or any portion thereof, then Owner shall have the right, but not the obligation, to procure and maintain the required insurance for and in the name of Contractor, and Contractor shall pay the cost thereof and shall furnish all information necessary to acquire and maintain such insurance.  Contractor shall not violate or knowingly permit any violation of any conditions or terms of the policies of insurance described herein.

 

3.                                      Subcontractors’ Insurance.  Contractor shall be responsible to ensure that all Subcontractors have procured Workers Compensation Insurance, Commercial General Liability Insurance, Comprehensive Automobile Liability Insurance and, with respect to design/build Subcontractors, Professional Liability Insurance for losses arising out of the performance of their work. Contractor shall obtain a certificate from each Subcontractor’s insurance company showing that the above insurance is in force, stating policy numbers, dates of expiration and limits of liability, and further providing that the insurance will not be canceled or changed until the expiration of at least thirty (30) days after written notice of such cancellation or change has been mailed and received by Owner. Contractor shall ensure that Owner is named as an additional insured under the Commercial General Liability and comprehensive Automobile Liability policies.  Subcontractor limits will be as follows:

 

(a)                                 Statutory Workers’ Compensation Insurance as required by state law and Employer’s Liability Insurance with a minimum limit of $500,000.

 

(b)                                 Commercial General Liability Insurance with the following minimum limits for bodily and personal injury and property damage on an occurrence basis:

 

$2,000,000 per occurrence;

 

$2,000,000 aggregate per project.

 

(c)                                  Comprehensive Automobile Liability Insurance covering owned, non-owned and hired automobiles used in connection with the Work covering bodily injury and property damage with a minimum limit of $1,000,000 per accident.

 

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(d)                                 Professional Liability Insurance for design/build Subcontractors with a minimum limit of $5,000,000 per claim.

 

D.                                    Owner’s Liability Insurance. Owner shall be responsible for purchasing and maintaining the Owner’s usual liability insurance. Optionally, Owner may purchase and maintain other insurance for self-protection against claims which may arise from operations under this Agreement. Contractor shall not be responsible for purchasing and maintaining this optional Owner’s liability insurance unless specifically required by the Contract Documents.

 

E.                                     Property Insurance.

 

1.                                      Loss of Use Insurance. Owner, at its option, may purchase and maintain such insurance as will insure Owner against loss of use of Owner’s property during construction due to fire or other hazards, however caused, prior to Substantial Completion and final acceptance and payment. Owner waives all rights of action against Contractor for loss of use of Owner’s property prior to Substantial Completion, including consequential losses due to fire or other hazards, however caused.

 

2.                                      Builder’s Risk Coverage.

 

(a)                                 Unless the Owner request in writing that the Contractor obtain the Builder’s Risk insurance as a Cost of the Work prior to commencement of construction, the Owner shall obtain builder’s risk insurance on an “all risk” policy form, in an amount not less than one hundred percent (100%) of the completed insurable value of the Work being performed, including, to the extent not covered by other insurance, the structures upon and in which the Work is being done and all Work in progress including materials to be incorporated in the Work which qualify for payment under the terms of this Agreement. Such insurance shall cover the interests of both Owner and Contractor in the Work as their interests may appear. Owner will provide to the Contractor a copy of the full policy with all endorsement for the Contractor’s review. The deductible for such insurance shall not be greater than $5,000 (five thousand dollars).

 

(b)                                 Contractor shall assist Owner in filing and pursuing any claim and collecting any amounts payable under the builder’s risk coverage described above. All sums payable under such builder’s risk coverage shall be paid to Owner for the purpose of paying the cost, in whole or in part, of restoring or rebuilding the Work. Owner shall have the authority to adjust and settle any loss with the insurers.  To the extent of insurance proceeds received under the builder’s risk coverage, costs incurred in connection with restoring or rebuilding the Work shall be treated as a Change Order within the meaning of Article V of this Agreement, and the Guaranteed Maximum Price shall be adjusted accordingly.

 

F.                                      Waivers of Subrogation.  The Owner and Contractor waive all rights against each other, the architect, and any of their respective Subcontractors, consultants, agents, and employees, each of the other, for damages caused by fire or other perils to the extent of insurance proceeds received under property insurance obtained pursuant to this Agreement or any of the other Contract Documents or other property insurance applicable to the Work, except such rights as they have to proceeds of such insurance held by the Owner as a fiduciary.  Each policy of

 

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property insurance 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.

 

G.                                    Bonds. If Owner requests the same, Contractor shall furnish to Owner performance and/or payment bonds in the amount of the Guaranteed Maximum Price. Further, if Owner requests such bonds from any of Contractor’s Subcontractors, Contractor will be responsible for ensuring that such Subcontractors provide same to Owner. Contractor will review such requests with the Owner prior to securing any such bonds. The cost of such bonds shall be part of the GMP or shall be added by Change Order.

 

ARTICLE XIV

 

TERMINATION OF AGREEMENT

 

A.                                    Termination Prior to Establishing Guaranteed Maximum Price.

 

1.                                      Prior to execution by both parties of the Amendment, (a) the Owner may terminate the Contract at any time without cause, and (b) the Contractor may terminate the Contract if, through no act or fault of Contractor or anyone employed by or acting through Contractor, Owner, without justification under the provisions of this Agreement, orders the Work to be stopped for a period in excess of ninety (90) consecutive days.

 

2.                                      If the Owner or Contractor terminates the Contract pursuant to Paragraph XIV.A.1 prior to commencement of the Construction Phase, the Contractor shall be equitably compensated for Preconstruction Phase services properly performed prior to receipt of notice of termination; provided, however, that the compensation for such services shall not exceed the compensation set forth in Paragraph II.A above.

 

3.                                      If the Owner or Contractor terminates the Contract pursuant to Paragraph XIV.A.1 after commencement of the Construction Phase, the Contractor shall, in addition to the compensation set forth in Paragraph XIV.A.2 above, be paid an amount calculated as follows:

 

(a)                                 Take the Cost of the Work for Work satisfactorily completed to the date of termination.

 

(b)                                 Add the Contractor’s Fee computed upon the Cost of the Work for Work satisfactorily completed to the date of termination at the rate stated in Paragraph IV.C above.

 

(c)                                  Subtract the aggregate of previous payments made by the Owner on account of the Construction Phase.

 

To the extent that Owner elects to take legal assignment of subcontracts and purchase orders (including rental agreements) Contractor shall, as a condition of receiving the payments

 

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referred to herein, execute and deliver all such assignment documentation and take all such steps as 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, and the same shall be a condition precedent to Contractor’s receipt of any additional payments that may be required hereunder.  Subcontracts, purchase orders and rental agreements entered into by the Contractor shall contain provisions permitting assignment to the Owner as described herein.  In connection with any such assignment, Owner shall not assume any obligation of Contractor to the Subcontractor incurred prior to the Owner’s termination of the Contract.  If the Owner elects not to accept the assignment of any such subcontract, purchase order or rental agreement, the Contractor shall terminate such subcontract, purchase order or rental agreement.

 

B.                                    Termination by Contractor Subsequent to Establishing Guaranteed Maximum Price.

 

1.                                      Subsequent to execution by both parties of the Amendment, the Contractor may terminate the Contract in accordance with the provisions of this Paragraph XIV.B.  If through no act or fault of Contractor or any of its Subcontractors, or anyone employed by any of them, Owner or Architect, without justification under the provisions of this Agreement, orders the Work to be stopped for a period in excess of ninety (90) consecutive days, Contractor, upon thirty (30) days’ written notice to Owner, may elect to terminate the Contract. If Owner shall not make any payment of undisputed amounts due to Contractor hereunder within sixty (60) days after the due date of such payment as provided herein, and provided Contractor is not in default under this Agreement or any of the other Contract Documents, Contractor, at its option, may suspend the Work upon ten (10) business days’ prior written notice to Owner.  Owner shall be liable to Contractor for the amount of Contractor’s actual, reasonable costs of shut-down, delay and start-up occasioned by a stoppage or a suspension of the Work pursuant to this paragraph.

 

2.                                      If through no act or fault of Contractor or any of its Subcontractors, construction of the Work shall be stopped pursuant to court order, or other governmental act or regulation, fire, or action of the elements, national emergency, or any other cause beyond Contractor’s reasonable control, Contractor, after seven (7) days written notice to Owner, may temporarily cease construction of the Work.  If the cause of such stoppage of the Work is removed within sixty (60) days after Contractor so ceases construction, Contractor shall resume construction and proceed with the Work, provided, however, that the amount payable to Contractor hereunder and the Guaranteed Maximum Price shall be subject to adjustment as provided in Article V.  If the cause of such stoppage of work cannot be removed for a period of six (6) months, then either the Contractor or the Owner may elect to terminate the Contract.

 

If the Contract should be terminated as provided in Subparagraph 1 or 2 above, Contractor shall be entitled to receive payment for Work satisfactorily completed and the portion of Contractor’s Fee equal to the percentage of the Work satisfactorily completed as of the effective date of such termination, but in no event to exceed the amount Contractor would have been entitled to receive pursuant to Paragraphs XIV.A.2 and XIV.A.3 above, and subject to the Guaranteed Maximum Price.

 

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C.                                    Termination by Owner Subsequent to Establishing Guaranteed Maximum Price.

 

1.                                      If the Contractor should be adjudged as bankrupt, or if Contractor should make a general assignment for the benefit of its creditors, or if a receiver should be appointed on account of Contractor’s insolvency, or if Contractor should refuse or should fail to supply enough properly skilled workmen or proper materials to prosecute the Work as provided herein, or if Contractor should fail to make prompt payment of amounts properly due to its Subcontractors or for materials or labor after receiving payments from Owner, or if Contractor should disregard applicable Laws or otherwise be guilty of a material breach of any provision of this Agreement or any of the other Contract Documents, or if Contractor should fail to remove a mechanic’s lien on the Project for which Contractor is responsible in the manner required under this Agreement or any of the other Contract Documents then the Owner upon ten (10) days’ written notice to Contractor, may terminate the Contract and take possession of the Project site, materials, supplies, equipment and tools and finish the Work by whatever method Owner may deem expedient, and, at Owner’s option, take an assignment of any or all of the subcontracts now or hereafter executed by the Contractor hereunder. In connection with any such assignment, Owner shall not assume any obligation of Contractor to the Subcontractor incurred prior to the Owner’s termination of the Contract.

 

2.                                      Owner may, without cause, order Contractor in writing to suspend, delay or interrupt the Work in whole or in part for such period of time as Owner may determine. Should Owner choose to suspend, delay or interrupt the Work, an adjustment shall be made for increases in the cost of performance of the Contract caused by such suspension, delay or interruption. No adjustment shall be made to the extent that performance is, was or would have been so suspended, delayed or interrupted by another cause for which Contractor is responsible, or if an equitable adjustment is made under another provision of this Agreement.

 

3.                                      If Contractor defaults or neglects to carry out the Work in accordance with this Agreement or any of the other Contract Documents and fails within a seven (7) day period after receipt of written notice from Owner to commence and continue correction of such default or neglect with diligence and promptness, Owner shall have the right, without prejudice to other remedies Owner may have, to correct such deficiencies. In such case an appropriate Change Order shall be issued deducting from payments then or thereafter due Contractor the cost of correcting such deficiencies, including compensation for Architect’s additional services and direct expenses made necessary by such default, neglect or failure. If payments then or thereafter due Contractor are not sufficient to cover such amounts, Contractor shall pay the difference to Owner on demand.

 

4.                                      If the Contract shall be terminated by Owner pursuant to Subparagraph XIV.C.1 above, Owner shall have the right to recover from Contractor any costs in excess of the GMP incurred due to Contractor’s non-performance, default or negligence (including, without limitation, compensation for architectural services and expenses made necessary thereby and other direct costs or damages incurred by Owner, excluding consequential or indirect costs or damages). Contractor shall execute and deliver all papers and take all steps, including assignment of contractual rights, as Owner may reasonably require to permit Owner to complete the Work.

 

5.                                      Owner may, at any time, terminate the Contract for Owner’s convenience and without cause.  Upon receipt of written notice from Owner of any such termination,

 

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Contractor shall (a) cease operations as directed by Owner in the notice, vacate the Project site, and remove all equipment and materials therefrom; (b) take actions necessary, or that Owner may direct, for the protection and preservation of the Work; and (c) 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 or purchase orders.  In the case of such termination for Owner’s convenience, Contractor shall be entitled to receive payment for Work satisfactorily completed and the portion of Contractor’s Fee equal to the percentage of the Work satisfactorily completed as of the effective date of such termination, but in no event to exceed the amount Contractor would have been entitled to receive pursuant to Paragraphs XIV.A.2 and XIV.A.3 above, and subject to the Guaranteed Maximum Price.

 

ARTICLE XV

 

CONTRACTOR’S WARRANTIES

 

A.                                    Contractor warrants that (i) Contractor is a duly licensed contractor in compliance with all applicable Laws, Contractor will exercise due care and diligence in the construction of the Work and the Work shall be performed in accordance with this Agreement and the other Contract Documents, (ii) Contractor has adequately acquainted itself with the existing conditions at the Project site and its surroundings, (iii) Contractor has made all reasonable investigations essential to a adequate understanding of the performance of the Work and hereby assumes responsibility for construction of the Work, (iv) all of the Work and services to be performed by Contractor pursuant to this Agreement shall be of the standard and quality specified in the Contract Documents, and (v)  performance of the Work shall comply with the Contract Documents and all applicable Laws pursuant to this Agreement.  Wherever the Drawings and Specifications specify use of certain materials and equipment, Contractor, upon prior written approval by Architect and Owner, which approval may be withheld in their sole discretion, may use equivalent materials or equipment. The Contractor shall also have the right to employ alternate methods of construction upon prior written approval of Architect and Owner to the extent that the scope of the Work and the standards of quality set forth in the Drawings and Specifications are not adversely affected. Contractor shall be solely responsible for the adequacy of design executed by Contractor or its Subcontractors in employing any such alternate methods or materials.

 

B.                                    Contractor warrants, for one (1) year from the date of issuance of the Certificate of Substantial Completion or such longer period of time as may be specified in the Contract Documents for all or any portion of the Work (the “Warranty Period”), on behalf of the Contractor and its Subcontractors (including, without limitation, all materialmen and suppliers), that the Work performed under this Agreement shall be of good quality and free from defects in workmanship and materials.  All warranties procured by Contractor from its Subcontractors shall be properly executed on a form approved by Owner and shall be submitted to Owner prior to the final acceptance of the Work.  Contractor shall cause such warranties to be made directly to Owner, or if the same shall be made to Contractor, Contractor, if possible, shall assign same to Owner.  During the Warranty Period, upon written request from Owner, such warranties as may not be assignable shall be enforced by Contractor for the Owner’s benefit. Contractor shall also deliver to Owner all operating manuals for equipment installed as part of the Work.

 

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C.                                    Contractor shall to Owner’s satisfaction (i) re-execute any parts of the Work that fail to conform with the requirements of this Agreement or any of the other Contract Documents and that become apparent during the progress of the Work, (ii) remedy any defects in the Work due to faulty materials or workmanship that become apparent within the Warranty Period, and (iii) replace, repair or restore any other parts of the Work or furniture, fixtures, equipment or other items placed therein (whether by Owner or any other party) that are injured or damaged by any parts of the Work that do not conform to the requirements of this Agreement or any of the other Contract Documents or as a result of defects in the Work. The cost to Contractor of performing any of Contractor’s obligations under this Article XV shall not be included in the Cost of the Work, and all corrective work shall be at no cost to Owner. If Contractor fails to proceed within ten (10) days after written notice from Owner to comply with the terms of this paragraph, Owner may correct any defects in the Work and Contractor shall be liable for all reasonable costs of such corrective work.

 

D.                                    Contractor’s express warranty in this Article XV shall be in addition to, and not in lieu of, any other remedies Owner may have under this Agreement, at law, or in equity for defective Work, and nothing contained in this Article XV shall be construed to establish a period of limitation with respect to other obligations which the Contractor might have under the Contract Documents or to limit any other warranties required by the Contract Documents.  Establishment of the Warranty Period relates only to the specific obligation of the Contractor to correct the Work and has no relationship to the time within which the Contractor’s 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.   No payment made by Owner to Contractor, nor any acceptance, use or occupancy of the Work by Owner or any other person or entity, shall constitute acceptance of any defective Work or any Work not in compliance with this Agreement or any of the other Contract Documents.

 

ARTICLE XVI

 

STATUS OF ARCHITECT

 

A.                                    Whenever a right to approve or make a determination or other right is reserved hereunder to Owner or Owner’s representative, it is understood that Owner may delegate the exercise of such right to Architect, Owner’s representative, or any other entity in writing, and Contractor shall be wholly protected in relying upon any action taken by such representative in the exercise of such right, unless Contractor is earlier notified in writing by the Owner to the contrary. Architect shall have authority to review and approve shop drawings for the Work and, upon prior approval of Owner, Architect also shall have authority to stop the Work whenever such stoppage may be necessary in Architect’s reasonable opinion to ensure proper performance of this Agreement.

 

B.                                    Reexamination of questioned Work may be ordered by the Architect or Owner and, if so ordered, the Work must be uncovered by Contractor. If such Work is found not to be substantially in accordance with the requirements of this Agreement or any of the other Contract Documents, Contractor shall pay the cost of uncovering the Work.  If the Work is found satisfactory, Owner shall pay said cost. Contractor shall promptly correct all Work rejected by

 

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Architect or Owner or failing to conform to the requirements of this Agreement or any of the other Contract Documents, whether observed before or after Substantial Completion and whether or not fabricated, installed or completed.  Contractor shall bear the costs of correcting such rejected or non-conforming Work, including additional testing and inspections and compensation for Architect’s services and expenses made necessary thereby.

 

C.                                    It is understood that the performance of this Agreement by Contractor is dependent upon the cooperation and the prompt performance by the Architect of Architect’s duties. Owner shall insure that the Architect shall promptly provide all necessary design details, working drawings, and changes in drawings or specifications as may be required from time to time. Should errors, omissions, or discrepancies be discovered by Contractor in or between the Drawings and/or Specifications, or in the work done by others affecting the Work, the Contractor shall notify the Owner and the Architect at once and the Architect, subject to Owner’s approval, shall instruct the Contractor regarding the manner in which Contractor is to proceed with respect to the Work so affected.  If the Contractor discovers any such errors, omissions or discrepancies yet proceeds with the affected Work without instructions from the Architect, Contractor shall be responsible for, and shall make good, any resulting damage or defect.

 

D.                                    Owner shall insure that the Architect shall promptly make all inspections, approvals, and certifications and promptly perform all other functions required of Architect by this Agreement or the Drawings and Specifications.

 

ARTICLE XVII

 

GENERAL PROVISIONS

 

A.                                    Assignment:  Contractor shall not assign this Agreement, nor shall Contractor assign any monies due or to become due to Contractor hereunder, without the prior written consent of Owner, which consent may be withheld in Owner’s sole discretion.  Owner may assign this Agreement to any third party, including, without limitation, an institutional lender providing financing for the Project. Upon an assignment by Owner to any third party, other than an assignment to a lender as security in connection with the financing of the Project, Owner shall be automatically released from its executory obligations under this Agreement. Contractor shall execute all consents reasonably required to facilitate any assignment by Owner.  In addition, Contractor shall execute such other reasonable documentation required by any lender for the Project.

 

B.                                    Notices:  All notices hereunder shall be in writing, shall be sent by registered or certified mail, return receipt requested, or by personal delivery or nationally recognized overnight courier service with a request for an acknowledgment of receipt, and shall be effective on receipt.  Notices shall be sent to or delivered to the following addresses or such other address(es) as a party may designate by notice given in the manner provided herein:

 

	
In   the case of the Owner to:
    	
 
    
	
 
    	
 
    
	
O.COM   LAND LLC
    	
 
    
	
6350   South 3000 East
    	
 
    

 

34

 

	
Cottonwood   Heights, UT 84121
    	
 
    
	
Attn:   Director of Facilities
    	
 
    
	
 
    	
 
    
	
and
    	
 
    
	
 
    	
 
    
	
Overstock.com
    	
 
    
	
6350   South 3000 East
    	
 
    
	
Cottonwood   Heights, UT 84121
    	
 
    
	
Attn:   General Counsel
    	
 
    
	
 
    	
 
    
	
with   a copy to:
    	
 
    
	
 
    	
 
    
	
The   Gardner Company
    	
 
    
	
90   South 400 West, Suite #360
    	
 
    
	
Salt   Lake City, UT 84101
    	
 
    
	
Attn:   John Bankhead
    	
 
    
	
 
    	
 
    
	
and   in the case of the Contractor to:
    	
 
    
	
 
    	
 
    
	
Okland   Construction Company Inc.
    	
 
    
	
1978   S. West Temple
    	
 
    
	
Salt   Lake City, UT 84115
    	
 
    
	
Attn:   Brett Okland
    	
 
    
	
 
    	
 
    
	
and   in the case of the Architect to:
    	
 
    
	
 
    	
 
    
	
EDA   Architects, Inc
    	
 
    
	
9   Exchange Place
    	
 
    
	
Salt   Lake City, UT 84111
    	
 
    
	
Attn:   Peter Emerson
    	
 
    

 

C.                                    Complete Agreement:  This Agreement, including all exhibits hereto, represents the full and complete understanding of the parties and supersedes any previous agreements, representations, or understandings, oral or written, with respect to the subject matter hereof. This Agreement may be modified or altered only by a written instrument signed by the parties.  Notwithstanding the fact that this Agreement is executed as of the date first set forth above (which date is for reference purposes only), the parties hereby acknowledge and agree that a portion of the Work may have been performed prior to such date, all of which Work shall be governed by the terms and conditions of this Agreement and shall be deemed to be a part of the Work to be performed hereunder.  Contractor shall not be entitled to any compensation for such Work except as expressly provided in this Agreement.  Without limiting the foregoing, all of Contractor’s liabilities and obligations under this Agreement shall apply to all such Work performed or provided prior to the date of this Agreement, notwithstanding the fact that the same may have been performed or provided pursuant to prior negotiations, proposals, letter agreements, understandings or otherwise.

 

35

 

D.                                    Successors:  This Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of Owner and upon the permitted successors and assigns of Contractor.

 

E.                                     Owner’s Additional Costs:  Unless otherwise agreed in writing, Owner at its own expense shall furnish all surveys, testing and inspection, civil and soil engineering tests and rights-of-way and easements for permanent structures or permanent changes in existing facilities, and shall pay all architectural, structural engineering and civil engineering fees associated therewith.

 

F.                                      Governing Law:  This Agreement shall be governed by and interpreted under the laws of the State in which the Project is located.

 

G.                                    Remedies:  Duties and obligations imposed by this Agreement and, except as expressly provided otherwise herein, rights and remedies available hereunder shall be in addition to and not a limitation of duties, obligations, rights and remedies otherwise imposed or available by law.

 

H.                                   Governing Contract Documents:  The Contract Documents are complementary, and what is required by one shall be as binding as if required by all.  In general, Specifications indicate qualities of materials and workmanship, and Drawings indicate dimensions, locations, quantities, and details of construction.  Detailed Drawings and Specifications shall take precedence over general Drawings and Specifications.  Supplementary or revised details and instructions, if approved by Owner, shall take precedence over original documents, information and earlier addenda to which they refer.  Any item of Work mentioned in Specifications but not shown on Drawings or shown on Drawings but not mentioned in Specifications, shall be provided as if shown and mentioned in both.

 

I.                                        Licensing Requirements:  Contractor shall comply with all licensing requirements imposed by applicable Laws.

 

J.                                        No Waiver:  No consent or waiver either expressed or implied by either Owner or Architect to any breach by Contractor of any covenant, obligation, or liability shall be construed as a waiver of right or consent to any other breach of the same or any other covenant, obligation, or duty.

 

K.                                   Confidentiality: Contractor shall treat all information relating to the Work and all information supplied to Contractor by Owner, or Architect as confidential and proprietary information of Owner and shall not permit its release to other parties or make any public announcement or publicity releases without Owner’s written authorization. Contractor shall also require all Subcontractors, materialmen and suppliers to comply with this requirement.

 

L.                                     Key Project Personnel:  Contractor’s key personnel for the Project are as shown on Exhibit F attached hereto (collectively, “Contractor’s Key Personnel”).  Contractor shall cause the Project manager or Project superintendent to be on the Project site at all times during the course of the Work (including, without limitation, completion of all “punch list” items).  Contractor’s Key Personnel shall be assigned to the Project for the duration of the Work.  In the

 

36

 

event Contractor desires to change any of Contractor’s Key Personnel during the course of the Work, any substitutions shall be subject to the prior written approval of Owner.

 

M.                                 Access to Site:  Owner shall have at all times, and Contractor shall provide, access to the Project site.

 

N.                                    Labor Disputes:  The Contractor will utilize good faith and commercially reasonable efforts to promote and maintain labor harmony on the Project and to prevent labor disputes.  In the event of a labor dispute, the Contractor shall utilize commercially reasonable efforts to promptly resolve the dispute and to mitigate its impact on the Project.  Additionally, Contractor will provide a union gate for use by union shop Subcontractors, if necessary. In such an event, merit or open shop Subcontractors will have access to Project by a separate gate that cannot be blocked by picketing.

 

O.                                    Time of the Essence: Contractor acknowledges and agrees that it has reviewed and negotiated the various time limits or periods set forth in the Contract Documents and that any changes in such time limits or periods made in accordance with the terms of the Contract Documents will be similarly reviewed and negotiated by it.  Contractor agrees to perform its obligations with due diligence within such time limits and periods in accordance with the terms of the Contract Documents, acknowledging that in the event it fails to do so Owner will suffer damages, costs and expenses by reason of such failure of performance..

 

P.                                      Limitation of Liability: Contractor and Owner agree to look solely to the interest of the other party in the Project for the enforcement of any claims against the other party, and the parties further agree that none of the officers, directors, employees, partners, members or shareholders of the other party assume any personal liability for any of the obligations under the Contract Documents.  Notwithstanding any provision to the contrary contained in any of the Contract Documents, the parties shall not be liable under any circumstances for any indirect or consequential damages or any injury to, or interference with, the other parties’ business, including but not limited to loss of profits (other than the Contractor’s Fee, to the extent Owner is obligated to pay the same pursuant to the provisions of the Contract Documents), loss of revenues, loss of business opportunity, loss of goodwill or loss of financing, in each case however occurring.

 

Q.                                    Performance by Contractor: Contractor agrees that it shall perform its obligations hereunder in a manner consistent with that of a first class construction firm, experienced in performing sophisticated and complex work similar to the Work required for the Project, and Contractor shall observe and abide by and perform all of its obligations hereunder in accordance with applicable Laws pursuant to this Agreement.

 

R.                                    Rules of Construction: The headings of the Contract Documents are used herein for reference purposes only and shall not govern, limit, or be used in construing the Contract Documents or any provision hereof.  Where the context of the Contract Documents so requires, the use of the neuter gender shall include the masculine and feminine genders, the masculine gender shall include the feminine and neuter genders, and the singular number shall include the plural and vice versa.  Each party hereto acknowledges that (i) each party hereto is of equal bargaining strength; (ii) each such party has actively participated in the preparation, and

 

37

 

negotiation of the Contract Documents; (iii) each such party has had the opportunity to consult with such party’s attorneys and advisors relative to entering into the Contract Documents, and (iv) any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of the Contract Documents, any portion thereof, any amendments thereto, or any exhibits attached thereto.  In the event of any conflict between any of the exhibits attached hereto and the provisions contained in the body of this Agreement, the provisions contained in the body of this Agreement shall govern.

 

S.                                      Counterparts: The Contract Documents may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

 

T.                                     Invalidity: If any provision of the Contract Documents, or any application of any such provision to any person or circumstances, shall be determined by any court of competent jurisdiction to be invalid or unenforceable to any extent, this Agreement shall be interpreted as if such provision were not included herein (to the extent such provision is determined to be invalid or unenforceable) and applicable provisions of Utah law shall govern with respect to the substance of such invalid or unenforceable provision.  In such event, the remainder of the Contract Documents or the application of such provision to any person or circumstances, other than the application as to which such provision is determined to be invalid or unenforceable, shall not be affected thereby, and each provision shall be valid and shall be enforceable to the fullest extent permitted by law.

 

IN WITNESS WHEREOF, the Owner and Contractor have executed this Agreement as of the date first written above.

 

	
OWNER:
    	
CONTRACTOR:
    
	
 
    	
 
    
	
O.COM   Land LLC,
   a Utah limited liability company 
    	
Okland   Construction Company Inc.,
   a Utah corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   CARTER LEE
    	
 
    	
By:
    	
/s/   JOHN McENTIRE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Carter   Lee
    	
 
    	
Name:
    	
John   McEntire
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Manager
    	
 
    	
Title:
    	
Corporate   Sec/Treasurer
    

 

38

 

Exhibit A

 

Preconstruction Phase Services

 

OKLAND PRECONSTRUCTION SERVICES

 

·           Initial cost model development

 

·           Budgeting/Estimating-Leading to GMP

 

·           Real-Time Estimating

 

·           Mechanical and Electrical Estimating

 

·           Value Engineering

 

·           Constructability Reviews

 

·           Drawing and Specifications Review

 

·           Market Conditions, Capacities and Trend Analysis

 

·           Scheduling

 

·           Subcontractor Prequalification/Bid process management

 

·           Sustainable Design Analysis

 

 

Exhibit B

 

Compensation for Preconstruction Phase Services

 

Okland will perform pre-construction services for a lump sum amount of $50,000

 

 

Exhibit C

 

Project Milestones

 

 

 

 

 

Exhibit D

 

Form of Amendment

 

[FIRST] AMENDMENT TO CONSTRUCTION AGREEMENT

 

THIS [FIRST] AMENDMENT TO CONSTRUCTION AGREEMENT (this “Amendment”) is made and entered into as of                             , 20    , by and between                                                                     , a                                                (“Owner”), and                                                                     , a                                                (“Contractor”), with reference to the following facts:

 

A.            Owner and Contractor have previously entered into that certain Construction Agreement dated as of                                     , 20     (the “Agreement”), pursuant to which Contractor has agreed to perform certain preconstruction and construction services in connection with the Project to be located at                                                                                               .  Capitalized terms used but not defined herein shall have the respective meanings ascribed to them in the Agreement.

 

B.            In accordance with Paragraph II.L of the Agreement, the Guaranteed Maximum Price and the date of Substantial Completion of the entire Work have been established, and Owner and Contractor desire to enter into this Amendment to document the same.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner and Contractor hereby agree as follows:

 

1.             Guaranteed Maximum Price.  The Guaranteed Maximum Price for the Work, including the Cost of the Work and the Contractor’s Fee, is                                Dollars ($              ).  The Guaranteed Maximum Price is based upon the following exhibits, which are attached to this Amendment and shall be deemed to be Contract Documents:

 

Exhibit A — Drawings and Specifications

 

Exhibit B — Schedule of Values

 

Exhibit C — Allowance Items

 

Exhibit D — Assumptions and Clarifications

 

Exhibit E — Alternate Prices

 

Exhibit F — Unit Prices

 

Exhibit G — Construction Schedule

 

2.             Date of Substantial Completion.  The date of Substantial Completion for the Work is                                   .

 

 

3.             Counterparts.  This Amendment may be executed in separate counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument.

 

4.             Effectiveness.  The terms, covenants and conditions of the Agreement shall remain in full force and effect, as expressly modified herein.

 

IN WITNESS WHEREOF, the Owner and Contractor have executed this Amendment as of the date first written above.

 

 

	
OWNER:
    	
 
    	
CONTRACTOR:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
,
    	
 
    	
,
    
	
a
    	
 
    	
a
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    

 

2

 

Exhibit E

 

Contractor’s Equipment Rental Rates

 

Okland Construction Company Equipment Rental Rates

Updated 7/15/2014

 

	
Equipment Description
    	
 
    	
Daily
    	
 
    	
Weekly
    	
 
    	
Monthly
    	
 
    	
Job Cost
    	
 
    	
Seasonal
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Backhoes, Loaders &   Excavators
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Backhoe
    	
 
    	
$
    	
275.00
    	
 
    	
$
    	
800.00
    	
 
    	
$
    	
1,900.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Breaker, Hydraulic Attachment
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
500.00
    	
 
    	
$
    	
1,350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Excavator, Mini
    	
 
    	
$
    	
146.00
    	
 
    	
$
    	
590.00
    	
 
    	
$
    	
1,750.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Excavator, 32,000# Class
    	
 
    	
$
    	
550.00
    	
 
    	
$
    	
1,900.00
    	
 
    	
$
    	
5,500.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Loader, Front End 2-3 Yard
    	
 
    	
$
    	
360.00
    	
 
    	
$
    	
1,350.00
    	
 
    	
$
    	
3,750.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Loader, Skip
    	
 
    	
$
    	
165.00
    	
 
    	
$
    	
650.00
    	
 
    	
$
    	
1,800.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Loader, Skid Steer
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
500.00
    	
 
    	
$
    	
1,350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Skid Steer, Auger Attachment
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
475.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Skid Steer, Fork Attachment
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
325.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Skid Steer, Sweeper Attachment
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
475.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Compressors & Air Tools
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Breaker, 15# Air
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Breaker, 30# Air
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
325.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Breaker, 60# Air
    	
 
    	
$
    	
65.00
    	
 
    	
$
    	
160.00
    	
 
    	
$
    	
350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Breaker, 90# Air
    	
 
    	
$
    	
65.00
    	
 
    	
$
    	
160.00
    	
 
    	
$
    	
350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Breaker, Bits & Chisels
    	
 
    	
$
    	
5.00
    	
 
    	
$
    	
10.00
    	
 
    	
$
    	
30.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Compressor, Framing/Finish
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
250.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Compressor, 185 CFM
    	
 
    	
$
    	
110.00
    	
 
    	
$
    	
270.00
    	
 
    	
$
    	
675.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Compressor, 250 CFM
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
400.00
    	
 
    	
$
    	
950.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hose, Air 3/8” X 50’
    	
 
    	
$
    	
6.00
    	
 
    	
$
    	
18.00
    	
 
    	
$
    	
36.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hose, Air 1” X 50’
    	
 
    	
$
    	
8.00
    	
 
    	
$
    	
24.00
    	
 
    	
$
    	
45.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Concrete Equipment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Buggy, Concrete
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
80.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Buggy, Power Concrete
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
325.00
    	
 
    	
$
    	
625.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Grinder, Floor w/Vacuum
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
600.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Grinder, Floor Propane
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Grinder, Concrete Hand
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mixer, Cement
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
225.00
    	
 
    	
$
    	
625.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mixer, Grout
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
225.00
    	
 
    	
$
    	
625.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mixer, Grout Electric
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pipe Screed
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saddle, Pipe Screed
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
8.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saddle, Stake Bracket
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Concrete Core
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
550.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Concrete Soft Cut 150
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
425.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Concrete Soft Cut 2000
    	
 
    	
$
    	
70.00
    	
 
    	
$
    	
280.00
    	
 
    	
$
    	
650.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Concrete Soft Cut 4000
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
400.00
    	
 
    	
$
    	
900.00
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

3

 

	
Saw, Gas Demo Saw
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
600.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Concrete Walk-Behind
    	
 
    	
$
    	
65.00
    	
 
    	
$
    	
225.00
    	
 
    	
$
    	
500.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scarifier
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Screed, Vibra-Strike
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
65.00
    	
 
    	
$
    	
150.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Screed, Vibrating Truss
    	
 
    	
$
    	
130.00
    	
 
    	
$
    	
475.00
    	
 
    	
$
    	
900.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trowel, Power 24”
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
175.00
    	
 
    	
$
    	
475.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trowel, Power 36”
    	
 
    	
$
    	
55.00
    	
 
    	
$
    	
220.00
    	
 
    	
$
    	
600.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trowel, Power 46”
    	
 
    	
$
    	
55.00
    	
 
    	
$
    	
220.00
    	
 
    	
$
    	
600.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trowel, Power Rideon
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
900.00
    	
 
    	
$
    	
2,900.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vibrator, 110 Volt
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
400.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vibrator, Gas Powered
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
400.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vibrator, High Cycle
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
225.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cranes & Accessories
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, RT 28 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4,300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, RT 35 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5,500.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, RT 55 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
8,400.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, RT 65 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
9,600.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, RT 75 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
11,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, RT 90 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
13,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Lattice 125 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
11,500.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Lattice 140 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
12,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Lattice 200 Ton
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
13,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Tower 180
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
10,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Tower 316
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
12,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Cam-Lever Bucket
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
110.00
    	
 
    	
$
    	
325.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Dumpster
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
110.00
    	
 
    	
$
    	
325.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Concrete Bucket
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
110.00
    	
 
    	
$
    	
325.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Fork Attachment
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
275.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Hardware Tub
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
25.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Man Basket
    	
 
    	
$
    	
60.00
    	
 
    	
$
    	
225.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Spreader Bar
    	
 
    	
$
    	
55.00
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
325.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane, Torque Application
    	
 
    	
$
    	
225.00
    	
 
    	
$
    	
600.00
    	
 
    	
$
    	
600.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Crane Weight
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
25.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hoist, Material Elevator
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5,300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hoist, Passenger Elevator
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Landing Platform, Fixed
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Landing Platform, Super deck
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1,200.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklifts, Accessories &   Aerial Equipment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, Warehouse 5000#
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
350.00
    	
 
    	
$
    	
900.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, VR 6000#
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
775.00
    	
 
    	
$
    	
2,100.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, VR 8000#
    	
 
    	
$
    	
275.00
    	
 
    	
$
    	
850.00
    	
 
    	
$
    	
2,200.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, VR 9000#
    	
 
    	
$
    	
325.00
    	
 
    	
$
    	
950.00
    	
 
    	
$
    	
2,350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, VR 10,000#
    	
 
    	
$
    	
375.00
    	
 
    	
$
    	
1,200.00
    	
 
    	
$
    	
2,900.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, VR 11,000#
    	
 
    	
$
    	
375.00
    	
 
    	
$
    	
1,200.00
    	
 
    	
$
    	
3,100.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, VR 12,000#
    	
 
    	
$
    	
400.00
    	
 
    	
$
    	
1,250.00
    	
 
    	
$
    	
3,350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

4

 

	
Forklift, Bucket
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
250.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, Fork Extensions
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
70.00
    	
 
    	
$
    	
250.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, Lifting Hook
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
275.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forklift, Trash Dumpster
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
110.00
    	
 
    	
$
    	
325.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pallet Jack
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
120.00
    	
 
    	
$
    	
275.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pallet Jack, Electric
    	
 
    	
$
    	
120.00
    	
 
    	
$
    	
450.00
    	
 
    	
$
    	
900.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Aerial Boom Lift, 60’
    	
 
    	
$
    	
350.00
    	
 
    	
$
    	
950.00
    	
 
    	
$
    	
2,200.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Aerial Boom Lift, 80’
    	
 
    	
$
    	
650.00
    	
 
    	
$
    	
2,100.00
    	
 
    	
$
    	
4,400.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scissor Lift, 19’
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
175.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Forming Hardware
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Camlock Brackets
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.41
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Catheads
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.31
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Form, Curb & Gutter (per foot)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Grass Hoppers-Strongback clamp
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.18
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
John A Clamps
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.28
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold Bracket
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
8.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Stakes, Metal 3/4” X 12”-36”
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.30
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Turnbuckles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
2.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Form System - EFCO
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 1.5” Quickbolt w/nut
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.17
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 2” Quick bolt w/nut
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.20
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 6’ E-beam
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.40
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 8’ E-beam
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.85
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 10’ E-beam
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
2.40
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 12’ E-beam
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
2.90
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 14’ E-beam
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.30
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 16’ E-beam
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 20’ E-beam
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4.90
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 24’ E-beam
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.65
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 3’ Super Stud
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.70
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 6’ Super Stud
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
10.20
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - 12’ Super Stud
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
15.20
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - Scaffold Rail Post
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.10
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - Special Lifting Eye
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - Taper Ties/Nuts/Washers
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.95
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EFCO - Tie Bearing Plate
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.40
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Form System - PERI
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PERI - Drophead SFK
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.52
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PERI - Main Beam SLT
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
10.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PERI - MRK 150
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PERI - MRK 230
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
7.34
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PERI - Multi Prop 350
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
10.51
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PERI - Multi Prop 480
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
12.56
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PERI - Sky Deck Panel 150x75
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
9.90
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

5

 

	
PERI - Cover Strip
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.70
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Form System - SYMONS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 1’ X 2’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 1’ X 3’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 1’ X 4’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 1’ X 5’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
7.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 2’ X 3’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 2’ X 4’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 2’ X 5’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
9.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 2’ X 6’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
9.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 2’ X 8’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
10.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ X 4”
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ X 6”
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ X 8”
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ X 12”
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ X 18”
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
7.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 2’ Filler Angle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 3’ Filler Angle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ Filler Angle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 5’ Filler Angle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 6’ Filler Angle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
8.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 3’ X 4” ISC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ X 4” ISC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ X 6” ISC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 5’ X 6” ISC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 2’ OSC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 3’ OSC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 4’ OSC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.70
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, 5’ OSC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
2.10
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, Z Waler Clamp
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, Wedge Bolt
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.05
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, Column Clamp
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
8.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Symon Form, Column Corner
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Information Technology
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Computer, Desktop (included in IT rate)
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
110.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Computer, Laptop (included in IT rate)
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
110.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Primavera License (included in IT rate)
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
90.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prolog Web License
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
50.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prolog User License
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
80.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prolog User/Web License
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
130.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Printer
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
50.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Printer, Copy, Scan, Fax, B&W
    	
 
    	
$
    	
34.00
    	
 
    	
$
    	
140.00
    	
 
    	
$
    	
400.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Printer, Copy, Scan, Fax, Color
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
160.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Jobsite, Meeting Projector
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
130.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Jobsite, Meeting TV
    	
 
    	
$
    	
15.00
    	
 
    	
$
    	
35.00
    	
 
    	
$
    	
100.00
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

6

 

	
Jobsite, Webcam
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
110.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Office Trailers
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mobile Office, Compact
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
175.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mobile Office, Conex 20’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
175.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mobile Office, Single Wide
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
270.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mobile Office, Double Wide
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
750.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mobile Office, Triple Wide
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1,200.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mobile Office, Stairs
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
15.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pumps
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pump, Hand Grout
    	
 
    	
$
    	
15.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
75.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pump, 2” Submersible
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
60.00
    	
 
    	
$
    	
225.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pump, Trash 2”
    	
 
    	
$
    	
32.00
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
375.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold & Shoring
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Baker
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
50.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, End Frame
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.60
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Cross Brace
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
1.20
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Wheel
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Aluminum Plank
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
12.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Railing
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.75
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Connection Pin
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Toggle Pin
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.10
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shoring - Ellis Clamps
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
0.70
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shoring, Cross Brace
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
2.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shoring, End Frame
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shoring, Pipe Brace
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
4.70
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shoring, Screwjack
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
2.20
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shoring, Tops
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
3.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Engineered Plank 12’-16’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.50
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Scaffold, Engineered Plank, 8’-9’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.25
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Storage & Transport   Equipment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Conex, 10’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
55.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Conex, 20’
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
70.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Conex, 40’
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
100.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gang Box, Small
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
25.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gang Box, Medium
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
45.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gang Box, Large
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
65.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trailer, Enclosed Utility
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trailer, Flat Bed Utility
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trailer, Flat Bed Semi
    	
 
    	
$
    	
70.00
    	
 
    	
$
    	
140.00
    	
 
    	
$
    	
350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trailer, Fuel
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
400.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trailer, Low Boy
    	
 
    	
$
    	
49.00
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
585.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trailer, Van
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
60.00
    	
 
    	
$
    	
170.00
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

7

 

	
Survey Equipment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Auto level
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
120.00
    	
 
    	
$
    	
360.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Builders Level
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
60.00
    	
 
    	
$
    	
170.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Data Collector
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
220.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ferro Scanner
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
1,000.00
    	
 
    	
$
    	
3,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Grade Rod (included w/survey device)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
25.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Laser Level
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
PLS
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
60.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Radar Scanner
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
350.00
    	
 
    	
$
    	
750.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rod Eye
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
50.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Theodolite
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
120.00
    	
 
    	
$
    	
360.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Station
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
300.00
    	
 
    	
$
    	
900.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Station, Robotic
    	
 
    	
$
    	
450.00
    	
 
    	
$
    	
1,350.00
    	
 
    	
$
    	
3,200.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tripod (included w/survey device)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
40.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Temp Power & Lighting
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Generator, 5 KW High Cycle
    	
 
    	
$
    	
35.00
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
400.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Generator, 6 KW - 10 KW
    	
 
    	
$
    	
60.00
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
500.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Generator, 25 KVA
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
300.00
    	
 
    	
$
    	
750.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Generator, 45 KVA
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
400.00
    	
 
    	
$
    	
875.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Generator, 70 KVA
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
525.00
    	
 
    	
$
    	
1,200.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Light, Flood
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
35.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Light Plant, Diesel
    	
 
    	
$
    	
70.00
    	
 
    	
$
    	
225.00
    	
 
    	
$
    	
600.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Light, Stringer
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
80.00
    	
 
    	
 
    	
 
    
	
Light, Wobble
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
200.00
    	
 
    	
 
    	
 
    
	
Spider Box
    	
 
    	
$
    	
15.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
95.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Temp Power Cord
    	
 
    	
$
    	
10.00
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
75.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tools & Miscellaneous
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Air Monitor - 4 Gas
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Angle Grinder
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
95.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Banding Machine
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
100.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Barricade, A-Frame
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
6.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Barricade, Candlestick
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Barricade, Handler
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
140.00
    	
 
    	
$
    	
280.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Barricade, Jersey
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
25.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Barricade, Water
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
15.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Breaker, Electric
    	
 
    	
$
    	
65.00
    	
 
    	
$
    	
300.00
    	
 
    	
$
    	
850.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Compactor, Plate
    	
 
    	
$
    	
65.00
    	
 
    	
$
    	
210.00
    	
 
    	
$
    	
500.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Concrete Deadmen
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
15.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cutting Torch w/cart
    	
 
    	
$
    	
35.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
250.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Drill Press
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
150.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Drill Press, Magnetic
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Floor Polisher
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
120.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fuel Tank w/Pump
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
60.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Guard Rail w/Base
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
12.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hammer Drill, Small
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
275.00
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

8

 

	
Hammer Drill, Medium
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
350.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hammer Drill, Large
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
175.00
    	
 
    	
$
    	
425.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hot Wire Cutter
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
75.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Humidifier
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
60.00
    	
 
    	
$
    	
150.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lanyard, Retractable 1’-12’
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
125.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lanyard, Retractable 20’-30’
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
150.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lanyard, Retractable 50’-85’
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
225.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lawn Mower
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
120.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Manhole Blower/Fan
    	
 
    	
$
    	
35.00
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
325.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Nail Gun
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
45.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Negative Air Machine
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
65.00
    	
 
    	
$
    	
140.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Powder Actuated Fastener
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
30.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pressure Washer, Cold Portable
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
130.00
    	
 
    	
$
    	
270.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pressure Washer, Hot Portable
    	
 
    	
$
    	
125.00
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
475.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pressure Washer, Hot Towable
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
350.00
    	
 
    	
$
    	
950.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Radio, Job Site 2-way Radio
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
50.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sand Blaster
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
300.00
    	
 
    	
$
    	
650.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Beam
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
200.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Chain
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
275.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Circular
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
35.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Metal Chop
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
275.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Miter
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
275.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Porta-Band
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
45.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Saw, Table
    	
 
    	
$
    	
30.00
    	
 
    	
$
    	
60.00
    	
 
    	
$
    	
125.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sweeper, Ride-On
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
600.00
    	
 
    	
$
    	
1,250.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trash Chute, (per section)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
75.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Water Tower, 12,000 Gallon
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
950.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Welder, Electric
    	
 
    	
$
    	
45.00
    	
 
    	
$
    	
160.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Welder, Gas/Diesel
    	
 
    	
$
    	
65.00
    	
 
    	
$
    	
220.00
    	
 
    	
$
    	
450.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vacuum, Hilti Dust Control
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
55.00
    	
 
    	
$
    	
95.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gator, Utility Vehicle
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
190.00
    	
 
    	
$
    	
425.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
SUV, Explorer - Escape
    	
 
    	
$
    	
69.00
    	
 
    	
$
    	
280.00
    	
 
    	
$
    	
825.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Truck, Pick-up 2x4
    	
 
    	
$
    	
61.00
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
725.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Truck, Pick-up 4x4
    	
 
    	
$
    	
69.00
    	
 
    	
$
    	
280.00
    	
 
    	
$
    	
825.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Truck, 2-Ton Dump Bed
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
275.00
    	
 
    	
$
    	
1,200.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Truck, Dump 5 Yd.
    	
 
    	
$
    	
167.00
    	
 
    	
$
    	
670.00
    	
 
    	
$
    	
2,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Truck, Water 2000 Gallon
    	
 
    	
$
    	
167.00
    	
 
    	
$
    	
670.00
    	
 
    	
$
    	
2,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Van, 12 Passenger
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
450.00
    	
 
    	
$
    	
1,150.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Weather Protection
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Concrete Blanket
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
55.00
    	
 
    	
 
    	
 
    
	
Fan, 36”- 48”
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
300.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Heater, Convection
    	
 
    	
$
    	
20.00
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
125.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Heater, Propane 150-250 BTU
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
100.00
    	
 
    	
$
    	
250.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Heater, 300-400 BTU
    	
 
    	
$
    	
40.00
    	
 
    	
$
    	
250.00
    	
 
    	
$
    	
425.00
    	
 
    	
 
    	
 
    	
$
    	
1,275.00
    	
 
    
	
Heater, 500-750 BTU
    	
 
    	
$
    	
70.00
    	
 
    	
$
    	
275.00
    	
 
    	
$
    	
550.00
    	
 
    	
 
    	
 
    	
$
    	
1,650.00
    	
 
    
																	

 

9

 

	
Heater, 1.0 Million BTU
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
300.00
    	
 
    	
$
    	
650.00
    	
 
    	
 
    	
 
    	
$
    	
1,950.00
    	
 
    
	
Heater, 1.5 Million BTU
    	
 
    	
$
    	
90.00
    	
 
    	
$
    	
350.00
    	
 
    	
$
    	
700.00
    	
 
    	
 
    	
 
    	
$
    	
2,100.00
    	
 
    
	
Heater, Indirect 400-750 BTU
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
400.00
    	
 
    	
$
    	
800.00
    	
 
    	
 
    	
 
    	
$
    	
2,400.00
    	
 
    
	
Heater, Indirect 3.0 Million BTU
    	
 
    	
$
    	
300.00
    	
 
    	
$
    	
1,200.00
    	
 
    	
$
    	
3,100.00
    	
 
    	
 
    	
 
    	
$
    	
9,300.00
    	
 
    
	
Heater, Space (indoor)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
35.00
    	
 
    	
 
    	
 
    
	
Hose, Heater 1” X 50’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
50.00
    	
 
    	
 
    	
 
    	
$
    	
150.00
    	
 
    
	
Hose, Heater 2” X 50’
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
80.00
    	
 
    	
 
    	
 
    	
$
    	
240.00
    	
 
    
	
Propane Bottle - 20#
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
5.00
    	
 
    	
 
    	
 
    	
$
    	
15.00
    	
 
    
	
Propane Bottle - 100#
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
15.00
    	
 
    	
 
    	
 
    	
$
    	
45.00
    	
 
    
	
Snow Blower
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
50.00
    	
 
    	
$
    	
150.00
    	
 
    	
 
    	
 
    	
$
    	
450.00
    	
 
    
	
Snow Tarp
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$
    	
45.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
																	

 

10

 

Exhibit F

 

Contractor’s On-Site Management/Supervision Personnel and Associated Monthly Costs

 

Initial Four Months — October 2014 through January 2015

 

 

February 2015 through Aug. 15, 2016

 

 

 

Exhibit G

 

General Conditions Components and Cost Breakdown

 

Initial Four Months — October 2014 through January 2015

 

 

2

 

Exhibit G

 

General Conditions Components and Cost Breakdown

 

February 2015 through Aug. 15, 2016

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Quantity
    	
 
    	
Duration
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Code
    	
 
    	
Description
    	
 
    	
Comments
    	
 
    	
Qty 
    	
 
    	
Unit
    	
 
    	
Qty
    	
 
    	
Unit
    	
 
    	
U Lab
    	
 
    	
Labor
    	
 
    	
U Mat
    	
 
    	
Mat/Eqp
    	
 
    	
Total
    	
 
    
	
GENERAL CONDITIONS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Quantity
    	
 
    	
Duration
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Code
    	
 
    	
Description
    	
 
    	
Comments
    	
 
    	
Qty 
    	
 
    	
Unit
    	
 
    	
Qty
    	
 
    	
Unit
    	
 
    	
U Lab
    	
 
    	
Labor
    	
 
    	
U Mat
    	
 
    	
Mat/Eqp
    	
 
    	
Total
    	
 
    
	
01-1000
    	
 
    	
OFFICES,   STORAGE & SETUP
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
01-1100
    	
 
    	
Office   Trailer
    	
 
    	
 
    	
 
    	
2.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
400
    	
 
    	
$
    	
14,769
    	
 
    	
$
    	
14,769
    	
 
    
	
01-1108
    	
 
    	
Security   Pole with Equipment
    	
 
    	
By Owner
    	
 
    	
— 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
1,001
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    
	
01-1109
    	
 
    	
Security   Monitoring
    	
 
    	
By Owner
    	
 
    	
— 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
225
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    
	
01-1114
    	
 
    	
DSL   Line
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
90
    	
 
    	
$
    	
1,662
    	
 
    	
$
    	
1,662
    	
 
    
	
01-1130
    	
 
    	
Vela   System
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
LS
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
10,000
    	
 
    	
$
    	
10,000
    	
 
    
	
01-1140
    	
 
    	
Copier/Fax/Scanner
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
500
    	
 
    	
$
    	
9,231
    	
 
    	
$
    	
9,231
    	
 
    
	
01-1150
    	
 
    	
Office   Furnishings
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
2,000
    	
 
    	
$
    	
2,000
    	
 
    	
$
    	
2,000
    	
 
    
	
01-1160
    	
 
    	
Office   Supplies
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
250
    	
 
    	
$
    	
4,615
    	
 
    	
$
    	
4,615
    	
 
    
	
01-1415
    	
 
    	
Prolog   Manager Application
    	
 
    	
1 Each
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
80
    	
 
    	
$
    	
1,477
    	
 
    	
$
    	
1,477
    	
 
    
	
01-1500
    	
 
    	
Conex/Van   Storage 20’
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
$
    	
52
    	
 
    	
$
    	
952
    	
 
    	
$
    	
100
    	
 
    	
$
    	
1,846
    	
 
    	
$
    	
2,798
    	
 
    
	
01-1700
    	
 
    	
Project   Sign
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
$
    	
500
    	
 
    	
$
    	
500
    	
 
    	
$
    	
500
    	
 
    	
$
    	
500
    	
 
    	
$
    	
1,000
    	
 
    
	
01-1900
    	
 
    	
Move   On & Off
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
$
    	
2,000
    	
 
    	
$
    	
2,000
    	
 
    	
$
    	
2,000
    	
 
    	
$
    	
2,000
    	
 
    	
$
    	
4,000
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
OFFICES,   STORAGE & SETUP
    	
 
    	
$
    	
51,553
    	
 
    
	
01-2000
    	
 
    	
TEMPORARY   MEASURES
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
01-2100
    	
 
    	
Chemical   Toilets
    	
 
    	
 
    	
 
    	
8.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
95.00
    	
 
    	
$
    	
14,031
    	
 
    	
$
    	
14,031
    	
 
    
	
01-2200
    	
 
    	
Temporary   Fence
    	
 
    	
Entire Perimeter
    	
 
    	
4,000 
    	
 
    	
LF
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
4.50
    	
 
    	
$
    	
18,000
    	
 
    	
$
    	
18,000
    	
 
    
	
01-2200
    	
 
    	
Temporary   Fence - Maintain & Remove
    	
 
    	
Entire Perimeter
    	
 
    	
4,000 
    	
 
    	
LF
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
1.50
    	
 
    	
$
    	
6,000
    	
 
    	
$
    	
6,000
    	
 
    
	
01-2600
    	
 
    	
Water   Cooler & Water
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
1,385
    	
 
    	
$
    	
1,385
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
TEMPORARY   MEASURES
    	
 
    	
$
    	
39,416
    	
 
    
	
01-3000
    	
 
    	
TEMPORARY   UTILITIES
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
01-3100
    	
 
    	
Temporary   Electrical Service
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
20,000
    	
 
    	
$
    	
20,000
    	
 
    	
$
    	
20,000
    	
 
    
	
01-3200
    	
 
    	
Power   Consumption
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
500.00
    	
 
    	
$
    	
9,231
    	
 
    	
$
    	
9,231
    	
 
    
	
01-3210
    	
 
    	
Start-up  Power Consumption
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
3.0
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
1,500.00
    	
 
    	
$
    	
4,500
    	
 
    	
$
    	
4,500
    	
 
    
	
01-3220
    	
 
    	
Temporary   Lighting
    	
 
    	
 
    	
 
    	
231,752 
    	
 
    	
SF
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0.02
    	
 
    	
$
    	
4,635
    	
 
    	
$
    	
4,635
    	
 
    
	
01-3520
    	
 
    	
Water   Consumption
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
1,385
    	
 
    	
$
    	
1,385
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
TEMPORARY   UTILITIES
    	
 
    	
$
    	
39,751
    	
 
    
	
01-7000
    	
 
    	
JOBSITE   SAFETY
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
01-7100
    	
 
    	
Safety   Training
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
25.0
    	
 
    	
HR
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
25.00
    	
 
    	
$
    	
625
    	
 
    	
$
    	
625
    	
 
    
	
01-7100
    	
 
    	
Safety &   Productivity Incentives
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
150.00
    	
 
    	
$
    	
2,769
    	
 
    	
$
    	
2,769
    	
 
    
	
01-7120
    	
 
    	
First   Aid/Safety Supply
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
75.00
    	
 
    	
$
    	
1,385
    	
 
    	
$
    	
1,385
    	
 
    
	
01-7135
    	
 
    	
Safety   Start-up Kit
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
450.00
    	
 
    	
$
    	
450
    	
 
    	
$
    	
450
    	
 
    
	
01-7136
    	
 
    	
Safety   Start-up Kit Monitor
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
260.00
    	
 
    	
$
    	
260
    	
 
    	
$
    	
260
    	
 
    
	
01-7510
    	
 
    	
Guard   Rails @ Slab Edges/Stairs
    	
 
    	
 
    	
 
    	
1,500.0 
    	
 
    	
LF
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
$
    	
2.50
    	
 
    	
$
    	
3,750
    	
 
    	
$
    	
1.50
    	
 
    	
$
    	
2,250
    	
 
    	
$
    	
6,000
    	
 
    
	
01-7520
    	
 
    	
Ladders &   Opening Closures
    	
 
    	
 
    	
 
    	
8.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
300.00
    	
 
    	
$
    	
2,400
    	
 
    	
$
    	
2,400
    	
 
    
	
01-7800
    	
 
    	
Protective   Safety Equipment
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
18.5
    	
 
    	
MN
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
200.00
    	
 
    	
$
    	
3,692
    	
 
    	
$
    	
3,692
    	
 
    
	
01-7810
    	
 
    	
Fire   Extinguishers
    	
 
    	
 
    	
 
    	
15.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
$
    	
25
    	
 
    	
$
    	
375
    	
 
    	
$
    	
60.00
    	
 
    	
$
    	
900
    	
 
    	
$
    	
1,275
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
JOBSITE SAFETY
    	
 
    	
$
    	
18,856
    	
 
    
	
01-8000
    	
 
    	
TOOLS &   EQUIPMENT
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
01-8100
    	
 
    	
Small   Tools
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
2,500
    	
 
    	
$
    	
2,500
    	
 
    	
$
    	
2,500
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
TOOLS &   EQUIPMENT
    	
 
    	
$
    	
2,500
    	
 
    
	
01-9000
    	
 
    	
CONTRACT   DOCUMENTATION
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
01-9100
    	
 
    	
Contract   Documents
    	
 
    	
By Owner
    	
 
    	
— 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
0
    	
 
    
	
01-9800
    	
 
    	
Electronic   As Builts
    	
 
    	
 
    	
 
    	
1.0 
    	
 
    	
EA
    	
 
    	
1.0
    	
 
    	
LS
    	
 
    	
 
    	
 
    	
$
    	
0
    	
 
    	
$
    	
1,500.00
    	
 
    	
$
    	
1,500
    	
 
    	
$
    	
1,500
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
CONTRACT DOCUMENTATION
    	
 
    	
$
    	
1,500
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
GENERAL CONDITIONS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Labor
    	
 
    	
$
    	
7,577
    	
 
    	
Mat
    	
 
    	
$
    	
145,997
    	
 
    	
$
    	
153,575
    	
 
    

 

 

EXHIBIT H

 

STANDARD LABOR RATES

 

These Rates EXCLUDE vehicles, cell phones, subsistence, and travel unless specified otherwise below.

 

These Rates INCLUDE taxes, insurance, contributions, assessments and benefits required by law or collective bargaining agreements, and, for personnel not covered by such agreements, customary benefits such as sick leave, medical and health benefits, holidays, vacations, retirement plans, training costs, and safety incentives.

 

	
TITLE 
    	
 
    	
per week
    	
 
    	
per hour
    	
 
    	
overtime
    	
 
    
	
Project Manager DIRECTOR 
    	
 
    	
$
    	
6,280
    	
 
    	
157.00
    	
 
    	
na
    	
 
    
	
Project Manager SENIOR 
    	
 
    	
$
    	
5,120
    	
 
    	
120.00
    	
 
    	
na
    	
 
    
	
Project Manager 
    	
 
    	
$
    	
3,920
    	
 
    	
95.00
    	
 
    	
na
    	
 
    
	
Project Manager JR/ASST 
    	
 
    	
$
    	
3,000
    	
 
    	
75.00
    	
 
    	
na
    	
 
    
	
Project Superintend SENIOR 
    	
 
    	
$
    	
5,120
    	
 
    	
110.00
    	
 
    	
na
    	
 
    
	
Project Superintend 
    	
 
    	
$
    	
3,800
    	
 
    	
95.00
    	
 
    	
na
    	
 
    
	
Project Superintend JR/ASST 
    	
 
    	
$
    	
3,200
    	
 
    	
80.00
    	
 
    	
na
    	
 
    
	
Project Engineer SENIOR 
    	
 
    	
$
    	
2,720
    	
 
    	
68.00
    	
 
    	
na
    	
 
    
	
Project Engineer 
    	
 
    	
$
    	
2,600
    	
 
    	
65.00
    	
 
    	
na
    	
 
    
	
Project Scheduler 
    	
 
    	
$
    	
3,400
    	
 
    	
85.00
    	
 
    	
na
    	
 
    
	
Senior BIM Engineer/Coordinator 
    	
 
    	
$
    	
5,400
    	
 
    	
135.00
    	
 
    	
na
    	
 
    
	
Project BIM Engineer 
    	
 
    	
$
    	
3,440
    	
 
    	
86.00
    	
 
    	
na
    	
 
    
	
Project Quality Control 
    	
 
    	
$
    	
3,200
    	
 
    	
80.00
    	
 
    	
na
    	
 
    
	
Project MIS Support* 
    	
 
    	
$
    	
3,200
    	
 
    	
80.00
    	
 
    	
na
    	
 
    
	
Corporate MIS Support* 
    	
 
    	
$
    	
6,400
    	
 
    	
160.00
    	
 
    	
na
    	
 
    
	
*Rate includes cell phone, specialized MIS   equipment 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Project Safety SENIOR 
    	
 
    	
$
    	
4,200
    	
 
    	
105.00
    	
 
    	
na
    	
 
    
	
Project Safety 
    	
 
    	
$
    	
2,800
    	
 
    	
70.00
    	
 
    	
na
    	
 
    
	
Corporate Safety* 
    	
 
    	
$
    	
5,000
    	
 
    	
125.00
    	
 
    	
na
    	
 
    
	
*Rate includes vehicle and cell phone 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Project Accountant 
    	
 
    	
$
    	
2,680
    	
 
    	
58.00
    	
 
    	
na
    	
 
    
	
Project Estimator SENIOR 
    	
 
    	
$
    	
7,880
    	
 
    	
115.00
    	
 
    	
na
    	
 
    
	
Project Estimator 
    	
 
    	
$
    	
7,480
    	
 
    	
80.00
    	
 
    	
na
    	
 
    
	
Project Clerk - Assistant/Intern 
    	
 
    	
$
    	
1,800
    	
 
    	
45.00
    	
 
    	
65.00
    	
 
    
	
Project General Foreman 
    	
 
    	
$
    	
2,600
    	
 
    	
65.00
    	
 
    	
94.00
    	
 
    
	
Carpenter General Foreman 
    	
 
    	
Hourly
    	
 
    	
58.00
    	
 
    	
74.00
    	
 
    
	
Carpenter Foreman 
    	
 
    	
Hourly
    	
 
    	
50.00
    	
 
    	
55.00
    	
 
    
	
Carpenter 
    	
 
    	
Hourly
    	
 
    	
46.00
    	
 
    	
52.00
    	
 
    
	
Laborer Foreman 
    	
 
    	
Hourly
    	
 
    	
35.00
    	
 
    	
47.00
    	
 
    
	
Laborer 
    	
 
    	
Hourly
    	
 
    	
31.00
    	
 
    	
43.00
    	
 
    
	
Cmnt Mason Superintendent* 
    	
 
    	
$
    	
4,800
    	
 
    	
120.00
    	
 
    	
na
    	
 
    
	
*Rate includes Truck, Cell Phone 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cmnt Mason General Foreman 
    	
 
    	
Hourly
    	
 
    	
58.00
    	
 
    	
74.00
    	
 
    
	
Cmnt Mason Foreman 
    	
 
    	
Hourly
    	
 
    	
52.00
    	
 
    	
63.00
    	
 
    
	
Cmnt Mason 
    	
 
    	
Hourly
    	
 
    	
46.00
    	
 
    	
54.00
    	
 
    
	
Operator 
    	
 
    	
Hourly
    	
 
    	
53.00
    	
 
    	
62.00
    	
 
    
	
Survey Technician 
    	
 
    	
Hourly
    	
 
    	
85.00
    	
 
    	
60.00
    	
 
    
	
Mechanic - Crane/Heavy Equipment* 
    	
 
    	
Hourly
    	
 
    	
95.00
    	
 
    	
138.00
    	
 
    
	
*Rate includes Mechanic Truck, Tools, Cell Phone 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mechanic - Service* 
    	
 
    	
Hourly
    	
 
    	
80.00
    	
 
    	
116.00
    	
 
    
	
*Rate includes Service Truck, Tools, Cell Phone 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Transport Driver * 
    	
 
    	
Hourly
    	
 
    	
70.00
    	
 
    	
102.00
    	
 
    
	
*Rate includes Transport Truck and Cell Phone 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Delivery Driver* 
    	
 
    	
Hourly
    	
 
    	
60.00
    	
 
    	
87.00
    	
 
    
	
*Rate includes Flatbed Truck and Cell PhoneFinalProjectNeedlePurchaseandSaleAgreementSGR10_15_2014 (1)

PURCHASE AND SALE AGREEMENT

DATED AS OF OCTOBER 15, 2014

BETWEEN

RED MOUNTAIN TIMBERCO I LLC,
RED MOUNTAIN TIMBERCO IV LLC,
RMS TIMBERLANDS LLC AND
SPRINGWOOD TIMBERLANDS LLC,
as Seller

AND

POTLATCH FOREST HOLDINGS, INC.,
as Purchaser

    

i

	
			
	ARTICLE I
	 

	PROPERTY; PURCHASE PRICE
	1

	Section 1.1
	Agreement to Purchase and Sell
	1

	Section 1.2
	Property
	1

	Section 1.3
	Assumed Liabilities
	3

	Section 1.4
	Purchase Price; Deposit
	3

	Section 1.5
	Permitted Exceptions
	3

	Section 1.6
	Certain Adjustments
	5

	Section 1.7
	Additional Timberlands
	9

	Section 1.8
	Apportionments
	10

	Section 1.9
	Provision Regarding Ongoing Harvests
	10

	 
	 
	 

	ARTICLE II

	 

	CLOSING
	11

	Section 2.1
	Closing
	11

	Section 2.2
	Closing Deliveries
	11

	Section 2.3
	Costs and Expenses
	14

	 
	 
	 

	ARTICLE III

	ACKNOWLEDGEMENTS BY PURCHASER
	14

	Section 3.1    
	Disclaimer of Certain Representations
	14

	Section 3.2    
	General Disclaimers
	15

	Section 3.3    
	Waiver and Release
	15

	Section 3.4    
	No Reliance
	16

	 
	 
	 

	ARTICLE IV

	 

	REPRESENTATIONS AND WARRANTIES OF SELLER AS TO STATUS
	16

	Section 4.1      
	Organization
	16

	Section 4.2    
	Qualification
	16

	Section 4.3    
	Authority
	17

	Section 4.4    
	No Violation
	17

	Section 4.5    
	Consents and Approvals
	17

	Section 4.6    
	Litigation
	18

	Section 4.7    
	Taxes
	18

	Section 4.8    
	Contracts
	18

	Section 4.9    
	Brokers and Advisors
	18

	 
	 
	 

	ARTICLE V

	 

	REPRESENTATIONS AND WARRANTIES OF SELLER RELATED TO THE PROPERTY
	19

i

	
			
	Section 5.1    
	Compliance with Laws
	19

	Section 5.2    
	Condemnations
	19

	Section 5.3    
	Assumed Contracts, Timberland Leases, Plum Creek Timber Deeds, Timber Deeds and Real Property Leases
	19

	Section 5.4    
	Harvesting
	20

	Section 5.5    
	Matters Relating to the Environmental Condition of the Timberlands
	20

	Section 5.6    
	Property Taxes
	20

	Section 5.7    
	Endangered Species
	20

	Section 5.8    
	Timberland Disputes
	20

	Section 5.9    
	Timberland Losses
	20

	Section 5.10    
	Mining and Mineral Rights
	20

	 
	 
	 

	ARTICLE VI

	 

	REPRESENTATIONS AND WARRANTIES OF PURCHASER
	21

	Section 6.1    
	Organization
	21

	Section 6.2    
	Qualification
	21

	Section 6.3    
	Authority
	21

	Section 6.4     
	No. Violation
	21

	Section 6.5    
	Sectional Governmental Consents and Approvals
	22

	Section 6.6    
	Litigation
	22

	 
	 
	 

	ARTICLE VII

	 

	ADDITIONAL AGREEMENTS RELATING TO THE PROPERTY GENERALLY
	22

	Section 7.1    
	Commercially Reasonable Efforts
	22

	Section 7.2    
	Maintenance of Business
	23

	Section 7.3    
	Public Announcements
	24

	Section 7.4    
	Dispute Resolution
	25

	Section 7.5    
	Required Consents
	26

	Section 7.6    
	Supply Agreements
	27

	Section 7.7    
	Regulatory Act Compliance
	27

	Section 7.8    
	Plum Creek Timber Deeds
	28

	Section 7.9    
	Other Timber Deeds
	28

	Section 7.10    
	Seedling Obligation
	29

	 
	 
	 

	ARTICLE VIII 
	 

	ADDITIONAL AGREEMENTS RELATING TO THE TIMBERLANDS
	29

ii

	
			
	Section 8.1      
	Right of Entry
	29

	Section 8.2      
	Permits and Licenses
	31

	Section 8.3    
	Estoppel Certificates
	31

	Section 8.4      
	Certain Easements
	31

	Section 8.5      
	Title Insurance Matters
	32

	Section 8.6      
	Anti-Solicitation
	33

	 
	 
	 

	ARTICLE IX 

	 

	CONDITIONS PRECEDENT
	33

	Section 9.1
	Conditions to Obligations of Each Party to Close
	33

	Section 9.2
	Conditions to Obligations of Purchaser to Close
	34

	Section 9.3
	Conditions to Obligations of Seller
	35

	 
	 
	 

	ARTICLE X
	 

	SURVIVAL; INDEMNIFICATION
	36

	Section 10.1      
	Survival
	36

	Section 10.2      
	Seller’s Obligation to Indemnify for Covenant Breach
	36

	Section 10.3      
	Purchaser’s Obligation to Indemnify for Covenant Breach
	36

	Section 10.4      
	Indemnification for Breaches of Representations and Warranties
	37

	Section 10.5      
	Procedures for Claims and Satisfaction
	38

	Section 10.6      
	Certain Rules
	40

	Section 10.7      
	Exclusive Remedy
	41

	 
	 
	 

	ARTICLE XI 

	 

	TERMINATION AND ABANDONMENT
	41

	Section 11.1      
	Termination
	41

	Section 11.2      
	Effect of Termination
	42

	 
	 
	 

	ARTICLE XII 
	 

	GENERAL PROVISIONS
	43

	Section 12.1      
	Notice
	43

	Section 12.2     
	Legal Holidays
	44

	Section 12.3      
	Further Assurances
	44

	Section 12.4      
	Assignment; Binding Effect
	44

	Section 12.5      
	Entire Agreement
	45

	Section 12.6      
	Amendment; Waiver
	45

	Section 12.7      
	Confidentiality
	45

	Section 12.8      
	No Third Party Beneficiaries
	45

iii

	
			
	Section 12.9      
	Severability of Provisions
	45

	Section 12.10    
	Governing Law
	46

	Section 12.11   
	Counterparts
	47

	Section 12.12    
	Captions
	47

	Section 12.13    
	Construction
	47

	Section 12.14    
	Reimbursement of Legal Fees
	47

	Section 12.15    
	Specific Performance
	47

	Section 12.16    
	Reserved
	48

	Section 12.17    
	Recitals and Exhibits
	48

	 
	 
	 

	ARTICLE XIII 

	 

	DEFINITIONS
	48

iv

EXHIBITS
Exhibit A-1A     Owned Timberland Compartment Maps
Exhibit A-2    Timberland Leases 
Exhibit A-2A    Timberland Lease Compartment Maps
Exhibit B    Assumed Contracts 
Exhibit C    Real Property Leases
Exhibit D    Assumed Condemnations
Exhibit E    Form of Escrow Agreement
Exhibit F    List of Personal Property
Exhibit G    Value Tables
Exhibit H    Volume Allocations
Exhibit I    Ongoing Harvest Operations 
Exhibit I-1    Form of Harvesting Agreement
Exhibit J-1    Form of General Assignment and Assumption
Exhibit J-2    Form of Assignment and Assumption of Real Property Leases
Exhibit K-1    Form of Limited Warranty Deed (Mississippi)
Exhibit K-2    Form of Statutory Warranty Deed (Alabama)
Exhibit K-3    Form of Assignment and Assumption of Timberland Lease
Exhibit K-4    Form of Assignment and Assumption of Timber Deeds
Exhibit L    Form of Title Affidavits
Exhibit M    Form of Estoppel Certificates
Exhibit N    Form of Easement
Exhibit O    Governmental Consents and Approvals
Exhibit P    Seller’s Disclosures

v

Exhibit Q    Seller’s Knowledge
Exhibit R    Reserved Easements
Exhibit S    Access Chart 
Exhibit T    Completed Title Commitments
Exhibit U    Site Prep and Planting Obligations 
Exhibit V    2015 Seedling Obligations
Schedule 7.6    Supply Agreements
Schedule 7.8    Plum Creek Timber Deeds
Schedule 7.9    Other Timber Deeds

vi

PURCHASE AND SALE AGREEMENT
    

THIS IS A PURCHASE AND SALE AGREEMENT (this “Agreement”) made as of the 15th day of October, 2014 by and between RED MOUNTAIN TIMBERCO I LLC, RED MOUNTAIN TIMBERCO IV LLC, RMS TIMBERLANDS LLC AND SPRINGWOOD TIMBERLANDS, LLC, (collectively, “Seller”), and POTLATCH FOREST HOLDINGS, INC. (“Purchaser”).

BACKGROUND STATEMENT

WHEREAS, Seller is the owner or lessee of certain real property located in Autauga, Barbour, Bibb, Bullock, Butler, Chambers, Chilton, Coosa, Crenshaw, Dallas, Greene, Hale, Lee, Lowndes, Macon, Marengo, Montgomery, Perry, Pike, Sumter, Tallapoosa, Tuscaloosa and Wilcox Counties, Alabama and Attala, Carroll, Choctaw, Holmes, Leake, Madison, Montgomery, Rankin, Scott and Yazoo Counties, Mississippi that it wishes to sell, assign, transfer or convey, together with certain other assets, inventory and rights under certain continuing leases, contracts and other agreements, to Purchaser in accordance with the terms and subject to the conditions set forth in this Agreement; 

WHEREAS, Purchaser wishes to acquire and accept such real property, timber and other assets being transferred to it in accordance with the terms and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing, their respective representations, warranties, covenants and agreements set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows:

ARTICLE I
PROPERTY; PURCHASE PRICE

Section 1.1    Agreement to Purchase and Sell.  Subject to and in accordance with the terms and provisions of this Agreement, and for the consideration stated herein, Seller agrees to sell the Property to Purchaser and Purchaser agrees to buy the Property from Seller.  

Section 1.2    Property.  Subject to the terms and provisions of this Agreement and upon satisfaction of the conditions set forth in Article IX, Seller shall at the Closing sell, assign, transfer and convey to Purchaser, and Purchaser shall acquire, assume and accept from Seller, all right, title and interest to the following assets (collectively, the “Property”), free and clear of all Liens other than the Permitted Exceptions:

(a)Owned Timberlands.  The real property depicted on the compartment maps (the “Owned Timberland Maps”) depicted on Exhibit A-1A attached hereto, together 

1

with (i) all buildings thereon, (ii) all roads, bridges and other improvements and fixtures thereon, (iii) all timber growing, standing or lying thereon (the “Timber”), (iv) any and all of Seller’s interest and riparian rights, if any, to creeks, ponds, lakes, streams and other water ways located thereon or adjoining such real property (v) all other privileges, appurtenances, easements and other rights appertaining thereto (the “Owned Timberlands”), subject to the Permitted Exceptions; provided, however, that Seller reserves for itself and its successors and assigns the Reserved Easements,.

(b)Leased Timberlands.  The rights of Seller as owner, lessee, sublessee or licensee with respect to the timber deeds, leases, subleases and licenses described on Exhibit A-2 attached hereto (the “Timberlands Leases”), the underlying real property of which is depicted on the compartment maps (the “Timberland Lease Compartment Maps”, and together with the Owned Timberland Maps, the “Maps”) attached hereto as Exhibit A-2A, that relate to the use, operation, possession and/or occupancy of the Timberlands (collectively, the “Leased Timberlands”), including all purchase options, prepaid rents and security deposits relating thereto, together with Seller’s rights, title and interest, if any, in (i) all buildings thereon, (ii) all roads, bridges and other improvements and fixtures thereon, (iii) all Timber, and (iv) all other privileges, appurtenances, easements and other rights appertaining thereto

(c)Assumed Contracts.  The rights of Seller under the Contracts in effect at the Effective Time that (i) are described on Exhibit B attached hereto or (ii) that relate solely to the Timberlands or the forest operations conducted on the Timberlands and are entered into prior to the Closing in compliance with Section 7.2, but excluding the rights of Seller under any Timberland Lease, Plum Creek Timber Deed, Timber Deed or Real Property Lease (collectively, the “Assumed Contracts”).

(d)Real Property Leases.  The rights of Seller with respect to the leases described on Exhibit C attached hereto that relate to all or any portion of the Timberlands to which Seller is a lessor, including any lease under which Seller has granted to a third party hunting or other recreational rights with respect to the Timberlands (or, with respect to any recreational lease in respect of the Timberlands listed on Exhibit C that expires prior to the Closing Date, any renewal of such recreational lease made in compliance with Section 7.2) (collectively, the “Real Property Leases”).

(e)Assumed Condemnations.  The interests of Seller in any Condemnation that exists on the date hereof and is listed on Exhibit D attached hereto or that arises between the date of this Agreement and the Closing Date (or if resolved prior to the Closing, the proceeds actually received therefrom, net of all reasonable costs actually incurred by Seller to recover such proceeds) but only to the extent attributable to the Timberlands or a portion thereof (collectively, the Condemnations described above, the “Assumed Condemnations”).

2

(f)Personal Property.  All personal property owned by Seller and which is non-proprietary, not subject to any confidentiality restrictions and related exclusively to the Timberlands, including without limitation, fixtures located thereon and such information made available to Purchaser through that certain data room maintained by Merrill Corporation for Project Needle and such items identified on Exhibit F attached hereto (the “Personal Property”).

Unless expressly identified or described in this Section 1.2, no other assets of Seller, including accounts receivable in respect of sales of timber removed from the Timberlands prior to the Closing pursuant to the terms and conditions set forth on Exhibit I attached hereto, shall be included within or constitute the Property.   

Section 1.3    Assumed Liabilities.  Subject to the terms and provisions of this Agreement and upon satisfaction of the conditions set forth in Article IX, Seller shall at the Closing assign to Purchaser, and Purchaser shall assume from Seller, the liabilities and obligations of Seller under the Assumed Contracts, the Timberland Leases, the Timber Deeds (subject to the provisions of Section 7.9 below) and the Real Property Leases, to the extent such liabilities and obligations accrue or arise, or are related to periods commencing, on or after the Effective Time (collectively, the “Assumed Liabilities”).

Section 1.4    Purchase Price; Deposit.  The aggregate purchase price payable by Purchaser to Seller in consideration for the Property shall be the sum of THREE HUNDRED EIGHTY-FOUR MILLION and 00/100 Dollars ($384,000,000.00), subject to adjustment as provided herein (as so adjusted, the “Purchase Price”).  Simultaneously with the execution and delivery of this Agreement, Purchaser shall deposit with the Title Company pursuant to the escrow agreement in the form of Exhibit E attached hereto, the sum of NINE MILLION TWO HUNDRED THOUSAND and No/100 DOLLARS ($9,200,000.00) (together with the Initial Deposit of $10 million paid previously by Purchaser pursuant to that certain letter of intent dated October 8, 2014, and together with any interest earned on all of said amounts, the “Deposit”).  The Deposit shall either be (i) delivered to Seller at the Closing and applied as a credit towards the Purchase Price or (ii) if the Closing does not occur, disbursed in accordance with Section 11.2.

Section 1.5    Permitted Exceptions.  The Property shall be sold, transferred, assigned and conveyed to Purchaser subject to the following matters (collectively, the “Permitted Exceptions”):

(a)    Restrictions on the ability of Purchaser to build upon or use the Property imposed by any current or future development standards, building or zoning ordinances or any other Law;

(b)    To the extent a tract included in the Timberlands is bounded or traversed by a river, stream, branch or lake:

3

(i)the rights of upper and lower riparian owners and the rights of others to navigate such river or stream;

(ii)the right, if any, of neighboring riparian owners and the public or others to use any public waters, and the right, if any, of the public to use the beaches or shores for recreational purposes;

(iii)any claim of lack of title to the Timberlands formerly or presently comprising the shores or bottomland  of navigable waters or as a result of the change in the boundary due to accretion or avulsion; and

(iv)any portion of the Timberlands which is sovereignty lands or any other land that may lie within the bounds of navigable rivers as established by Law;
(c)    To the extent any portion of the Timberlands is bounded or traversed by a public road or maintained public right of way, the rights of others to use any portion of the Timberlands that lies within such public road or maintained public right of way;

(d)    Railroad easements or railroad rights of way, if any, traversing the Timberlands and the rights of railroad companies to any tracks, siding, ties and rails associated therewith;

(e)    Any restriction on the use of the Property due to Environmental Laws;

(f)    Any restriction on the use of the Property due to conservation easements of record, other than those which individually or in the aggregate would have a material adverse effect on the use and enjoyment by Purchaser of the Timberlands or any portion thereof or would prevent or restrict in any material manner the continued ability to commercially harvest timber thereon;

(g)As to the Timberlands, subject to the apportionment provisions of Section 1.8, all ad valorem property Taxes for the Tax period during which the Closing occurs and all subsequent Tax periods, including any additional or supplemental Taxes that may result from a reassessment of the Timberlands due to the sale of the Property and/or an action or inaction of the Purchaser, and any potential roll-back or greenbelt type Taxes related to any agricultural, forest or open space exemption that is subject to recapture pursuant to applicable state Law;
(h)Liens for Taxes not yet due and payable;

(i)Easements, discrepancies or conflicts in boundary lines, shortages in area, vacancies, excesses, encroachments or any other facts that a current and accurate survey of the Timberlands would disclose, other than those that, individually or in the aggregate would prevent or restrict in any material manner the continued ability to commercially harvest timber on the affected parcel in substantially the same manner as such harvesting is 

4

currently conducted or would materially adversely impact the value of such parcel for the purpose of harvesting such timber;

(j)All oil, gas and other minerals or other substances of any kind or character as may have been previously reserved by or conveyed to others and any leases concerning any of such oil, gas, other minerals or other substances in, on or under the Timberlands;

(k)Rights, if any, relating to the construction and maintenance in connection with any public utility of wires, poles, pipes, conduits and appurtenances thereto, on, under, above or across the Timberlands;

(l)Any matter affecting title to the Property that is not objected to by Purchaser;

(m)The Reserved Easements granted to or reserved by Seller pursuant to any provision of this Agreement;

(n)Rights of others under any of the Assumed Contracts, the Timberland Leases, the Timber Deeds or the Real Property Leases;

(o)Lack of access rights to any portion of the Timberlands shown on Exhibit S as lacking legal access or having only historic or verbal access;

(p)Any Assumed Condemnation in respect of the Timberlands; and

(q)Any easement, covenant, use restriction, zoning restriction, boundary line dispute, encroachment or other third-party right affecting any of the Property not described in items (a) through (o) above and which, individually or in the aggregate, would not (i) prevent or restrict in any material manner the continued ability to commercially harvest timber on the affected parcel in substantially the same manner as such harvesting is currently conducted or (ii) materially adversely impact the value of such parcel for the purpose of harvesting such timber.

Section 1.6    Certain Adjustments.  The Purchase Price shall be subject to the following adjustments:
(a)    Title Objections.

(i)    Title Objection Procedure.  Seller shall request and use commercially reasonable efforts to cause the Title Company to (and, to the extent in Seller’s control, shall cooperate reasonably to):  (a) make available to Purchaser Completed Title Commitments for all of the Timberlands as promptly as possible after the date hereof; (b) deliver the Completed Title Commitments to Purchaser on a rolling and serial basis, such that as soon as any particular Completed Title Commitment has been completed, such 

5

Completed Title Commitment will be made available to Purchaser, and (c) keep the Purchaser reasonably and regularly apprised of the anticipated delivery dates of the Completed Title Commitments.  With respect to each Completed Title Commitment, Purchaser shall have until the later of (1) fifteen (15) days after receipt of such Completed Title Commitment as verified by notice from Seller or Title Company to Purchaser by e-mail at the following e-mail addresses: Lorrie.Scott@potlatchcorp.com and Mpottorff@sgrlaw.com (Purchaser acknowledges that Seller has notified Purchaser that the commitments listed on Exhibit T are Completed Title Commitments as of the date of this Agreement) or (2) November 3, 2015 (with respect to each Completed Title Commitment, “Title Objection Period”) to deliver to Seller written notice of any objection to matters reflected in such Completed Title Commitment other than the Permitted Exceptions (each, a “Title Objection” and collectively, the “Title Objections”).  Upon receipt of the Title Objections to a Completed Title Commitment, Seller may elect (but shall not be obligated) to cure or cause to be cured any such Title Objection (which cure may be the substitution of Additional Timberlands pursuant to Section 1.7 for all or a portion of the Timberlands subject to such Title Objection), and Seller shall notify Purchaser in writing whether Seller elects to cure the same by the date that is ten (10) days after receipt of the Title Objections with respect to such Completed Title Commitment.  Failure of Seller to respond in writing within such time period shall be deemed an election by Seller not to cure such Title Objections.  Any Title Objection shall be deemed to be cured if Seller causes the Title Company to issue a Title Policy for the affected Timberlands affirmatively insuring over, or not raising as an exception to the Title Policy, such Title Objection.  Notwithstanding the foregoing, Seller shall be obligated to cure, on or before the Closing Date, all Liens against the Timberlands evidencing monetary encumbrances (other than Liens for non-delinquent real estate Taxes or assessments) created as a result of the acts or omissions of Seller or its Affiliates (“Monetary Liens”).  If Seller does not receive written notice of the Title Objections for any objection to matters reflected in a particular Completed Title Commitment on or before the expiration of the Title Objection Period, Purchaser shall be deemed to have waived its right to object to any and all matters reflected in such Completed Title Commitment and Purchaser shall be deemed to accept title to the Timberlands encompassed within such Completed Title Commitment subject to such matters.  Any such Title Objection waived (or deemed waived) by Purchaser shall be deemed to constitute a Permitted Exception, and the Closing shall occur as herein provided without any reduction of the Purchase Price.

(ii)    Remedy for Title Objection.  In the event Seller elects or is deemed to have elected not to cure any Title Objection (other than Monetary Liens), then Purchaser, at its sole election, may either: (A) waive such Title Objections and proceed to the Closing, accepting title to those portions of the Timberlands that are subject to such uncured Title Objections without adjustment to the Purchase Price (“Accepted Title Objections”); or (B) exclude from the Timberlands those portions of the Timberlands that are subject to such uncured Title Objections (a “Title Objection Carveout”) only to the extent that the value of all Title Objection Carveouts in the aggregate, as determined by the Value Tables, exceeds $1,000,000.00, in the aggregate, in which event the Purchase Price shall be reduced to the extent the aggregate value of all such Title Objection Carveouts exceeds 

6

$1,000,000.00. Purchaser shall be required to elect clause (A) if the aggregate value of all Title Objection Carveouts does not exceed $1,000,000.00; provided, however, in such event Seller shall exercise commercially reasonable efforts to cure such Title Objections, including without limitation, delivery of such documents, affidavits or estoppels as may be reasonably required to cure such Title Objections.  Notwithstanding the foregoing, each Title Objection Carveout shall contain at least 40 acres (the boundaries and configuration of which shall be subject to the reasonable approval of Purchaser) and, to the extent necessary and available, provide Seller and Purchaser with reasonable reciprocal access to, from and over such Title Objection Carveout and each Title Objection Carveout affecting a Timberland Lease, which Seller cannot partially assign by Closing either as a matter of right or with the landlord’s consent, shall include such Timberland Lease in its entirety.

(b)    Casualty Loss.

(i)    Notification of Casualty Loss.  From the date of this Agreement until the Closing Date, Seller shall promptly give notice to Purchaser upon obtaining Seller’s Knowledge of any Casualty Loss, together with a written estimate of the fair market value of the damaged or lost timber, as determined in good faith by Seller, resulting from such Casualty Loss.

(ii)    Adjustment for Casualty Loss.  If the aggregate fair market value of damaged or lost Timber, based on the Value Tables (but taking into account the salvage value of any damaged Timber), resulting from Casualty Losses identified in accordance with Section 1.6(b)(i) exceeds One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00) (the “Casualty Loss Basket”), the Purchase Price shall be reduced by the amount that such aggregate fair market value exceeds the Casualty Loss Basket. If Purchaser objects to any of Seller’s calculations of the fair market value of the damaged or lost timber, based on the Value Tables, resulting from a Casualty Loss prior to the Closing pursuant to Section 1.6(b)(i), Seller and Purchaser shall negotiate in good faith to determine by mutual agreement the fair market value of the damaged or lost timber in accordance with Section 1.6(b)(iv).  If Seller and Purchaser agree on the amount of such value, then such value will become final and binding on the Parties.  If Seller and Purchaser are unable to agree on the amount of such value within thirty (30) days of Purchaser’s delivery of a notice of objection to Seller’s calculations, Seller and Purchaser will refer the matter to a Forestry Consultant, and each will, at a mutually agreed time within three days after such referral, submit to the Forestry Consultant their respective calculations of the fair market value of such damaged or lost timber.  Within thirty (30) days of such submissions, the Forestry Consultant shall determine the fair market value of the damaged or lost timber in accordance with this Section 1.6(b) and shall select one of the two submissions of the Parties (and shall not select any other amount) as being most representative of the fair market value of such damaged or lost timber in accordance with this Section 1.6(b), and the submission so selected shall be final and binding on the Parties.  The costs and expenses of the Forestry Consultant in connection with the dispute resolution procedure set forth herein shall be paid by the non-prevailing Party.

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(iii)    Casualty Loss with FMV of less than the Casualty Loss Basket.  If it is determined in accordance with this Section 1.6(b) that the damaged or lost timber in connection with Casualty Losses identified in accordance with Section 1.6(b)(i) on the Timberlands has an aggregate fair market value of less than the Casualty Loss Basket, Purchaser shall be deemed to accept such Timberlands (and the timber thereon) in its condition as of the Closing Date, with no reduction in the Purchase Price.

(iv)    Determination of FMV of Timber Related to a Casualty Loss.  For the purpose of determining the fair market value of the damaged or lost timber resulting from a Casualty Loss, the fair market value for damaged or lost timber shall be deemed to equal the value of the timber, determined in accordance with the Value Tables, net of the actual salvage value of such timber received by Purchaser after deducting the cost of harvesting and delivering such timber.

(c)    Environmental Objections.

(i)    Environmental Objection Procedure.  Purchaser shall have until November 3, 2014 (the “Environmental Review Period”) (A) to cause Phase I Environmental Site Assessments with respect to the Timberlands (the “Phase I Reports”) to be prepared by an environmental consultant reasonably acceptable to Seller, (B) to review the Phase I Reports, and (C) to deliver to Seller written notice of the existence of a REC on any portion of the Timberlands (an “Environmental Objection”).  Within ten (10) days following Seller’s receipt of such notice from Purchaser, Seller shall deliver to Purchaser written notice indicating whether Seller (1) intends to cure such REC before the Closing (which cure may be the substitution of Additional Timberlands pursuant to Section 1.7 for all or a portion of the Timberlands subject to such REC), or (2) does not intend to cure such REC.  Failure by Seller to deliver such notice within such time period shall be deemed an election of clause (2).

(ii)    Remedy for Environmental Objection.  In the event of the presence of any REC that Seller has not agreed to cure, or that Seller has agreed to cure but does not cure within five (5) days prior to Closing, Purchaser’s sole remedy with respect to such REC shall be to adjust the Purchase Price as described in Section 1.6(c)(iii) and the Parties shall proceed to the Closing with those portions of the Timberlands that are subject to such REC excluded from the Timberlands to be conveyed to Purchaser (an “Environmental Carveout”).  Notwithstanding the foregoing, each Environmental Carveout shall contain at least 40 acres (the boundaries and configuration of which shall be subject to the reasonable approval of Purchaser) and, to the extent necessary and available, provide Seller and Purchaser with reasonable reciprocal access to, from and over such Environmental Carveout.

(iii)    FMV Calculation.  The fair market value of any portion of the Timberlands subject to any Environmental Carveout shall be calculated in accordance with the Value Tables.  At the Closing, the Purchase Price shall be reduced by an amount 

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equal to the aggregate fair market value of the Timberlands subject to such Environmental Carveouts, if any, as calculated in accordance with this Section 1.6(c)(iii).

(d)    Adjustment of Volume Allocations. In the event of a material reduction in the total acreage of the Timberlands transferred to Purchaser pursuant to this Agreement resulting from Title Objection Carveouts, (including Timberland Leases rejected in connection therewith), Environmental Carveouts, (including Timberland Leases rejected in connection therewith), and Casualty Losses, the Volume Allocations (as hereinafter defined) shall be adjusted in order to take account of such reduction.  If Seller and Purchaser cannot agree upon said adjustments, the dispute will be resolved pursuant to Section 7.4.

Section 1.7    Additional Timberlands.

(a)    To the extent that Seller elects to substitute additional timberlands to cure a Title Objection under Section 1.6(a) or to cure any Environmental Objection under Section 1.6(c), Seller shall identify in its written notice of such election (i) the timberlands owned by Seller within the same geographic region as the Property that are to be added to the Property (the “Additional Timberlands”), (ii) the portion of the Timberlands being deleted from the Property in connection with such substitution, and (iii) the estimated volume of timber located on such Additional Timberlands; provided that the value of any Additional Timberlands shall be not less than the value of the deleted Timberlands, as determined by reference to the Value Table.  The Additional Timberlands shall be deemed part of the Timberlands for all purposes of this Agreement.

(b)    The following provisions shall apply to any Additional Timberlands:

(i)    Within thirty (30) days following delivery of such notice identifying the Additional Timberlands, Seller shall use commercially reasonable efforts to cause the Title Company to issue one or more Completed Title Commitments with respect to the Additional Timberlands.  The procedures set forth in Section 1.6 shall otherwise apply in all respects to such Completed Title Commitments.
(ii)    Purchaser shall have forty-five (45) days following receipt of such notice identifying the Additional Timberlands to cause a Phase I Report with respect to the Additional Timberlands to be prepared by an environmental consultant reasonably acceptable to Seller, (B) to review such Phase I Reports, and (C) to deliver to Seller written notice of the existence of a REC on any portion of the Timberlands.  If such supplement reveals the existence of a REC, then Seller shall either cure such REC or identify different Additional Timberlands to replace the Additional Timberlands affected by such REC, in which event the procedures of this Section 1.7 shall apply to such new Additional Timberlands.

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(iii)    Within forty-five (45) days (or such longer period as is reasonably required to complete such verification in no event longer than one hundred twenty (120) days) following delivery of such notice identifying the Additional Timberlands, Purchaser shall have the right to verify the volumes and value of the Timber located on the Additional Timberlands, determined by reference to the Value Table.  If the Parties are unable to agree upon the volumes or value of the Additional Timberlands within such period, such dispute shall be resolved in accordance with Section 7.4.  If the value of the Additional Timberlands is less than the value of the deleted Timberlands, Seller shall identify supplemental Additional Timberlands, in which event the procedures of this Section 1.7 shall apply to such supplemental Additional Timberlands.
Section 1.8    Apportionments.  Except as provided in Section 2.3, the following shall be apportioned between Purchaser and Seller as of the Effective Time (on a per diem basis): (i) property and other non-Income Taxes and assessments in respect of the Property with respect to the Tax period in which the Effective Time occurs; (ii) revenue from the Real Property Leases, including hunting and other recreational lease revenue; (iii) payments, applying to the period beginning at the Effective Time, made by Seller in respect of any Assumed Contract or Timberland Lease; and (iv) rents due from Seller under the Timberland Leases (collectively, “Apportionments”).  Not later than sixty (60) days after the Closing Date, Seller and Purchaser shall determine the Apportionments, and the Purchase Price shall be increased or decreased, as applicable, by the aggregate amount of such Apportionments, except where any applicable Tax rates have not been fixed or the value assessments have not been made and finally determined with respect to all of the Timberlands for the applicable Tax periods in which the Effective Time occurs (Purchaser acknowledging that Seller has instituted or may, at its option, institute before the Closing protests of certain Taxes pursuant to certain Assumed Contracts, the final resolution of which protests may occur after the Closing), in which case the Apportionments will be completed promptly after resolution of the applicable issues.  Any adjustment to be made pursuant to this Section 1.8 shall be made no later than three (3) Business Days following the determination of the aggregate amount of the Apportionments.  Seller and Purchaser agree to furnish each other with such documents and other records as may be reasonably requested in order to confirm all Apportionment calculations made pursuant to this Section 1.8.  If Seller and Purchaser cannot agree as to Apportionments, the dispute will be resolved pursuant to Section 7.4.

Section 1.9    Provision Regarding Ongoing Harvests.  Purchaser acknowledges and agrees that Seller may continue to conduct ongoing timber harvesting operations until Closing on the sale areas and on the terms described on Exhibit I attached hereto (the “Ongoing Harvest Operations”).  In the event Seller is unable, for any reason in Seller’s sole discretion, to complete such Ongoing Harvest Operations by Closing, Seller may reserve the remaining timber on such sale areas and on the terms described on Exhibit I together with the right to enter upon that portion of the Timberlands by means of access routes approved by Purchaser in its reasonable discretion in order for Seller to complete its Ongoing Harvest Operations no later than twelve (12) months after Closing pursuant to the terms of 

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a harvesting agreement to be executed and delivered by the Parties at Closing substantially in the form attached hereto as Exhibit I-1 (the “Harvesting Agreement”).  Seller shall be entitled to receive all proceeds from the sale of the timber harvested pursuant to the Ongoing Harvest Operations and there shall be no adjustment of the Purchase Price due to the removal of such timber pursuant to Seller’s Ongoing Harvest Operations.  Seller shall (i) remain liable for any severance taxes arising out of such Ongoing Harvest Operations, and (ii) indemnify, hold harmless and defend Purchaser, its successors and assigns from and against any loss, cost, claim or liability, including, without limitation, reasonable attorney’s fees and court costs and liabilities related to personal injury, damage and fire, all as associated with Seller’s Ongoing Harvest Operations on the Timberlands after Closing and in accordance with the Harvesting Agreement. Seller’s reservations, rights and obligations arising under this Section 1.9 shall be reflected in the Deeds and/or Assignment and Assumption of Timberland Leases. Seller will conduct harvesting operations on the Ongoing Harvest Tracts consistent with industry standards in the applicable region and consistent with Seller’s standards on other similarly situated tracts harvested by Seller, to the extent in accordance with the terms of the Harvesting Agreement. 

ARTICLE II
CLOSING

Section 2.1    Closing.  The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place, subject to the satisfaction, or waiver by the Party entitled to the benefit thereof, of the conditions set forth in Article IX, at the offices of Sutherland Asbill & Brennan LLP, 999 Peachtree Street, Suite 2300, Atlanta, Georgia 30309, at 9:00 a.m., local time, on or as of the later of (i) November 17, 2014 or (ii) the fifth business day following the date on which all of the conditions set forth in Article IX have been satisfied, or waived by the Party entitled to the benefit thereof (other than those conditions that by their nature are to be satisfied at the Closing), in accordance with this Agreement or at such other time and date as the Parties shall agree in writing (the date on which the Closing occurs, the “Closing Date”).  Upon completion of the Closing, the transactions contemplated by this Agreement shall be deemed effective as of 12:01 a.m. Eastern Time on the Closing Date (the “Effective Time”).  The Parties shall use their commercially reasonable efforts to cause the Closing Date to occur on or before November 17, 2014. Except as specifically provided herein, time is of the essence of this Agreement for all purposes.

Section 2.2    Closing Deliveries.

(a)    Closing Deliveries by Seller.  Seller shall deliver the following items to Purchaser at the Closing:
(i)    a certificate from a duly authorized officer of Seller attesting to the matters set forth in Sections 9.2(b) and 9.2(c);

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(ii)    duly executed counterparts of the assignment and assumption agreements under which Seller assigns and Purchaser assumes all of Seller’s right, title and interest in and to the Assumed Contracts and the Assumed Condemnations, substantially in the form of Exhibit J-1 attached hereto (the “General Assignment and Assumption”);

(iii)    duly executed counterparts of assignment and assumption agreements under which Seller assigns and Purchaser assumes all of Seller’s right, title and interest in and to the Real Property Leases in each case substantially in the form of Exhibit J-2 attached hereto (each, an “Assignment and Assumption of Real Property Leases”);

(iv)    one (1) duly executed limited or statutory warranty deed for each county in which the Owned Timberlands are located, warranting only against Persons claiming by, through or under Seller and subject only to the Permitted Exceptions, in each case substantially in the form of Exhibit K-1 and K-2 attached hereto, and such other Conveyance Instruments as are reasonably necessary to vest in Purchaser title to the Owned Timberlands and the Appurtenant Easements (collectively, the “Deeds”);

(v)    one (1) duly executed Assignment and Assumption of Timberland Lease for each Timberland Lease, in recordable form for each county in which the Leased Timberlands are located under each such Timberland Lease, in substantially the form of Exhibit K-3 attached hereto (collectively, the “Assignment and Assumption of Timberland Leases”);

(vi)    one (1) duly executed bill of sale for the conveyance of the Personal Property;

(vii)    duly executed counterparts of the Timber Supply Documents to which Seller is a party;

(viii)    one (1) duly executed Assignment and Assumption of Timber Deeds for each Timber Deed, in recordable form, and otherwise in substantially the form of Exhibit K-4 attached hereto (collectively, the “Assignment and Assumption of Timber Deeds”);

(ix)    an affidavit stating the taxpayer identification number of Seller and that Seller is not a “foreign person” for purposes of Section 1445 of the Code and the Treasury Regulations thereunder;

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(x)    such title affidavits as are reasonably requested by the Title Company, including an owner’s affidavit substantially in the form of Exhibit L attached hereto;

(xii)    duly executed counterparts of the Harvesting Agreement;

(xii)    duly executed and delivered Estoppel Certificates in accordance with Section 8.3 hereof;

(xiii)    releases of all Monetary Liens on the Property;

(xiv)    such assignments, bills of sale, certificates of title and other instruments of assignment and conveyance, all in form reasonably satisfactory to Purchaser, as are necessary to convey fully and effectively to Purchaser the Property in accordance with the terms hereof. 

(xv)    originals of all Personal Property conveyed hereunder (or access to Purchaser to the location where such Personal Property is held);

(xvi)    an electronic copy of Seller’s entire operational stand level database for the Owned Timberlands and the Leased Timberlands; and

(xvii)    possession of the Timberlands, subject to the Permitted Exceptions.

(b)    Closing Deliveries by Purchaser.  At the Closing, Purchaser shall deliver the following items to Seller:

(i)    the Purchase Price;

(ii)    certificates of a duly authorized officer of Purchaser attesting to the matters set forth in Sections 9.3(b) and 9.3(c);

(iii)    duly executed counterparts of the General Assignment and Assumption, the Assignment and Assumption of Real Property Leases, the Assignment and Assumption of Timberland Leases, the Assignment and Assumption of Timber Deeds, the Memorandum of Assignment and Assumption of Real Property Leases;

(iv)    duly executed counterparts of the Harvesting Agreement;

(v)    duly executed counterparts of the Timber Supply Documents to which Purchaser is a party, including, without limitation the New Supply Agreements;

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(vi)    any Conveyance Instruments in respect of the Property to which Purchaser is a party;

(vii)    one or more easements substantially in the form of Exhibit N to the extent necessary to evidence the right of Seller, or such other Persons as shall be designated by Seller, to use the Reserved Easements; and

(viii)    all such other instruments of assumption necessary, in the reasonable opinion of Seller, for Purchaser to assume the Assumed Liabilities.

(c)    Other Closing Deliveries.  The Parties shall each execute and deliver such other and further certificates, assurances and documents as may reasonably be required by the other Parties and/or the Title Company in connection with the consummation of the transactions contemplated by this Agreement.

Section 2.3    Costs and Expenses.  Each Party shall be responsible for its own attorneys’ fees and expenses.  Seller shall prepare the Conveyance Instruments, Assignment and Assumptions of Timberland Leases, the Assignment and Assumption of Timber Deeds and all documents to be prepared pursuant to Section 7.6, 7.8 and 7.9, all at Seller’s expense.  Purchaser shall pay all other costs associated with filing any documents, including the Conveyance Instruments and Assignment and Assumptions of Leases, to be recorded.  Purchaser shall be responsible for any recapture, reassessment, roll-back Taxes or changes in Tax assessments in respect of the Property that may become due and payable after the Effective Time caused by any action or inaction of Purchaser with respect to the removal of the Property after the Effective Time from their present classifications, or changes in use after the Effective Time.  Purchaser shall bear all sales, use, excise, documentary, stamp duty, registration, transfer, conveyance, economic interest transfer and other similar Taxes related to the conveyance of the Property from Seller to Purchaser arising in connection with the transactions contemplated by this Agreement (collectively, “Transfer Taxes”), and the Party having primary responsibility under applicable Law shall timely prepare and file Tax Returns in respect of such Transfer Taxes with the applicable Taxing Authority.  All other costs shall be paid by the Party incurring such costs, except as otherwise provided herein.

ARTICLE III
ACKNOWLEDGEMENTS BY PURCHASER

Section 3.1    Disclaimer of Certain Representations.  Purchaser acknowledges that, except as is specifically set forth in this Agreement, the Ancillary Agreements, the Deeds and the other Conveyance Instruments referred to in Article II, Seller has not made, does not make and has not authorized anyone else to make, any representation, warranty or promise of any kind, including as to:  (i) the existence or non-existence of access to or from 

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the Timberlands or any portion thereof; (ii) the location of the Timberlands or any portion thereof within any flood plain, flood prone area, watershed or the designation of any portion thereof as “wetlands”; (iii) the availability of water, sewer, electrical, gas or other utility services at or on the Timberlands; (iv) the number of acres or square footage in the Timberlands; (v) the present or future physical condition or suitability of the Property for any purpose; (vi) the actual amount and type of timber on the Timberlands, if any; or (vii) any other matter or thing affecting or relating to the Property or this Agreement.

Section 3.2    General Disclaimers.  PURCHASER ACKNOWLEDGES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN this Agreement, the Ancillary Agreements, the Deeds and the other conveyance instruments referred to in Article II:  (I) NO REPRESENTATIONS, WARRANTIES OR PROMISES, EXPRESS OR IMPLIED, HAVE BEEN OR ARE BEING MADE BY OR ON BEHALF OF SELLER OR ANY OTHER PERSON WITH RESPECT TO THE PROPERTY, INCLUDING WITH RESPECT TO PHYSICAL OR ENVIRONMENTAL CONDITION, HABITABILITY, QUANTITY OR QUALITY OF TIMBER, NURSERY STOCK OR SEEDLINGS, FUTURE FIBER GROWTH OR HARVEST, FUTURE FINANCIAL RESULTS FROM THE SALE OF FIBER GROWN ON THE TIMBERLANDS OR FROM THE SALE OF THE TIMBERLANDS, MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SELLER HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES, EITHER EXPRESS OR IMPLIED RELATING TO ANY OF THE FOREGOING MATTERS, AND (II) IN ENTERING INTO THIS AGREEMENT, PURCHASER HAS NOT RELIED AND DOES NOT RELY ON ANY SUCH REPRESENTATION, WARRANTY OR PROMISE, EXPRESS OR IMPLIED, BY OR ON BEHALF OF SELLER OR ANY OTHER PERSON.  PURCHASER ACKNOWLEDGES AND AGREES THAT PURCHASER SHALL TAKE THE PROPERTY IN “AS IS, WHERE IS, AND WITH ALL FAULTS” CONDITION ON THE CLOSING DATE, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED in this Agreement, the Ancillary Agreements, the Deeds and the other conveyance instruments referred to in Article II.

Section 3.3    Waiver and Release.  UPON THE CLOSING, SUBJECT TO ARTICLE X, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING ADVERSE ENVIRONMENTAL CONDITIONS, MAY NOT HAVE BEEN REVEALED BY SELLER’S OR PURCHASER’S INVESTIGATION, AND UPON THE CLOSING, SUBJECT TO ARTICLE X, PURCHASER SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER AT ANY TIME BY REASON OF OR ARISING OUT OF  PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING ANY ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER 

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ACTS, OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY.  PURCHASER AGREES THAT, SUBJECT TO ARTICLE X, SHOULD ANY INVESTIGATION, CLEANUP, REMEDIATION, CORRECTIVE ACTION OR REMOVAL OF HAZARDOUS SUBSTANCES OR OTHER ADVERSE ENVIRONMENTAL CONDITIONS ON THE TIMBERLANDS BE REQUIRED AFTER THE CLOSING, SUCH INVESTIGATION, CLEAN-UP, REMOVAL, CORRECTIVE ACTION OR REMEDIATION SHALL BE THE RESPONSIBILITY OF AND SHALL BE PERFORMED AT THE SOLE COST AND EXPENSE OF PURCHASER.  ANYTHING TO THE CONTRARY NOTWITHSTANDING, PURCHASER’S WAIVER AND RELEASE OF SELLER AS DESCRIBED ABOVE SHALL NOT PREVENT PURCHASER FROM JOINING SELLER AS A POTENTIALLY RESPONSIBLE PARTY IN ANY SUIT OR ACTION BROUGHT AGAINST PURCHASER BY A THIRD PARTY. PURCHASER OR ITS SUCCESSORS AND ASSIGNS SHALL HAVE NO OBLIGATION AT ANY TIME OR AS A RESULT OF THIS RELEASE TO INDEMNIFY, DEFEND OR SAVE HARMLESS SELLER FROM CLAIMS BY THIRD PARTIES FOR ANY CONDITIONS, ACTIONS OR OMISSIONS WHICH OCCURRED PRIOR TO THE CLOSING DATE REGARDLESS OF WHETHER CLAIMS ARE BROUGHT BEFORE OR AFTER CLOSING.

Section 3.4    No Reliance.  Purchaser acknowledges that any materials provided to it, including any cost or other estimates, projections, acreage, and timber information, any management presentations and any materials and information provided on data disks, via e-mail or in any on-line data rooms, are not and shall not be deemed representations or warranties by or on behalf of Seller or any other Person and are not to be relied upon by Purchaser.

ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF SELLER AS TO STATUS

Except as otherwise disclosed to Purchaser herein, Seller represents and warrants to Purchaser, as of the date hereof and as of the Closing Date, as follows:
Section 4.1    Organization.  Each Seller is a limited liability company duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to:  (i) own, lease and operate its properties and assets and to carry on its business as now being conducted; (ii) execute this Agreement and all other agreements, instruments and documents to be executed by it in connection with the consummation of the transactions contemplated by this Agreement and such other agreements (the “Ancillary Agreements”); and (iii) perform its obligations and consummate the transactions contemplated hereby and by the Ancillary Agreements.

Section 4.2    Qualification.  Each Seller is qualified or registered as a foreign [•] for the transaction of business and is in good standing under the Laws of each jurisdiction in which the location of its properties makes such qualification necessary, other than those 

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jurisdictions as to which the failure to be so qualified or registered would not, individually or in the aggregate, have a Material Adverse Effect or a material adverse effect on Seller’s ability to perform its obligations under this Agreement and the Ancillary Agreements.

Section 4.3    Authority.  The execution, delivery and performance of this Agreement and the consummation of transactions contemplated hereby by Seller have been duly and validly authorized by all necessary corporate action, and no other corporate proceedings on the part of Seller are necessary for it to authorize this Agreement or to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by Seller and, assuming due authorization, execution and delivery by Purchaser, is a legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and to general equity principles.

Section 4.4    No Violation.  The execution, delivery and performance of this Agreement by Seller will not result in a breach or violation of, or default under, (i) the terms, conditions or provisions of Seller’s certificate of incorporation, bylaws or any standing resolution of its board of directors or any other organizational document; (ii) any Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed, Real Property Lease or any other Contract that would impact Seller’s ability to consummate the transactions contemplated by this Agreement; (iii) any Law applicable to Seller, the Timberlands or any of Seller’s assets that would impact Seller’s ability to consummate the transactions contemplated by this Agreement; or (iv) any permit, license, order, judgment or decree of any Governmental Authority by which Seller or the Timberlands is or may be bound, excluding from the foregoing clauses (ii), (iii) and (iv) such breaches, violations or defaults that would not be reasonably likely, individually or in the aggregate, to have a Material Adverse Effect or a material adverse effect on Seller’s ability to perform its obligations under this Agreement and the Ancillary Agreements.

Section 4.5    Consents and Approvals.  There are no approvals, consents or registration requirements with respect to any Governmental Authority or any other Person that are or will be necessary for the valid execution and delivery by Seller of this Agreement and the Ancillary Agreements, or the consummation of the transactions contemplated hereby and thereby, other than (i) those described on Exhibit O attached hereto and (ii) those which (A) have been obtained, or (B) are of a routine nature and not customarily obtained or made prior to execution of purchase and sale agreements in transactions similar in nature and size to those contemplated hereby and where the failure to obtain the same would not, individually or in the aggregate, have a Material Adverse Effect or a material adverse effect on Seller’s ability to perform its obligations under this Agreement and the Ancillary Agreements.

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Section 4.6    Litigation.

(a)    Pending Matters.  Except as set forth on Exhibit P attached hereto, there are no pending Claims or, to Seller’s Knowledge, threatened Claims that (i) either (A) seek to restrain or enjoin the execution and delivery of this Agreement or any Ancillary Agreement or the consummation of any of the transactions contemplated hereby or thereby, or (B) affect or relate to any of the Property, and (ii) would be reasonably likely, individually or in the aggregate, to have a Material Adverse Effect or a material adverse effect on Seller’s ability to perform its obligations under this Agreement and the Ancillary Agreements.

(b)    Adverse Judgments.  There are no judgments or outstanding orders, injunctions, decrees, stipulations or awards (whether rendered by a Governmental Authority or by an arbitrator) against Seller (or affecting any of the Timberlands) that prohibit or restrict or could reasonably be expected to result in any material delay of the consummation of the transactions contemplated by this Agreement or the Ancillary Agreements.

Section 4.7    Taxes.  Except for such Liens as may be reflected in the Completed Title Commitments, there are no Liens or other encumbrances, other than the Permitted Exceptions, on any of the Property that arose in connection with any failure or alleged failure by Seller to timely pay any Tax.  All material Taxes related to the Property required to be withheld and paid have been timely withheld and paid, except for (i) such Taxes the failure to pay which would not be reasonably likely, individually or in the aggregate, to have a Material Adverse Effect and (ii) any Taxes being contested in good faith.

Section 4.8    Contracts. Each of Exhibits A-2, B and C contains a list, and Seller has made available to Purchaser copies, of the following documents in effect on the date of this Agreement: (i) each Timberland Lease, (ii) each Assumed Contract, (iii) the Existing Supply Agreements; (iv) the Real Property Leases; (v) the Plum Creek Timber Deeds; (vi) the Timber Deeds; and (vii) each material amendment, supplement, and modification in respect of any of the foregoing.  To Seller’s Knowledge each of the foregoing documents described in clauses (i) through (vi) (1) are in full force and effect, and (2) have no defaults or events that with the passage of time or giving of notice, or both, could become a default thereunder. Seller is not a party to, and the Timberlands are not subject to any contract or agreement of any kind whatsoever, written or oral, formal or informal, with respect to the Timberlands that would be binding upon the Timberlands or Purchaser after Closing, other than the Permitted Exceptions and the documents referenced in clauses (i) through (vi) of the immediately preceding sentence.

Section 4.9    Brokers and Advisors. Except for fees payable to Perella Weinberg Partners LP, no broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Seller, and Seller is responsible for the payment of all such fees due to Perella Weinberg Partners LP.

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ARTICLE V
REPRESENTATIONS AND WARRANTIES OF SELLER RELATED
TO THE PROPERTY

Except as otherwise disclosed to Purchaser herein, Seller represents and warrants to Purchaser, as of the date hereof and as of the Closing Date, as follows:
Section 5.1    Compliance with Laws.  There is no pending action or proceeding or, to the knowledge of Seller, any threatened action or proceeding (other than Condemnations) before any court, governmental agency or arbitrator which would have a Material Adverse Effect on the Property or which arises out of events or circumstances occurring at the Property, including the conduct of forestry operations, except for those actions or proceedings, if any, that would not be reasonably likely, individually or in the aggregate, have a Material Adverse Effect.

Section 5.2    Condemnations.  Except as described on Exhibit D, there are no Condemnations as of the date hereof and no Condemnations have been concluded between August 1, 2014 and the date hereof.

Section 5.3    Assumed Contracts, Timberland Leases, Plum Creek Timber Deeds, Timber Deeds and Real Property Leases.  Except as described on Exhibits A-2, B or C, with respect to each Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed and Real Property Lease, or except as would not be reasonably likely, individually or in the aggregate, to have a material adverse effect on the use and enjoyment by Purchaser of the Timberlands or any material portion thereof in accordance with the terms of such instrument: (i) such Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed or Real Property Lease is legal, valid, binding, enforceable and in full force and effect; (ii) the transactions contemplated by this Agreement or the Ancillary Agreements will not result in a breach or default under such Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed or Real Property Lease, or otherwise cause such Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed or Real Property Lease to cease to be legal, valid, binding, enforceable and in full force and effect on identical terms following the Closing; (iii) neither Seller, nor to Seller’s Knowledge, any other party to such Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed or Real Property Lease is in breach or default under such Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed or Real Property Lease; and (iv) to Seller’s Knowledge, no event has occurred or failed to occur or circumstances exist which, with the delivery of notice, the passage of time or both, would constitute a breach or default under such Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed or Real Property Lease or permit the termination, modification or acceleration of rent under such Assumed Contract, Timberland Lease, Plum Creek Timber Deed, Timber Deed or Real Property Lease.

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Section 5.4    Harvesting.  Except pursuant to the Ongoing Harvest Operations and the rights of third parties pursuant the Permitted Exceptions, (a) no trees or Timber have been cut or removed from the Timberlands since the Inventory Date, and (b) during the term of this Agreement, Seller shall neither cut or remove nor permit the cutting or removal of any timber or trees which are included as part of the Property.

Section 5.5    Matters Relating to the Environmental Condition of the Timberlands. Except as set forth in the Phase I Reports, (a) to Seller’s Knowledge, there is no condition existing on the Timberlands that constitutes a REC in the Timberlands, (b) to Seller’s Knowledge, there is no existing Adverse Environmental Condition on the Timberlands, (c) to Seller’s Knowledge, Seller is operating the Timberlands in compliance with all applicable Environmental Laws and the requirements of all applicable Environmental Permits, (d) to Seller’s Knowledge, Seller has not received any written notice of any violation of, or liability under, any Environmental Law in connection with Seller’s operations on the Timberlands during the past five years, and (e) there are no material writs, injunctions, decrees, orders or judgments outstanding or any actions, suits, proceedings or investigations pending or, to Seller’s Knowledge, threatened relating to Seller’s compliance with or liability under any Environmental Law affecting the Timberlands.

Section 5.6    Property Taxes. To Seller’s Knowledge, no Taxes or assessments relating to the Property are delinquent, and there are no special Taxes, assessments or charges proposed, pending or threatened against the Property. Neither Seller nor, to the best of Seller’s Knowledge, any other Person has applied the Timberlands or any portion thereof to a use other than agricultural or silvicultural during Seller’s ownership of the Property.

Section 5.7    Endangered Species.  Except as set forth on Exhibit P, to Seller’s Knowledge, there are no Endangered Species on the Timberlands; and Seller has not received any written notice of any threatened or contemplated actions against Seller or the Timberlands based upon the presence of any Endangered Species on the Timberlands.

Section 5.8    Timberland Disputes.  Except as set forth on Exhibit P, to Seller’s Knowledge, there are no boundary disputes and no encroachments affecting the Timberlands or any portion thereof, nor is any person or entity adversely possessing or using the Timberlands or any part thereof.

Section 5.9    Timberland Losses.  To Seller’s Knowledge, (a) no material volume of trees or Timber has been lost or damaged by fire or other Casualty Loss since the Inventory Date and (b) no trees or Timber are affected by any disease or infestation which would have a Material Adverse Effect on the value of said trees or Timber.

Section 5.10    Mining and Mineral Rights.  Except as set forth on Exhibit P, to Seller’s Knowledge, there have been no mining operations on the Timberlands during Seller’s period of ownership, and Seller has no knowledge of any proposed mineral activity 

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on the Timberlands. Seller has not conveyed any interest in any minerals associated with the Timberlands during the past 5 years.

ARTICLE VI
REPRESENTATIONS AND WARRANTIES OF PURCHASER

Except as otherwise disclosed to Seller herein, as of the date hereof and as of the Closing Date, Purchaser represents and warrants to Seller, as follows:
Section 6.1    Organization.  Purchaser is a corporation, duly incorporated, validly existing and in good standing under the laws of the state in which it is incorporated and has all requisite corporate power and authority to:  (i) own, lease and operate its properties and assets and to carry on its business as now being conducted; (ii) execute this Agreement and the Ancillary Agreements to which it is a party; and (iii) perform its obligations and consummate the transactions contemplated hereby and thereby.

Section 6.2    Qualification.  Purchaser is qualified or registered as a foreign corporation for the transaction of business and is in good standing under the laws of each jurisdiction in which the location of its properties makes such qualification necessary, other than those jurisdictions as to which the failure to be so qualified or registered would not, individually or in the aggregate, have a material adverse effect on its financial condition or results of operation or on its ability to perform its obligations under this Agreement and the Ancillary Agreements to which it is a party.

Section 6.3    Authority.  The execution, delivery and performance of this Agreement and the consummation of transactions contemplated hereby by Purchaser have been duly and validly authorized by all necessary corporate action, and no other corporate proceedings on the part of Purchaser are necessary for it to authorize this Agreement or to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by Purchaser and, assuming due authorization, execution and delivery by Seller, is a legal, valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar Laws of general applicability relating to or affecting creditors’ rights and to general equity principles.

Section 6.4    No Violation.  The execution, delivery, and performance by Purchaser of this Agreement or any of the Ancillary Agreements to which it is a party will not result in a breach or violation of, or default under, (i) the terms, conditions or provisions of the its articles/certificate of incorporation, bylaws, limited liability company agreement or any standing resolution of its board of directors, members or managers (as the case may be) or any other organizational document; (ii) any Contract to which it is a party that would impact Purchaser’s ability to consummate the transactions contemplated by this Agreement; (iii) any Law applicable to it or any of its assets that would impact Purchaser’s ability to consummate the transactions contemplated by this Agreement; or (iv) any permit, license, 

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order, judgment or decree of any Governmental Authority by which Purchaser or any of its assets is or may be bound, excluding from the foregoing clauses (ii), (iii) or (iv), such breaches, violations or defaults that would not be reasonably likely, individually or in the aggregate, to have a material adverse effect its ability to perform its obligations under this Agreement and the Ancillary Agreements to which it is a party.

Section 6.5    Section Governmental Consents and Approvals.  There are no approvals, consents or registration requirements with respect to any Governmental Authority that are or will be necessary for the valid execution and delivery by Purchaser of this Agreement and the Ancillary Agreements, or the consummation of the transactions contemplated hereby and thereby, other than those that (i) have been obtained, (ii) are of a routine nature and not customarily obtained or made prior to execution of purchase and sale agreements in transactions similar in nature and size to those contemplated hereby and where the failure to obtain the same would not, individually or in the aggregate, have a material adverse effect on the financial condition or results of operations of Purchaser or on the ability of Purchaser to perform its obligations under this Agreement and the Ancillary Agreements to which it is a party, or (iii) may be required to be obtained by Purchaser for it to conduct operations on the Timberlands.

Section 6.6    Litigation.  There are no Claims against Purchaser or, to the actual knowledge of Purchaser, any threatened Claims against Purchaser, which either alone or in the aggregate seek to restrain or enjoin the execution and delivery of this Agreement or any of the Ancillary Agreements or the consummation of any of the transactions contemplated hereby or thereby.  There are no judgments or outstanding orders, injunctions, decrees, stipulations or awards (whether rendered by a Governmental Authority or by an arbitrator) against Purchaser (or affecting any of its assets) that prohibit or restrict or could reasonably be expected to result in any delay of the consummation of the transactions contemplated by this Agreement or the Ancillary Agreements.

ARTICLE VII
ADDITIONAL AGREEMENTS RELATING TO THE 
PROPERTY GENERALLY

Section 7.1    Commercially Reasonable Efforts.

(a)    General.  Subject to the terms and conditions herein provided, each of the Parties agrees to use all commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate and make effective as promptly as practicable the transactions contemplated by this Agreement and to cooperate with each other in connection with the foregoing, including using all commercially reasonable efforts:

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(i)    to obtain all necessary waivers, consents, releases and approvals, including all consents, approvals and authorizations that are required to be obtained under any applicable Law;

(ii)    to lift or rescind any injunction or restraining order or other order adversely affecting the ability of the Parties to consummate the transactions contemplated hereby or by the Ancillary Agreements;

(iii)    to effect all necessary registrations and filings and submissions of information requested by Governmental Authorities; and

(iv)    to fulfill all conditions to this Agreement.

(b)    Certain Filings.  In furtherance and not in limitation of the foregoing, each of the Parties agrees to make, or cause to be made, all necessary filings required pursuant to any Regulatory Law with respect to the transactions contemplated hereby as promptly as practicable after the date of this Agreement, but in no event later than 15 days after the date hereof, and to supply as promptly as practicable any additional information and documentary material that may be requested pursuant to any Regulatory Law.

(c)    Cooperation.  If necessary to obtain any consent, approval, permit or authorization or to remove any impediment to the transactions contemplated hereby or by any Ancillary Agreement relating to any Regulatory Law or to avoid the entry of, or to effect the dissolution of, any injunction, temporary restraining order or other order in any suit or proceeding relating to Regulatory Law, each of the Parties shall cooperate with each other and take such lawful steps as shall be necessary or appropriate to secure such end.

Section 7.2    Maintenance of Business.

(a)    Subject to the terms and conditions of this Agreement, and except as otherwise contemplated hereby, Seller, from the date hereof through the Closing Date, shall use commercially reasonable efforts to maintain the Property in the ordinary course in all material respects; provided, however, Seller shall have no obligation to perform any site preparation or plant any seedlings on harvested areas except as specifically set forth on Exhibit U.

(b)    Subject to the terms and conditions of this Agreement, and except as Seller may otherwise agree in writing, Purchaser shall not interfere with Seller’s conduct of business with respect to the Property pending the Closing and shall not take any action that might reasonably be expected to impair Seller’s relationships with customers, suppliers or employees of the businesses and operations of Seller, whether or not associated with the Property.

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(c)    Subject to the terms and conditions of this Agreement, through the Effective Time Seller shall not sell, transfer, assign, convey, amend, lease or otherwise modify any interest in the Timberlands except for the renewal of recreational leases on substantially the same or better terms as currently in effect and except for the entry in the ordinary course of business into new recreational leases substantially in the form of existing recreational leases to which Seller is a party.

(d)    Seller agrees that it shall not after the date hereof, directly or indirectly, through any officer, director, employee, agent or otherwise, (i) solicit, initiate or encourage submission of proposals, offers or expressions of interest from any Person relating to any acquisition or purchase of all or a substantial portion of the Property (any of the foregoing proposals, offers or expressions of interest being referred to herein as an “Acquisition Proposal”), or (ii) participate in any negotiations or discussions regarding, or furnish to any Person any nonpublic information with respect to, or otherwise cooperate in any way with, or assist or participate in, facilitate or encourage, any Acquisition Proposal.

Section 7.3    Public Announcements.

(a)    No Recording.  This Agreement (or a memorandum thereof) shall not be recorded by Purchaser in any real property records.  In the event that this Agreement (or a memorandum thereof) is so recorded by Purchaser, Seller may, at its option, terminate this Agreement.

(b)    Certain Disclosures.  Notwithstanding anything to the contrary set forth in Section 12.7 or the Confidentiality Agreement, except as required by applicable Law (including rules and regulations promulgated by the SEC) or stock exchange rules, (i) any press release or public announcement by Purchaser regarding the transactions contemplated by this Agreement shall only be made simultaneously with or after a press release or public announcement by Seller on or after the date of this Agreement regarding the transactions contemplated by this Agreement, and (ii) Seller and Purchaser shall consult with each other before issuing, and will provide each other the opportunity to review, comment upon and concur with, and use commercially reasonable efforts to agree on, any press release and other public announcement with respect to the transactions contemplated by this Agreement, including the time, form and content of such press release or public announcement, and shall not issue any such press release or make any such public announcement prior to such consultation; provided, however, that any disclosure required to be made under applicable Law, stock exchange rules or rules and regulations promulgated by the SEC may be made without such mutual agreement if a Party required to make such disclosure has determined in good faith that it is necessary to do so and has used commercially reasonable efforts, prior to the issuance of the disclosure, to provide the other Parties with a copy of the proposed disclosure and to discuss the proposed disclosure with the other Parties.  Notwithstanding the foregoing, any Party may make any filing required by any rule or regulation promulgated by the SEC or any stock exchange without consultation with the other Party.

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Section 7.4    Dispute Resolution.

(a)    Initial Discussions.  In the event that a Party gives notice of any dispute, claim, question, disagreement or controversy arising from or relating to this Agreement or the breach thereof, or the Property, other than those disputes, claims, questions, disagreements or controversies for which dispute resolution procedures are set forth in Section 1.6 (a “Dispute”), representatives of the Parties shall use their reasonable commercial efforts to settle the Dispute.  To this effect, such representatives shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to the Parties.  If the representatives are unable to resolve any Dispute within thirty (30) days after the date of a written notice from either Party requesting that such consultation and negotiation be initiated as to such Dispute, any Party may, by giving notice to the other Party, refer the Dispute to a senior executive officer of each Party or an Affiliate (each, a “Party Executive”) for resolution. The Party Executives will meet with each other, either physically at a mutually convenient location or by telephone or videoconference, to endeavor to resolve the Dispute in view of the Parties’ mutual interest in reaching a reasonable business resolution. If the Party Executives are unable to resolve the Dispute within thirty (30) days after submission to them, the Party Executives shall in good faith discuss the desirability of submitting the Dispute to voluntary non-binding mediation or binding arbitration before a single mediator or arbitrator who has at least ten (10) years relevant industry experience in the matter that is the subject of the Dispute. The Party Executives will cooperate with one another in selecting a single mediator or arbitrator and in promptly scheduling the mediation or arbitration proceedings. If the Party Executives cannot unanimously agree to submit the Dispute to non-binding voluntary mediation or binding arbitration within sixty (60) days after the Dispute was first submitted to them, or upon the failure of any agreed-upon mediation to resolve the Dispute, the Parties may pursue such rights and remedies as are available under this Agreement or otherwise.

(b)    Evidentiary Status.  All settlement offers, promises, conduct and statements, whether oral or written, made in the course of the settlement or any mediation process by either Seller or Purchaser, their agents, employees, experts and attorneys, and by the mediator, are confidential, privileged and inadmissible for any purpose, including impeachment, in any litigation, arbitration or other proceeding involving the Parties; provided, however, that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non‐discoverable as a result of its disclosure during settlement or mediation efforts.

(c)    Forbearance.  During the pendency of the settlement or any mediation process, the Parties agree to forebear from filing or otherwise proceeding with litigation; provided, however, that either Seller, on the one hand, or Purchaser, on the other hand, shall be entitled to seek a temporary restraining order or preliminary injunction to prevent the breach of Seller’s or Purchaser’s obligations, as the case may be, under this Agreement or any Ancillary Agreement contemplated herein.  If any agreement of the Parties to use 

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mediation breaks down and a later litigation is commenced or application for an injunction is made, the Parties will not assert a defense of laches or statute of limitations based upon the time spent in mediation.

(d)    Litigation.  Either Seller or Purchaser may initiate litigation with respect to any Dispute submitted to the Party Executives at any time following 60 days after the initial meeting between the Party Executives session or 90 days after the date of sending the written request for resolution by the Party Executives, whichever occurs first.

(e)    Enforcement.  The provisions of this Section 7.4 may be enforced by any court of competent jurisdiction, and the Party seeking enforcement shall be entitled to an award of all costs, fees and expenses, including reasonable attorneys’ fees, to be paid by the Party against whom enforcement is ordered.

Section 7.5    Required Consents. Each of the Parties shall cooperate, and use all commercially reasonable efforts, to make all filings and obtain all licenses, permits, consents, approvals, authorizations, qualifications and orders of Governmental Authorities and other third parties necessary to consummate the transactions contemplated by this Agreement.  In addition to the foregoing, Purchaser agrees to provide such information as to financial capability, resources and creditworthiness as may be reasonably requested by any Person whose consent or approval is sought hereunder or in connection herewith.  Notwithstanding the foregoing, nothing herein shall obligate or be construed to obligate any Party to make any payment to any Person in order to obtain the consent or approval of such Person or to transfer any Assumed Contract, Timberland Lease, Timber Deed or Real Property Lease in violation of its terms.  With respect to any agreement for which any required consent or approval is not obtained prior to the Closing, each of Seller and Purchaser shall use all commercially reasonable efforts to obtain any such consent or approval after the Closing until either such consent or approval has been obtained or Seller determines in good faith that such consent cannot reasonably be obtained.  In addition, to the extent that any Assumed Contract, Timber Lease, Timber Deed or Real Property Lease may not be assigned without the consent or approval of any Person, and such consent is not obtained prior to the Closing, Seller shall use all commercially reasonable efforts to provide Purchaser with the same benefits (and Purchaser shall be responsible for all corresponding obligations) arising under such Assumed Contract, Timberland Lease, Timber Deed or Real Property Lease, including performance by Seller (or Purchaser if applicable) as agent, if legally permissible and commercially feasible; provided, however, that Purchaser (or Seller, if applicable) shall provide Seller (or Purchaser, if applicable) with such access to the premises, books and records and personnel as is reasonably necessary to enable Seller (or Purchaser, if applicable) to perform its obligations under such Assumed Contracts, Timberland Leases, Timber Deeds or Real Property Leases and Purchaser shall pay or satisfy the corresponding liabilities for the enjoyment of such benefits to the extent Purchaser would have been responsible therefor if such consent or approval had been obtained.

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Section 7.6    Supply Agreements.  The Parties acknowledge that, as of the date of this Agreement, the Timberlands are subject to certain Supply, Support and Stumpage Agreements as set forth on Schedule 7.6 attached hereto and hereby made a part hereof (collectively, the “Existing Supply Agreements”) with International Paper Company and West Fraser, Inc. (collectively, “Mill Owners”), which Existing Supply Agreements require that Seller make available certain annual amounts of pulpwood or sawtimber (logs) to its Affiliate, Red Mountain Harvesting LLC, for delivery to the Mill Owners (the “Volume Requirements”). Prior to Closing, Seller shall use its commercially reasonable efforts to (a) cause the Existing Supply Agreements to be terminated or amended as of the Effective Time, such that the Timberlands conveyed to Purchaser shall no longer be subject to such Existing Supply Agreements; (b) obtain the Mill Owners’ agreement and consent to the allocation of the Volume Requirements, and certain other allocations to be made in connection with the termination of or amendment to the Existing Supply Agreements and as more particularly described on Exhibit H (the “Volume Allocations”), between the Existing Supply Agreements and the New Supply Agreements (as hereinafter defined); (c) obtain each Mill Owner’s consent to the transfer of the Timberlands to Purchaser; and (d) facilitate and cooperate, as necessary, in the execution and delivery of new Supply, Support and Stumpage Agreements (the “New Supply Agreements”) between each Mill Owner, Purchaser and Purchaser’s Affiliates, which New Supply Agreements shall be in substantially the same form as the Existing Supply Agreements, but reflecting the Volume Allocations as provided in said Exhibit H. In furtherance of the foregoing, each of Seller and Purchaser agrees that it will execute and deliver or cause to be executed and delivered at Closing all such documents and instruments as shall be reasonably required to accomplish the requirements of this Section 7.6.  In the event that the Mill Owners will not cooperate in entering into the New Supply Agreements, Seller and Purchaser shall enter into such agreements (“Timber Supply Documents”) as are necessary to put the Parties in essentially the same position as though the New Supply Agreements had been executed, and Seller shall obtain the consent of each of the Mill Owners to the Timber Supply Documents.  Notwithstanding anything herein to the contrary, the Parties acknowledge and agree that the Volume Allocations shall be reduced on a pro rata basis to the extent that any portion of the Timberlands is excluded from the conveyance of the Property to Purchaser pursuant to the terms of this Agreement (and are not replaced with Additional Timberlands).

Section 7.7    Regulatory Act Compliance.  Purchaser and Seller shall discuss with each other whether any notification or similar filing is required to be filed with respect to the transactions contemplated by this Agreement under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and if they determine that filings are required, will use commercially reasonable efforts to make the filings within thirty (30) days after the date of this Agreement, and the Purchaser shall pay 100% of all filing and similar fees payable in connection therewith.  With respect to filings under the HSR Act, each of the parties hereto shall seek early termination of the waiting period under the HSR Act.  Purchaser and Seller shall use their respective reasonable best efforts to respond to any request for additional information made by any agencies and to cause the waiting periods 

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or other requirements under the HSR Act to terminate or expire at the earliest possible date and to resist in good faith, at each of their respective cost and expense (including the institution or defense of legal proceedings), any assertion that the transactions contemplated hereby constitute a violation of the antitrust laws, all to the end of expediting consummation of the transactions contemplated hereby.  Each of Purchaser and Seller shall consult with the other prior to any meetings, by telephone or in person, with the staff of the Federal Trade Commission, the United States Department of Justice or any other Governmental Authority, and each of Purchaser and Seller shall have the right to have a representative present at any such meeting.  Seller shall actively investigate its records and applicable exemptions and provide Purchaser with all commercially reasonable arguments that an exemption from filing exists under the HSR Act due to the historical income production from the Timberlands, including delivery to Purchaser of such information, certificates, affidavits and indemnities that Purchaser may require to support such exemption.

Section 7.8    Plum Creek Timber Deeds.  The Parties acknowledge that, as of the date of this Agreement, the timber on a portion of the Timberlands located in Attala, Leake, Madison, Rankin and Scott Counties, Mississippi has been conveyed to Plum Creek pursuant to certain Plum Creek Timber Deeds listed on Schedule 7.8 attached hereto and hereby made a part hereof (said conveyed timber, the “Plum Creek Timber”).  The Plum Creek Timber Deeds require Plum Creek to meet certain minimum harvest thresholds and give Plum Creek certain extension rights with respect to a maximum number of acres of the Plum Creek Aggregate Timber. Prior to Closing, Seller shall use its commercially reasonable efforts to (a) cause the Plum Creek Timber Deeds to be terminated or amended as of the Effective Time, such that the Plum Creek Timber located on the Timberlands conveyed to Purchaser shall no longer be subject to such Plum Creek Timber Deeds; and (b) execute and deliver, and cause to be executed and delivered, new Plum Creek Timber Deeds with respect to the Plum Creek Timber (the “New Plum Creek Timber Deeds”).  The New Plum Creek Timber Deeds shall be in a form reasonably acceptable to Purchaser and shall allocate to Purchaser its allocable portion of the benefits under the Plum Creek Timber Deeds, including the rights to receive payments for extension rights exercised thereunder.  In the event that the Seller is unable to cause Plum Creek to enter into the New Plum Creek Timber Deeds, the Parties shall enter into such agreements as are necessary to put the parties in essentially the same position as though the New Plum Creek Timber Deeds had been executed. 

Section 7.9    Other Timber Deeds.  The Parties acknowledge that, as of the date of this Agreement, certain timber and trees on portions of the Property have been conveyed to third parties pursuant to those certain Timber Deeds listed on Schedule 7.9 attached hereto and hereby made a part hereof. At Closing, Seller shall use its commercially reasonable efforts to cause each Timber Deed Holder to execute in favor of Purchaser an agreement (a) containing an estoppel with respect to the applicable Timber Deed; (b) releasing Purchaser and the Property from any and all liabilities and obligations under such Timber Deed (including, but not limited to, any substitution obligations), other than (i) the liability and obligation of allowing the Timber Deed Holder to enter onto the Property, via roads now or hereafter located on the Property, for the purposes of harvesting, cutting and removing the 

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“Timber” (as defined in such Timber Deed)  located on the Property, pursuant to the terms and conditions of the Timber Deed, and (ii) the obligation of paying ad valorem property taxes attributable to the Property; and (c) consenting to the assignment by Seller to Purchaser of the Timber Deed, to the extent applicable to the Property, and the assumption by Purchaser of the rights, liabilities and obligations thereunder, as modified by the aforesaid agreement, but only to the extent applicable to the Property and only to the extent arising or accruing from and after the effective date of the Assignment and Assumption of Timber Deeds between Seller and Purchaser. The agreement shall be in recordable form and shall otherwise be in form and content reasonably satisfactory to Seller and Purchaser and shall be referred to herein as the “Timber Deed Holder Partial Release and Consent”.

In the event a Timber Deed Holder refuses to execute a Timber Deed Holder Partial Release and Consent in form and content reasonably satisfactory to Purchaser, then, at Closing, Seller shall execute and deliver to Purchaser an indemnity agreement whereby Seller agrees to indemnify, defend and hold Purchaser and its successors, assigns, and successors-in-title harmless from all claims, liabilities, obligations, damages, penalties, fines, costs and expenses (including reasonable attorneys’ fees) that arise out of or relate to the enforcement, or attempted enforcement, of any substitution obligation contained in any such Timber Deed (the “Substitution Obligations Indemnity”). The Substitutions Obligation Indemnity shall otherwise be in form and content reasonably acceptable to Seller and Purchaser.  The provisions of Article X of this Agreement shall not apply to the Substitution Obligations Indemnity.
Section 7.10    Seedling Obligation.  The Parties acknowledge that after Closing Purchaser shall be obligated to purchase seedlings from ArborGen, Inc., or an affiliate, (“ArborGen”) for the 2015 planting season as set forth on Exhibit V attached hereto and hereby made a part hereof.  The requirement for Purchaser to purchase such seedlings is referred to herein as the “2015 Seedling Obligation”.  Purchaser’s assumption of the 2015 Seedling Obligation shall be documented in the form of a purchase agreement between Purchaser and ArborGen (the “Seedling Contract”) entered into no later than the Closing Date in a form to be negotiated between Purchaser and ArborGen no earlier than November 3, 2015.  Purchaser shall not be obligated to share the Seedling Contract with Seller, but Seller shall have the right to seek reasonable confirmation from ArborGen that Purchaser has assumed the 2015 Seedling Obligation as of the Closing Date to ArborGen’s reasonable satisfaction.

ARTICLE VIII
ADDITIONAL AGREEMENTS RELATING TO THE TIMBERLANDS

Section 8.1    Right of Entry.

(a)    General; Certain Limitations.  Upon reasonable prior written notice to Seller, but in no event less than two (2) days’ (and at least one (1) Business Day’s) prior 

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notice, and receipt of written authorization from Seller (which shall not be unreasonably withheld, delayed or conditioned), prior to the Closing Date or termination of this Agreement in accordance with Article XI, Purchaser, through its authorized agents or representatives, may (i) enter upon the Timberlands at all reasonable times for the purposes of making inspections and other studies; provided, however, that neither Purchaser nor its agents or representatives shall (A) enter upon the Timberlands for the purpose of preparing phase II environmental assessment reports or making any soil borings or other invasive or other subsurface environmental investigations relating to all or any portion of the Timberlands, (B) prepare or instruct its agents or representatives to prepare phase II environmental assessment reports or make any soil borings or other invasive or other subsurface environmental investigations relating to all or any portion of the Timberlands, or (C) contact any official or representative of any Governmental Authority regarding Hazardous Substances on or the environmental condition of the Timberlands, in each case without Seller’s prior written consent thereto (which shall not be unreasonably withheld, conditioned or delayed), and (ii) interview employees of Seller, in the presence, and under the supervision, of appropriate officers of Seller, for transition planning purposes and in connection with Purchaser’s environmental investigations. Upon the completion of such inspections and studies described in clause (i) of this Section 8.1(a), Purchaser, at its expense, shall repair any physical damage caused to the Property and remove all debris resulting from and all other material placed on the Timberlands in connection with Purchaser’s inspections and studies.

(b)    Disclosure of Results.  At Seller’s request, Purchaser shall disclose the results of such inspections and studies, and shall deliver copies of all such reports and test results, to Seller.  The results of such inspections and studies (as well as any information and documents that Seller delivered or caused to be delivered to Purchaser concerning the Timberlands) shall be treated as strictly confidential by Purchaser and the same shall not be disclosed to any third party or Governmental Authority (provided that such results, information and documents may be disclosed to consultants, attorneys, insurers, accountants investors and lenders of Purchaser for use solely in connection with the transactions contemplated by this Agreement, who shall be required by Purchaser to similarly treat such results, information and documents as strictly confidential) except to the extent required by any Law or court order or in connection with any legal proceeding filed to enforce a Party’s rights under this Agreement.  In the event that disclosure of the results of any such inspection or study or any such information or document that Seller delivered or caused to be delivered to Purchaser concerning the Timberlands is required by applicable Law or court order, Purchaser shall notify Seller promptly in writing so that Seller may seek a protective order (at its own cost and expense) or other appropriate remedy or, in its sole discretion, waive compliance with the terms of this Section 8.1(b). Purchaser shall cooperate with Seller, at Seller’s sole cost and expense, to obtain a protective order or other appropriate remedy. In the event that no such protective order or other appropriate remedy is obtained, or Seller waives compliance with the terms of this Section 8.1(b), Purchaser shall give Seller written notice of the information to be disclosed as far in advance of its disclosure as practicable.

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(c)    Insurance.  Purchaser and the contractors, representatives and agents of Purchaser who enter upon the Timberlands shall maintain general liability insurance, naming Seller as an additional insured, in an amount not less than $2,000,000.00 and, prior to any such entry upon the Timberlands, shall provide Seller with written evidence of such insurance.

Section 8.2    Permits and Licenses.  Purchaser shall be solely responsible for obtaining all permits and licenses, if any, required by Purchaser to carry on its intended operations on the Timberlands.

Section 8.3    Estoppel Certificates.  Seller shall exercise commercially reasonable efforts to obtain an estoppel certificate from the lessor under each of the Timberland Leases substantially in the form of Exhibit M attached hereto (the “Estoppel Certificates”) confirming, at a minimum (1) that such agreement is in full force and effect; (2) that there are no defaults thereunder by any party thereto; and (3) the identity of the Persons (and their addresses) to whom payments are to be made thereunder.

Section 8.4    Certain Easements.

(a)    Easement Title.  To the extent affirmative action is necessary for Seller to acquire or reserve the easement ownership of the Reserved Easements or to establish or confirm easement title to the Reserved Easements in Seller, Purchaser and its Affiliates shall cooperate with Seller in such efforts, including executing all documents pertaining to the Reserved Easements as are reasonably requested by Seller. 

(b)    Post-Closing Reserved Easements.  For a period of one (1) year following the Closing Date, in the event that Seller identifies any portion of the Timberlands that should have been identified as a Reserved Easement (based on the definition thereof), but was not disclosed to Purchaser prior to the Closing (a “Post-Closing Reserved Easement”), so long as such Post-Closing Reserved Easement relates to a use or access right that existed as of the Effective Time (taking into account the change of ownership of Seller’s various properties and assets), is consistent with the purposes of the Reserved Easement and does not have a material adverse effect on the use and enjoyment by Purchaser of the Timberlands for growing and harvesting timber, Purchaser and its Affiliates shall cooperate with Seller, at Seller’s sole cost and expense, in any commercially reasonable effort that may be necessary for Seller or any Person who may acquire facilities not included in the Property from Seller to acquire easement ownership in any Post-Closing Reserved Easement or to establish or confirm easement title to the Post-Closing Reserved Easements in Seller or such Person, including executing all documents pertaining to the Post-Closing Reserved Easements as are reasonably requested by Seller or any such Person.

(c)    Appurtenant Easements. Prior to the Closing Date, Purchaser and Seller shall cooperate in determining any Appurtenant Easements that may be necessary or 

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convenient for Purchaser’s ownership of and access to the Timberlands, all of which Appurtenant Easements identified prior to Closing shall be included in the Conveyance Instruments granted to Purchaser. Further for a period of one (1) year following the Closing Date, in the event that Purchaser identifies any property owned by Seller or its Affiliates in the vicinity of any Timberlands that is required for one or more Appurtenant Easements to access the Timberlands (“Post-Closing Appurtenant Easement”), Seller shall grant (or shall cause its Affiliates to grant) such Appurtenant Easements to Purchaser to the extent Seller or an Affiliate of Seller owns the land over which the Appurtenant Easement is requested, all at no additional cost to Purchaser; provided, however, such no Appurtenant Easement shall have a material adverse effect on the use and enjoyment of the burdened property by Seller or its Affiliates. Seller and its Affiliates shall cooperate with Purchaser, at Purchaser’s sole cost and expense (but without payment of any fee for the granting of such Appurtenant Easement), in any commercially reasonable effort that may be necessary for Purchaser or any Person who may acquire facilities not included in the Property from Purchaser to acquire easement ownership in any Post-Closing Appurtenant Easement or to establish or confirm easement title to the Post-Closing Appurtenant Easements in Purchaser or such Person, including executing all documents pertaining to the Post-Closing Appurtenant Easements as are reasonably requested by Purchaser or any such Person.

(d)    No Interference.  None of Purchaser or any of its Affiliates shall interfere with or oppose the Reserved Easements or any Post-Closing Reserved Easements.  Neither Seller nor any of its Affiliates shall interfere with or oppose the Appurtenant Easements or any Post-Closing Appurtenant Easements.

(e)    Cooperation. Seller and Purchaser shall cooperate with each other in good faith to identity and grant the easements referred to in this Article VIII.

Section 8.5    Title Insurance Matters.  

(a)    Title Commitments and Policies.  Seller shall request and use commercially reasonable efforts to cause the Title Company to issue title commitments for the issuance of one or more Title Policies on the Timberlands (individually, a “Title Commitment” and collectively, the “Title Commitments”).  At the Closing, Purchaser shall purchase from the Title Company an aggregate amount of title insurance on the Timberlands in an amount not to exceed the Purchase Price (allocated by county and/or state, as applicable) and allocated to the Property using the standard 2006 ALTA owner’s title insurance policy (or such other comparable form of title insurance policy as is available in the jurisdictions in which the Timberlands are located), which title insurance policies shall insure that, as of the Closing Date, Purchaser holds fee simple title to the Owned Timberlands and leasehold title to the Leased Timberlands, in each case subject only to the Permitted Exceptions (the “Title Policies”).  Seller and its Affiliates shall cooperate, at no cost to Seller or its Affiliates, with Purchaser in its efforts to purchase Title Policies containing the following endorsements (each of which shall be in a form reasonably acceptable to Purchaser): (i) a “same as map” endorsement, insuring that the land described in the legal descriptions of the Timberlands 

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contained in the Title Policies is the same land as shown on the Maps describing the Timberlands; and (ii) so called gap coverage, including providing such affidavits and indemnities as may be reasonably requested by the Title Company. In addition, Seller and its Affiliates shall cooperate, at no cost or additional liability to Seller, with Purchaser in its efforts to purchase title insurance covering portions of the Timberlands where Seller has historically enjoyed access and where Seller has written permission to access portions of the Timberlands, including by providing such affidavits as may be reasonably requested by the Title Company. Seller shall provide Purchaser with any information in Seller’s possession or control regarding historical, verbal and/or written access rights to the Timberlands which Seller enjoys as of the date of this Agreement and as of the Closing Date.

(b)    No Surveys.  Seller shall not provide any survey of the Timberlands to Purchaser.  Purchaser agrees that the obtaining of any survey of the Timberlands or any portion thereof shall not be a condition precedent to Purchaser’s obligation to consummate the transactions contemplated by this Agreement or the Ancillary Agreements and that any survey obtained by Purchaser shall be at its sole cost and expense.

(c)    Title Expenses.  Seller shall be responsible for the costs associated with the title examinations and the issuance of the Completed Title Commitments and for the costs associated with the bring down title examination that will be performed in connection with the issuance of the Title Policies and that are separately stated from the premiums for the Title Policies.  Purchaser shall be responsible for the premiums payable in connection with the issuance of the Title Policies.

Section 8.6    Anti-Solicitation.  Except as otherwise expressly set forth herein, the provisions of the Confidentiality Agreement governing solicitation for employment, inducing or attempting to induce to leave the employ of Seller or any Affiliate of Seller, and employing or hiring certain employees of Seller, shall remain in effect until the termination of such provisions in accordance with their terms under the Confidentiality Agreement.

ARTICLE IX
CONDITIONS PRECEDENT

Section 9.1    Conditions to Obligations of Each Party to Close.  The obligations of the Parties to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction or waiver, on or before the Closing Date, of the following conditions:

(a)    Waiting Periods.  All waiting periods (and any extension thereof) under Regulatory Law applicable to the transactions contemplated by this Agreement shall have expired or been earlier terminated and neither the Department of Justice nor the Federal Trade Commission shall have taken any action to enjoin or delay (for a period of longer than 120 days) the consummation of the transactions contemplated by this Agreement.

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(b)    No Injunction.  There shall be no injunction, restraining order or decree of any nature of any court or Governmental Authority that is in effect that restrains or prohibits the consummation of the transactions contemplated by this Agreement or imposes conditions on such consummation not otherwise provided for herein.

(c)    No Investigation.  No Party shall have been advised by any United States federal government agency (which advisory has not been officially withdrawn on or prior to the Closing Date) that such government agency is investigating the transactions contemplated by this Agreement to determine whether to file or commence any litigation that seeks or would seek to enjoin, restrain or prohibit the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements.

(d)    Casualty Losses Limit.  The aggregate fair market value of the lost and damaged timber from all Casualty Losses shall not exceed NINETEEN MILLION TWO HUNDRED THOUSAND and No/100 Dollars ($19,200,000.00) (e.g. five percent (5%) of the Purchase Price).

(e)    Title Insurance.  The Title Company, or another national title company, shall issue the Title Policies to Purchaser at the Effective Time insuring title to the Timberlands subject only to the Permitted Exceptions, in the form of “marked binders” of all of the Completed Title Commitments conditioned only upon payment of the title policy premium.

Section 9.2    Conditions to Obligations of Purchaser to Close.  The obligation of Purchaser to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction or waiver, on or before the Closing Date, of the following conditions:

(a)    Consents.  All material consents, authorizations, registrations or approvals of or with any Governmental Authority or other Person required in connection with the consummation of the transactions contemplated by this Agreement to have been filed, made, given or obtained by Seller shall have been filed, made, given or obtained and copies thereof shall have been delivered to Purchaser; provided, however, that the obligation of Purchaser to consummate the transactions contemplated by this Agreement shall not be subject to the satisfaction or waiver of the condition set forth in this Section 9.2(a) if Purchaser fails to satisfy its obligations under Section 7.1(c), or Seller fails to obtain the consents contemplated in Sections 7.8 or 7.9.

(b)    Representations and Warranties.  Each of the representations and warranties of Seller contained in this Agreement shall be true and correct, without regard to “materiality” or “Material Adverse Effect” or similar qualifications in any such representation and warranty, in each case as of the date of this Agreement and as of the Closing with the same effect as though made as of the Closing (except to the extent expressly made as of an earlier date, in which case as of such date), except where the failure of such 

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representations and warranties to be true and correct as so made does not have and would not be reasonably likely to have, in each case individually or in the aggregate, a Material Adverse Effect.

(c)    Agreements and Covenants.  Seller shall have performed or complied with, in all material respects, all agreements and covenants required by this Agreement to be performed or complied with by Seller on or prior to the Closing.

(d)    Seller Deliveries.  Seller shall have tendered for delivery or caused to be tendered for delivery to Purchaser the items set forth in Section 2.2(a).

Section 9.3    Conditions to Obligations of Seller.  The obligation of Seller to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction or waiver, on or before the Closing Date, of the following conditions:

(a)    Consents.  The consents, authorizations, registrations or approvals of or with Governmental Authorities or any other Person required in connection with the consummation of the transactions contemplated by this Agreement to have been filed, made, given or obtained by Purchaser shall have been filed, made, given or obtained and copies thereof shall have been delivered to Seller; provided, however, that the obligation of Seller to consummate the transactions contemplated by this Agreement shall not be subject to the satisfaction or waiver of the condition set forth in this Section 9.3(a) if Seller fails to satisfy its obligations under Section 7.1(c), or Seller fails to obtain the consents contemplated in Sections 7.8 or 7.9.

(b)    Representations and Warranties.  Each of the representations and warranties of Purchaser contained in this Agreement shall be true and correct, without regard to “materiality” or similar qualifications in any such representation and warranty, in each case as of the date of this Agreement and as of the Closing with the same effect as though made as of the Closing (except to the extent expressly made as of an earlier date, in which case as of such date), except where the failure of such representations and warranties to be true and correct as so made does not have and would not be reasonably likely to have, in each case individually or in the aggregate, a material adverse effect on the ability of Purchaser to perform its obligations under or consummate the transactions contemplated by this Agreement.

(c)    Agreements and Covenants.  Purchaser shall have performed or complied with, in all material respects, with all agreements and covenants required by this Agreement to be performed or complied with by it on or prior to the Closing.

(d)    Deliveries.  Purchaser shall have tendered for delivery or caused to be tendered for delivery to Seller the items set forth in Section 2.2(b).

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ARTICLE X
SURVIVAL; INDEMNIFICATION

Section 10.1    Survival.  Except as otherwise set forth in this Article X, (i) all representations and warranties made in this Agreement and (ii) all agreements or covenants made in this Agreement and to be performed prior to or at Closing shall survive for a period of eighteen (18) months after the Closing Date (the “Indemnity Period”).  Notwithstanding the foregoing, except as set forth in Section 11.2, no representation, warranty, covenant or agreement shall survive any termination of this Agreement.  After the Indemnity Period or, except as provided in Section 11.2, the Parties agree that no claims or causes of action may be brought against any Party or any of its directors, officers, employees, Affiliates, controlling persons, agents or representatives based upon, directly or indirectly, any of the representations and warranties contained in this Agreement.  This Section 10.1 shall not limit any covenant or agreement of the Parties that contemplates performance after the Closing.

Section 10.2    Seller’s Obligation to Indemnify for Covenant Breach.  If the Closing occurs, Seller shall indemnify, defend and hold harmless Purchaser and its directors, officers, employees, Affiliates, controlling Persons, agents and representatives and their successors and assigns (collectively, the “Purchaser Indemnitees”) from and against any Loss asserted against or incurred by any Purchaser Indemnitee as a result of or arising out of: (i) a breach of any agreement or covenant of Seller in this Agreement that requires performance or compliance on or prior to the Closing; (ii) a breach of any other agreement or covenant contained in this Agreement by Seller; or (iii) any claim by any Person for a broker’s, finder’s, financial advisor’s or other similar fee, payment or commission based upon any agreement, arrangement or understanding alleged to have been made by any such Person with Seller (or any Person acting on Seller’s behalf) in connection with the transactions contemplated by this Agreement.  

Section 10.3    Purchaser’s Obligation to Indemnify for Covenant Breach.  Subject to the terms and conditions set forth herein, from and after the Closing Date, Purchaser shall indemnify, defend and hold harmless Seller and its directors, officers, employees, Affiliates, controlling Persons, agents and representatives and their successors and assigns (collectively, the “Seller Indemnitees”) from and against any Loss asserted against or incurred by any Seller Indemnitee as a result of or arising out of: (i) a breach of any agreement or covenant of Purchaser contained herein that contemplates performance or compliance on or prior to the Closing Date; (ii) a breach of any other agreement or covenant of Purchaser, to the extent such agreement or covenant is required by this Agreement to be performed or complied with after the Closing; (iii) any physical damage to the Timberlands caused by the entry upon the Timberlands prior to the Closing by Purchaser or any employee, contractor, representative or agent of Purchaser; or (iv) any claim by any Person for a broker’s, finder’s, financial advisor’s or other similar fee, payment or commission based upon any agreement, arrangement or understanding alleged to have 

36

been made by any such Person with Purchaser (or any Person acting on Purchaser’s behalf) in connection with the transactions contemplated by this Agreement.

Section 10.4    Indemnification for Breaches of Representations and Warranties.

(a)    Obligation to Indemnify.  If the Closing occurs, then in addition to the indemnification obligations in Sections 10.2 and 10.3, each of Seller and Purchaser shall indemnify, defend and hold the Purchaser Indemnitees, in the case of Seller, and the Seller Indemnitees, in the case of Purchaser, harmless for any Loss incurred or suffered by any of them as a result of or in connection with or involving a breach of a representation or warranty by the Indemnifying Party in this Agreement either (i) as made as of the date of this Agreement or (ii) if the Closing occurs, as hereby expressly re-made as of the Closing; provided, however, that as to the representations and warranties as deemed re-made as of the Closing, the determination of whether such a breach has occurred will disregard failure of this Agreement to list Contracts or other similar obligations incurred by Seller in the ordinary course of business after the date of this Agreement and not in violation of Section 7.2(a).

(b)    Certain Limitations.  Notwithstanding the foregoing and solely with respect to the indemnification obligations in Section 10.4(a) above:

(i)    Time Limitations.  Seller shall be obligated to indemnify the Purchaser Indemnitees and Purchaser shall be obligated to indemnify the Seller Indemnitees only for those claims giving rise to any Loss as to which the Person claiming the right to be indemnified (the “Indemnified Party”) has given the Party from whom it is claiming indemnification (the “Indemnifying Party”) written notice prior to the end of the Indemnity Period.  

(ii)    Basket.  No indemnification shall be made by either Seller or Purchaser with respect to any claim made pursuant to Section 10.4(a) unless (A) the amount of such claim exceeds $100,000 (the “Minimum Claim Amount”), and (B) the aggregate amount of Losses incurred or suffered by all Purchaser Indemnitees or all Seller Indemnitees, as the case may be, under all claims in excess of the Minimum Claim Amount made pursuant to Section 10.4(a) exceeds Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000.00) (the “Basket Amount”) and, in such event, indemnification shall be made by the Indemnifying Party only to the extent the Losses exceed, in the aggregate, the Basket Amount.

(iii)    Knowledge.  If on or prior to the Closing, Purchaser or Seller knows of any information that would cause one or more of the representations and warranties made by Seller or Purchaser, respectively, to be inaccurate as of the date made or as of the Closing Date, the Purchaser Indemnitees or the Seller Indemnitees, as the case may be, shall not have any right or remedy after the Closing with respect 

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to such inaccuracy and shall be deemed to have waived its rights to indemnification in respect thereof.

Section 10.5    Procedures for Claims and Satisfaction.  All claims for indemnification under this Article X shall be resolved in accordance with the following procedures:

(a)    Notice of Claim.  Notice must be given of facts that are the basis of an indemnification claim under this Article X by the Indemnified Party to the Indemnifying Party.  In the case of claims pursuant to Section 10.4(a), that notice must be given before the expiration of the Indemnity Period as specified in Section 10.4(b)(i).  Any written notice delivered by an Indemnified Party to the Indemnifying Party with respect to a Loss shall set forth, with as much specificity as is reasonably practicable, the basis of the claim for such Loss and, to the extent reasonably practicable, a reasonable estimate of the amount thereof.

(b)    Defense of Third Party Claims.  

(i)    Generally.  If a claim or demand for indemnification is based upon an asserted liability or obligation to a Person not a Party (other than Purchaser), a successor or assign of a Party nor a Purchaser Indemnitee or a Seller Indemnitee (a “Third Party Claim”), then (and without limiting the obligations under Section 10.5(a)), the Indemnified Party will undertake in good faith to give prompt notice of any such Third Party Claim to the Indemnifying Party; provided, however, that a failure to provide such notice of a Third Party Claim will not prejudice any right to indemnification under this Agreement except to the extent that the Indemnifying Party is prejudiced by such failure.  The Indemnifying Party will defend such Third Party Claims at its expense with lawyers chosen (with the Indemnified Party’s consent, which will not be unreasonably withheld, conditioned or delayed) and paid by it and will give written notice (the “Notice of Defense”) to the Indemnified Party within thirty (30) days after the date such notice of a Third Party Claim is deemed received that acknowledges that it is defending the claim and that identifies the lawyer retained for the defense.  The Indemnifying Party may not settle any such Third Party Claim without the prior written consent of the Indemnified Party (which consent will not be unreasonably withheld, conditioned or delayed). The Indemnifying Party shall not enter into any settlement or compromise of any action, suit or proceeding or consent to the entry of any judgment for other than monetary damages to be borne by the Indemnifying Party without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld, conditioned or delayed.

(ii)    Control of Defense.  Notwithstanding anything to the contrary in this Section 10.5: (A) the Indemnified Party will be entitled to participate in the defense of such claim or action and to employ lawyers of its choice for such purpose 

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at its own expense, and (B) the Indemnified Party will be entitled to assume control of the defense of such claim, and the Indemnifying Party will pay the reasonable fees and expenses of lawyers retained by the Indemnified Party (excluding the fees and expenses of the Indemnified Party’s lawyers before the date of such assumption of the defense), if:  (1) the Indemnified Party reasonably believes that there exists or could arise a conflict of interest that, under applicable principles of legal ethics, could prohibit a single lawyer or law firm from representing both the Indemnified Party and the Indemnifying Party in such claim or action, and such conflict has not been timely waived; (2) the Indemnifying Party either failed to give a Notice of Defense or has failed or is failing to prosecute or defend vigorously such claim or action; or (3) criminal penalties could be imposed on the Indemnified Party in connection with such claim or action.

(c)    General Limitations.  Each of the indemnification obligations of Seller and Purchaser under this Article X, including the indemnification obligation pursuant to Section 10.4(a), is subject to the following limitations:

(i)    Insurance Recoveries.  The amount of any Loss shall be reduced by any amount received by the Indemnified Party (or an Affiliate) with respect thereto under any third party insurance coverage or from any other Person (excluding an Affiliate of the Indemnified Party) alleged to be responsible therefore, net of any expense incurred by the Indemnified Party in collecting such amount.  Any Indemnified Party that makes a claim for indemnification under this Article X shall use commercially reasonable efforts to collect any amount available under any such insurance coverage and from any such other Person alleged to have responsibility. If an Indemnified Party (or an Affiliate) receives an amount under insurance coverage or from such other Person with respect to a Loss at any time subsequent to any indemnification provided the Indemnifying Party pursuant to this Article X, then such Indemnified Party shall promptly reimburse the Indemnifying Party for any payment made or expense incurred by the Indemnifying Party in connection with providing such indemnification up to such amount received by the Indemnified Party (or Affiliate), net of any expense incurred by the Indemnified Party in collecting such amount.

(ii)    Cap.  In no event shall either Seller’s or Purchaser’s aggregate obligation to indemnify the Purchaser Indemnitees, in the case of Seller, or the Seller Indemnitees, in the case of Purchaser, pursuant to this Article X exceed NINETEEN MILLION TWO HUNDRED THOUSAND and No/100 Dollars ($19,200,000.00) (e.g. five percent (5%) of the Purchase Price).

(d)    Notice of Fixed Loss.  When a Loss as to which a notice has been timely given in accordance with Section 10.5(a) is paid or is otherwise fixed or determined, then the Indemnified Party will give the Indemnifying Party notice of such Loss, in reasonable detail and specifying the amount of such Loss and the provision of this Agreement 

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upon which the claim for indemnification for such Loss is based (which notice will be in addition to the notice required under Section 10.5(a), but the notices under this Section 10.5(d) and under Section 10.5(a) may be given simultaneously and in a single instrument when appropriate and in compliance with both provisions).  If the Indemnifying Party is permitted to dispute such claim, it will, within 30 days after receipt of notice of the claim of Loss against it pursuant to this Section 10.5(d), give counternotice, setting forth the basis for disputing such claim, to the Indemnified Party.  If no such counternotice is given within such thirty-day period or if the Indemnifying Party acknowledges liability for indemnification, then such Loss will be satisfied within three (3) Business Days as provided in Section 10.5(e).  If the Indemnifying Party timely gives counternotice of a dispute, the Indemnified Party and the Indemnifying Party shall endeavor to resolve such dispute in accordance with Section 7.4.

(e)    Satisfaction of Indemnification Obligation.  Subject to the procedures set forth above and in accordance with the deadlines specified in the preceding provisions of this Section 10.5, any indemnified Loss will be satisfied by the Indemnifying Party paying the amount of such Loss to the Indemnified Party plus interest on the amount of such Loss incurred by the Indemnified Party from the date the Indemnified Party actually paid such Loss (but without duplication of any interest payable with respect to any judgment underlying a Loss resulting from a Third Party Claim) at the Prime Rate.  Payments pursuant to the foregoing will be by wire transfer or by check, as the recipient may direct; provided, however, that in the absence of directions within a reasonable period of time, payment may be made by check.  

Section 10.6    Certain Rules.

(a)    Adjustment to Purchase Price.  Any payment made pursuant to the indemnification provisions of this Article X shall be deemed to be an adjustment to the Purchase Price and the Parties shall treat it as such for all purposes.  There shall be no indemnification under any provision of this Article X for a breach of any representation, warranty, agreement or covenant to the extent an adjustment to the Purchase Price has been made pursuant to Section 1.6 with respect to such breach. 

(b)    Definition of Loss.  “Loss” means any loss, cost, damage, expense, payment, liability or obligation incurred or suffered with respect to the act, omission, fact or circumstance with respect to which such term is used, including: (i) subject to Section 10.5(b), related attorneys’, accountants’ and other professional advisors’ fees and expenses, including those as to investigation, prosecution or defense of any claim or threatened claim including any attorneys’ fees and expenses in connection with one or more appellate or bankruptcy proceedings arising out of any such claim; and (ii) amounts paid in settlement of a dispute with a Person not a Party that if resolved in favor of such Person would constitute a matter to which a Party is indemnified pursuant to this Agreement, even though such settlement does not acknowledge that the underlying facts or circumstances constitute a breach of a representation and warranty or other indemnified matter.  Notwithstanding the 

40

foregoing, “Loss” does not include any punitive, incidental, indirect, special or consequential damages; provided, however, that in the case of a Third Party Claim, “Loss” includes the total amount of any judgment and any other award payable to a Person other than a Party, a successor or assign of a Party, or a Purchaser Indemnitee or a Seller Indemnitee pursuant to the Third Party Claim.

(c)    No Limitation.  No limitation on indemnification contained in this Article X shall apply to any Loss resulting from or involving any intentional and knowing breach of a representation and warranty set forth in this Agreement on the part of the Indemnifying Party (or any Affiliate) and no basket or cap shall be applicable in any such instance.

Section 10.7    Exclusive Remedy.  Each of the Parties agrees that, except as may be otherwise contemplated herein, if the Closing occurs, the indemnification provided in this Article X is the exclusive remedy for a breach by any Party of any representation, warranty, agreement or covenant contained in this Agreement and is in lieu of any and all other rights and remedies that any other Party may have under this Agreement or otherwise for monetary relief or equitable relief with respect to the matters described in this Article X.

ARTICLE XI
TERMINATION AND ABANDONMENT

Section 11.1    Termination.  This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing:

(a)    by mutual written consent of Seller and Purchaser; 

(b)    by either Seller or Purchaser, if the Closing has not occurred on or prior to  January 31, 2015; provided, however, that such termination date may be extended one time at the option of Seller or Purchaser, in its sole discretion, for up to thirty (30) days each (such date, including any such permitted extensions thereof, the “Termination Date”); provided, further, that the right to terminate the Agreement pursuant to this Section 11.1(b) shall not be available to Seller or Purchaser if it fails to perform any of its obligations under this Agreement, which failure primarily contributes to the failure of the Closing to have occurred by such time;

(c)    by Seller if Purchaser does not timely deliver the Deposit pursuant to Section 1.4 or if Purchaser breaches Section 7.3(a); 

(d)    by Seller upon a breach or violation of any representation, warranty, covenant or agreement on the part of Purchaser set forth in this Agreement, which breach or violation would result in the failure to satisfy the conditions set forth in Section 9.3 and, in any such case, such breach or violation shall be incapable of being cured by the Termination 

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Date, or Purchaser shall not be using on a continuous basis all commercially reasonable efforts to cure in all material respects such breach or violation after the giving of written notice thereof by Seller to Purchaser of such violation or breach; and

(e)    by Purchaser upon a breach or violation of any representation, warranty, covenant or agreement on the part of Seller set forth in this Agreement, which breach or violation would result in the failure to satisfy the conditions set forth in Section 9.2 and, in any such case, such breach or violation shall be incapable of being cured by the Termination Date, or Seller shall not be using on a continuous basis all commercially reasonable efforts to cure in all material respects such breach or violation after the giving of written notice thereof by Purchaser to Seller of such violation or breach.

Section 11.2    Effect of Termination.  Subject to the following provisions of this Section 11.2, upon any termination of this Agreement as provided in Section 11.1, the obligations of the Parties hereunder shall terminate and there shall be no liability on the part of any Party hereto with respect thereto, except for the provisions of Section 2.3, Section 8.1, this Section 11.2 and Article XII; provided, however, that in no case shall any Party be relieved or released from any liability or damages arising from a willful breach of any provision of this Agreement (including any failure to consummate the transactions contemplated by this Agreement unless an express condition to such Party’s obligation to consummate such transactions has not been satisfied). Purchaser acknowledges that Seller has informed Purchaser that the damages to Seller of Purchaser’s failure to consummate the transactions contemplated by this Agreement are incapable of accurate estimation. Accordingly, if Seller elects to terminate this Agreement pursuant to Section 11.1(c) or Section 11.1(d), then Title Company shall promptly, but in no event later than one Business Day after the effective date of any such termination, deliver to Seller the Deposit, which shall be payable in immediately available funds, not as a penalty but as full and complete liquidated damages; provided, however, that the Deposit will not be payable to Seller pursuant to this Section 11.2 if Purchaser is then entitled to terminate this Agreement pursuant to Section 11.1(e) or Section 11.1(f). Purchaser agrees that the amount of the Deposit is a reasonable forecast of just compensation for the harm to Seller that would result from a termination of this Agreement pursuant to Section 11.1(c) or Section 11.1(d). Notwithstanding the foregoing, if Seller elects to terminate this Agreement pursuant to Section 11.1(c) because Purchaser has failed to timely deliver the Deposit, Seller shall have the right to pursue against Purchaser all remedies available at law or in equity. Other than as provided in the immediately preceding sentence, Seller agrees that disbursement of the Deposit to Seller as liquidated damages shall be Seller’s sole and exclusive remedy for Purchaser’s breach of this Agreement. In the event of any termination of this Agreement pursuant to Section 11.1(a), (b), (e) or (f), the Deposit will be returned to Purchaser.

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ARTICLE XII
GENERAL PROVISIONS

Section 12.1    Notice.  All notices, requests, demands, and other communications hereunder shall be in writing, and shall be deemed to have been duly given if delivered in person, sent by facsimile transmission or sent by overnight courier service (with all fees prepaid) as follows:

If to Seller, to:

Resource Management Service, LLC
31 Inverness Center Parkway, Suite 360
Birmingham, AL 35242
Attn: Ed Sweeten
Facsimile: (205) 991-2807

with a copy to:

Sutherland Asbill & Brennan LLP
999 Peachtree Street, Suite 2300
Atlanta, Georgia  30309
Attention:  Victor Haley, Esq.
Facsimile:  404.853.8806

If to Purchaser:

Bill DeReu
Vice President-Real Estate
Potlatch Corporation
601 West First Ave, Suite 1600
Spokane, WA 99201
Facsimile: (509) 343-2809

with a copy to:

Lorrie D. Scott
Vice President, General Counsel & Corporate Secretary 
Potlatch Corporation
601 West First Ave, Suite 1600
Spokane, WA 99201
Facsimile: (509) 343-2809

and to:

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Smith, Gambrell & Russell, LLP
Suite 3100, Promenade II
1230 Peachtree Street, N.E.
Atlanta, Georgia  30309-3592
Attention:  Mark G. Pottorff
Facsimile:  (404) 685-6897

Any such notice, request, demand or other communication shall be deemed to be given and effective if delivered in person, on the date delivered, if sent by overnight courier service, on the date sent as evidenced by the date of the bill of lading, or if sent by facsimile transmission, on the date transmitted; and shall be deemed received if delivered in person, on the date of personal delivery, if sent by overnight courier service, on the first Business Day after the date sent, or if by facsimile transmission, on the date of confirmation of receipt (including electronic confirmation).  Any Party sending a notice, request, demand or other communication by facsimile transmission shall also send a hard copy of such notice, request, demand or other communication by one of the other means of providing notice set forth in this Section 12.1.  Any notice, request, demand or other communication shall be given to such other representative or at such other address as a Party may furnish to the other Parties in writing pursuant to this Section 12.1.
Section 12.2    Legal Holidays.  If any date set forth in this Agreement for the performance of any obligation by any Party, or for the delivery of any instrument or notice as herein provided, should be a Saturday, Sunday or legal holiday, the compliance with such obligation or delivery shall be deemed acceptable on the next day which is not a Saturday, Sunday or legal holiday.  As used herein, the term “legal holiday” means any state or federal holiday for which financial institutions or post offices are generally closed in the State of Georgia for observance thereof.

Section 12.3    Further Assurances.  Each of the Parties shall execute such further Conveyance Instruments and such other documents, instruments of transfer or assignment (including a real estate excise Tax affidavit) and do such other acts or things as may be reasonably required or desirable to carry out the intent of the Parties hereunder and the provisions of this Agreement and the transactions contemplated hereby.

Section 12.4    Assignment; Binding Effect.  This Agreement shall not be assignable or otherwise transferable (i) by Purchaser without the prior written consent of Seller, and (ii) by Seller without the prior written consent of Purchaser; provided, however, that Purchaser may, by written notice to Seller, assign all or any portion of its rights and obligations under this Agreement to any Affiliate thereof provided such assignment must be at no cost or expense to Seller and must not delay the date of Closing.  Any attempt to assign this Agreement without the prior written consent required by this Section 12.4 shall be void.  Notwithstanding the foregoing, Purchaser shall have the right to cause the Closing to occur as part of a “like-kind” exchange pursuant to the provisions of Section 1031 of the 

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Internal Revenue Code of 1986, as amended, and the regulations thereunder. Seller shall cooperate with Purchaser in effecting a qualifying like-kind exchange and to execute such documents as are reasonably necessary to effect such like-kind exchange, provided that such exchange must occur using a qualified intermediary, must not require either party to take title to any property other than the Property, must be at no cost or expense to Seller, and must not delay the date of Closing.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. 
 
Section 12.5    Entire Agreement.  This Agreement (including the Exhibits hereto), the Confidentiality Agreement and the other Transaction Documents constitute the entire agreement and understanding of the Parties and supersede any prior agreements or understandings, whether written or oral, among the Parties with respect to the subject matter hereof.

Section 12.6    Amendment; Waiver.  This Agreement may not be amended or modified in any manner other than by an agreement in writing signed by all of the Parties or their respective successors or permitted assigns.  No waiver under this Agreement shall be valid or binding unless set forth in a writing duly executed and delivered by each Party against whom enforcement of such waiver is sought.  Neither the waiver by any of the Parties of a breach of or a default under any provision of this Agreement, nor the failure by any of the Parties, on one or more occasions, to enforce any provision of this Agreement or to exercise any right or privilege hereunder, shall be construed as a waiver of any other breach or default of a similar nature, or as a waiver of any of such provisions, rights or privileges hereunder.  

Section 12.7    Confidentiality.  Except as otherwise provided or permitted in Section 7.3, each Party will hold, and will cause its officers, employees, accountants, counsel, financial advisors and other representatives and Affiliates to hold, any nonpublic information confidential in accordance with the terms of the Confidentiality Agreement.  

Section 12.8    No Third Party Beneficiaries.  Nothing in this Agreement or any of the Ancillary Agreements, whether express or implied, is intended or shall be construed to confer upon or give to any Person, other than the Parties hereto, the Purchaser Indemnitees and the Seller Indemnitees (with respect to Article X), any right, remedy or other benefit under or by reason of this Agreement.

Section 12.9    Severability of Provisions.  If any provision of this Agreement (including any phrase, sentence, clause, Section or subsection) is inoperative, invalid, illegal or unenforceable for any reason, all other provisions of this Agreement shall remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party.  Upon any such determination, the Parties shall negotiate in good faith to modify this Agreement so as to give effect to the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

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Section 12.10     Governing Law.

(a)    This Agreement shall be governed in all respects, including validity, construction, interpretation and effect, by the laws of the State of GEORGIA, without giving effect to its principles or rules of conflict of laws to the extent such principles or rules would require or permit the application of the laws of another jurisdiction.  Each of the Parties hereby (i) irrevocably submits to the jurisdiction of the courts of the State of GEORGIA (INCLUDING, WITHOUT LIMITATION, THE BUSINESS COURT OF THE FULTON COUNTY SUPERIOR COURT) and the Federal courts of the United States of America in AND FOR FULTON COUNTY, GEORGIA for the purpose of any action or proceeding arising out of this Agreement or any of the transactions contemplated by this Agreement, (II) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, and (III) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than a GEORGIA statE COURT OR federal court in and for fulton COUNTY, GEORGIA.  Each of the Parties hereby consents to and grants any such court jurisdiction over the person of such Party and over the subject matter of any such dispute and agrees that mailing of process or other papers in connection with any such action or proceeding in the manner provided in Section 12.1, or in such other manner as may be permitted by Law, shall be valid and sufficient service thereof on such Party.

(b)    EACH PARTY HEREBY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE ANCILLARY AGREEMENTS, OR THE BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT OR ANY OF THE ANCILLARY AGREEMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY HEREBY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND EACH OF THE ANCILLARY AGREEMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS SET FORTH IN THIS SECTION.

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Section 12.11     Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and, when taken together, shall constitute one agreement.

Section 12.12     Captions.  The captions and other headings contained in this Agreement as to the contents of particular articles, sections, paragraphs or other subdivisions contained herein are inserted for convenience of reference only and are in no way to be construed as part of this Agreement or as limitations on the scope of the particular articles, sections, paragraphs or other subdivisions to which they refer and shall not affect the interpretation or meaning of this Agreement.  “Article,” “Section,” “Subsection,” or “Exhibit” refers to such item of or attached to this Agreement.

Section 12.13     Construction.  The Parties agree that “including” and other words or phrases of inclusion, if any, shall not be construed as terms of limitation, so that references to “included” matters shall be regarded as nonexclusive, non-characterizing illustrations and equivalent to the terms “including, but not limited to,” and “including, without limitation.”  Each Party acknowledges that it has had the opportunity to be advised and represented by counsel in the negotiation, execution and delivery of this Agreement and accordingly agrees that if any ambiguity exists with respect to any provision of this Agreement, such provision shall not be construed against any Party solely because such Party or its representatives were the drafters of any such provision.

Section 12.14     Reimbursement of Legal Fees.  In the event any legal proceeding should be brought to enforce the terms of this Agreement or for breach of any provision of this Agreement, the non-prevailing Party shall reimburse the prevailing Party for all reasonable costs and expenses actually incurred by the prevailing Party (including its attorneys’ fees and disbursements).  For purposes of the foregoing, (i) “prevailing Party” means (A) in the case of the Party initiating the enforcement of rights or remedies, that it recovered substantially all of its claims, and (B) in the case of the Party defending against such enforcement, that it successfully defended substantially all of the claims made against it, and (ii) if no Party is a “prevailing Party” within the meaning of the foregoing, then no Party will be entitled to recover its costs and expenses (including attorney’s fees and disbursements) from any other Party.

Section 12.15     Specific Performance.  The Parties acknowledge that money damages would not be a sufficient remedy for any breach of this Agreement and that irreparable harm would result if this Agreement were not specifically enforced.  Therefore, the rights and obligations of the Parties under this Agreement shall be enforceable by a decree of specific performance issued by any court of competent jurisdiction, and appropriate injunctive relief may be applied for and granted in connection therewith.    

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Section 12.16     Reserved

Section 12.17     Recitals and Exhibits. The recitals set forth above and Exhibits attached hereto are incorporated herein as matters of contract.

ARTICLE XIII
DEFINITIONS

The terms set forth below when used in this Agreement shall have the following meanings:
“2015 Seedling Obligation” has the meaning specified in Section 7.10

“Accepted Title Objection” has the meaning specified in Section 1.6(a)(ii)(A).

“Additional Timberlands” has the meaning specified in Section 1.7(a).

“Adverse Environmental Condition” means, with respect to the Timberlands, the existence of an Environmental Matter.
“Affiliate” of any Person means another Person which, directly or indirectly, controls, is controlled by, or is under common control with, the first Person.
“Agreement” has the meaning specified in the Preamble.
“Ancillary Agreements” has the meaning specified in Section 4.1.
“Apportionments” has the meaning specified in Section 1.8.
“Appurtenant Easements” shall mean such access easements across property owned by Seller or its Affiliates as may be reasonably necessary to allow Purchaser and its Affiliates, successors and assigns to use any portion of the Timberlands for commercial forestry, including the growing and harvesting of timber.
“Assignment and Assumption of Real Property Leases” has the meaning specified in Section 2.2(a)(iii).
“Assignment and Assumption of Timber Deeds” has the meaning specified in Section 2.2(a)(viii).
“Assignment and Assumption of Timberland Leases” has the meaning specified in Section 2.2(a)(v).
“Assumed Condemnations” has the meaning specified in Section 1.2(e).
“Assumed Contracts” has the meaning specified in Section 1.2(c).

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“Assumed Liabilities” has the meaning specified in Section 1.3.
“Basket Amount” has the meaning specified in Section 10.4(b)(ii).
“Casualty Loss” means any physical damage to or loss of the timber on any portion of the Timberlands (except any timber which Seller has the right to remove pursuant to the Ongoing Harvest Operations) by fire, earthquake, flood, windstorm, hail, infestation, disease, unauthorized harvest or other calamity. A Casualty Loss shall refer only to a single incident of casualty (e.g. a single fire, windstorm or hurricane) and separate incidents of casualty shall not be aggregated for the purpose of determining the number of acres affected by such casualty.
“Casualty Loss Basket” has the meaning specified in Section 1.6(b)(ii).
“Claims” means, with respect to the Property, all claims, demands, investigations, causes of action, suits, defaults, assessments, litigation or other proceedings, including administrative proceedings, third party actions, arbitral proceedings and proceedings by or before any Governmental Authority.
“Closing” has the meaning specified in Section 2.1.
“Closing Date” has the meaning specified in Section 2.1.
“Code” means the Internal Revenue Code of 1986, as amended, or any successor statute thereto.  
“Completed Title Commitment” means a Title Commitment together with a copy of each recorded documentary exception referenced therein (except to the extent such exception is not available in the applicable public records and is not otherwise in Seller’s control) and each recorded plat and deed referenced in the legal descriptions contained therein (except to the extent such exception is not available in the applicable public records and is not otherwise in Seller’s control).
“Condemnation” means any condemnation proceeding filed or threatened in writing by any Governmental Authority or any exercise, by a Governmental Authority, of eminent domain powers (or notice of the exercise thereof) with respect to the Timberlands.
“Confidentiality Agreement” means the confidentiality agreement dated June 9, 2014 between Seller and Potlatch Corporation.
“Contract” means any agreement, lease, license, evidence of debt, mortgage, deed of trust, note, bond, indenture, security agreement, commitment, instrument, understanding or other contract, obligation or arrangement of any kind.
“Conveyance Instruments” means such deeds and/or other instruments necessary or appropriate under applicable Laws to convey to Purchaser fee simple title to the Owned 

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Timberlands, with covenants of limited or statutory warranty as to title subject to the Permitted Exceptions.
“Deeds” has the meaning specified in Section 2.2(a)(iv).
“Deposit” has the meaning specified in Section 1.4.
“Dispute” has the meaning specified in Section 7.4(a).
“Effective Time” has the meaning specified in Section 2.1.
“Endangered Species” shall mean any species which is listed, designated or otherwise considered “endangered” or “threatened” by (a) the Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), as amended, or (b) any applicable state statute or rules and the regulations promulgated thereunder.
“Environmental Carveout” has the meaning specified in Section 1.6(c)(ii).
“Environmental Laws” means any United States federal, state or local Laws and the regulations promulgated thereunder, in existence on the date hereof, relating to pollution or protection of the environment, or to Endangered Species, including but not limited to Laws relating to wetlands protection, the federal Endangered Species Act, Laws relating to reclamation of land and waterways and Laws relating to emissions, discharges, disseminations, releases or threatened releases of Hazardous Substances into the environment (including ambient air, surface water, ground water, soil, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Substances.  
“Environmental Matters” means any violation of any applicable Environmental Law by Seller at or on the Timberlands existing as of the date hereof and as of the Closing Date, relating to (i) emissions, discharges, disseminations, releases or threatened releases of Hazardous Substances into air, surface water, ground water, soil, land surface or subsurface strata, buildings or facilities or (ii) otherwise arising out of, relating to, or resulting from the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Substances by Seller at the Timberlands.
“Environmental Review Period” has the meaning specified in Section 1.6(c)(i).
“Estoppel Certificates” has the meaning specified in Section 8.3.
“Forestry Consultant” means any forestry consultant independent of the Parties appointed by Seller and reasonably satisfactory to Purchaser to act as a consultant and/or arbitrator under the provisions of Section 1.6.
“General Assignment and Assumption” has the meaning specified in Section 2.2(a)(ii).

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“Governmental Authority” means any federal, state, local or foreign government or any court or any administrative, regulatory or other governmental agency, commission or authority or any non-governmental self-regulatory agency, commission or authority.
“Hazardous Substances” means any chemical, compound, constituent, material, waste, contaminant (including petroleum, crude oil or any fraction thereof) or other substance, defined as hazardous or toxic, or otherwise regulated by any Environmental Law including regulations promulgated thereunder as amended from time to time prior to the Closing Date, including but not limited to:  (i) the Comprehensive Environmental Response, Compensation and Liability Act (as amended by the Superfund Amendments and Reauthorization Act), 42 U.S.C. § 9601 et seq.; (ii) the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq.; (iii) the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq.; (iv) the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; (v) the Clean Water Act, 33 U.S.C. § 1251 et seq.; (vi) the Clean Air Act, 42 U.S.C. § 1857 et seq.; and (vii) all Laws of the states in which the Timberlands are located that are based on, or substantially similar to, the federal statutes listed in parts (i) through (vi) of this subparagraph.
“Income Tax” or “Income Taxes” means all Taxes based upon, measured by, or calculated with respect to (i) gross or net income or gross or net receipts of profits (including any capital gains, minimum taxes and any Taxes on items of preference, but not including sales, use, goods and services, real or personal property transfer or other similar Taxes), (ii) net worth, capital or capital stock (including any franchise, business activity, doing business or occupation Taxes), (iii) multiple bases (including, but not limited to, franchise, doing business or occupation Taxes) if one or more of the bases upon which such Tax may be based upon, measured by, or calculated with respect to, is described in (i) above, or (iv) withholding taxes measured by, or calculated with respect to, any payments or distributions (other than wages).
“Indemnified Party” has the meaning specified in Section 10.4(b)(i).
“Indemnifying Party” has the meaning specified in Section 10.4(b)(i).
“Indemnity Period” has the meaning specified in Section 10.1. 
“Inventory Date” means August 22, 2014. 
“Law” means any rule, regulation, statute, order, ordinance, guideline, code or other legally enforceable requirement, including common law, state and federal laws and laws of foreign jurisdictions. 
“Leased Timberlands” has the meaning specified in Section 1.2(b).
“Lien” means any mortgage, lien, charge, pledge, hypothecation, assignment, deposit, arrangement, encumbrance, security interest, assessment, adverse claim, levy, preference or priority or other security agreement of any kind or nature whatsoever (whether 

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voluntary or involuntary, affirmative or negative (but excluding all negative pledges), and whether imposed or created by operation of law or otherwise) in, on or with respect to, or pledge of, any of the Property, or any other interest in the Property, designed to secure the repayment of debt or any other obligation, whether arising by Contract, operation of law or otherwise.
“Loss” has the meaning specified in Section 10.6(b).
“Material Adverse Effect” means any event, occurrence, condition, fact or change that has a material and adverse effect on the Property taken as a whole; provided, however, that none of the following shall be taken into account in determining whether there has been a Material Adverse Effect: (i) any change in the economic conditions in the timber industry, the forest products industry and the pulp and paper industry, (ii) any change in economic conditions in the United States, (iii) the effects of changes in Law or interpretations thereof applicable to Seller or Purchaser, or (iv) the effects resulting from actions to be taken pursuant to this Agreement or any Ancillary Agreement or which are primarily attributable to the announcement of this Agreement and the transactions contemplated hereby.
“Merchantable Timber Category” means a category of merchantable timber identified by type as described in Exhibit G.

“Memorandum Assignment and Assumption of Timberland Leases” has the meaning specified in Section 2.2(a)(v).

“Mill Owners” has the meaning specified in Section 7.6.

“Minimum Claim Amount” has the meaning specified in Section 10.4(b)(ii).
“Monetary Liens” has the meaning specified in Section 1.6(a)(i). 

“New Supply Agreements” has the meaning specified in Section 7.6.

“Notice of Defense” has the meaning specified in Section 10.5(b)(i).
“Ongoing Harvest Operations” has the meaning specified in Section 1.9.
“Owned Timberlands” has the meaning specified in Section 1.2(a).
“Parties” means Seller and Purchaser, collectively.  “Party” means Seller or Purchaser, individually.
“Party Executive” has the meaning specified in Section 7.4(a).
“Permitted Exceptions” has the meaning specified in Section 1.5.

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“Person” means an individual, partnership, limited partnership, corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.
“Phase I Report” has the meaning specified in Section 1.6(c)(i).
“Plum Creek” means Plum Creek Timberlands, L.P., Plum Creek Southern Timber, L.L.C., and Plum Creek South Central Timberlands, L.L.C., each a Delaware limited liability company, together with their successors and assigns.
“Plum Creek Aggregate Timber” means the timber conveyed by the Plum Creek Timber Deeds.
“Plum Creek Timber” has the meaning specified in Section 7.8.
“Plum Creek Timber Deeds” means (i) those certain timber deeds dated as of January 27, 2012, between Red Mountain TimberCo III LLC, a Delaware limited liability company and Plum Creek Timberlands, L.P., conveying certain timber located in Clark, Dallas, Grant, Hot Spring, and Saline Counties, Arkansas, (ii) those certain timber deeds dated as of January 27, 2012, between Red Mountain TimberCo III LLC, a Delaware limited liability company and Plum Creek Southern Timber, L.L.C., conveying certain timber located in Caldwell, Catahoula, and LaSalle Parishes, Louisiana, (iii) those certain timber deeds dated as of January 27, 2012 between Red Mountain TimberCo IV LLC, a Delaware limited liability company and Plum Creek South Central Timberlands, L.L.C. conveying certain timber located in Attala, Clairborne, Copiah, Franklin, Jefferson, Leake, Madison, Neshoba, Rankin and Scott Counties, Mississippi, and (iv) that certain timber deed dated as of March 15, 2013, between Red Mountain TimberCo IV LLC, a Delaware limited liability company and Plum Creek South Central Timberlands, L.L.C., conveying certain timber located in Winston County, Mississippi, as each may be affected, from time to time, by partial releases.
“Post-Closing Reserved Easement” has the meaning specified in Section 8.4(b).
“Prime Rate” means the prime rate of interest as published from time to time in the “Money Rates” table of The Wall Street Journal.
“Property” has the meaning specified in Section 1.2.
“Purchase Price” has the meaning specified in Section 1.4.
“Purchaser” has the meaning specified in the Preamble.
“Purchaser Indemnitees” has the meaning specified in Section 10.2.
“Real Property Leases” has the meaning specified in Section 1.2(d).

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“REC” means the presence or likely presence of any Hazardous Substance on a property under conditions that indicates an existing release, a past release, or a material threat of a release of any Hazardous Substance into structures on the property or in the ground, groundwater or surface water of the property.
“Regulatory Law” means the Sherman Antitrust Act of 1890, as amended, the Clayton Antitrust Act of 1914, as amended, the HSR Act, the Federal Trade Commission Act of 1914, as amended, and all federal, state and foreign, if any, statutes, rules, regulations, orders, decrees, administrative and judicial doctrines and other Laws that are designed or intended to prohibit, restrict or regulate (i) foreign investment, (ii) foreign exchange or currency control or (iii) actions having the purpose or effect of monopolization or restraint of trade or lessening of competition.
“Reserved Easements” means such non-exclusive ingress and egress easements across the Timberlands, together with the right to locate utilities within the boundaries of ten (10) feet on either side of any such road used to exercise such easements, as may be reasonably necessary to allow Seller and its Affiliates, successors and assigns to use any portion of the real property retained by Seller or its Affiliates for growing and harvesting timber, including the easements in respect of the Timberlands described in Exhibit R attached hereto, collectively.
“SEC” means the Securities and Exchange Commission.
“Seedling Contract” has the meaning specified in Section 7.10.

“Seller” has the meaning specified in the preamble to this Agreement.
“Seller Indemnitees” has the meaning specified in Section 10.3.
“Seller’s Knowledge” means actual knowledge possessed by the individuals set forth on Exhibit Q attached hereto, without any duty on the part of such individuals to investigate or inquire into any particular matter, provided that such individuals are the officers/employees of Seller having primary responsibilities with respect to Seller and/or the Timberlands.
“Supply Agreements” has the meaning specified in Section 7.6.
“Tax” or “Taxes” means any federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar, including FICA), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other Tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.

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“Tax Return” means any return, report or similar statement (including the attached schedules) required to be filed with respect to Taxes, including any information return, claim for refund, amended return, or declaration of estimated Taxes.
“Termination Date” has the meaning specified in Section 11.1(b).
“Third Party Claim” has the meaning specified in Section 10.5(b)(i). 
“Timber” has the meaning specified in Section 1.2(a).
“Timber Deed” shall mean a deed conveying trees and timber on a portion of the Property and appearing as a title exception in a Completed Title Commitment, together with the Contract for the Sale and Purchase of Timber pursuant to which the Timber Deed was executed and delivered.
“Timber Supply Documents” has the meaning specified in Section 7.6.
“Timberland Leases” has the meaning specified in Section 1.2(b).
“Timberlands” means the Leased Timberlands together with the Owned Timberlands.
“Title Commitment” has the meaning specified in Section 8.5(a).
“Title Company” means First American Title Insurance Company.
“Title Objection” has the meaning specified in Section 1.6(a)(i).
“Title Objection Carveout” has the meaning specified in Section 1.6(a)(ii).

“Title Objection Period” has the meaning specified in Section 1.6(a)(i).
“Title Policies” has the meaning specified in Section 8.5(a).
“Transaction Documents” means this Agreement and any exhibits or schedules thereto or other documents referred to therein, and the Ancillary Agreements.
“Transfer Taxes” has the meaning specified in Section 2.3. 
“Treasury Regulations” means the treasury regulations (including temporary regulations) promulgated by the United States Department of Treasury with respect to the Code.
“Value Tables” means the adjustment values with respect to the Purchase Price set forth on Exhibit G attached hereto.
“Volume Allocations” has the meaning specified in Section 7.6.

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IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be signed by an officer thereunto duly authorized, all as of the date first written above.
	
		
	 
	RED MOUNTAIN TIMBERCO I LLC, 
a Delaware limited liability company
By:  /s/ Ed Sweeten
Name:  Ed Sweeten
Title:  Executive Vice President

	 
	RED MOUNTAIN TIMBERCO IV LLC,
a Delaware limited liability company
By:  /s/ Ed Sweeten
Name:  Ed Sweeten
Title:  Executive Vice President

	 
	RMS TIMBERLANDS LLC,
a Delaware limited liability company
By:  /s/ Ed Sweeten
Name:  Ed Sweeten
Title:  Executive Vice President

	 
	SPRINGWOOD TIMBERLANDS, LLC,
a Delaware limited liability company
By:  /s/ Ed Sweeten
Name:  Ed Sweeten
Title:  Executive Vice President

	 
	 

	 
	POTLATCH FOREST HOLDINGS, INC.
By:  /s/ Michael J. Covey
Name: Michael J. Covey
Title: Chairman and Chief Executive Officer

56

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