Document:

EX-10.1

RETENTION AND SEVERANCE AGREEMENT

This Agreement dated as of May 14, 2007 by and between Telular Corporation, a Delaware
Corporation, (“the Company”), and Joseph Beatty, a resident of Illinois, (“the Executive”).

WHEREAS, the Executive is employed by the Company as its Chief Financial Officer and wishes to
remain in this capacity; and

WHEREAS, the Company wishes to retain the services of the Executive in his current capacity;

NOW, THEREFORE, in consideration of the mutual obligations set forth herein, the parties
hereby agree as follows:

1. In addition to the compensation and benefits currently provided to Executive, the Company
agrees that in the event the Executive’s employment is terminated by the Company for reasons other
than “cause” (as defined below), and provided the Executive has signed the Company’s standard
Separation And Release Agreement, the Executive will be provided a lump sum severance payment in
the amount equal to six (6) calendar months of his standard salary as in effect on the date of
termination, payable on the date of termination, subject to applicable withholding taxes.

2. It is understood by and between the parties that no term of employment is provided by this
Agreement, and that Executive’s employment remains that of employment-at-will. As such, Executive’s
employment may be terminated at any time with or without cause or notice by the Company it its sole
discretion. It is the intention of the parties that this Retention and Severance Agreement in no
way alters Executive’s employee-at-will status.

3. “Cause” shall be present: a) in the event Executive has materially failed to meet his
obligations as Chief Financial Officer, Company has given notice to Executive in writing that his
conduct constitutes cause for dismissal, Executive has been given ten (10) business days to remedy
the conduct and Executive has failed to remedy the conduct and Executive fails to remedy his
conduct; b) Executive has been convicted of a felony or misdemeanor constituting a crime of moral
turpitude; or c) Executive has, through misconduct, negligence or malfeasance engaged in an act or
course of conduct that causes injury to the Company. Upon written notice to Executive that his
employment has been terminated for “cause,” the Company shall be relieved of any further obligation
pursuant to this Agreement.

IN WITNESS WHEREFORE, the parties hereto have executed this Agreement as of this 14th day of
May 2007.

TELULAR CORPORATION

/s/ Michael Boyle

/s/ Joseph BeattyConstruction Services with General Conditions Agreement Between Owner and Contractor

    

    

    

    

    

    CONSTRUCTION
      SERVICES

    WITH
      GENERAL CONDITIONS

    AGREEMENT

    BETWEEN
      OWNER 

    AND
      CONTRACTOR

    This
      Document has important legal and insurance consequences; consultation with
      an
      attorney and insurance consultants and carriers is encouraged with respect
      to
      its completion or modification.

    

    AGREEMENT

    

    Made
      this 5th
      day of
April
      in
      the
      year of Two
      Thousand and Seven.

    

    BETWEEN:
      TULSAT, 1221 E. Houston Street. Broken Arrow, Oklahoma 74012, the Owner
      and  

    

    B.
      R. Hutson, Inc. 1909 N. Yellowood Ave, Broken Arrow, Oklahoma 74012, the
      Contractor.

    

    For
      services in connection with Construction of the following described Project:
      

    

    Construct
      a 62,500 Sq. Ft. Warehouse approximately 241 LF south of the existing warehouse
      on your property in Broken Arrow, Oklahoma.

    

    The
      Owner and the Contractor agree as set forth below:

    

    INDEX

    ARTICLE
      PAGE

    1 The
      Construction Team and Extent of Agreement     2

    2 Contractor’s
      Responsibilities        
      2

    3 Owner’s
      Responsibilities         
      4

    4 Subcontracts
                
      4

    5 Contract
      Time
      Schedule                                                                                 
 5

    6 Guaranteed
      Maximum Price         5

    7 Contractor’s
      Fee          
6

    8 Cost
      of the Project          
      6

    9 Changes
      in the Project        
8

    10 Discounts          
9

    11 Payments
      to the Contractor        9

    12 Insurance
      Indemnity and Waiver of Subrogation     10

    13 Termination
      of the Agreement and Owner’s Right to    13

    Perform
      Contractor’s Obligations

    14 Assignment
      and governing Law       13

    15 Miscellaneous
      Provision        14

    16 Arbitration          14

    

    

    ARTICLE
      1

    

    The
      Construction Team and Extent of Agreement

    

    THE
      CONTRACTOR accepts the relationship of trust and confidence established between
      him and the Owner by this Agreement. Contractor agrees to furnish the
      construction services set forth herein and agrees to furnish efficient business
      administration and superintendence, and to use his best efforts to complete
      the
      Project in the best and soundest way and in the most expeditious and economical
      manner consistent with the interests of the Owner.

    

    1.1 The
      Construction Team: The
      Contractor and the Owner, called the “Construction Team” shall work from the
      beginning of the Project through construction completion.

    

    1.2 Extent
      of Agreement: This
      Agreement represents the entire agreement between the Owner and the Contractor
      and supersedes all prior negotiations, representations or agreements. This
      Agreement shall not be superseded by any provisions of the documents for
      construction and may be amended only by written instrument signed by both Owner
      and Contractor.

    

    1.3 Definitions:
      The
      Project is the total construction of the Building, constructed per the Drawings
      and Specifications of which the Work is a part. The Work comprises the completed
      construction required by the Drawings and Specifications. The term day shall
      mean calendar day unless otherwise specifically designated.

    

    

    

    

    ARTICLE
      2

    

    Contractor’s
      Responsibilities

    

    2.1 Contractor’s
      Services

    

    2.1.1 The
      Contractor shall be responsible for furnishing the construction of the Project.
      The Owner and Contractor shall develop a construction phase schedule and the
      Owner shall be responsible for prompt decisions and approvals so as to maintain
      the approved schedule.

    

    

    2.1.2 The
      Contractor will secure permits necessary for the construction of the
      Project.

    

    

    2.2
      Responsibilities With Respect to Construction

    

    2.2.1 The
      Contractor will provide all construction supervision, inspection, labor,
      materials, tools, construction equipment and subcontracted items necessary
      for
      the execution and completion of the Project.

    

    2.2.2 The
      Contractor will pay all sales, use, gross receipts and similar taxes related
      to
      the Work provided by the Contractor which have been legally enacted at the
      time
      of execution of this Agreement and for which the Contractor is
      liable.

    

    2.2.3 The
      Contractor will prepare and submit for the Owner’s approval an estimated
      progress schedule for the Project. This schedule shall indicate the dates for
      the starting and completion of the various stages of the design and
      construction. It shall be revised as required by the conditions of the Work
      and
      those conditions and events which are beyond the Contractor’s
      control.

    

    2.2.4 The
      Contractor shall at all times keep the premises free from the accumulation
      of
      waste materials or rubbish caused by his operations. At the completion of the
      Work, he shall remove all of his waste material and rubbish from and around
      the
      Project as well as all his tools, construction equipment, machinery and surplus
      materials.

    

    	2.2.5  	
            The
              Contractor will give all notices and comply with all laws and ordinances
              legally enacted at the date of execution of the Agreement, which govern
              the proper execution of the Work.

          

    

    

    

    2

    

    

    

    

    

    2.2.6 The
      Contractor shall take necessary precautions for the safety of his employees
      on
      the Work, and shall comply with all applicable provisions of federal, state
      and
      municipal safety laws to prevent accidents or injury to person on, about or
      adjacent to the Project site. He shall erect and properly maintain, at all
      times, as required by the conditions and progress of Work, necessary safeguards
      for the protection of workmen and the public. It is understood and agreed,
      however, that the Contractor shall have no responsibility for the elimination
      or
      abatement of safety hazards created or otherwise resulting from Work at the
      job
      site carried on by other persons or firms directly employed by the Owner as
      separate contractors or by the Owner’s tenants, and the Owner agrees to cause
      any such separate contractors and tenants to abide by and fully adhere to all
      applicable provisions of federal, state and municipal safety laws and
      regulations and to comply with all reasonable requests and directions of the
      Contractor for the elimination or abatement of any such safety hazards at the
      job site.

    

    2.2.7 The
      Contractor shall keep such full and detailed accounts as may be necessary for
      proper financial management under this Agreement. The system shall be
      satisfactory to the Owner, who shall be afforded access to all the Contractor’s
      records, books, correspondence, instructions, drawings, receipts, vouchers,
      memoranda and similar data relating to this Agreement. The Contractor shall
      preserve all such records for a period of three years after the final payment
      or
      longer where required by law.

    

    2.3
      Royalties and Patents

    

    2.3.1 The
      Contractor shall pay all royalties and license fees for materials, methods
      and
      systems incorporated in the work. He shall defend all suits or claims for
      infringement of any patent rights and shall save the Owner harmless from loss
      on
      account thereof except when a particular design, process or product is specified
      by the Owner. In such case the Contractor shall be responsible for such loss
      only if he has reason to believe that the design, process or product so
      specified is an infringement of a patent, and fails to give such information
      promptly to the Owner.

    

    2.4
      Warranties and Completion

    

    2.4.1 The
      Contractor warrants to the Owner that all materials and equipment furnished
      under this Agreement will be new, unless otherwise specified, and that all
      Work
      will be of good quality, free from improper workmanship and defective materials
      and in conformance with the Drawings and Specifications. The Contractor agrees
      to correct all Work performed by him under this Agreement which proves to be
      defective in material and workmanship within a period of one year from the
      Date
      of Substantial Completion as defined in Paragraph 5.2, or for such longer
      periods of time as may be set forth with respect to specific warranties
      contained in the Specifications.

    

    2.4.2 The
      Contractor will secure required certificates of inspection, testing or approval
      and deliver them to the Owner.

    

    2.4.3 The
      Contractor will collect all written warranties and equipment manuals and deliver
      them to the Owner. 

    

    2.4.4 The
      Contractor with the assistance of the Owner’s maintenance personnel, will direct
      the checkout of utilities and operations of systems and equipment for readiness,
      and will assist in their initial start-up and testing.

    

    

    2.5
      Additional Services

    

    2.5.1 The
      Contractor will provide the following additional services upon the request
      of
      the Owner. A written agreement between the Owner and Contractor shall define
      the
      extent of such additional services and the amount and manner in which the
      Contractor will be compensated for such additional services.

    

    2.5.2 Services
      related to investigation, appraisals or evaluations of existing conditions,
      facilities or equipment, or verification of the accuracy of existing drawings
      or
      other Owner furnished information.

    

    2.5.3 Services
      related to Owner furnished equipment, furniture and furnishings which are not
      a
      part of this Agreement.

    

    2.5.4 Services
      for tenant or rental spaces not a part of this Agreement.

    

    	2.5.5  	
            Obtaining
              and training maintenance personnel or negotiating maintenance service
              contract.

          

    

    

    

    

    3.

    

    

    

    

    

    ARTICLE
      3

    

    Owner’s
      Responsibility

    

    3.1 The
      Owner shall provide full information regarding his requirements for the
      Project.

    

    3.2 The
      Owner shall designate a representative who shall be fully acquainted with the
      Project, and has authority to approve changes in the scope of the Project,
      render decisions promptly, and furnish information expeditiously and in time
      to
      meet the dates set forth in Subparagraph 2.2.3.

    

    3.3 the
      Owner shall furnish for the site of the Project all necessary surveys describing
      the physical characteristics, soils reports and subsurface investigations,
      legal
      limitations, utility locations, and a legal description.

    

    3.4 The
      Owner shall secure and pay for necessary approvals, easements, assessments
      and
      charges required for the construction, use, or occupancy of permanent structures
      or for permanent changes in existing facilities.

    

    3.5 The
      Owner shall furnish such legal services as may be necessary for providing the
      items set forth in Paragraph 3.4, and such auditing services as he may
      require.

    

    3.6 If
      the
      Owner becomes aware of any fault or defect in the Project or non-conformance
      with the Drawings or Specifications, he shall give prompt written notice thereof
      to the Contractor.

    

    3.7 The
      Owner shall bear the costs of any bonds that may be required.

    

    3.8 The
      services and information required by the above paragraphs shall be furnished
      with reasonable promptness at the Owner’s expense and the Contractor shall be
      entitled to rely upon the accuracy and the completeness thereof.

    

    3.9 The
      Owner shall furnish reasonable evidence satisfactory to the Contractor, prior
      to
      commencing Work and at such future times as may be required, that sufficient
      funds are available and committed for the entire cost of the Project. Unless
      such reasonable evidence is furnished, the Contractor is not required to
      commence or continue any Work, or may, if such evidence is not presented within
      a reasonable time, stop Work upon 15 days notice to the Owner. The failure
      of
      the Contractor to insist upon the providing of this evidence at any one time
      shall not be a waiver of the Owner’s obligation to make payments pursuant to
      this Agreement nor shall it be a waiver of the Contractor’s right to request or
      insist that such evidence be provided at a later date.

    

    3.10 The
      Owner shall have no contractual obligation to the Contractor’s Subcontractors
      and shall communicate with such Subcontractors only through the Contractor.
      

    

    

    

    

    

    ARTICLE
      4

    

    Subcontracts

    

    4.1 All
      portions of the Work that the Contractor does not perform with his own forces
      shall be performed under subcontract.

    

    4.2 A
      Subcontractor is a person or entity who has a direct contract with the
      Contractor to perform any Work in connection with the Project. The term
      Subcontractor does not include any separate contractor employed by the Owner
      or
      the separate contractors’ subcontractors.

    

    4.3 No
      contractual relationship shall exist between the Owner and any Subcontractor.
      The Contractor shall be responsible for the management of the Subcontractors
      in
      the performance of their work.

    

    

    

    

    4.

    

    

    

    

    

    

    ARTICLE
      5

    

    Contract
      Time Schedule

    

    5.1 The
      Work
      to be performed under this Agreement shall be commenced on or about One
      Week from receipt of Building Permit and Owners
      Authorization to
      proceed with the work
      and
      shall be substantially completed on or about 180
      Calendar Days from the start date.

    

    5.2 The
      Date
      of Substantial Completion of the Project or a designated portion thereof is
      the
      date when construction is sufficiently complete in accordance with the Drawings
      and Specifications so the Owner can occupy or utilize the Project or designated
      portion thereof for the use for which it is intended. Warranties called for
      by
      this Agreement or by the Drawings and Specifications shall commence on the
      Date
      of Substantial Completion of the Project or designated portion thereof. This
      date shall be established by a Certificate of Substantial Completion signed
      by
      the Owner and Contractor and shall state their respective responsibilities
      for
      security, maintenance, heat, utilities, damage to the Work and insurance. This
      Certificate shall also list the items to be completed or corrected and fix
      the
      time for their completion and correction.

    

    5.3 If
      the
      Contractor is delayed at any time in the progress of the Project by any act
      or
      neglect of the Owner or by any separate contractor employed by the Owner, or
      by
      changes ordered in the Project, or by labor disputes, fire, unusual delay in
      transportation, adverse weather conditions not reasonably anticipatable,
      unavoidable casualties, or any cause beyond the Contractor’s control, or a delay
      authorized by the Owner pending arbitration, then the Date of Substantial
      Completion shall be extended by Change Order for the period of time caused
      by
      such delay.

    

    ARTICLE
      6

    

    Guaranteed
      Maximum Price

    

    6.1 The
      Contractor guarantees that the maximum price to the Owner for the cost of the
      Project as set forth in Article 8, and the Contractor’s Fee as set forth in
      Article 7, will not exceed $1,636,965.00,
      which
      sum shall be called the Guaranteed
      Maximum Price.

    

    6.2 The
      Guaranteed Maximum Price is based upon laws, codes, and regulations in existence
      at the date of its establishment and upon the Drawings, and Specifications
      as
      set forth below:

    A.
      B. R.
      Hutson, Inc. drawings No. 07-15, sheets Cover Sheet, SP1-SP2, A1-A3, S1-S2,
      P1,M1, and E1-E2 all dated 3-9-07, which are marked Exhibit A.

    B.
      NRS
      Inc. Civil drawing sheets C1 - C5 dated 3-9-07, which are marked Exhibit
      A.

    C.
      Outline Specifications pages 1-4 dated 4-5-07 which are marked Exhibit
      B.

    

    

    

    6.3 The
      Guaranteed Maximum Price will be modified for delays caused by the Owner and
      for
      Changes in the Project, all pursuant to Article 9.

    

    6.4 Allowances
      included in the Guaranteed Maximum Price are as set forth below:

    

     

    

    

    

    

    

    6.5 Whenever
      the cost is more than or less than the Allowance, The Guaranteed Maximum Price
      shall be adjusted by Change Order.

    

    

    

    

    5

    

    

    

    

    

    

    

    ARTICLE
      7

    

    Contractor’s
      Fee

    

    7.1 In
      consideration of the performance of the Agreement, the Owner agrees to pay
      to
      the Contractor in current funds as compensation for his services a Fee as
      follows:

    

    Ten
      percent (10%) of the total cost of the project as defined in Article
      8.

    

    7.2
      Adjustment in Fee shall be made as follows:

    

    7.2.1 For
      Changes in the Project as provided in Article 9, the Contractor’s Fee shall be
      adjusted as follows:

    

    Contractor’s
      cost plus ten percent (10%).

    

    7.2.2 For
      delays in the Project, not the responsibility of the Contractor, there will
      be
      an equitable adjustment in the fee to compensate the Contractor for his
      increased expenses.

    

    7.2.3 In
      the
      event the Cost of the Project plus the Contractor’s Fee shall be less than the
      Guaranteed Maximum Price as adjusted by Change Orders, the resulting savings
      will be shared by the Owner and the Contractor as follows:

    

    A.
      Owner receives seventy five percent (75%) and Contractor receives twenty five
      (25%).

    	B.  	
            Contractor’s
              share of savings shall not “exceed” two percent (2%) of the project’s
              final total cost.

          

    

    7.2.4 The
      Contractor shall be paid an additional fee in the same proportion as set forth
      in 7.2.1 if the Contractor is placed in charge of managing the replacement
      of
      insured or uninsured loss.

    

    7.3 The
      Contractor shall be paid monthly that part of his Fee proportionate to the
      percentage of Work completed, the balance, if any, to be paid at the time of
      final payment.

    

    7.4
      Included in the Contractor’s Fee are the following:

    

    7.4.1 Salaries
      or other compensation of the Contractor’s employees at the principal office and
      branch offices, except employees listed in Subparagraph 8.2.3.

    

    7.4.2 General
      operating expenses of the Contractor’s principal and branch offices other than
      the field office.

    

    7.4.3 Any
      part
      of the Contractor’s capital expenses, including interest on the Contractor’s
      capital employed for the Project.

    

    7.4.4 Overhead
      or general expenses of any kind, except as may be expressly included in Article
      8.

    

    7.4.5 Costs
      in
      excess of the Guaranteed Maximum Price.

    

    ARTICLE
      8

    

    Cost
      of the Project

    

    8.1 The
      term
      Cost of the Project shall mean costs necessarily incurred in the construction
      of
      the Project and shall include the items set forth below in this Article. The
      Owner agrees to pay the Contractor for the Cost of the Project as defined in
      this Article. Such payment shall be in addition to the Contractor’s Fee
      stipulated in Article 7.

    

    8.2
      Cost Items

    

    8.2.1 All
      architectural, engineering and consulting fees and expenses incurred during
      constructing of the Project.

    

    8.2.2 Wages
      paid for labor in the direct employ of the Contractor in the performance of
      the
      Work under applicable collective bargaining agreements, or under a salary or
      wage schedule agreed upon by the Owner and the Contractor, and including such
      welfare or other benefits, if any, as may be payable with respect
      thereto.

    

    

    6

    

    

    

    

    

    8.2.3 Salaries
      of Contractor’s employees when stationed at the field office, in whatever
      capacity employed, employees engaged on the road expediting the production
      or
      transportation of material and equipment and employees from the main or branch
      office performing the functions listed below:

    

    Employees
      from main office shall not be a cost to the project.

    

    8.2.4 Cost
      of
      all employee benefits and taxes for such items as unemployment compensation
      and
      social security, insofar as such cost is based on wages, salaries, or other
      remuneration paid to employees of the Contractor and included in the Cost of
      the
      Project under Subparagraphs 8.2.1, 8.2.2 and 8.2.3.

    

    8.2.5 Reasonable
      transportation, traveling and hotel and moving expenses of the Contractor or
      of
      his offices or employees incurred in discharge of duties connected with the
      Project.

    

    8.2.6 Cost
      of
      all materials, supplies and equipment incorporated in the Project, including
      costs of transportation and storage thereof.

    

    8.2.7 Payments
      made by the Contractor to Subcontractors for Work performed pursuant to contract
      under this Agreement.

    

    8.2.8 Cost,
      including transportation and maintenance, of all materials, supplies, equipment,
      temporary facilities and hand tools not owned by the workmen, which are employed
      or consumed in the performance of the Work, and cost less salvage value on
      such
      items used, but not consumed, which remain the property of the
      Contractor.

    

    8.2.9 Rental
      charges of all necessary machinery and equipment, exclusive of hand tools,
      used
      at the site of the Work, whether rented from the Contractor or others, including
      installations, repairs and replacements, dismantling, removal, costs of
      lubrication, transportation and delivery costs hereof, at rental charges
      consistent with those prevailing in the area.

    

    8.2.10 Cost
      of
      the premiums for all insurance which the Contractor is required to procure
      by
      this Agreement or is deemed necessary by the Contractor.

    

    8.2.11 Sales,
      use, gross receipts or similar taxes related to the Project, imposed by any
      governmental authority, and for which the Contractor is liable.

    

    8.2.12 Permit
      fees, licenses, tests, royalties, damages for infringement of patents and costs
      of defending suits therefor for which the Contractor is responsible under
      Subparagraph 2.3.1 and deposits lost for causes other than the Contractor’s
      negligence.

    

    8.2.13 Losses,
      expenses or damages to the extent not compensated by insurance or otherwise
      (including settlement made with the written approval of the Owner), and the
      cost
      of corrective work.

    

    8.2.14 Minor
      expenses such as telegrams, long-distance telephone calls, telephone service
      at
      the site, expressage, and similar petty cash items in connection with the
      Project.

    

    8.2.15 Cost
      of
      removal of all debris.

    

    8.2.16 Costs
      incurred due to an emergency affecting the safety of persons and
      property.

    

    8.2.17 Cost
      of
      data processing services required in the performance of the services outlined
      in
      Article 2.

    

    8.2.18 Legal
      costs reasonably resulting from the Contractors prosecution of the Work on
      the
      Project for the Owner.

    

    8.2.19 All
      costs directly incurred in the performance of the Project and not included
      in
      the Contractor’s Fee as set forth in Paragraph 7.4.

    

    

    

    

    7

    

    

    

    

    

    ARTICLE
      9

    

    Changes
      in the Project

    

    9.1 The
      Owner, without invalidating this Agreement, may order Changes in the Project
      within the general scope of this Agreement consisting of additions, deletions
      or
      other revisions, the Guaranteed Maximum Price, if established, the Contractor’s
      Fee, and the Contract Time Schedule being adjusted accordingly. All such Changes
      in the Project shall be authorized by Change Order.

    

    9.1.1 A
      Change
      Order is a written order to the Contractor signed by the Owner or his authorized
      agent and issued after the execution of this Agreement, authorizing a Change
      in
      the Project and/or an adjustment in the Guaranteed Maximum Price, the
      Contractor’s Fee or the Contract Time Schedule. Each adjustment in the
      Guaranteed Maximum Price resulting from a Change Order shall clearly separate
      the amount attributable to the Cost of the Project and the Contractor’s
      Fee.

    

    9.1.2 The
      increase or decrease in the Guaranteed Maximum Price resulting from a Change
      in
      the Project shall be determined in one or more of the following
      ways:

    

    

    

    9.1.2.1 by
      mutual acceptance of a lump sum properly itemized and supported by sufficient
      substantiating data to permit evaluation, or

    

    9.1.2.2 by
      unit
      prices stated in this Agreement or subsequently agreed upon; or

    

    9.1.2.3 by
      cost
      to be determined as defined in Article 8 and a mutual acceptable fixed or
      percentage fee, or

    

    9.1.2.4 by
      the
      method provided in Subparagraph 9.1.3.

    

    9.1.3 If
      none
      of the methods set forth in Clauses 9.1.2.1 through 9.1.2.3 is agreed upon,
      the
      Contractor, provided he receives a written order signed by the Owner, shall
      promptly proceed with the Work involved. The cost of such Work shall then be
      determined on the basis of the reasonable expenditures and savings of those
      performing the Work attributed to the change, including, in the case of an
      increase in the Guaranteed Maximum Price, a reasonable increase in the
      Contractor’s Fee. In such case, and also under Clauses 9.1.2.3 and 9.1.2.4
      above, the Contractor shall keep and present, in such form as the Owner may
      prescribe, an itemized accounting together with appropriate supporting data
      of
      the increase in the Cost of the Project as outlined in Article 8. The amount
      of
      decrease in the Guaranteed Maximum Price to be allowed by the Contractor to
      the
      Owner for any deletion or change which results in a net decrease in cost will
      be
      the amount of the actual net decrease. When both additions and credits are
      involved in any one change, the increase in Fee shall be figured on the basis
      of
      net increase, if any.

    

    9.1.4 If
      unit
      prices are stated in this Agreement or subsequently agreed upon, and if the
      quantities originally contemplated are so changed in a proposed Change Order
      or
      as a result of several Change Orders that application of the agreed unit prices
      to the quantities of Work proposed will cause substantial inequity to the Owner
      or the Contractor, the applicable unit prices and the Guaranteed Maximum Price
      shall be equitably adjusted.

    

    9.1.5 Should
      concealed conditions encountered in the performance of the Work below the
      surface of the ground or should concealed or unknown conditions in an existing
      structure be at variance with the conditions indicated by the Drawings,
      Specifications, or Owner-furnished information or should unknown physical
      conditions below the surface of the ground or should concealed or unknown
      conditions in an existing structure of an unusual nature, differing materially
      from those ordinarily encountered and generally recognized as inherent in work
      of the character provided for in this Agreement, be encountered, the Guaranteed
      Maximum Price and the Contract Time Schedule shall be equitably adjusted by
      Change Order upon claim by either party made within a reasonable time after
      the
      first observance of the conditions.

    

    9.2
      Claims for Additional Cost or Time

    

    9.2.1 If
      the
      Contractor wishes to make a claim for an increase in the Guaranteed Maximum
      Price, or increase in his Fee or an extension in the Contract Time Schedule,
      he
      shall give the Owner written notice thereof within a reasonable time after
      the
      occurrence of the event giving rise to such claim. This notice shall be given
      by
      the Contractor before proceeding to execute the Work, except in an emergency
      endangering life or property in which case the Contractor shall act, at his
      discretion, to prevent threatened damage, injury or loss. Claims arising from
      delay shall be made within a reasonable time

    

    

    8

    

    

    

    

    

    after
      the delay. Increases based upon design and estimating costs with respect to
      possible changes requested by the Owner shall be made within a reasonable time
      after the decision is made not to proceed with the change. No such claim shall
      be valid unless so made. If the Owner and the Contractor cannot agree on the
      amount of the adjustment in the Guaranteed Maximum Price, the Contractor’s Fee
      or Contract Time Schedule, it shall be determined pursuant to the provisions
      of
      Article 16. Any change in the Guaranteed Maximum Price, the Contractor’s Fee or
      Contract Time Schedule resulting from such claim shall be authorized by Change
      Order.

    

    9.3
      Minor Changes in the Project

    

    9.3.1 The
      Owner will have authority to order minor Changes in the Work not involving
      an
      adjustment in the Guaranteed Maximum Price or an extension of the Contract
      Time
      Schedule and not inconsistent with the intent of the Drawings and
      Specifications. Such Changes may be effected by written order and shall be
      binding on the Owner and Contractor.

    

    9.4
      Emergencies

    

    9.4.1 In
      any
      emergency affecting the safety of persons or property, the Contractor shall
      act,
      at his discretion, to prevent threatened damage, injury or loss. Any increase
      in
      the Guaranteed Maximum Price or extension of time claimed by the Contractor
      on
      account of emergency work shall be determined as provided in this
      Article.

    

    ARTICLE
      10

    

    Discounts

    

    All
      discounts for prompt payment shall accrue to the Owner to the extent the Cost
      of
      the Project is paid directly by the Owner or from a fund made available by
      the
      Owner to the Contractor for such payments. To the extent the Cost of the Project
      is paid with funds of the Contractor, all cash discounts shall accrue to the
      Contractor. All trade discounts, rebates and refunds, and all returns from
      sale
      of surplus materials and equipment, shall be credited to the Cost of the
      Project.

    

    ARTICLE
      11

    

    Payments
      to the Contractor

    

    11.1 Payments
      shall be made by the Owner to the Contractor according to the following
      procedure:

    

    11.1.1 On
      or
      before the first
      (1st)
      day of
      each month after Work has commenced, the Contractor shall submit to the Owner
      an
      Application for Payment in such detail as may be required by the Owner based
      on
      the Work completed and materials stored on the site and/or at locations approved
      by the Owner along with a proportionate amount of the Contractor’s Fee for the
      period ending on the first
      (1st)
      day of
      the month.

    

    11.1.2 Within
      ten (10) days after his receipt of each monthly Application for Payment, the
      Owner shall pay directly to the Contractor the appropriate amounts for which
      Application for Payment is made therein. This payment request shall deduct
      the
      aggregate of amounts previously paid by the Owner.

    

    11.1.3 If
      the
      Owner should fail to pay the Contractor at the time the payment of any amount
      becomes due, then the Contractor may, at any time thereafter, upon serving
      written notice that he will stop Work within five (5) days after receipt of
      the
      notice by the Owner, and after such five (5) day period, stop the Project until
      payment of the amount owing has been received. Written notice shall be deemed
      to
      have been duly served if sent by certified mail to the last business address
      known to him who gives the notice.

    

    11.1.4 Payments
      due but unpaid shall bear interest at the rate of Security Bank of Tulsa prime
      plus two percent (2%).

    

    11.2 The
      Contractor warrants and guarantees that title to all Work, materials and
      equipment covered by an Application for Payment whether incorporated in the
      Project or not, will pass to the Owner upon receipt of such payment by the
      Contractor free and clear of all liens, claims, security interests or
      encumbrances hereinafter referred to as Liens.

    

    11.3 No
      Progress Payment nor any partial or entire use or occupancy of the Project
      by
      the Owner shall constitute an acceptance of any Work not in accordance with
      the
      Drawings and Specifications.

    

    

    9

    

    

    

    

    

    11.4 Final
      payment constituting the unpaid balance of the Cost of the Project and the
      Contractor’s Fee shall be due and payable when the Project is delivered to the
      Owner, ready for beneficial occupancy, or when the Owner occupies the Project,
      whichever event first occurs, provided that the Project be then substantially
      completed and this Agreement substantially performed. If there should remain
      minor items to be completed, the Contractor and the Owner shall list such items
      and the Contractor shall deliver, in writing, his guarantee to complete said
      items within a reasonable time thereafter. The Owner may retain a sum equal
      to
      150% of the estimated cost of completing any unfinished items, provided that
      said unfinished items are listed separately and the estimated cost of completing
      any unfinished items is likewise listed separately. Thereafter, the Owner shall
      pay to the Contractor, monthly, the amount retained for incomplete items as
      each
      of said items is completed.

    

    11.5 Before
      issuance of Final Payment, the Owner may request satisfactory evidence that
      all
      payrolls, materials bills and other indebtedness connected with the Project
      have
      been paid or otherwise satisfied.

    

    11.6 The
      making of Final Payment shall constitute a waiver of all claims by the Owner
      except those arising from:

    

    

    11.6.1 Unsettled
      Liens.

    

    11.6.2 Improper
      workmanship or defective materials appearing within one year after the Date
      of
      Substantial Completion.

    

    11.6.3 Failure
      of the Work to comply with the Drawings and Specifications.

    

    11.6.4 Terms
      of
      any special guarantees required by the Drawings and Specifications.

    

    11.7 The
      acceptance of Final Payment shall constitute a waiver of all claims by the
      Contractor except those previously made in writing and unsettled.

    

    ARTICLE
      12

    

    Insurance,
      Indemnity and Waiver of Subrogation

    

    12.1
      Indemnity

    

    12.1.1 The
      Contractor agrees to indemnify and hold the Owner harmless from all claims
      for
      bodily injury and property damage (other than the Work itself and other property
      insured under Paragraph 12.4) that may arise from the Contractor’s operations
      under this Agreement.

    

    12.1.2 The
      Owner shall cause any other contractor who may have a contract with the Owner
      to
      perform work in the areas where Work will be performed under this Agreement,
      to
      agree to indemnify the Owner and the Contractor and hold them harmless from
      all
      claims for bodily injury and property damage (other than property insured under
      Paragraph 12.4) that may arise from that contractor’s operations. Such
      provisions shall be in a form satisfactory to the Contractor.

    

    12.2
      Contractor’s Liability Insurance

    

    12.2.1 The
      Contractor shall purchase and maintain such insurance as will protect him from
      the claims set forth below which may arise out of or result from the
      Contractor’s operations under this Agreement whether such operations be by
      himself or by any Subcontractor or by anyone directly or indirectly employed
      by
      any of them, or by anyone for whose acts any of them may be liable:

    

    12.2.1.1 Claims
      under workers’ compensation, disability benefit and other similar employee
      benefit acts which are applicable to the Work to be performed.

    

    12.2.1.2 Claims
      for damages because of bodily injury, occupational sickness or disease, or
      death
      of his employees under any applicable employer’s liability law.

    

    12.2.1.3 Claims
      for damages because of bodily injury, or death of any person other than his
      employees.

     

    

    

    10

    

    

    

    

    

    12.2.1.4 Claims
      for damages insured by usual personal injury liability coverage which are
      sustained (1) by any person as a result of an offense directly or indirectly
      related to the employment of such person by the Contractor or (2) by any other
      person.

    

    12.2.1.5 Claims
      for damages, other than to the work itself, because of injury to or destruction
      of tangible property, including loss of use therefrom.

    

    12.2.1.6 Claims
      for damages because of bodily injury or death of any person or property damaged
      arising out of the ownership, maintenance or use of any motor
      vehicle.

    

    12.2.2 The
      Comprehensive General Liability Insurance shall include premises-operations
      (including explosion, collapse and underground coverage) elevators, independent
      contractors, completed operations, and blanket contractual liability on all
      written contracts, all including broad form property damage
      coverage.

    

    12.2.3 The
      Contractor’s Comprehensive General and Automobile Liability Insurance, as
      required by Subparagraphs 12.2.1 and 12.2.2 shall be written for not less than
      limits of liability as follows:

    

    a. Comprehensive
      General Liability   

    1. Bodily
      Injury    
      -$
      1,000,000 Each Occurrence

    (Completed
      Operations)

    $
      2,000,000  
      Aggregate

    

    2. Property
      Damage    
      -$
      1,000,000 Each Occurrence

    

     
      $
      2,000,000 Aggregate

    

    b. Comprehensive
      Automobile Liability

    1. Bodily
      Injury    
      -$
      1,000,000 Each Person

    

    $
      1,000,000 Each Occurrence

    

    2. Property
      Damage    
      -$
      1,000,000 Each Occurrence

     

    c. Umbrella
      Liability Insurance   
      $
      2,000,000 Aggregate

    

    12.2.4 Comprehensive
      General Liability Insurance may be arranged under a single policy for the full
      limits required or by a combination of underlying policies with the balance
      provided by an Excess or Umbrella Liability policy.

    

    12.2.5 The
      foregoing policies shall contain a provision that coverage’s afforded under the
      policies will not be canceled or not renewed until at least sixty (60) days
      prior written notice has been given to the Owner. Certificates of Insurance
      showing such coverage’s to be in force shall be filed with the Owner prior to
      commencement of the Work.

    

    12.3
      Owner’s Liability Insurance

    

    12.3.1 The
      Owner shall be responsible for purchasing and maintaining his own liability
      insurance and, at his option, may purchase and maintain such insurance as will
      protect him against claims which may arise from operations under this
      Agreement.

    

    12.4
      Insurance to Protect Project

    

    12.4.1 The
      Contractor shall purchase and maintain property insurance in a form acceptable
      to the Owner upon the entire Project for the full cost of replacement at the
      time of any loss. This insurance shall include as named insured the Owner,
      the
      Contractor, Subcontractors and Subsubcontractors and shall insure against loss
      from the perils of Fire, Extended Coverage, and shall include “All Risk”
insurance for physical loss or damage including, without duplication of
      coverage, at least theft, vandalism, malicious mischief, transit, or collapse.
      The Contractor will increase limits of coverage, if necessary, to reflect
      estimated replacement cost.

    

    

    

    

    11

    

    

    

    

    

    

    

    12.4.1.1 If
      the
      Owner finds it necessary to occupy or use a portion or portions of the Project
      prior to Substantial Completion thereof, such occupancy shall not commence
      prior
      to a time mutually agreed to by the Owner and the Contractor and to which the
      insurance company or companies providing the property insurance have consented
      by endorsement to the policy or policies. This insurance shall not be canceled
      or lapsed on account of such partial occupancy. Consent of the Contractor and
      of
      the insurance company or companies to such occupancy or use shall not be
      unreasonably withheld.

    

    12.4.2 The
      Owner shall purchase and maintain such boiler and machinery insurance as may
      be
      required or necessary. This insurance shall include the interests of the Owner,
      the Contractor, Subcontractors and Subsubcontractors in the Work.

    

    12.4.3 The
      Owner shall purchase and maintain such insurance as will protect the Owner
      and
      the Contractor against loss of use of Owner’s property due to those perils
      insured pursuant to Subparagraph 12.4.1. Such policy will provide coverage
      for
      expediting expenses of materials, continuing overhead of the Owner and the
      Contractor, necessary labor expense including overtime, loss of income by the
      Owner and other determined exposures. Exposures of the Owner and the Contractor
      shall be determined by mutual agreement and separate limits of coverage fixed
      for each item.

    

    12.4.4 The
      Contractor shall file a copy of all policies with the Owner before an exposure
      to loss may occur. Copies of any subsequent endorsements will be furnished
      to
      the Owner. The Owner will be given thirty (30) days notice of cancellation,
      non-renewal, or any endorsements restricting or reducing coverage. 

    

    12.5
      Property Insurance Loss Adjustment

    

    12.5.1 Any
      insured loss shall be adjusted with the Owner and the Contractor and made
      payable to the Owner and Contractor as trustees for the insured’s, as their
      interest may appear, subject to any applicable mortgage clause.

    

    12.5.2 Upon
      the
      occurrence of an insured loss, monies received will be deposited in a separate
      account and the trustees shall make distribution in accordance with the
      agreement of the parties in interest, or in the absence of such agreement,
      in
      accordance with an arbitration awarded pursuant to Article 16. If the trustees
      are unable to agree between themselves on the settlement of the loss, such
      dispute shall also be submitted to arbitration pursuant to Article
      16.

    

    12.6
      Waiver of Subrogation

    

    12.6.1 The
      Owner and Contractor waive all rights against each other, the Engineer,
      Subcontractors and Subsubcontractors for damages caused by perils covered by
      insurance provided under Paragraph 12.4, except such rights as they may have
      to
      the proceeds of such insurance held by the Owner and Contractor as trustees.
      The
      Contractor shall require similar waivers from all Subcontractors and
      Subsubcontractors.

    

    12.6.2 The
      Owner and Contractor waive all rights against each other and the Engineer,
      Subcontractors and Subsubcontractors for loss or damage to any equipment used
      in
      connection with the Project which loss is covered by any property insurance.
      The
      Contractor shall require similar waivers from all Subcontractors and
      Subsubcontractors.

    

    12.6.3 The
      Owner waives subrogation against the Contractor, Engineer, Subcontractors,
      and
      Subsubcontractors on all property and consequential loss policies carried by
      the
      Owner on adjacent properties and under property and consequential loss policies
      purchased for the Project after its completion.

    

    12.6.4 If
      the
      policies of insurance referred to in this Paragraph require an endorsement
      to
      provide for continued coverage where there is a waiver of subrogation, the
      owners of such policies will cause them to be so endorsed.

    

    

    

    

    

    

    

    

    

    

    

    

    12

    

    

    

    

    

    ARTICLE
      13

    

    Termination
      of the Agreement and Owner’s

    Right
      to Perform Contractor’s Obligations

    

    13.1
      Termination by the Contractor

    

    13.1.1 If
      the
      Project is stopped for a period of thirty (30) days under an order of any court
      or other public authority having jurisdiction, or as a result of an act of
      government, such as a declaration of a national emergency making materials
      unavailable, through no act or fault of the Contractor or if the Project should
      be stopped for a period of thirty (30) days by the Contractor for the Owner’s
      failure to make payment thereon, then the Contractor may, upon seven days
      written notice to the Owner, terminate this Agreement and recover from the
      Owner
      payment for all Work executed, the Contractor’s Fee earned to date, and for any
      proven loss sustained upon any materials, equipment, tools, construction
      equipment and machinery, including reasonable profit and damages.

    

    13.2
      Owner’s Right to Perform Contractor’s Obligations and Termination by the Owner
      for Cause

    

    13.2.1 If
      the
      Contractor fails to perform any of his obligations under this Agreement,
      including any obligation he assumes to perform Work with his own forces, the
      Owner may, after seven days written notice, during which period the Contractor
      fails to perform such obligation, make good such deficiencies. The Guaranteed
      Maximum Price, if any, shall be reduced by the cost to the Owner of making
      good
      such deficiencies.

    

    13.2.2 If
      the
      Contractor is adjudged a bankrupt, or if he makes a general assignment for
      the
      benefit of his creditors, or if a receiver is appointed on account of his
      insolvency, or if he persistently or repeatedly refuses or fails, except in
      cases for which extension of time is provided, to supply enough properly skilled
      workmen or proper materials, or if he fails to make proper payment to
      Subcontractors or for materials or labor, or persistently disregards laws,
      ordinances, rules, regulations or orders of any public authority having
      jurisdiction, or otherwise is guilty of a substantial violation of a provision
      of this Agreement, then the Owner may, without prejudice to any right or remedy
      and after giving the Contractor and his surety, if any, seven (7) days written
      notice, during which period the Contractor fails to cure the violation,
      terminate the employment of the Contractor and take possession of the site
      and
      of all materials, equipment, tools, construction equipment and machinery thereon
      owned by the Contractor and may finish the Work by whatever reasonable method
      he
      may deem expedient. In such case, the Contractor shall not be entitled to
      receive any further payment until the Work is finished nor shall he be relieved
      from his obligations assumed under Article 6.

    

    13.3
      Termination by Owner Without Cause

    

    13.3.1 If
      the
      Owner terminates the Agreement other than pursuant to Article 13.2.2, he shall
      reimburse the Contractor for any unpaid Cost of the Project due him under
      Article 8, plus the unpaid balance of the Contractor’s Fee. If the Contractor’s
      Fee is based upon a percentage of the Cost of the Project, the Fee shall be
      calculated upon the adjusted Guaranteed Maximum Cost, if any, otherwise to
      a
      reasonable estimated Cost of the Project when completed. The Owner shall also
      pay to the Contractor fair compensation, either by purchase or rental at the
      election of the Owner, for any equipment retained. In case of such termination
      of this Agreement the Owner shall further assume and become liable for
      obligations, commitments and unsettled claims that the Contractor has previously
      undertaken or incurred in good faith in connection with said Work. The
      Contractor shall, as a condition of receiving the payments referred to in this
      Article 13, execute and deliver such papers and take all such steps, including
      the legal assignment of his contractual rights, as the Owner may require for
      the
      purpose of fully vesting in the Owner the rights and benefits of the Contractor
      under such obligations or commitments.

    

    ARTICLE
      14

    

    Assignment
      and Governing Law

    

    14.1 Neither
      the Owner nor the Contractor shall assign his interest in this Agreement without
      the written consent of the other except as to the assignment of
      proceeds.

    

    14.2 This
      Agreement shall be governed by the law in effect at the location of this
      Project.

    

    

    13

    

    

    

    

    

    ARTICLE
      15

    

    Miscellaneous
      Provisions

    

    

    

    ARTICLE
      16

    

    Arbitration

    

    16.1 All
      claims, disputes and other matters in question arising out of, or relating
      to,
      this Agreement or the breach thereof, except with respect to the Engineer’s
      decision on matters relating to artistic effect, and except for claims which
      have been waived by the making or acceptance of Final Payment shall be decided
      by arbitration in accordance with the Construction Industry Arbitration Rules
      of
      the American Arbitration Association then obtaining unless the parties mutually
      agree otherwise. This agreement to arbitrate shall be specifically enforceable
      under the prevailing arbitration law.

    

    16.2 Notice
      of the demand for arbitration shall be filed in writing with the other party
      to
      this Agreement and with the American Arbitration Association. The demand for
      arbitration shall be made within a reasonable time after the claim, dispute
      or
      other matter in question has arisen, and in no event shall it be made when
      institution of legal or equitable proceedings based on such claim, dispute
      or
      other matter in question would be barred by the applicable statute of
      limitations.

    

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

    

    16.4 Unless
      otherwise agreed in writing, the Contractor shall carry on the Work and maintain
      the Contract Time Schedule during any arbitration proceedings and the Owner
      shall continue to make payments in accordance with this Agreement.

    

    16.5 All
      claims which are related to or dependent upon each other shall be heard by
      the
      same arbitrator or arbitrators, even though the parties are not the same, unless
      a specific contract prohibits such consolidation.

    

    16.6 These
      provisions relating to mandatory arbitration shall not be applicable to a claim
      asserted in an action in a state or federal court by a person who is under
      no
      obligation to arbitrate such claim with either of the parties to this Agreement
      insofar as the parties to this Agreement may desire to assert any rights or
      indemnity or contribution with respect to the subject matter of such
      action.

    

    This
      Agreement entered into as of the day and year first written above.

    

    

    Accepted
      this date: May
      14, 2007

    

    ATTEST:
      /s/:
      Mark D. Chymiak  OWNER:
      TULSAT

    

    By:
      /s/:
      Kenneth A. Chymiak 

    

    Print
      Name: Kenneth
      A. Chymiak

    

    Title:
      President
      & Chief Executive Officer

    

        

    Accepted
      this date: May
      14,2007

    

    ATTEST:
      /s/:
      Mark D. Chymiak CONTRACTOR  
      :
      B. R. HUTSON, INC.________

    

    By:
      /s/:
      Dana M. Hutson

    

      
      Print
      Name: Dana
      M. Hutson

    

    Title:
      President

    

    14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]