CONTRACT SIGNING INSTRUCTIONS Date: January 20, 2014 Company: A.T.W Electrical Services, Inc. Attention: Aliston Wilkie Enclosed is the Subcontract with Harris Construction Company, LLC. Please sign both copies and return one to our office. Harris Construction must have the following on file: - Signed Contract - W-9 - Certificate of Insurance o With Additional Insured Endorsement(s) as specified in contract before the first pay application will be processed. Thank you, Harris Construction STANDARD FORM AGREEMENT BETWEEN CONTRACTOR AND SUBCONTRACTOR Value - Less than $50k AGREEMENT made as of January 20, 2014 BETWEEN the Contractor HARRIS CONSTRUCTION COMPANY, LLC 1701 E. ATLANTIC BLVD - #4 POMPANO BEACH, FL 33060 and the Subcontractor: A.T.W. Electrical Services, Inc. 1251 E101 St. Brooklyn, NY 11236 The Contractor has made a contract for construction dated: January 20, 2014 With the Owner: PHG JAX, LLC Two Premier Plaza 5607 Glenridge Drive, Suite 430 Atlanta, GA 30342 For the following Project: Courtyard Jacksonville Flagler Renovation 14402 Old Augustine Road Jacksonville, FL 32258 which Contract is hereinafter referred to as the Prime Contract and which provides for the furnishing of labor, materials, equipment and services in connection with the construction of the Project. The Architect for the Project is: BASKERVILL 101 S. 15TH STREET, SUITE 200 P.O. BOX 400 RICHMOND, VA 23218-0400 The Contractor and the Subcontractor agree as set forth below: CONTRACT DOCUMENTS 1.1 The Subcontract Documents consist of (1) this Agreement (2) the Prime Contract (3) Drawings (4) Specifications (5) any Addenda issued prior to execution of the Agreement and (6) any dually signed Change Orders issued after execution of this Agreement. 1.2 The General Conditions governing this Subcontract shall be the AIA Document A201 1.3 The Subcontractor represents that they have reviewed the all the Subcontract Documents, including, without limitation, the drawings and specifications, and agrees in full to the scope outlaid. NOTE: If Subcontractor knows of any error, omission or discrepancy in the contract documents, that Subcontractor shall immediately report such to Contractor. Failure to report any errors / omissions / discrepancies that Subcontractor knew, or reasonably should have known of, shall preclude any claim by Subcontractor. Harris Construction – Labor/Material Subcontract < $50k Page 2 of 5 SUBCONTRACTOR RESPONSIBILITIES 2.1 The Subcontractor shall Supervise/Direct their Work, and shall cooperate with the Contractor in scheduling/performing to avoid conflict/delay or interference with the Work of the Contractor, or other Subcontractors. Subcontractor acknowledges and agrees that Contractor shall have the right to alter the sequence and/or timing of Subcontractor’s work in order to promote the efficient construction of the project. 2.2 The Subcontractor shall pay for all materials; equipment and labor used in connection with the performance of this Subcontract through the period covered by previous payments received from the Contractor, and shall furnish satisfactory evidence when requested by the Contractor, to verify compliance with the above requirements. 2.3 The Subcontractor shall take precautions to protect properly the Work of other subcontractors from potential damage caused by operations under this Subcontract. 2.4 The Subcontractor shall secure and pay for permits and governmental fees (unless otherwise noted), licenses and inspections necessary for proper execution of the Subcontractor’s Work. Note: The Subcontractor must have a representative onsite during all Municipal Inspections (unless otherwise agreed with Contractor’s Site Representative) 2.5 The Subcontractor shall take all reasonable safety precautions with respect to the performance of this contract. Should an injury occur, the Subcontractor shall report to the Contractor within 24 hours of the event. 2.6 The Subcontractor shall keep the premises and surrounding area free from accumulation of waste materials caused by operations under this Subcontract. NOTE: if the Subcontractor fails to clean up as detailed above, the Contractor may back-charge the Subcontractor for the proportionate cost of the cleanup. 2.7 Any claim between the Contractor and the Subcontractor arising out of this Subcontract, or breach thereof, shall be settled by arbitration in accordance with the Construction Industry Arbitration Rules. The award shall be final and the Arbitrator shall award attorney’s fees to the prevailing party. 2.8 The Subcontractor shall not assign the Work of this Subcontract without the written consent of the Contractor. CONTRACTOR REMEDIES 3.1 If the Subcontractor defaults/neglects to carry out the Work in this Agreement and fails within 24 hours after receipt of written notice from the Contractor to commence correction of such default/neglect, the Contractor may, after 24 hours following receipt by the Subcontractor of an additional written notice, and without prejudice to any other remedy the Contractor may have, make good such deficiencies and may deduct the reasonable cost thereof from the payments due the Subcontractor. NOTE: Notices sent by email or facsimile and shall be deemed received as of the date sent. WAIVERS 4.1 Subcontractor shall indemnify and hold Contractor harmless from any and all claims, damages and losses, including attorney’s fees, arising from or relating to any claims by any suppliers, employees and/or subcontractors of Subcontractor arising from Subcontractor’s failure to make payment as required by the provisions of this Article. 4.2 To the fullest extent permitted by law, the Subcontractor shall indemnify and hold harmless the Owner, Management Company, Contractor, Architect, Architect’s consultants, and agents and employees of any of them from and against claims, damages, losses and expenses, including but not limited to attorney’s fees, arising out of or resulting from or relating to performance of the Subcontractor’s. 4.3 The Contractor and Subcontractor waive all rights against (1) each other and any of their Subcontractors, Sub-subcontractors, agents and employees, each of the other, and (2) the Owner, the Architect, the Architect’s consultants, separate contractors, and any of their subcontractors, sub-subcontractors, agents and employees for damages caused by fire or other perils to the extent covered by property insurance provided under the Prime Contract or other property insurance applicable to the Work, except such rights as they may have to proceeds of such insurance held by the Owner as fiduciary. The Subcontractor shall require of the Subcontractor’s Sub-subcontractors, agents and employees, by appropriate agreements, written where legally required for validity, similar waivers in favor of other parties enumerated herein. The policies shall provide such waivers of subrogation by endorsement or otherwise. 4.4 Contractor and Subcontractor, waive any claims against each other for consequential damages arising out of or relating to this Subcontract, including without limitation, any consequential damages due to either party’s termination. Harris Construction – Labor/Material Subcontract < $50k Page 3 of 5 WORK OF THE SUBCONTRACT 5.1 The Subcontractor shall execute the following portion of the Work described in the Subcontract Documents, including all labor, materials, equipment, services and other items required to complete such portion of the Work, except to the extent specifically indicated to be the responsibility of others: 5.2 Scope of work as described in all plumbing type scope of work per plans and specifications dated January 20, 2014. 5.3 Scope Inclusions - ALL ELECTRICAL TYPE SCOPE OF WORK PER PLANS AND SPECIFICATION. 5.4 Scope Exclusions - N/A. 5.5 Work description by Area: - ELECTRICAL 5.6 With respect to the obligations of both the Contractor and Subcontractor, time is of the essence of this Subcontract. - Date of Commencement – January 5, 2014 - Scheduled Date for Substantial Completion – NLT March 7, 2014 FINANCES 6.1 The Contractor shall pay the Subcontractor the sum of FIFTY SIX THOUSAND DOLLARS & ZERO CENTS ($56,000.00) 6.2 This amount may be changed by authorized change orders in accordance with specifications. PAYMENTS 7.1 The Subcontractor shall submit to the Contractor a Schedule of Values (SOV). Payment Applications should be based upon this Schedule of Values (SOV) as a % Percentage of Work Complete. 7.2 Application for payments will be submitted ON THE 1ST OF EVERY MONTH and paid by the end of every month. Any charges for changes to the agreed upon Work will not be paid until a Change Order is executed between Contractor and Subcontractor. 7.3 Retainage is 10%, and will be withheld from each progress payment until final completion of the project. 7.4 Final payment shall be made when: - the Subcontractor’s Work is fully performed in accordance with the requirements of the Contract Documents - Final inspections local municipal agencies having jurisdiction over the work. - All punch-list items must be cleared - Contract and all Change Orders must be fully executed - All executed Lien Waivers applicable from both the Subcontractor any Sub-Subcontractors, and all Designated Suppliers. o Before final payment, the Subcontractor shall submit evidence satisfactory that all payrolls, bills for materials/equipment, and all known indebtedness connected with this contract have been satisfied. 7.5 The Subcontractor shall make claims in writing to the Contractor for additional cost, extensions of time and damages for delays or other causes. Any such claim not made in writing within five (5) business days from first occurrence giving rise to the claim will formerly waive all rights to any financial and time modifications to the contract. INSURANCES 8.1 The Subcontractor shall purchase and maintain insurance of the following types of coverage and limits of liability: - Commercial General Liability not less than $1,000,000 each occurrence / $2,000,000 Aggregate. - Automobile Liability with limits of no less than $1,000,000 each accident. o Business Auto coverage must include coverage for liability arising out of all owned, leased, hired and nonowned automobiles. - Commercial Umbrella at least $1,000,000. - Workers Compensation and Employers Liability of $500,000 each accident for bodily injury by accident and $500,000 each employee for injury by disease. Harris Construction – Labor/Material Subcontract < $50k Page 4 of 5 GENERAL CONTRACTOR A.T.W. ELECTRICAL SERVICES, INC. (Signature) (Signature) Harris Construction Company, LLC Name and Title: Company: (Date) (Date) Harris Construction – Labor/Material Subcontract < $50k Page 5 of 5