Date:XX/SubcontraSubcontraCostCode

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hereinaftercalledOwner.WHEREAScopiesoftheDirectContractOwneragreementareonfileintheofficeoftheContractorandhavebeenexaminedbytheSubcontractor.Thelender,ifany,forthisProjectis(specifybranchaddress):FirmNameFirmAddressFirmCity,FirmStateFirmZipTel:FirmPhoneFax:FirmFaxIftheinformationaboveisnotcompleted,thereisnoknownlender.NOWTHEREFOREitisagreed:SECTION1.ENTIREAGREEMENT;SCOPEOFWORK Subcontractoragreestofurnishalllabor,services,materials,supervision,installation,cartage,hoisting,supplies, insurance,equipment,scaffolding,tools,andotherfacilitiesofeverykindanddescriptionforpromptandefficientexecutionofthefollowingdescribedwork(theWork):udScopeOfWorkProvideudNumofSubmittalsReqsetsofsubmittalsforSubcontractorWork.AllsubmittalsarerequiredbyudSubmittalsReqBy.Thephrase ContractDocuments asusedherein isdefined tomean thisAgreement and ExhibitsA(Insurance Requirements), [LIST OTHER EXHIBITS] thereto, and any other attachments referencedtherein;andtheagreementbetweenDirectContractorandOwner, includingtheplans,specifications,general conditions, special provisions drawings, specifications, addenda, amendments,modifications,exhibits,andallotherdocumentsformingorbyreferencemadeapartthereof(DirectContract).ThisAgreement, and all of the foregoing documents, shall be considered a part of this Agreement byreference thereto, and Subcontractor agrees to be bound to the Direct Contract by the terms andprovisionsthereof,inthesamemannerthatDirectContractorisboundtoOwner.Subcontractor certifies and agrees that it is fully familiar with all of the terms of this Agreement,includingtheContractDocuments,allofwhichSubcontractoracknowledgeshavebeenmadeavailabletoit,thelocationofthejobsite,andtheconditionsunderwhichtheWorkistobeperformedandthatitentersintothisAgreementbaseduponitsowninvestigationofallsuchmattersandisnotrelyingonanyopinionsor representationsofDirectContractor.ThisAgreement isa fully integratedagreementandrepresents the entire agreement betweenDirect Contractor and Subcontractor, and supersedes anypriororalorwrittenagreementsorrepresentations.TheContractDocumentsare incorporated in thisAgreement by reference, and Subcontractor agrees to bind its subcontractors and suppliers to the

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ContractDocumentsinsofarastheyrelateinanyway,directlyorindirectly,totheWorkcoveredbythisAgreement. Where, in theContractDocuments, reference ismade toContractor,and theWorkorspecificationsthereinpertaintoSubcontractorstrade,craftortypeofwork,suchworkorspecificationsshallbe interpretedtoapplytoSubcontractor insteadoftoDirectContractor. ThepartiesintendthatalltermsofthisAgreementbeconsideredascomplementary.However,intheeventofaconflictbetweenoramongthe terms of this Agreement or the Contract Documents, the higher standard or greater responsibility forSubcontractorshallprevail.IntheeventofaconflictbetweenthisAgreementortheContractDocumentsontheonehand,andthelawsapplicabletothisAgreement,theAgreementandtheContractDocumentsshallbeenforceabletothemaximumextentpermittedbyapplicablelaw.ThisAgreementincludes,withoutlimitation,thefollowingaddenda:udAddenda.ThefollowingalternatesareincludedinthisAgreement:udAltNotesThefollowingadditionalprovisionsareincludedinthisAgreement:

udInclusionsNotesThefollowingareexcludedfromthisAgreement.

udExclusionsNotes

SECTION2.PAYMENT

(a) DirectContractoragreestopaySubcontractorfortheperformanceofthisAgreement,asspecified,herein,thesumof:TotalOrigSLProjectsubject to additions and deductions for changes agreed upon or determined, as hereinafterprovided.Bythe22thofeachmonth,SubcontractormustdelivertoDirectContractorsofficeattheProjectanapplicationforpayment,onDirectContractorsapplicationform,Exhibit__hereto.Subcontractorsapplication should be based upon the Subcontractors Work performed and materials andequipmentinplaceupthedayjustpriortosubmittaloftheapplicationforpayment,andshouldinnoevent forecastbillingbeyond the25thof themonth. Subcontractoracknowledges that timelysubmissionofapplications forpayment isa critical aspectofpaymenthereunderand ismaterialconsiderationonDirectContractorspart in entering into thisAgreement. Applications receivedafterthe12thofthemonthwillnotbecomedueandpayableuntilthefollowingpayperiod,subjectto all other conditions precedent to payment being satisfied, including those stated in thisAgreementandtheContractDocuments.DirectContractoragreestopaytoSubcontractormonthly

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progresspaymentsonaccountofWorkactuallyand satisfactorilycompletedbySubcontractor, insumsequal to___________percent (___%)of the labor,equipment, servicesandmaterials thathave been placed in position, as reflected inDirect Contractor's application for payment and asapproved by Owner. The foregoing percentage shall be ninety percent (90%) unless otherwisestatedunder thisAgreementor requiredby applicable law. Payment shallbemade from fundsreceived from Owner within seven (7) days of receipt of such funds paid on account ofSubcontractorsWork,providedallother conditionshereofhavebeen satisfiedand therearenogroundsforwithholding.Asaconditiontopayment,Subcontractoragreestoprovidewaiversandreleases for itselfand itssubcontractors and suppliers regardless of tier, as well as other evidence of payment to suchpersons, inaformsatisfactorytoDirectContractor, includingwithout limitation,payrollaffidavits,receipts,vouchersorotherdocumentation,demonstratingthatSubcontractorhaspaidforalllabor,equipment,materials,services,taxesorothercharges inanywayrelatingtoSubcontractor'sWorkandobligations inconnectionwiththeProject. UponcompleteperformanceofthisAgreementbySubcontractor,andaftertheentireworkrequiredbytheDirectContracthasbeenfullycompletedinconformitywith theContractDocumentsandhasbeendelivered toandacceptedby theOwner,Architect,andDirectContractor,DirectContractorwillmakefinalpaymenttoSubcontractorofthebalanceduehimunderthisAgreementfromfundspaidinfinalpaymentforworkundertheDirectContract,byOwner,orotherresponsibleparty,withinseven(7)daysinthecaseofapublicworkofimprovement,andten(10)daysinthecaseofaprivateworkofimprovement,withfundsreceivedby Direct Contractor from Owner in final payment for work under the Direct Contract.Subcontractor agrees to furnish, if and when required by Direct Contractor, payroll affidavits,receipts,vouchers, releasesofclaims for labor,andmaterial,andagrees to furnishsame from itssubcontractorsandsuppliersperformingworkor furnishingmaterialsunder thisAgreement,all informsatisfactorytoDirectContractor,and it isagreedthatnopaymenthereundershallbemade,exceptatDirectContractorsoption,untilandunlesssuchdocumentshavebeenfurnished.DirectContractor,at itsoption,maymakeanypaymentduehereunderbycheckmadepayable jointlytoSubcontractor and any of its subcontractors and/or suppliers who have performed work orfurnishedmaterialsunderthisAgreement.Anypaymentmadehereunderpriortocompletionandacceptanceofthework,asreferredtoabove,shallnotbeconstruedasevidenceofacceptanceoracknowledgementofcompletionofanypartofSubcontractorsWork.IfOwnerorotherresponsiblepartydelaysinmakinganypaymenttoDirectContractorfromwhichpaymenttoSubcontractoristobemade,DirectContractoranditssuretiesshallhaveareasonabletime to make payment to Subcontractor. Reasonable time shall be determined according torelevant circumstances, but in no event shall be less than the time Direct Contractor, DirectContractorssureties,andSubcontractorrequiretopursuetoconclusiontheirlegalremediesagainstOwnerorotherresponsiblepartytoobtainpayment,including(butnotlimitedto)mechanicslienremedies.To the greatest extent permitted by law, Subcontractor assumes the risk of Owners or DirectContractors insolvencyorother inability topay, andunderstands and agrees that SubcontractorshallbepaidonlywhenDirectContractorispaidforSubcontractorswork.

(b)PaymentsmadetoSubcontractorshallbedeemedtobeheldintrustforbenefitofDirectContractorandofallpersonswhofurnishedlabor,equipment,andmaterialsfororonbehalfofSubcontractor,aswellas for thebenefitof trust fundsandapprenticeshipprogramsowedmoney inconnection

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with theProjectbySubcontractoror its lowertiersubcontractors. Inadditiontoanyotherrightsandremediesthat itmayhave,DirectContractorshallbeentitledtopursueaclaimforbreachoffiduciary duty against Subcontractor in the event that Subcontractor violates itsobligationswithrespecttofundspaidtoit.Withoutderogationtoanyotherrightsandremedies,DirectContractorshallbeentitledtosetoffagainstanyamountsowedtoSubcontractoranydebts,claims,demands,liabilitiesorothersumsowedtoDirectContractorbySubcontractor,includingthosethatarisefromotherprojectsorcontractsorthatarecontingentornotyetaccrued.

SECTION3.BONDING

IfrequestedbyDirectContractor,SubcontractorshallfurnishaPerformanceandPaymentBonds inanamountequal to the fullsubcontractprice. DirectContractoragrees topay for thecostof thebond,provided,however, thatSubcontractorshallberesponsible forpaymentofanycosts inexcessof twopercent of such bond. Such bonds shall be furnished by a Surety satisfactory toDirect Contractor.Reasonable premiums for such bonds, not to exceed two percent (2%), shall be paid by DirectContractoruponreceiptofaninvoicefromtheSurety.

SECTION4.CHANGESSubcontractor shall make no changes in the Work described in the Contract Documents and thisAgreementexceptasdirectedbyDirectContractorinwriting.Suchchangeorwrittendirectionshallnotinvalidate this Agreement. Direct Contractor is authorized tomake changes in theWork, includingdeletion,additions,andothermodifications.AllowanceforextraworkanddeductionsforomissionsshallbebymutualwrittenagreementbetweenDirect Contractor and Subcontractor or determined in accordance with procedures specified in theDirectContract.TherequestedchangeinSubcontractorspricemustbesubmittedtoDirectContractorforreviewwithintheearlierofthree(3)workingdaysofthewrittenorder,orwithinsuchtimeasmaybe required forDirectContractor toprovide timely information to theOwner inaccordancewith therequirementsoftheDirectContract.Failuretoprovidesuchpricingwithinthetimespecifiedshallresultinawaiverofclaimsandinnonpayment.DirectContractorshallnotbeheldliabletoSubcontractorforanyextralabor,materials,orequipmentfurnishedwithoutsuchwrittenorder.If necessary, the Contract Price and the time for Subcontractors performance shall be adjusted byappropriate additions or deductions mutually agreed upon before the Subcontractor performs thechanged work. Subcontractor shall supply Direct Contractor with all documentation necessary tosubstantiatetheamountoftheadditiontoordeductionfromthepriceortime.IfDirectContractorandSubcontractorcannotagreeontheamountoftheadditionordeletion,Subcontractorshallnonethelesstimely perform the Work as changed by Direct Contractors written direction. Once Subcontractorreceives Direct Contractors written direction, Subcontractor is solely responsible for timelyperformanceoftheWorkaschangedbythewrittendirection.PaymentforchangedWorkshallbemadeinaccordancewithSection2.IfSubcontractormakesanychanges intheWorkdescribed inSection1withoutwrittendirectionfromDirectContractor,suchchangeconstitutesanagreementbySubcontractor that itwillnotbepaid forthatchangedWork,evenifitreceivedverbaldirectionfromDirectContractororanyformofdirection,writtenorotherwise, fromOwneroranyotherpersonorentity. Inaddition,Subcontractor shallbe

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liableforanyandalllosses,costs,expenses,andliabilityofanynaturewhatsoeverassociatedwithorinanywayarisingoutofanysuchchange itmakeswithoutwrittendirectionfromDirectContractor. IfadisputearisesbetweenDirectContractorandSubcontractoraboutwhetherparticularWorkisachangein the Work described in Section 1, Subcontractor shall timely perform the disputed Work. IfSubcontractor intends tosubmitaclaim for thedisputedWork, itshallgivepromptwrittennotice toDirectContractorbeforeproceedingwiththeWork. Inaddition,Subcontractorshallsubmititswrittenclaim foradditionalcompensation for thatworkwithin ten (10)daysaftersuchwork isperformed insufficientdetailforDirectContractortomakeanevaluationofthemeritsoftheclaim.SubcontractorsfailuretoeithergivethewrittennoticebeforeproceedingwiththeWorkortosubmitthewrittenclaimwithintheten(10)daysconstitutesanagreementbyitthatitwillnotbepaidforthedisputedWork.Nochange,alteration,ormodification toordeviation from thisAgreement, theContractDocuments,including theDirect contract, plans, or specifications,whethermade in themanner provided in thissectionornot,shallreleaseorexonerate,inwholeorinpart,anybondoranysuretyonanybondgivenin connectionwith thisAgreement,andnonotice is required tobegiven to such suretyofany suchchange,alteration,modification,ordeviation.DailytagsmustbesubmittedtoandsignedbyDirectContractorforallextraworkonthedaytheextraworkisperformed.Subcontractoragreesthatitsfailuretodososhallresultinandconstitutesawaiverofclaims,andthatnopaymentshallbedueforsuchwork.\If, inordertoexpeditethecompletionoftheProject,DirectContractordirectsSubcontractortoworkovertime,asecondshift,and/ortoworkSaturdays,Sundaysoronlegalholidays(hereinaftercollectivelyreferredtoas"overtime"),forreasonsotherthanSubcontractor'sfailuretofulfill itsobligationsunderthe Contract Documents, Subcontractor shall work such overtime and it is understood that DirectContractor shallpay to Subcontractoronly thepremiumportion (thedifferentialbetween theactualrateandregularrate)oftheovertime. Timeslipscoveringovertimemustbereviewed inwritingandsigned daily by Direct Contractor as a condition precedent to payment by Direct Contractor toSubcontractor for suchwork. DirectContractor's reviewand signatureon such time slips shallbeanacknowledgementofhoursworked,but shall not be an acknowledgement that the Subcontractor isentitled tobepaid forovertimepremium. Nooverheadorprofit is tobechargedby,orallowed to,Subcontractorforovertime. If, inDirectContractor'ssolediscretion,Subcontractor isbehindschedulein theWork and/ordelaysor interfereswith theprogressofotherWorknecessary to complete theProjectonschedule,orotherwise fails to fulfill itsobligationsunder theContractDocuments, then, ifdirected by Direct Contractor, Subcontractor shall use overtime and/or increase its manpower, asdeemednecessarybyDirectContractor, toexpedite theprogressof theWork,and the totalcostandexpensethereofshallbeborneentirelybySubcontractor.SECTION5.PROSECUTIONOFTHEWORK(a)Timeisoftheessence.SubcontractorshallprosecutetheWorkundertakeninapromptanddiligent

manner, in strict accordance with the Direct Contractors directives and Direct Contractorsschedule,revisedifnecessary,astheworkprogresses,including,withoutlimitation,wheneversuchWork,orpartofit,becomesavailable,oratsuchothertime(s)asDirectContractormaydirect,andsoastopromotethegeneralprogressoftheentireconstruction,andshallnotbydelayorotherwiseinterferewithorhinder theworkofDirectContractororanyother subcontractor.SubcontractorshallcomplywithDirectContractorsschedule,andshouldSubcontractorfailtocompletetheWorkwithin the time specified in the contract schedule, Subcontractor agrees to reimburse Direct

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ContractorforanyandallliquidatedoractualdamagesthatmaybeassessedagainstandcollectedfromDirectContractorwhichareattributabletoorcausedbySubcontractor'sfailuretoperformtheWorkrequiredbythisAgreementwithinthetimefixedorinthemannerprovidedforherein,andinaddition,agreestopaytoDirectContractorsuchotheradditionaldamagesasDirectContractormaysustainbyreasonofsuchdelaybySubcontractor.ThepaymentofsuchdamagesshallnotreleaseSubcontractor from itsobligation tootherwise fullyperform thisAgreement. Subcontractor shallcoordinatetheWorkcoveredbythisAgreementwiththatofallothercontractors,subcontractors,and/orsuppliersandofDirectContractor,inamannerthatwillfacilitatetheefficientcompletionoftheentirework.DirectContractorshallhavetherighttodecidethetimeandorderinwhichvariousportionsof theworkshallbe installedand the relativepriorityof theWorkofSubcontractorandothersubcontractors,and,ingeneral,allothermatterspertainingtothetimelyandorderlyconductof theWork of Subcontractor on the premises. Subcontractor acknowledges that itwill have toperformWork in areas occupied by other forces, and that itwill have to perform itsWork in asequenceormannertoaccommodateandfacilitatetheprogressoftheworkasawhole,ratherthanin themannermostefficientordesirable forSubcontractor.Subcontractor'sprice isbaseduponDirectContractorexercising the rights indicated in this Section5andupon Subcontractorhavingplanned to perform itsWork under such circumstances. Subcontractor shallmeet allmilestonedatesassetforthintheContractDocuments,andanyrevisionsthereto.SubcontractorsfailuretomeetmilestonecompletiondatesshallbeamaterialbreachofthisAgreement.

(b) In the event that Subcontractor fails to comply or becomes disabled from complying with the

provisionshereinastocharacterortimeofperformance,andthefailureisnotcorrectedwithintwoworking days afterwritten request by Direct Contractor to Subcontractor, Direct Contractor, bysubcontract or otherwise, may without prejudice to any other right or remedy, take over andcomplete theperformanceof thisAgreementat theexpenseofSubcontractor,orwithout takingover the Work, may furnish the necessary materials and/or employ the workmen necessary toremedy the situation at the expense of Subcontractor. IfDirect Contractor takes over theWorkpursuanttothisparagraphitisspecificallyagreedthatDirectContractormaytakepossessionofthepremisesandofallmaterials,toolsandequipmentofSubcontractoratthesiteforthepurposeofcompletingtheWorkcoveredbythisSubcontract.

(c) It isagreedthattheSubcontractorshallbeconsideredasdisabledfromsocomplyingwhenevera

petition in Bankruptcy or for the appointment of a receiver is filed against him. Upon theappointmentofareceiverforSubcontractororuponSubcontractormakinganassignmentforthebenefitofcreditors,orifSubcontractorseeksprotectionundertheBankruptcyCodeorcommitsanyotheractofinsolvency,DirectContractormay,absentanyapplicablelegallimitation,terminatethisAgreementupongivingtwo(2)workingdayswrittennotice,bycertifiedmailorovernightdeliveryexpressmail, to Subcontractor and its surety, if any. If an order for relief is entered under theBankruptcyCodewith respect toSubcontractor,DirectContractormay terminate thisAgreementupongivingfortyeight(48)hourswrittennotice,bycertifiedorovernightdeliveryexpressmail,toSubcontractor,itstrustee,anditssurety,ifany,unlessSubcontractor,thesurety,orthetrustee:

i)promptlycuresalldefaultsandprovidesadequateassuranceoffutureperformance;ii)compensatesDirectContractorforactualpecuniarylossresultingfromsuchdefaults;andiii)assumestheobligationsofSubcontractorwithinstatutorytimelimits.

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IfSubcontractor isnotperforming inaccordancewiththescheduleofworkatthetimeofenteringan order for relief or at any subsequent time,Direct Contractor,while awaiting the decision ofSubcontractoror itstrusteetorejectortoacceptthisAgreementandprovideadequateassuranceof its ability to perform hereunder, may avail itself of such remedies under this section as arereasonablynecessary tomaintain thescheduleorwork.DirectContractormayoffsetagainstanysums due or to become due Subcontractor all costs incurred in pursuing any of the remediesprovidedhereunder,including,butnotlimitedto,reasonableoverhead,profitandactualattorneysfees incurredasaresultofSubcontractorsnonperformance.Subcontractorshallbe liableforthepaymentof any amountbywhich suchexpensemayexceed theunpaidbalanceof theContractPrice.

(d)Subcontractorshallkeep,onthesiteduringtheprogressoftheWork,acompetentsuperintendent

whoshallbetheauthorizedrepresentativeofSubcontractor.Directionsandcommunicationstohimfrom Direct Contractor in connection with the Work shall be treated as directions andcommunicationstoSubcontractor.

(e) Subcontractor shall keep the premises and surrounding area free from accumulation of waste

materials or rubbish caused by or in any way related to operations performed under thisAgreement. Subcontractor shall provide its own dumpster for the removal of debris. IfSubcontractordoesnotcomplywiththisrequirement,DirectContractor,on24hoursnotice,maycompletethecleanupworkandbackchargeSubcontractor.

SECTION6.DELAYS(a) If Subcontractor is delayed in theprosecutionor completionof theWorkby the act,neglector

defaultofOwner,ArchitectorDirectContractor,orifSubcontractorisdelayedwaitingformaterialsrequiredbythisContracttobefurnishedbyOwnerorDirectContractor,orbydamagecausedbyfireorothercasualtyforwhichSubcontractor isnotresponsible,orbythecombinedactionoftheworkmen,innowaycausedbyorresultingfromfaultorcollusiononthepartofSubcontractor,orintheeventofa lockoutbyDirectContractor,thenthetimeherein fixed forthecompletionoftheWork shall be extended the number of days that Subcontractor has thus been delayed, but noallowance or extension shall bemade unless a claim therefore is presented inwriting toDirectContractorwithin threebusinessdaysof the commencementof suchdelayor twobusinessdayspriortothetimethatDirectContractormustgivenoticetoOwner,whicheverissooner,andunderno circumstances shall the time of completion be extended to a datewhichwill preventDirectContractorfromcompletingtheentireprojectwithinthetimeallowedDirectContractorbyOwnerfor such completion. If and only to the extent that Section 7102 of the Public Contract Coderequiresasamatterofpublicpolicy that subcontractorbe compensated fordelays: (1) recoveryshall be permitted only for those circumstances recognized under the Contract Documents ascompensable delays; (2) recovery shall only be allowed for those delays that are unreasonableunder thecircumstances involvedandnotwithin thecontemplationof theparties, in lightof thenatureof theproject, industrycustomandpractice,andother relevant factors; (3) recoverymayonlybehadforthoseitemsofcostspermittedundertheDirectContract,plusthoseadditionalitemsof costs, if any, that under Section 7102 of the Public Contract Code, requires be paid; (4)Subcontractor is bound by and must comply with all provisions of the Direct Contract andSubcontract (and any portions thereof) that are not in conflict with Section 7102, includingprovisionsconcerningnoticeandcertificationofclaimswith respect tocompliancewith theFalse

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ClaimsAct.ForpurposesofSection6,aclaimthatSection7102ofthePublicContractrequiresbepermitted, where the foregoing conditions have been satisfied, shall be referred to as anAuthorized7102Claim.

(b)Except for an Authorized 7102 Claim, Subcontractors sole remedy for delay, disruption or

suspension shall be an extension of time, and Subcontractor shall not be entitled to recoveradditional compensation or damages for delays, disruption or suspension, including withoutlimitation, claims for anyproductivity losses, efficiency losses, increased supervisory costs,homeofficeoverhead,extended jobsiteoverhead,disruptioncosts,"rippleeffect"costs,tradestacking,compression, acceleration, consequential damages, damages of any other type, lost profits, lostopportunity costs, or similar damages or costs, however denominated, as well as any othermonetaryrelief,foranydelay,disruptionorsuspensionoftheWork(collectively,"ImpactCostsAndConsequentialDamages").ExceptforAuthorized7102Claims,SubcontractorwaivesanyClaimforImpact Costs and Consequential Damages. However, in the event Direct Contractor obtainsadditional compensation from Owner on account of delays that otherwise would benoncompensable under this Section 6, Subcontractor shall be entitled to such portion of theadditionalcompensationsoreceivedbyDirectContractor fromOwneras isequitableunderallofthe circumstances. In the event that Direct Contractor prosecutes a claim against Owner foradditionalcompensationforanydelay,SubcontractorshallcooperatefullywithDirectContractorinthe prosecution thereof and shall pay costs and expenses incurred in connection therewith,includingactualattorneys fees, to theextent that saidclaim ismadebyDirectContractorat therequest of Subcontractor.Nothing in this Section 6 shall be deemed to authorize recovery forImpactCostsAndConsequentialDamagesor towaiveDirectContractor's right to recovery fromOwnerforsuchdamages.

(c)Noallowance foranextensionoftime, foranycausewhatever,shallbeclaimedbySubcontractor

unlessSubcontractor shallhavemadewritten requestuponDirectContractor, for suchextensionwithin two working days after the cause of such extension occurred, or if the Direct Contractprovidesforashorterperiod,withinsufficienttimetopermitDirectContractortogivenoticetotheOwnerwithinthetimeallowedbytheDirectContractforsuchnotice.

(d)Noallowanceofanextensionof time shall, inanyevent,bemade toSubcontractor fordelayby

Subcontractor inpreparingdrawingsor in securingapprovalof theArchitectorEngineer theretowhensuchdrawingsarenotproperlypreparedorwhenSubcontractorbytheexerciseofreasonablediligenceandjudgmentcouldhaveanticipatedandavoidedthedelay.

SECTION7.COMMUNICATIONS

AllcommunicationsbetweenSubcontractorand theArchitect,EngineerorOwnerwith respect to theWorkshallbetransmittedthroughDirectContractor.SECTION8.INSURANCESubcontractor and its lower tier subcontractors and suppliers shall comply with the insurancerequirementsandprovisionsstatedinthisSection8.DirectContractorsdelayorfailuretoenforceinatimelymanneranyoftheprovisionsofthisAgreement,includingwithrespecttoinsurance,shallnotactasawaiverofanyoftheseprovisionsatalaterdateintheperformanceofthisAgreement.

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Subcontractor shall, at its expense, procure and maintain insurance on all of its operations, withcompaniesacceptabletoDirectContractor,asfollows:Workers'CompensationandEmployersLiabilityInsurance.WorkersCompensationinsuranceshallbeprovided as required by any applicable law or regulation. Employers Liability insurance shall beprovidedinamountsnotlessthan:

$1,000,000eachaccidentforbodilyinjurybyaccident$1,000,000policylimitforbodilyinjurybydisease$1,000,000eachemployeeforbodilyinjurybydisease

IfthereisanexposureofinjurytoSubcontractorsemployeesundertheU.S.LongshoremanandHarborWorkersCompensationAct,theJonesActorunderlaws,regulations,orstatutesapplicabletomaritimeemployees,coverageshallbeincludedforsuchinjuriesorclaims.Awaiver of subrogation endorsementmust be obtained and provided, and the following coveragesmustbenotedonanyevidenceof insurance: workers'compensation statutory;employers liability;excessliability(totheextentrequiredbyOwnerortheContractDocuments).Renewalcertificatesshallbeprovidedattheendofthepolicyperiod.General Liability Insurance. Subcontractor shall carryprimaryCommercialGeneral Liability insurancecovering all operations by or on behalf of Subcontractor providing insurance for bodily injury andproperty damage liability for the limits of liability indicated below and including, but not limited to,coveragefor:(1) premisesandoperations;(2) products and completed operations will be maintained for three years following project

completion;(3) contractualliabilityinsuringtortobligationsassumedbySubcontractorinthisContract;(4) broadformpropertydamage(includingcompletedoperations);(5) explosion, collapse and underground hazards (including subsidence and any other earth

movement);and(6) personalinjuryliability.

The limitsof liabilityshallbenot lessthantheamountsrequiredofSubcontractorundertheContractDocuments,butinnoeventlessthan:

$1,000,000eachoccurrence(combinedsinglelimitforbodilyinjuryandpropertydamage);$1,000,000forpersonalinjuryliability;$2,000,000aggregateforproductscompletedoperations;$2,000,000generalaggregate.

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ThegeneralaggregatelimitshallapplyseparatelytoSubcontractorsworkunderthisContract.Ifeitherdefense costsare included in theGeneralAggregate limitor if theGeneralAggregate limitdoesnotapplyseparatelytothisproject,thentherequiredGeneralAggregatelimitistobe$5,000,000.Direct Contractor, its officers, directors and employees, and Owner shall be named as additionalinsuredsunder theCommercialGeneral LiabilitypolicyandExcess Liabilitypolicyand such insuranceafforded theadditional insureds shallapplyasprimary insurance.Anyother insurancemaintainedbyDirectContractororOwnershallnotbecalledupontocontributewiththisinsurance.Coverage for theDirectContractor, itsofficers,directorsandemployeesand theOwnerasadditionalinsuredsshallbeprovidedbyanendorsementprovidingcoverageatleastasbroadasAdditionalInsured(Form B) endorsement form CG 2010 1185 as published by the Insurance Services Office (ISO) (orequivalent).Coverageforadditionalinsuredsmustincludeallofthecoveragesrequiredunderitems16above, including products/completed operations coverage for the additional insureds. Additionalinsuredendorsementwillbeprovidedforthreeyearsfollowingprojectcompletion.Subcontractor on behalf of itself and its insurerswaives all rights againstDirect Contractor and anyconstructionmanager, includingsubrogationrights, for loss, liability,costs,expenseordamage to theextentsuchlossordamageiscoveredbyinsurance.Claims Made/Self Insurance Provisions. Subcontractor shall not provide general liability insuranceunder any Claims Made General Liability form without the express prior written consent of DirectContractor.Anyselfinsuranceprogramprovidingcoverageinexcessof$25,000peroccurrencerequiresthepriorwrittenconsentofDirectContractor.Automobile Liability Insurance. Subcontractor shall carry automobile liability insurance, includingcoverageforallowned,hired,andnonownedautomobiles.The limitsofliabilityshallbenotlessthan$1,000,000combinedsingle limiteachaccidentforbodily injuryandpropertydamage. Coverageshallnotbeprovidedona"modifiedoccurrence"ora"claimsmade"basis. CoverageshallbeprovidedonAccord (01/95or later). DirectContractor, itsofficers,directorsandemployees,andOwner shallbenamedasadditionalinsuredsunderthepoliciesrequiredbythisparagraph.Additional Requirements. All insurance under this provision (including, but not limited to, generalliability, automobile liability, and workers compensation and employers liability insurance, shall beprovidedbyaCaliforniaadmittedcarrierwithanA.M.Best'sRatingofAorbetter,financialcapacityVIIorgreater (except for State FundofCalifornia forworkers compensation coverage).General liabilityinsurance shallbewrittenona format leastasbroadas ISOoccurrence formCG0001;AutomobileLiabilityInsuranceshallbeprovidedpursuanttoacoverageformatleastasbroadasISOformCA0001.DirectContractorreservestheright,initssoleandsubjectivediscretion,torejectaninsurerandrequireSubcontractortoobtainpoliciesfromanotherinsurer.

Certificates of insurance, as evidence of the insurance required by this Contract and including therequiredadditional insuredendorsement(s)shallbefurnishedbySubcontractortoDirectContractornolaterthanthirty(30)dayspriortothetimethatSubcontractorfirstperformsanyworkinconnectionwith the Project or enters into this Agreement, whichever is earlier. Certificates shall set forthdeductible amounts applicable to each policy and all exclusions or limitations not set forth in ISOCommercialGeneralLiabilityFormCG0001.TheDirectContractormayallowdeductibleprovisions ifSubcontractor iswillingto increaseretentionsaccordingly.Standard ISOFormCG0001exclusionswill

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also be allowed.Allowance of any additional exclusions or coverage limiting endorsements is at thediscretionof theDirectContractorandSubcontractorsbid shallbe subject toupwardadjustment tocompensatefortheexistenceofsuchexclusions.Subcontractorsinsuranceandadditionalinsuredcoverageshallnotincludethefollowingexclusionsorprovisions: crosssuits and/or crossinsureds exclusion of coverage, mold/water damage/earthmovementexclusions,requirementsbytheinsurerthatsubcontractorsorsuppliersmaintaininsuranceoragreetodefendorindemnifyDirectContractororowner.Subcontractorshallcauseitspoliciestobeamendedorendorsedtoremoveanysuchexclusions,provisions,orlimitations.NotationonanAcordformisNOTacceptableasevidenceofcompliancewithrequirements,includingwithout limitation,requirementswithrespecttoadditional insureds,noticeofcancellation,completedoperations,etc.Regardless of the allowance of exclusions, coverage limitations or deductibles by the Subcontractor,Subcontractorshallberesponsibleforanydeductibleamountoranylossarisingoutofcoveragedenialsby its insurance carrier(s).Certificatesof insurance shallprovide that therewillbenocancellationorreductionofcoveragewithoutfirstgivingthirty(30)dayspriorwrittennoticetoDirectContractor.AnyacceptanceofinsurancecertificatesbyDirectContractorshallinnowaylimitorrelieveSubcontractorofitsdutiesandresponsibilitiesunderthisAgreement, includingthedutytodefend, indemnify,andholdharmlessOwner.Subcontractor shall take such steps as are necessary to assure Subcontractors compliance with itsobligations.Shouldanyinsurancepolicylapseorbecancelledduringthecontractperiod,Subcontractorshall,priortotheeffectiveexpirationorcancellationdate,furnishtheDirectContractorwithevidenceofrenewalorreplacementofthepolicy.Failuretocontinuouslysatisfyinsurancerequirementsashereinprovided isamaterialbreachof contract. In theeventSubcontractor fails tomaintainany insurancecoveragerequired,DirectContractormay,butisnotrequiredto,maintainsuchcoverageandchargetheexpensetoSubcontractororterminatethiscontract.Any acceptance of insurance certificates by Direct Contractor shall in no way limit or relieveSubcontractor of its duties and responsibilities under this Contract including the duty to indemnify,defendandholdharmlessDirectContractorandotherpersonsassetforthintheContractDocuments.Nowork shallbeperformedby Subcontractorat theproject siteuntil certificatesandendorsementshavebeenfurnishedandapproved.Paymentmaybewithheld,attheoptionoftheDirectContractor,untilrequiredcoveragehasbeenobtained,andcertificatesandendorsementshavebeenfurnished,orifuponreceiptofacancellationnoticeonapolicy,untilwithdrawalofthenoticeorthereinstatementofthecancelledpolicy.Insurance coverage in theminimum amounts set forth herein shall not be construed to relieve theSubcontractor for liability inexcessof such coveragenor shall itpreclude theDirectContractor fromtakingsuchotheractionsasisavailabletoitunderanyotherprovisionofthecontractorlaw.Ifhigherlimitsorother formsof insurancearerequired in theContractDocuments,Subcontractorwillcomplywithsuchrequirements.Additional insured endorsements shall be obtained and furnished to Direct Contractor up to andthrough the end of the limitations periods under Code of Civil Procedure Section 337.15, and shall

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includeall coverage requiredhereunder, including completedoperations coverage. FailurebyDirectContractortorequestsuchendorsementsortogivenoticeoftheirnothavingbeenfiledshallnotwaivethisrequirement.

Subcontractorshallnotprovideany liabilitycoverageunderawastingpolicyorotherformofpolicythatreducestheamountofcoverage,inwholeorinpart,byamountsexpendedondefenseofclaims.Thefollowingadditionalrequirementsshallalsobesatisfied:(a) HazardousMaterials. If Subcontractor and/or its subcontractors or suppliers, regardless of tier,

performremediationofhazardousmaterialsoriftheiroperationscreateanexposuretohazardousmaterials as those terms are defined in federal, state or local law, Subcontractor and itssubcontractorsandsuppliersmustobtainaContractorsPollutionLiabilitypolicywith limitsnotless than $1,000,000 per occurrence and not less than $2,000,000 aggregate for Bodily Injury,Personal Injury and Property Damage, naming Direct Contractor as an additional insured. IfSubcontractor or its subcontractors or suppliers haul hazardous material (including, withoutlimitation,waste), the policymust extend pollution coverage to the transportation of hazardousmaterialsorpollutantsbywastehaulingvehicles. IfSubcontractor issubjecttotheMotorCarrierActof 1980, theMotorCarrierAct endorsementMCS90mustbeobtained and attached to thepolicy.

(b)Professional Liability. If Subcontractor (or its subcontractors or suppliers, regardless of tier)

performsanydesign/buildworkorservices,oranyotherservicesofaprofessionalnature,suchasthose requiring an engineering or architectural license, it shall obtain a Professional LiabilityInsurancePolicy.Design/buildworkincludes,withoutlimitation,design/buildworkwithrespecttomechanical, electrical, structural, plumbing and fire sprinkler systems. Professional liabilityinsuranceshallbe foraminimumof$1million,orsuchgreateramountasDirectContractormayrequire.EvidenceofcoverageintheformofaCertificateofInsuranceshallbeprovidedpriortothestartof theproject. Subcontractor shallobtaincoverage foraminimumof threeyears followingcompletionoftheproject,eitherthroughcontinuedpurchaseofpoliciesforsuchyearsorthroughpurchase of an extended reporting period. If Owner or Direct Contractor elects to purchase aproject design policy, Subcontractors policy shall be endorsed to indicate that Subcontractorspolicyshallprovidecoverageoncetheprojectdesignpolicyhasbeenexhausted.

(c) Riggers Liability. Should Subcontractors work involve the moving, lifting, lowering, rigging, or

hoistingofpropertyorequipment, Subcontractor shall carryRiggers Liability Insurance to insureagainstphysicallossordamagetothepropertyorequipment.

(d) Cargo Insurance (Required for Truckers). If Subcontractor provides trucking or similar

transportation services, it shall obtain andmaintain all risk coverage including shift of load andunidentifiedtrailers.Limitshouldbenolessthan$250,000witha$2,500deductible.

(e) Aircraft Liability. If Subcontractor (or its subcontractorsor suppliers, regardlessof tier) use any

owned,leased,charteredorhiredaircraftofanytypeintheperformanceofthiscontract,theyshallmaintain aircraft liability insurance in an amount of not less than $10,000,000 per occurrence,includingPassengerLiability.

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(f) WorkNearRailroads.IfSubcontractor(includinganylowertiersubcontractororsupplier)performsanyworkorconductsanyoperationswithinfiftyfeetofanyrailroad(includingany lightrail,fixedrail or other rail system), Subcontractor shall obtain an endorsement of its CommercialGeneralLiability Policy to delete any exclusion, including the Contractual Liability exclusion, for workperformedwithin fifty feetofarailroad. Acopyofsuchendorsementshallbeprovided toDirectContractorprior toanyworkoroperationsby Subcontractorwithin fifty feetofany railroad. Inaddition, if required by any railroad, the Owner, or the Contract Documents, or any permit orlicense,Subcontractor shallobtainanendorsementadding the railroadownerorotherpartiesasadditionalinsureds.

(g) EquipmentandPropertyCoverage. Subcontractorshallprocureandmaintainat itsownexpense

property and equipment insurance for Subcontractors tools, equipment, temporary structures,work in progress,work in transit and/or in temporary storage, aswell as those of its lower tiersubcontractors and suppliers. If builders risk insurance is not provided by Owner or DirectContractor,Subcontractorshallpurchaseandmaintaininstallationfloatercoveragewrittentocoverall risksofphysical loss except those specifically excluded in thepolicy, and shall insure at leastagainsttheperilsoffireandextendedcoverage,theft,vandalism,maliciousmischief,andcollapse.ThisinsuranceshallbewritteninanamounttoprovidefullprotectionforSubcontractorsworkandequipment.Thisinsuranceshallapplyonareplacementcostbasis.Anydeductibleshallbethefullresponsibility of Subcontractor. If builder's risk insurance purchased by Owner(s) or DirectContractor provides coverage for Subcontractor for loss or damage to Subcontractors work,SubcontractorshallberesponsiblefortheinsurancepolicydeductibleamountapplicabletodamagetoSubcontractor'sworkand/ordamagetootherworkcausedbySubcontractor.

(h) Waiver of Subrogation. Subcontractor waives all rights against Direct Contractor and any

constructionmanagerfor loss, liability,costs,expenseordamagetotheextentreimbursedbyanyinsurance applicable to thework, except such rights as theymay have to the proceeds of suchinsurance.IfanyapplicablepoliciesofinsurancereferredtointhisSectionrequireanendorsementorconsentoftheinsurancecompanytoprovideforcontinuedcoveragewherethereisawaiverofsubrogation,theownersofsuchpolicieswillcausethemtobesoendorsedorobtainsuchconsent.

(i) RequirementsforSubsubcontractors,Vendors,andSuppliers.Subcontractorshallensurethatall

tiersofitssubcontractors,vendorsandsuppliersshallmaintaininsuranceinlikeformandamounts,shallcomplywiththeadditionalinsuredrequirementsassetforthabove,shallwaivesubrogationasset forthabove, shallotherwisecomplywithall requirementsof thisSection8,and shallprovideDirectContractorwithevidenceofinsurancepriortocommencingwork.

SECTION9.INDEMNIFICATIONANDDEFENSEOBLIGATIONSTo the greatest extent permitted by law, Subcontractor shall defend, indemnify and hold harmlessDirectContractor, Owner,andOwnersarchitectandengineer,andanyof their respectivedirectors,officers,agents,employees,parents,affiliates,subsidiaries,partners,andrepresentatives,andanyotherpersons or entities designated by any of them (collectively, the "Indemnitees") from and against allcausesofaction,penalties,assessments,fines,actionsbygovernmentalauthorities,demands,liabilities,claims, damages, costs, losses and expenses, including but not limited to attorney's fees, consultantfees,andotherlegalcosts("Claims"),whichariseoutoforareinanywayrelated(i)tothisAgreement;(ii) toactualorallegedactionsoromissionsbySubcontractororanyof its subcontractors, suppliers,vendors, employees, or persons for whom it is responsible, or (iii) Subcontractors presence at the

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Projectsiteand/or itsWork.Notwithstandingtheforegoing, ifanyoftheContractDocuments imposemorestringentdefense,indemnity,contributionorholdharmlessobligationsthanaresetforthherein,then the more stringent provisions shall apply, and Subcontractor shall owe the same defense,indemnity,contribution,andholdharmlessobligationstoDirectContractorasDirectContractorowestoOwner.SubcontractorsdutytodefendIndemniteesshallapply,andSubcontractorshallberequiredtofurnishadefense,notwithstandingthattherehasnotyetbeenadetermination,adjudicationorfindingofliabilityorfaultonthepartofSubcontractororanypartyorpersontobeindemnified.To the greatest extent permitted by law, the obligations of this Section 9 shall apply regardless ofwhether the Claims were caused in part or contributed to by Indemnitees; however, obligationsspecified above shall not extend to: (a) Claims that arise out of, pertain to, relate to the activenegligence or willful misconduct of Direct Contractor, of a subcontractor to Direct Contractor, aconstruction managerwho is an Indemnitee, or any of their other agents, other servants, or otherindependent contractors who are responsible to them (b) to defects in design furnished by theIndemnitee,or(c)totheextentClaimsdonotariseoutofthescopeofworkofSubcontractor.Items(a)through (c) intheprecedingsentenceshallbereferredto inthisprovisionas"IndemnityLimitations."UponwrittentenderbyanyIndemnitee,includingDirectContractor,ofaClaim,Subcontractorshall:Defendtheclaimwithcounselofitschoice,whoisreasonablyqualifiedandexperiencedinsuchmattersanddoesnothavea conflictof interest in representing the tenderingparty,and Subcontractor shallmaintain control of the defense for any claim or portion of claim to which the defense obligationapplies. If Subcontractor elects to defend under this subparagraph (a), Subcontractor shall providewrittennoticeoftheelectiontothetenderingpartyareasonabletimeperiodfollowingreceiptofthewrittentender,andinnoeventlaterthan30daysfollowingthatreceipt.Subjectonlytothelimitationssetforthabove,thedefenseprovidedbySubcontractorshallbeacompletedefenseoftenderingpartyof allClaimsorportions thereof to the extent alleged tobe causedby Subcontractor, including anyvicarious liability claims the tendering party resulting from Subcontractor's scope of work, but notincludingclaimsresultingfromthescopeofwork,actions,oromissionsofthetenderingparty,oranyotherparty.AnyvicariousliabilityimposeduponthetenderingpartyforClaimscausedbySubcontractorelecting to defend under this paragraph shall be directly enforceable against Subcontractor.Subcontractor shall promptly provide the tendering party with all information, documentation, orevidence, if any, relating to any assertionby Subcontractor that anotherparty is responsible for thetenderedClaim.Pay, within 30 days of receipt of an invoice from the tendering party, no more than a reasonableallocated share of the tendering party's defense fees and costs, on an ongoing basis during thependency of the claim, subject to reallocation consistent with the limitations set forth above, andincludinganyamountsreallocateduponfinalresolutionofClaim,eitherbysettlementorjudgment.ThetenderingpartyshallallocateasharetoitselftotheextentaClaimisallegedtobecausedbyitswork,actions,oromissions,andashare toeachsubcontractor to theextent that theClaim isalleged tobecaused by Subcontractor's work, actions, or omissions, regardless of whether the party seeking adefensefromSubcontractoractuallytenderstheclaimtoanyparticularsubcontractor,andregardlessofwhether that Subcontractor is participating in the defense. Any amounts not collected from anyparticularsubcontractormaynotbecollectedfromanyothersubcontractor.Notwithstandinganyotherprovisionoflaw,ifSubcontractorfailstimelyandadequatelytoperformitsobligationsundersubparagraph(a),thepartytenderingtheClaimshallhavetherighttorecoverfromSubcontractorforanyresultingcompensatorydamages,consequentialdamages,reasonableattorney's

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fees,consultantfees,andotherlegalcosts.IfSubcontractorfailstotimelyperformitsobligationsundersubparagraph(b),thepartytenderingtheClaimshallhavetherighttorecoverfromSubcontractorforanyresultingcompensatorydamages,interestondefenseandindemnitycosts,fromthedateincurred,at therateset forth insubdivision (g)of formerCivilCodeSection3260 (nowrecodifiedatCivilCodeSection 8818), consequential damages, and reasonable attorney's fees incurred to recover theseamounts.ThepartytenderingtheClaimshallbeartheburdenofprooftoestablishbothSubcontractorsfailuretoperformundereithersubparagraph(a)or(b),andanyresultingdamages. Inadditiontotheforegoing remedies, and without limitation or derogation of them, Subcontractor agrees to payliquidateddamagesof$100pereachdaythatSubcontractorfailstoperformitsobligationsundereithersubparagraph (a)or (b),whichare intendedtocompensatethetenderingpartyfor lossofreputation,administrative costs, and other losses that are difficult to quantify and that are not adequatelycompensatedunderthisprovisionandSection2782.05oftheCivilCode.Subcontractoragreesthatthesumof$100perdayconstitutesareasonableestimateofsuchdamagesorlosses.TheobligationsunderthisSection9areinnowaylimitedorrelievedbySubcontractorhavingobtainedinsurance,by the Insuranceorotherprovisionsof thisAgreement,and/or to theextentpermittedbylaw,bytheprovisionsofanyworkerscompensationlaw,regulationorarrangement.TheobligationsofSection 9 shall survive the expiration or termination of this Agreement, as well as Subcontractor'scompletionofitsotherobligations.Ifandonly ifaclaim fordefenseor indemnity relates toaproject that isgovernedbyCaliforniaCivilCode Sections 895 et seq. and Direct Contractor is determined to be a Builder for purposes ofCaliforniaCivilCodeSection2782(d), thenas toclaimsofconstructiondefects (DefectClaims)only,theforegoingindemnityismodifiedsuchthatSubcontractorisnotobligatedtoindemnifyOwnertotheextentthatsuchDefectClaimsariseoutof,pertainto,orrelatetothenegligenceoftheOwner,ortheOwnersotheragents,otherservants,orotherindependentcontractorswhoaredirectlyresponsibletoOwner,orfordefects indesignfurnishedbythosepersons,ortotheextenttheDefectClaimsdonotarise out of, pertain to, or relate to the scope of work covered by this Agreement; however,Subcontractor shallneverthelessbeobligated todefendOwnerandDirectContractor fromany suchDefect Claims, within five (5) days of obtaining knowledge of any such Defect Claims, subject toreallocationafter final resolutionof theclaimspursuant toCivilCodeSection2782(d). IndemnityanddefenseobligationsnotaffectedorrestrictedbyCivilCodeSection2782(d)or(e),suchasforpropertydamagenotcausedbyconstructiondefectsorothermattersnot involvingDefectClaims,shallnotbelimited, impairedormodifiedby the foregoingsentence,andsuch indemnityanddefenseobligationsshallremaininfullforceandeffect.

SECTION10.LIENSANDCLAIMS

Subcontractorshall,asandwhenrequested,furnishevidencesatisfactorytoDirectContractorandtheOwnerthatclaimsfor laborandmaterialsfurnishedbySubcontractor inconnectionwithperformanceofthisSubcontracthavebeenpaid, includingpayrolltaxesandemployeebenefits.SubcontractorshallfurnishDirectContractorreleasesofbondrightsand lienrightsbypersonswhohave furnished labor,materialsorotherthingsintheperformanceofthisSubcontract,itbeingagreedthatpaymentofmoneyotherwisedueSubcontractorneednotbemadebyDirectContractoruntilsuchreleasesarefurnished.Subcontractor shall take all necessary steps to ensure that no claims, liens, lawsuits, stop paymentnotices, or other liens are asserted in connection with the Project by any of its subcontractors orsuppliers (regardlessof tier), itsor theiremployees, trust funds, taxingauthoritiesorothercreditors,andpursuanttothedutiessetforthhereinshallfullydefend,holdharmlessandindemnifyOwnerand

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Direct Contractor against all such claims at Subcontractors sole expense. At Subcontractors soleexpense,uponDirectContractorsrequest,Subcontractorshallwithinareasonableperiodnottoexceedfive(5)calendardays,bondaroundanystoppaymentnoticesorliens,sothatthejobandanyfundingthereforshall remain free fromencumbrancesand liens,andSubcontractorshall takesuchotherandfurther stepsasmaybenecessary to remove theeffectofany liens, stoppaymentnoticesor claimsfromtheProjectoranyfundsfortheProject.

SECTION11.DEFAULT

(a) IfSubcontractor failstosupplysufficientqualifiedworkersand/orpropermaterials,or failstoprosecuteitsworkdiligentlyandproperly,orfailstomakepromptpaymenttoitsworkers,subsubcontractorsorsuppliers,orbecomesdelinquentwithrespecttocontributionsorpaymentstoanybenefit,apprenticeshiporotheremployeeprogramortrust,orfailstoprovideadequateassurances,or isotherwiseguiltyofamaterialbreachofaprovisionofthisAgreementorthelaw, and failswithin fortyeight (48) hours after receipt ofwritten notice to commence andcontinuesatisfactorycorrectionofsuchdefaultwithdiligenceandpromptness,andtocompletethecureofsuchdefaultwithinthetimeperiodstatedinDirectContractor'sdefaultnotice,thenDirectContractor,withoutprejudicetoanyrightsorremedies,shallhavetherighttoanyorallofthefollowingremedies:

i. supplysuchworkersandquantityofmaterials,equipmentandotherfacilitiesasDirect

ContractordeemsnecessarytocompleteSubcontractorswork;

ii. contractwithothercontractorstoperformsuchpartofSubcontractorsworkasDirectContractorshalldeemappropriate;

iii. terminateSubcontractorsrighttoperformanduseanymaterials,equipment,ortools

furnishedbyorbelongingtoSubcontractorworkwithoutanyfurthercompensationtoSubcontractorforsuchuse;and

iv. withhold payment of any monies due Subcontractor pending corrective action;

provided,however, thatDirectContractormaywithholdpaymentwithoutgiving suchnoticetothegreatestextentpermittedbylaw.

Insuchanevent,DirectContractorshallbeentitledtorecoverfromSubcontractor,backchargeagainstSubcontractor,and/orsetoffagainstamountsowedtoSubcontractor,theactualdirectand indirect costs thatDirectContractorhas incurred (includingattorneys feesand litigationcosts)plusmarkupoffifteenpercent(15%)foroverheadandtenpercent(10%)forprofit.Inanemergency,DirectContractormayproceedasabovewithoutnotice. Inaddition toanyotherremediesavailable,uponwrittennoticeDirectContractorshallbeentitledtoperformusing itsownorotherforcesthosecleanupdutiesthatSubcontractorhasfailedtoperform,toremedysafety deficiencies, or otherwise to remedy Subcontractors failure to have complied withrequirementsofthisAgreementordirectivesbyDirectContractor. TosecureperformancebySubcontractor and the prompt payment of any funds expended byDirect Contractor,DirectContractor shall have a lien upon all materials, tools, appliances, and equipment ofSubcontractorattheProjectorusedinconnectionwithSubcontractor'swork.

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(b) RecourseAgainstDirectContractor. IfDirectContractorwrongfullyterminatesSubcontractor,DirectContractor shallbe liable to Subcontractor for the costsDirectContractorwouldhavepaid ifDirect Contractorwould have terminated Subcontractor for convenience pursuant toSection12hereof.Subcontractorexpresslyunderstandsandagreesthatitsremedyhereundershallbeexclusive,andexpresslywaivesanyandallotherrightsandremedieswhichitmayhavewhetheratlaworinequity.NothinghereundershallbeconstruedtopreventDirectContractorfromwithholdingmoniesfromSubcontractorunderotherprovisionsofthisAgreement.

SECTION12.TERMINATIONFORCONVENIENCE.Onwrittennotice,Direct Contractormay terminate allorpartof thisAgreementor SubcontractorsworkforDirectContractorsconvenience.Uponsuchtermination,Subcontractorshallbeentitledto:(1)the reasonable cost of thework completed in conformitywith thisAgreement; plus, (2) such otherreasonable costs actually incurred by Subcontractor as are permitted by the Direct Contract andapprovedbyOwner;plus (3) fifteenpercent (15%)of thecostof thework referred to in item (1) foroverheadandprofit.TheforegoingamountsshallbereducedbyareasonableandappropriateamountifSubcontractorwouldhavesufferedalossontheProject.ThereshallbedeductedfromtheforegoingsumstheamountofanypaymentsmadetoSubcontractor.Subcontractorshallnotbeentitledto lostprofitsonworknotperformedoranyclaimorclaimoflienagainstDirectContractororOwnerforanyadditionalcompensationordamagesintheeventofsuchtermination.TheamountrecoverableunderaconvenienceterminationshallnotexceedtheContractPrice. Intheeventthatanyterminationotherthan for convenience is later determined to have beenwithout cause or improper, Subcontractor'sremedy shall be to have the termination converted to a termination for convenience, andSubcontractor's recovery shallbe limited inaccordancewith the termsof thisSection12. Uponanytermination,whetherforcauseorconvenience,DirectContractorshallhavetherighttotakeimmediatepossessionof,utilize foranypurpose, inspect,andcopyanyandallofSubcontractor'sdocumentsorinformation related to the project, and the obligations of Subcontractor and rights and remedies ofDirect Contractor thatwould continue after substantial completion in the absence of a termination,includingwithout limitation, Subcontractor's dutieswith regard to indemnity, payment of creditors,compliancewithlaws,insurance,warranty,anddefectivework,shallremaininfullforceandeffect.

SECTION13.POSSESSIONPRIORTOCOMPLETION

Whenever it may be useful or necessary for Direct Contractor to do so, Direct Contractor shall bepermittedtooccupyand/oruseanyportionoftheWorkwhichhasbeenpartiallyorfullycompletedbySubcontractor before final inspection and acceptance thereof by the Owner, but such use and/oroccupationshallnotrelieveSubcontractorof itsguaranteeofsaidWorknorof itsobligation tomakegoodatitsownexpenseanydefectsinmaterialand/orworkmanshipwhichmayoccurordeveloppriortoContractorsreleasefromresponsibilitytotheOwner.

SECTION14.OTHERCONTRACTS

ItisunderstoodandagreedthattheWorkprovidedforinthisAgreementconstitutesonlyapartofthework being performed for theOwner byDirect Contractor and other subcontractors. Subcontractor,therefore,agreestoperformtheWorkcalledforinthisAgreementinsuchamannerthatSubcontractorwillnot injure,damageordelayanyworkperformedbyDirectContractororothersubcontractorsorsuppliers, and Subcontractor further agrees topayor reimburseDirectContractor for any additionalcosts,damageordelaythatmaybecausedtosuchotherworkofDirectContractor,subcontractorsorsuppliers, by Subcontractor or its agents or employees. Subcontractor shall participate in the

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preparationofcoordinateddrawings,thereviewofexistingdrawings,contractorotherwise,and/orthereview and/or preparation of other information asmay be necessary to specifically note and adviseDirect Contractor of potential conflicts between the work of Subcontractor and that of DirectContractor,othersubcontractorsortheOwnersownforces.

SECTION15.LABORCOMPLIANCE

Subcontractorandalllowertiersubcontractorsshallcomplywithandperformallworkcoveredbyanycollective bargaining agreement(s) towhichDirect Contractor is a party orwhich otherwisemay beapplicable to the Project, under the terms of said agreement(s) and shall become signatory to theapplicable agreement(s) as a condition of performing work. In addition, Subcontractor and itssubcontractors, suppliers, vendors, and employees shall complywith the termsof any Project LaborAgreement thatmayapply to theProject. ShouldDirectContractorat its solediscretionestablishareserved gate system on the Project, Subcontractor agrees that its employees, subcontractors, andsupplierswillusethereservegate(s)designatedforthembyDirectContractor.Subcontractorherebyexpresslyagreesthatalloftheprovisionsoftheapplicablelaboragreementsareincorporated into thisAgreementas if theywere set forth in theirentirety. Subcontractoragrees tocomplywith all of the terms and conditions of those labor agreements as if itwere a party to saidagreementsincludingsignatorystatusifrequired.Subcontractorfurtheragreestopaythewagerates,maketherequiredtrustfundpaymentsintotherespectivelabortrustfunds,andobservethehoursandallother termsandconditions set forth in the respective laboragreements. Subcontractoragrees tocomplywith the termsandprovisionsof saidagreements setting forth thegrievanceandarbitrationprovisions. Furthermore, Subcontractor agrees to comply with the terms and provisions of saidagreements setting forth the jurisdiction and scope of work therein for resolution of jurisdictionaldisputes. In the absence of any such procedure or if such procedure fails to promptly resolve thejurisdictionaldispute,Subcontractoragrees,at itsown costandexpenseandupon requestbyDirectContractor, to take any and all lawful steps to secure a binding and final determination of saidjurisdictionaldisputebytheNationalLaborRelationsBoard.

Subcontractoracknowledgesthattermsandconditionsofthe laboragreementswiththeunions listedbelowmayrequirethatSubcontractorcomplywithadditionallaboragreements.Subcontractoragreestobindandrequireallofitssubcontractors,regardlessoftier,toagreetoalloftherequirementsunderthisSection15.[INSERTUNIONSWITHWHICHGSEHASLABORAGREEMENTS]

SECTION16.COMPLIANCEWITHLAWSANDSAFETYREQUIREMENTS(a) Subcontractor agrees to fully comply with all Federal, State and local laws, ordinances and

regulations.

(b) Atitssoleexpense,Subcontractorshallinvestigateandcomplywith,andagreestobeboundby,allapplicable laws and regulations, including without limitation, laws regarding licensing ofcontractors,theFairLaborStandardsAct,theAmericanswithDisabilityAct,thefederalFamilyandMedicalLeaveAct,federal,stateandlocalfamilyrightsandmedicalleavelaws,civilrightsandfairemployment laws,theCaliforniaLaborCode,Proposition65, lawsconcerningwagesandbenefitstobepaid,andallotherconstruction,environmental,workplaceandsafety laws. Subcontractor

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acceptsexclusive liability forcompliancewithsuch laws, includingtheFederalSocialSecurityActwithrespecttoitsemployees,salesandusetaxlaws,andanyotherlawsandregulations.

(c) Subcontractorshallalsocomply,atitssoleexpense,withallDBE,MBE,UDBE,WBE,DVBE,LBE,local

hiringandsimilarrequirementspertainingtotheProject.IntheeventofaterminationasaresultofanymisrepresentationoffactsrelatingtoSubcontractor'sstatusasaDBE,MBE,UDBE,WBE,DVBE,and/orLBE,Subcontractorshallnotbeentitledtoanycompensationnotalreadypaid.

(d) Subcontractoracknowledges that ithasconducted itsown independent investigationof thewage

rates to be paid and whether its Work will be subject to prevailing wage requirements or therequirements of the DavisBacon Act and that it has not relied upon any statements orrepresentationsbyDirectContractorwithrespecttosuchmatters. SubcontractoragreesthattheSubcontract Price shall be deemed to be full compensation for compliance with such laws,regulations,orrequirements,includingpaymentofallapplicablewagerates,andthatnoadditionalcompensationwillbeowedtoSubcontractorintheeventthatSubcontractorisrequiredthereundertopayhigherwagesorincuradditionalcoststhatSubcontractorcontendsthatitdidnotanticipate.

(e) Uponrequest,SubcontractorshallsubmitcertifiedpayrollrecordstoDirectContractornolaterthan

three(3)workingdaysafterDirectContractor'srequestandfurtheragreestocooperatefullyinanyeffort by Direct Contractor to verify compliance with labor laws and regulations, includingrequirements under the DavisBacon Act or the California Labor Code. Such cooperation shallinclude, without limitation, furnishing copies and originals of records and providing access toemployeesorwitnesses for interviewsand statements. Inaddition toandwithoutderogationofanyotherrightsthatDirectContractormayenjoy,DirectContractormaywithholdsufficientfundsto protectDirect Contractor against any claims related to labor requirements, includingwithoutlimitation,requirementsundertheDavisBaconActortheCaliforniaLaborCode.

(f) Onallprojectssubject to stateor localprevailingwage requirements,Subcontractorshallcomply

withanyapplicableCaliforniaprevailingwagelaws.Withrespecttosuchprojects,theprovisionsofCaliforniaLaborCodeSections1771,1775,1776,1777.5,1813and1815areattachedasExhibitAand incorporated herein. On such projects, as a condition precedent to final payment,Subcontractoragrees,ifrequestedinwritingbyDirectContractor,toprovideanaffidavitsignedbySubcontractorunderpenaltyofperjury, stating thatSubcontractorhaspaid the specifiedgeneralprevailingrateofperdiemwagestoitsemployeesontheprojectandanyamountsdue.

(g) thatcomplieswiththetermsofLaborCodeSection1775(b)(4).

(h) At its soleexpense, Subcontractor shall instituteandmaintaina reasonable andadequate safety

program that fullycomplieswith the law,andshall fullycooperatewithandadhere toanysafetyprogramor requirementsofDirectContractorand/orOwner. AllpersonnelofSubcontractor, itssubcontractors, and suppliers shallwear hard hats, safety vests, and any other necessary safetyequipment,while visitingorworkingata construction site. Subcontractor shallprovidematerialdatasheetsandothersubmittalsoritemsnecessarytocomplywithapplicablelaws.Subcontractoragrees to obtain and pay for all permits, licenses and official inspections necessary for propercompletionofitsWork.

(i) Ifhazardousor toxic substances,of a typeofwhich anemployer is requiredby law tonotify its

employees,arebeingusedon the sitebySubcontractor, its subcontractorsoranyonedirectlyor

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indirectlyemployedbythem,Subcontractorshall,priortoexposureofanyemployeesonthesitetosuch substance, givewritten notice of the chemical composition thereof toDirect Contractor insufficient detail and time to permit compliance with such laws by Direct Contractor, othersubcontractorsandemployersonthesite.

(j) Subcontractor acknowledges that the EPA and California regulatory authorities have mandated

certain requirements for permits under the National Pollutant Discharge Elimination System(NPDES), includingStormWaterPollutionPreventionPlan (SWPPP) requirements. Subcontractorhas undertaken its own independent and thorough investigation of all such matters, includingwithout limitation, a thorough reviewof all requirementsunder theContractDocuments and/orthatareimposedbyanypermitsthatapplytotheProject,andSubcontractorwarrantsthatitisnotrelyinguponanystatementsorrepresentationsbyDirectContractororOwnerwithrespecttosuchmatters. Subcontractor agrees, at its sole cost, to conform to any and all requirements of anyenvironmental, air and water pollution statutes, regulations and measures, and/or permits,includingNPDESpermits,andSubcontractoralsoshallconformtoanyandallSWPPPrequirementsapplicable to theProject,as furtherset forth in thisAgreementand theContractDocuments.Forexample, on projects subject to the California Standard Specifications, such as Caltrans projects,Subcontractor'sattentionisdirectedtoCaliforniaStandardSpecificationsSections13.1.01through1310.03,"WaterPollution",andSections141.01through14.204,"EnvironmentalStewardship",and on all projects, to any special provisions or other contract provisions concerning NPDES,DepartmentofFish&Game,andotherpermits,airandwaterpollutionstatutes,regulations,andmeasures, and SWPPP requirements, and Subcontractor at its own cost agrees to comply fullytherewith.

(k) Subcontractorshallcomplywithallprovisionsof"Proposition65" (CaliforniaStateDrinkingWater

Act of 1986, California statutes) which shall include, but not be limited to, posting in a timelymannerofanyrequirednotices.Subcontractorshallnotuseorbringon to theProjectanyof thechemicalsorcompoundslistedbytheCaliforniaStateAttorneyGeneralfromtimetotime,includinganychemicalsorcompoundsaddedaftertheeffectivedateofthisAgreementundertheprovisionsof Proposition 65 (the List)without delivering a clearwritten notice, at the time submittals arewritten, toDirect Contractor andOwner informing them of the dates and locationswhere suchitems shallbedelivered,used,or stored. Notwithstandinganything to thecontrarycontainedorindicatedhereinor in anyof theContractDocumentsor anywhere else, Subcontractor shallnotincorporateintothework,orallowtobeincorporatedintothework,anyofthelisteditemsonsuchlistwithoutspecificadvancedwrittennoticehavingfirstbeendeliveredtoDirectContractorpriortoSubcontractorbecomingactuallycontractuallyobligatedtopurchaseortakedeliverythereoffromitssuppliers,andthenonlytotheextentDirectContractorgivesclearwrittenapprovaloftheusesproposed in the notice. The notice shall contain clear descriptions of the type, amount, uses,locations,andcontentofsuchitemsincorporatedintoorusedinsaidwork.

(l) Subcontractorshallberesponsibleforholdingweeklysafetytoolboxmeetingsasrequiredbylawonitsowntimeatitsownexpense.Ifrequested,recordsofsuchmeetingsshallbesubmittedtoDirectContractor.Failuretoprovidesuchminutesmaybereasonforwithholdingpaymentfortheworkperformed.

(m) HardhatsandappropriatesafetyclothingandequipmentarerequiredontheProjectsite.SECTION17.CALTRANSA&BPROJECTS

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NOTUSED.SECTION18.PROTECTIONOFTHEWORKSubcontractor shall effectually secure and protect the Work done hereunder and assumes fullresponsibilityandriskofalllossordamagetoitsWork,material,orequipmentuntilfinalacceptancebyArchitect,OwnerandDirectContractor. Subcontractor furtheragrees toprovide suchprotectionasnecessarytoprotecttheWorkandtheworkmenofDirectContractor,Ownerandothersubcontractorsfromitsoperations.Subcontractorshallbeliableforanylossordamagetoworkinplaceortoanyequipmentandmaterialsonthejobsitecausedbyitoritsagents,employeesorguests.If Subcontractor installs items provided by others or performs Work in areas to be constructed orpreparedbyothers,Subcontractorshallcarefullyinspectandshallaccept,atthetimeofdeliveryorfirstaccess,theitemssoprovidedandtheworkbyothers.Failuretoconductaninspectionortogivenoticeof anydiscrepanciesorproblems shallbedeemed to constitute acceptanceby Subcontractorof theitemsorworkofothers.LossordamageduetoactsofSubcontractorshallbechargedtoSubcontractor.Subcontractor is responsible for alldamagesor losses it causes toothersor towork, equipment,orpropertyofothers.SECTION19.ALTERNATIVEDISPUTERESOLUTION Any dispute resolution procedure in the Contract Documents shall be deemed incorporated in thisAgreement, and shall apply to any disputes arising hereunder that involve the Direct Contractor orOwner, including,without limitation,suchaspass throughclaims. Subcontractorshallcooperate insuch procedures and shallparticipate in themwhen requested. Any claimsnot involving theDirectContractororOwnermaybe resolved,atDirectContractors soleoption, throughbindingarbitrationadministered by a provider to be determined by Direct Contractor, under Judicial Arbitration andMediationServiceorAmericanArbitrationAssociationConstruction IndustryRules ineffectasof thedateofanyarbitrationdemandmadebyDirectContractor.Priortothefilingofanylawsuitordemandforarbitration,thepartiesshallmeetinformallytoattempttoresolvethedisputeand,ifrequestedbyDirectContractor,shallparticipateinnonbindingmediation,witheachpartytobearitsownfeesandcosts.The award rendered by the arbitrator(s) shall be final and judgment may be entered upon it inaccordancewithapplicablelawinanycourthavingjurisdiction.Notwithstanding any dispute, and to the greatest extent permitted by law, Subcontractor agrees tocontinuewith itsperformance andmaintain the scheduleofworkpending resolutionof any and alldisputes, includingdisputesregardingpaymentorwhetherwork iswithinSubcontractor'sscope. TheforegoingsentenceconstitutesanadvancewaiverbySubcontractor,tothegreatestextentpermittedbylaw,ofanyactualorallegedrighttostopwork,rescind,orabandontheProject.Subcontractor,and its subcontractorsand suppliers (regardlessof tier),agreeupon requestbyDirectContractortojoininandbeboundbyproceedingsinvolvingDirectContractor,includingthoseinvolving

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Ownerorotherparties. It shallbe the responsibilityof Subcontractor toprepareDirectContractor'scase,totheextenttheproceedingsarerelatedtothisAgreement.Nothinghereinshallbedeemedtowaiverightsorremediesthatbylawmaynotbewaived.

SECTION20.WAIVEROFATTORNEY'SFEES

Notwithstanding any other provision of this Agreement, the Contract Documents or applicable law,neitherSubcontractornorDirectContractorshallbepermittedtorecoverattorneysfeesorcostsinanydisputeor litigationandSubcontractorexpresslywaives theright torecoverattorney's feesandcostsfromDirectContractorandfromDirectContractor'ssuretiesexceptwherethesameispermittedtoberecoveredunderthefirstsentenceofthisSection20.Thiswaiveroftherighttofeesandcosts,totheextentpermittedby law,shallbeeffectiveas tostatutory rightssuchas thoseaffordedbyCivilCodeSection 9564 et seq. This provision shall not limit, impair orwaive Direct Contractor's rights to bedefendedby,tobeindemnifiedby,tobeheldharmlessby,toreceivecontributionfrom,andtoreceivethebenefitsof insurance furnishedbySubcontractororanyotherpersons,with regard toattorney'sfees,expertcostsandotherexpenses.IntheeventthatacourtweretofindthatthisprovisionwouldallowanawardoffeesevenwhentheconditionsunderthefirstsentenceofthisSection20werenotsatisfied, then thisAgreementshallbe reformed toeliminateandwaiveany right to fees fromeitherpartyoritssureties,exceptwheresuchawaiverwouldviolatepublicpolicy.

SECTION21.INDEPENDENTCONTRACTOR;TAXESSubcontractorisanindependentcontractorandshall,atitssolecostandexpense,andwithoutincreasein theContractPrice, complywith all laws, rules,ordinances and regulationsof all governingbodieshaving jurisdiction over the work: obtain all necessary permits and licenses therefore, pay allmanufacturerstaxes,salestaxes,usetaxes,processingtaxes,andallfederalandstatetaxes,insuranceand contributions for social security and unemploymentwhich aremeasured bywages, salaries, orotherremunerationspaidtoSubcontractorsemployees,whetherleviedunderexistingorsubsequentlyenacted laws, rulesor regulations. Subcontractor upon request shall furnish evidence satisfactory toDirectContractorthatanyoralloftheforegoingobligationshavebeenfulfilled.

SECTION22.EQUALOPPORTUNITY/AFFIRMATIVEACTION(a) If theDirectContract contains anyprovisionwhichprohibitsdiscriminationon thebasisof race,

color, religion, sex,ornationalorigin,hereinafter referred toasEqualOpportunity,or ifany law,regulation or order has any application thereto and is applicable to this Subcontract, thenSubcontractorherebyagreestocomplywithsuchprovision,law,regulationororder.

(b) Subcontractor hereby acknowledges that Direct Contractor is an Equal Opportunity Employer /

AffirmativeAction,and isboundbytheclausesandconditions identified inExecutiveorder11246,asamendedby, theVietnamEraVeteransReadjustmentAssistanceActof1974,asamended,38USC4212,andSection503oftheRehabilitationActof1973,asamended,andtheir implementingregulationsandwhichbythisclauseareincorporatedherein.

SECTION23.ARCHITECTENGINEER

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The words "Architect or Engineer" as used herein refer to the person appointed by the Owner tosupervisetheworkofDirectContractoronbehalfoftheOwner.

SECTION24.ASSIGNMENT

WithoutfirstgivingwrittennoticeandthenobtainingDirectContractor'swrittenconsent,Subcontractorshallnotassign,hypothecate, transferor sublet: (1)anyportionorpartof thework requiredor theobligations hereunder; (2) payments to Subcontractor; or (3) any cause of action related to thisAgreement.Subcontractoracknowledgesandstipulatesthat itsperformanceconstitutesauniqueandpersonalobligation. Anyassignment,hypothecation, transfer,orsublettingbySubcontractorwithoutDirect Contractor'swritten consent shall be void and invalid, notwithstanding actual or constructiveknowledgebyDirectContractorofthepurportedassignment,hypothecation,transferorsubletting.

SECTION25.PRIORUNDERSTANDINGORREPRESENTATIONS

TheDirectContractorassumesnoresponsibilityforanyunderstandingorrepresentationsmadebyanyof itsdirectors,officers, employees,or agentsprior to the executionof thisAgreement,unless suchunderstanding or representations by Direct Contractor are expressly stated in this Agreement. Theterms and conditions of this Agreement shall take precedence over any conflicting conditions orstatements.

SECTION26.ADDITIONALPROVISIONS

Layout: DirectContractorshallestablishprincipalaxis linesand levels,andSubcontractorshall layoutandshallbestrictlyresponsiblefortheaccuracyofSubcontractorsWork.Subcontractorshallexerciseprudencesothatactualfinalconditionsanddetailsshallresultinperfectalignmentoffinishedsurfaces.

ProvisionsforInspections:SubcontractoratalltimesshallfurnishtoDirectContractor,Owner,andanyrepresentatives of them, safe and ample facilities for inspecting materials and work at the site ofconstruction,shops,factories,yardsoranyotherplacesofbusinessofSubcontractor,itssubcontractorsorsuppliers,wherevermaterialsunderthisAgreementmaybeinthecourseofpreparation,processing,manufacture,paintingortreatment.SubcontractorshallfurnishtoDirectContractor,asoftenasDirectContractorrequires,fullreportsoftheprogressoftheWorkatanyplacematerialsmaybeinthecourseofconstruction,treatmentormanufacture.Suchreportsshallshowtheprogressofsuchconstruction,treatment,andmanufacture insuchdetailasmayberequiredbyDirectContractor, includingbutnotlimitedto,anyplans,drawings,ordiagramsinthecourseofpreparation.

INWITNESSWHEREOF,thepartiesheretohaveexecutedthisSubcontractbyitsproperofficersordulyauthorizedagents.

CONTRACTORS ARE REQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE CONTRACTORSSTATE LICENSE BOARD, WHICH HAS JURISDICTION TO INVESTIGATE COMPLAINTS AGAINSTCONTRACTORS IFA COMPLAINT REGARDINGA PATENTACTOROMISSION IS FILEDWITHIN FOURYEARS OF THE DATE OF THE ALLEGED VIOLATION. A COMPLAINT REGARDING A LATENT ACT OROMISSIONPERTAININGTOSTRUCTURALDEFECTSMUSTBEFILEDWITHIN10YEARSOFTHEDATEOFTHEALLEGEDVIOLATION.ANYQUESTIONSCONCERNINGACONTRACTORMAYBEREFERREDTOTHEREGISTRAR,CONTRACTORSSTATELICENSEBOARD,P.O.BOX26000,SACRAMENTO,CA95826.DIRECTCONTRACTOR SUBCONTRACTOR

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By:_____________________________ By:________________________________Title:_____________________________ Title:________________________________G.S.E.CONSTRUCTIONCOMPANY,INC. FirmNameDATE: DATE:CONTR.LICENSE401498 CONTR.LICENSENo.________________

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C:\Documents and Settings\phavlicek\Desktop\May 6 2014 GSE Subcontract - CLEAN (00158763) (2).docx

EXHIBIT A

Attachment for California Prevailing Wage Projects Labor Code Sections 1771, 1775, 1776, 1777.5, 1813 and 1815

1771. Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for Work of a similar character in the locality in which the public Work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime Work fixed as provided in this chapter, shall be paid to all workers employed on public works. This section is applicable only to Work performed under contract, and is not applicable to Work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance Work. 1775. (a) (1) The contractor and any subcontractor under the contractor shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each Worker paid less than the prevailing wage rates as determined by the director for the Work or craft in which the Worker is employed for any public Work done under the contract by the contractor or, except as provided in subdivision (b), by any subcontractor under the contractor. (2) (A) The amount of the penalty shall be determined by the Labor Commissioner based on consideration of both of the following: (i) Whether the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) Whether the contractor or subcontractor has a prior record of failing to meet its prevailing wage obligations. (B) (i) The penalty may not be less than forty dollars ($40) for each calendar day, or portion thereof, for each Worker paid less than the prevailing wage rate, unless the failure of the contractor or subcontractor to pay the correct rate of per diem wages was a good faith mistake and, if so, the error was promptly and voluntarily corrected when brought to the attention of the contractor or subcontractor. (ii) The penalty may not be less than eighty dollars ($80) for each calendar day, or portion thereof, for each Worker paid less than the prevailing wage rate,

if the contractor or subcontractor has been assessed penalties within the previous three years for failing to meet its prevailing wage obligations on a separate contract, unless those penalties were subsequently withdrawn or overturned. (iii) The penalty may not be less than one hundred twenty dollars ($120) for each calendar day, or portion thereof, for each Worker paid less than the prevailing wage rate, if the Labor Commissioner determines that the violation was willful, as defined in subdivision (c) of Section 1777.1. (C) If the amount due under this section is collected from the contractor or subcontractor, any outstanding wage claim under Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 against that contractor or subcontractor shall be satisfied before applying that amount to the penalty imposed on that contractor or subcontractor pursuant to this section. (D) The determination of the Labor Commissioner as to the amount of the penalty shall be reviewable only for abuse of discretion. (E) The difference between the prevailing wage rates and the amount paid to each Worker for each calendar day or portion thereof for which each Worker was paid less than the prevailing wage rate shall be paid to each Worker by the contractor or subcontractor, and the body awarding the contract shall cause to be inserted in the contract a stipulation that this section will be complied with. (b) If a Worker employed by a subcontractor on a public works project is not paid the general prevailing rate of per diem wages by the subcontractor, the prime contractor of the project is not liable for any penalties under subdivision (a) unless the prime contractor had knowledge of that failure of the subcontractor to pay the specified prevailing rate of wages to those workers or unless the prime contractor fails to comply with all of the following requirements: (1) The contract executed between the contractor and the subcontractor for the performance of Work on the public works project shall include a copy of the provisions of this section and Sections 1771, 1776, 1777.5, 1813, and 1815. (2) The contractor shall monitor the payment of the specified general prevailing rate of per diem wages by the subcontractor to the employees, by periodic

review of the certified payroll records of the subcontractor. (3) Upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages, the contractor shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for Work performed on the public works project. (4) Prior to making final payment to the subcontractor for Work performed on the public works project, the contractor shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages to his or her employees on the public works project and any amounts due pursuant to Section 1813. (c) The Division of Labor Standards Enforcement shall notify the contractor on a public works project within 15 days of the receipt by the Division of Labor Standards Enforcement of a complaint of the failure of a subcontractor on that public works project to pay workers the general prevailing rate of per diem wages. 1776. (a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following: (1) The information contained in the payroll record is true and correct. (2) The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work performed by his or her employees on the public works project. (b) The payroll records enumerated under subdivision (a) shall be certified and shall be available for inspection at all reasonable hours at the principal office of the contractor on the following basis: (1) A certified copy of an employee's payroll record shall be made available for inspection or furnished to the employee or his or her authorized representative on request. (2) A certified copy of all payroll records enumerated in subdivision (a) shall be made available for inspection or furnished upon request to a representative of the body awarding the contract

and the Division of Labor Standards Enforcement of the Department of Industrial Relations. (3) A certified copy of all payroll records enumerated in subdivision (a) shall be made available upon request by the public for inspection or for copies thereof. However, a request by the public shall be made through either the body awarding the contract or the Division of Labor Standards Enforcement. If the requested payroll records have not been provided pursuant to paragraph (2), the requesting party shall, prior to being provided the records, reimburse the costs of preparation by the contractor, subcontractors, and the entity through which the request was made. The public may not be given access to the records at the principal office of the contractor. (c) The certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division. The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a). (d) A contractor or subcontractor shall file a certified copy of the records enumerated in subdivision (a) with the entity that requested the records within 10 days after receipt of a written request. (eExcept as provided in subdivision (f), any copy of records made available for inspection as copies and furnished upon request to the public or any public agency by the awarding body or the Division of Labor Standards Enforcement shall be marked or obliterated to prevent disclosure of an individual's name, address, and social security number. The name and address of the contractor awarded the contract or the subcontractor performing the contract shall not be marked or obliterated. Any copy of records made available for inspection by, or furnished to, a multiemployer Taft-Hartley trust fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the purposes of allocating contributions to participants shall be marked or obliterated only to prevent disclosure of an individual's full social security number, but shall provide the last four digits of the social security number. Any copy of records made available for inspection by, or furnished to, a joint labor-management committee established pursuant to the federal Labor Management Cooperation Act of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to prevent disclosure of an individual's social security number. (f) (1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement

Strike Force on the Underground Economy established pursuant to Section 329 of the Unemployment Insurance Code and other law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records. Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number. (2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision. (g) The contractor shall inform the body awarding the contract of the location of the records enumerated under subdivision (a), including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address. (h) The contractor or subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated in subdivision (a). In the event that the contractor or subcontractor fails to comply within the 10-day period, he or she shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit one hundred dollars ($100) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. A contractor is not subject to a penalty assessment pursuant to this section due to the failure of a subcontractor to comply with this section. (i) The body awarding the contract shall cause to be inserted in the contract stipulations to effectuate this section. (j) The director shall adopt rules consistent with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and the Information Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of Part 4 of Division 3 of the Civil Code) governing the release of these records, including the establishment of reasonable fees to be charged for reproducing copies of records required by this section. 1777.5 (a) Nothing in this chapter shall prevent the employment of properly registered apprentices upon public works.

(b) Every apprentice employed upon public works shall be paid the prevailing rate of per diem wages for apprentices in the trade to which he or she is registered and shall be employed only at the work of the craft or trade to which he or she is registered. (c) Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards that have been approved by the Chief of the Division of Apprenticeship Standards and who are parties to written apprentice agreements under Chapter 4 (commencing with Section 3070) of Division 3 are eligible to be employed at the apprentice wage rate on public works. The employmen