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2235
f , s NOTE: With proper validation this form constitutes an CITY OF LA QUINTA encroachment permit APPLICATION FOR PERMIT PUBLIC WORKS CONSTRUCTION (ENCROACHMENT) For the construction of public or private curbs, driveways, pavements, sidewalks, parking lots, sewers, water mains and other like public works improvements in connection with MINOR IMPROVEMENTS and APPROVED SUBDIVISIONS Subdivision Improvement Permit —Class II I DATE: 9'20-94 Minor Improvement Permit Class IV LOCATION OF CONSTRUCTION Inco Homes Tract 23995 "Reunion" Miles Ave from Adams to Tract entrance, Adams south of Westward Ho into Channel, south aanhole on Dune Palms into Channel (Street address or Description of Location) PURPOSE� plans if a OFF CONSTRUCTION Install Water Main, Install Sketch (attach construction Sewer Main p appropriate) DEESCg p.,TJJ N OF CONSTRUCTION Excavate, Trench, See attached Drapings backfil� etc. and repave portion of Adams portion of Dune Palms See attached Conditions DIMENSION OF INSTALLATION OR REMOVAL SIZE OF EXCAVATION, IF NEEDED APPROXIMATE TIME WHEN WORK WILL BEGIN 9-21-94 APPROXIMATE TIME OF COMPLETION ESTIMATED CONSTRUCTION COST $ Seloer 182,495 Water 285,976 (Including removal of all obstruction, materials, and debris, backfilling, com- paction and placing permanent resurfacing and/or replacing improvements) In consideration of the granting of this permit, the applicant hereby agrees to: Indemnify, -defend and save the City, its authorized agents, officers, representatives and employees, harmless from and against any and all penalties, liabilities or loss resulting from claims or court action and arising out of any accident, loss or damage to persons or property happening or occurring as a proximate result of any work undertaken under the permit granted pursuant to this application. Notify the Administrative Authority at least twenty-four (24) hours in advance of the time when work will be started. Comply with all applicable City Ordinances, the terms and conditions of the permit and all applicable rules and regulations of the City of i La Quinta and to pay for any additional replacement necessary as the result of this work. a • Signature of Appli t or Agent Inco Homes Inc. 250 E. Rincon Ave. Corona, CA (909) 736-0700 Name of Applicant (please print) Business Address Telephone No. S.J. Burkhart Inc. 6157 Marlatt Mira Loma, CA (909) 685-7488 Name of Contractor and Job Foreman Business Address Telephone No. 510982—A Contractor's License No. City Business License No. C.N.A. (Meridian Ins Ser (714) 693-9100 A1-29079707 - -- - Applicant's Insurance Company Policy Number l Lj i CJ(? r f FEES: Subdivision Improvement Permit —Class III2- . 1994 Public improvements: 3% of estimated construction costs Private improvements: 3% of estimated construction costs k Minor Improvement Permit — Class IV: S ttached schedu—i 2235 Inspection Fee $ 1,529 352 additional Pes% PERMIT VALIDATION Permit Fee Penalty Cash Deposit -Surety Bond if required TOTAL: Receipt No. 10 $ 1881 Received by Date PERMIT NO DATE APPROVED EXPIRATION DATE 2235 9-16-94 12-31-94 DATE ISSUED 3 _ By l Administrative Authority Recorded by 11 TELEPHONE: (619) 564-2246 o� og2 z�M�� rg•�h� o� � -S 77 na75 Loo q�y s Qool m "he tOIIOwnno i.ienerel and Special Provisions are attached to aro made t Dart of Permtt No. ZZ 35- GENERAL: SGENERAL PROVISIONS The following snail always apply: I ` "ENCROACHMENT ON PRIVATE PROPERTY: "his permit autnorizes worn tope accomalisned witnin City of la Quinle right of way ONLY. Whenever construction emends wltnln private orooenv. it snail be ine resoonsionlw of the DerfTiy Of lor his tarignt atwav secure permission tram acuning Orocertir owners. Sucn authorization must OB s0curea av the Der err' Or10r to starting work. TRACKLAYING CONSTRUCTION EQUIPMENT: Cleated tracstawnq construaton eautament shall not be dermrriedtoocera[eon env paves surface unless tmac W itm smoc[n-laced street oaas. All mocnanmcal outriggers snail be f mea W tint rubber street emDOt LO OtdleR r - :ria paving during excavations. Rubner-tirea edutoment only snail be used in oacitfill operations in Davao areas. It the existing Pavement Is scarred• sciallee. or broken curing the term Or this conTraCL or It the pavement is marrea. City Of Inst these cantons at road be resurfaced aver meir emirs width. Resurfacing shall consist of one coat of two Innes tLa Quints snail request of A.C. sutfsdng Plus accroDriato seat coat as specified above. ` PROTECTION OF TRAFFIC: All excavations ana work areas snail be Drdpany lighted and tlaRlCaped as deemed het E lneerortaQuintsCityPublicWartsInspectors.Suitableeetoursa Denylght anatblbepleeeasDaemntai sssarvair no City h9 of the proles. The City Shall be notified 24 Hrs. in advance of any tr no dalcur detours or snail bdelinea[toro. nectortneduration CARE OF DRAINAGE STRUCTURES: Any drainage structure Including corrugated metal pipe. concrete pipe, $1001 culvert ano concrete structures encountered during excavation which necessitate romdyal small be replaced in kind. In the evortt.it becomes necessary to remove or cut existing Drainage structures. City of La Quints snail be notified ortor 10 commencement of Drainage structures and open Drains snail be kept tree of debris at 811 times for proper drainage, tuts worts, RIGHT OF WAY CLEANUP: Any surplus material resulting from excavation and backtill operations snail be removed tram the right of way. All Paved surfaces snail be broomed clean at eann and other objectionable materials lmmebit[e lychee darh}illand cdrilDattlOa. Existing gutter tine and Drainage ditches small be reotacao to their original stanaara Or better. All excess material then be removed prior to paving. Water tanker snail be used. as required. to sprinkle the jab Site to keep Down oust conditions aro thou be used immediately after backfill. DE -WATER OPERATIONS: If de -watering operations are iequirea and Pumps aro forcing water on City of La Quints the responsibility of the permittee ICOntfactori to control this water and to provide oh-etreat roast. It shall be Oamcada/ vvnen meMtatry CLOSING STREETS: No street snail be closed. A minimum of one lane at Iraffic shall be maintained at all times Ia ed provtan Ilmn access for Ina adjoining prODerty owners and emergency vehicles. In the event It Is felt bvtne parmmes that any length at time. Dennittee snail contact this Otfics to obtain the necessary permission. he mutt cicada • street tar SPECIAL PROVISIONS The foltwing shall apply ONLY when indicated: R1 -777- 7075 NOTIFICATION: Petmmee spall notify the City at at least 48 hours In advance of starting cdnammraron R2 CASH DEPOSITS OR BONDS: A casn bona or an approved surety bond in an amount of not less than s Shall be turnisnaa in the name of City of La Quints to cover ell work involved in the restoration of the various V Quinta r02ps and survey monuments. This bond snail be continuous until cancelled by the City Engineer. This bora must be Potted prior to commencement of any work On this project. ® UTIUTY CLEARANCE: (Substructuresi Prior m making any excavation within the City of La Quints ngm of vvay authorized by pa fns Dermee snap contact s Damagege t all concerned utility companies relative to the IocauOm Of eltlaingaubsp ucdlres Of the Permittee. . tht0 emitting tuOaVyttufes /autting from operations ConouC7ea under thta pemh nsmall De the sole responsibility i R4 U71UTY CLEARANCE: (Surface structures' N0 "M Shall shap be acre under this Perrin until all utilities are dear Of the Proposed work site. The parmmee snail notlty, all cOricefnsc utility companies Ot the proposed wart, R5 PAVEMENT WIDENING: Area between the proposed concrete Surfaced with inches of A.C. paving Placed en gutter tine and the existing road Paysrnertt shall be having an••R'valueofnot less than inches atelass agpregttssubbasecourse and SOacrtications.Ordinance a461. andintbnformeneewlthCirydflaQuintaRoadlmpravementStanasids R6 PARKWAY GRADING: Area between the Property line and[00 1/4 inert to one foot I1 j. Of the proposed concrete conete curb shell be graced to a slope at R7 GRADES & STAKES: City of La Quints shall establish graces and stakes tar th construction. concrete proposed ncrete ciirb and goner R8 GRADE CHECKING: City Of La Quinta snail checkgraces upon recerotatplan andOPOtileand/or graces asseta a limnsea engineer. elihepby R9 CURB REMOVAL FOR DRIVEWAYS: A portion of the existing concrete curb and/ curb ano guner ( fsstlsmall be removed. Curb and/or curb and gutter shall be saw cut prior to removal. Decreased curb. matching concrete guitar and concrete driveway approach shall be conwmcted in conformance with City of La Quints Standard 1$207. RIO DRIVEWAYS. A.C.. Driveways shall be constructed as not to alter existing Gr31naga pattern. Surfacing between the Property line and ins existing road caving shall be 2-1/2 inches of A.C. paving Placed on I -'1 Of Cla_� aggregate base. Driveway construction snail conform to attached Drawing. R11 CULVERTS. A nen diameter t ; culvert snail be installed with the invert a manes below aria In tine wan the existing ntiodro:Ime[ety 1- t /Z now ne. Culvert installation snail conform to the attached drawing R1 SIGHT CLEARANCE: Sight clearance of 600 feet in either direction shall be assured and maintained. - R13 . SOIL STERIUZER: The area to 0e surfaced shall be treatea wttn soil sterilizer. Rate of application shall complywttm Ire manufacturers saecrticattons. R14 COORDINATE WORK: The prop. 80 work shaA be subordimetao to any operation which the State of California or City of La Quints may conduct in this area during the period of this permit. Warts small be coordinated virtm the State or City of La Quints forces 10 Preclude delay at Interference with State or City of La Quints Dialects. R15 SURVEY MONUMENTS: Prior to excavation or beginning at construction. all survey monuments wnrn crust cit no camerline at all streets or property lines when involved shall be corrtplatehr ileo out so they may i rsamlvsno t an no be to thea civ a lumen , ami emglnee/ or lNryeyp► at the almsres Otthe Dermmea A complete setae nation Showind me tly [let LO tmeq mOfluRerro eMtl Oe turnitn40 to the City Endinew tutor to the ferlallral or arm, monuments. This *"me small .. _ - .. on mammon upon Coaptation of recie0eipant or all survey mane emes fpr OrOOey worn= eiws rte ;16 'I-"Vty W1ONUMENTS. P•.or to excavation or ceosnnino or construction. an Survev monuments snail befred out ovll,ity :I La Uuinla and sunacte cavment or Guarantee of payment snail o8 mace as relmoursemam for all vvo►k I R17 °AVEMENT CLITT1NG: Pavement will be meenanicauir cut to a smtgm ednvOlVep edge prior to ekeaysnon. Method Of oarsmen( curtlnq small ba ao0(Oveo inrouan the dtfice OI the Citv Engineer. tuner no circumstances snail excayabnq eOuloment De used to excavate prior to cuttlno of oavementl. Excavation. material snail be placed In sucn a position as to oast lacilmale the general flow of tfaltic. Prior to sinal paving operations. any damage to Pavement Straight edge snail 08 corrected. R18 PAVEMENT CUTTING. Pavement snail be saw cut prior to removal. Prior to final paying operations. any damage to Pavement straight edge snail be corrected. 19 UMIT OF EXCAVATIONS: Excavations snail be limited to 1.000lineal feet of open trench colors Daektillo begin. All excavations snail be properly barrtcaCee witn Ilgnts OVerniont. on weekends ane hO11daV3 tar the must the traveling p1m11C The Public Works Inspector snail determine mesuitablllry Of excavation olidays tar lhea<hy85iexcave No r materatl is shalactually remain e W tar a eeriOO exceeding five 171 Oays No excavation snail be mace unless the construction material IS aCitW11V On the WwK site. R20 9ACKFILL MATERIAL Backfill shall betree atbrush. toots aomarorganic Substanceaetrlmenla,••.;s Of Producing an adecuateh/ Consolidated bacddL Any matenal whccft the City of La IW for purposes saturated m8tan30 which is encountered aurinq excavation shahich h used for Quii to Us small nsui�lelspongyor "•� ramscm by an approved sand or gravel. - supplemented or R21 BACKFILL SAND- BaCktitlshall beapproved transtt•mrysand Or equivalent and shall bePlaced lnliftstrtrtptAroaterthan Casey test IT) iverovibi compe anofiS gvibrotamoeroreaunaientepuipatent.Altemateme[nOpamaybesusOfhOIIgbutlnany Cafe a relative cOmpaatprt O} 95 percent shall be' attained within the a:rt:L'tural Section of the roadway. R2 BACKFILL PLACEMENT: Backfill snail be applied in lavers at not more inan 50 percent of the total depth of the trench before llooaing ar a maktmum of f ive•toot 1571ihswhe►e menthes arab} excessive aepms. Care is to ba a:a►Ctaea that the backfill matenst is not subleeed to extreme swell by flooding operations. Backfill material Shall be placed so that the resulting cofnOaQiOn shat! be not 1617 then 90 percam or eeutv8lem to the surrounding ground. whecnaver if the greeter Compaction. Where Donating or flooding is used for a maximum list aaeouate dikes will be constructed to retain reach the bonom the water. Whale ntinuo used. the lets shall be of sufficient length to of Been :aver dna the water supply shell be eontrnudus. RZ3 COMPACTION TESTS: If so required bvthe inspector. compaction tests Shall be made at intervals of not more than 1.000 feet dna a minimum of one I1 IPT On eacn road One approval dna fllrlp prior to makingg permanen(repairs. (1) copy Ot eacn test shall be forwarded to the Clty Engineer for Compaction tests snail be mace as dutlineo in Ssctlon 6.3.01 of the Standard SpeymeatlOrM Oivlaton of Highways. State of California, dated January 1973, R24 COMPACTION TESTS: If So reoulred by the inspector, compaction testa shall be maga for earn crossin One 111 Copy of sactitest snail beforwarceatO the City Engineer tar approval and tiled prior to making go(aemtehne. COM08aiOn testa snail be mace as outlined in Setxlon 6.3.01 of the Starmard 9 Dermatlant repairs. at California.daradJanuary 1973. Spenficattans.OivisianotHghyyeYe.Sute R25 TEMPORARY PAVEMENT REPAIRS: After completion of bactdill and Compaction operations. a temporary patch consisting of 2 inches of SC -800 shall be ciacea on a prepared suagraee. The SC -800 temporary paving snap be placed after a maximum of 3.000lines i feet of trencn has coon excavated and backfill operations completed. but inn* Case shall � the placement of the temporary pavement exceed a five 15) day limit. � CR PERMANENT PAVEMENT REPAIR: After backfill and camoactlon operations have been completed, a temporary patch consisting of two inches 42') of SC -800 shall be placed immediately. A Permanent patch of surfacingplaceeona inch class base shallbeptacesnolaterthaninches A.C. tempOraryroad repair. SEE SPEZ4AL ComDiTiokl #f3 or1iE.L S dors cher campletlan Of R27 PAVEMENT REPAIR: F.A.S.:Upon Completion ofbackfill and eom a.T Of cold mix paving ISC-8001 shall be Placed Immediately. A Paan Permanent patch, a tempo roeary inches consisting of two sones g shall all be plated an six mches 46-1 concrete base as directed, but not later man "eon 115) days after Completion of temporary Davtng. Concrete as= shall be of five -set* mix and shall conform to the City of La Quints Road ImproverherttStandards Wild SCOcificavOrm Ordinance 0461. R28 FOG SEAL: A (dg seal coat consisting of an application of asphaltic emulsion snail be aponea Over all Patot areas as . determines by the City Engineer. R29 SEAL ARMOR COAT: A seal coat consisting of an application binder and screenings shall be applied on ail paten areas where such seal coats existed prior 10 issuance of tnts permitSeal or armor coats snail be applied li specified 40 C t h areas 37. Standard Stiscdicabons. State of California. Oivlslon of Highway, Gated January 197 3. Work of payemem repair to be accomplished by a licensed contractor engaged in the business of pavement repair. R30 STREET RESTRI rma Where street striping erma completion of Permanent repairs. is still vesicle on streets to as excavated. such striping shall be replayed upon • R31 TREE RELOCATION OR REMOVAL. Tree relocation within the City of La Quinta road right of way shall be accomplished by a licensed. boncac and insured tree service. and handles safely without mterference or hazard to the traveling public. It shall be the responsibility, of the permittee to maintain the tree in a vigorous growing condition at its new location. A - Trees to be removed shall be removed in sectionswhich can be handled safelvwithout interference or nazardtO highway traffic. The entire width of the tree stump snail be removed and disposed of so that no debris remains in view of the highway. The slump hole snail be backfilled arta thorougnly compacted as snecrfled in the follornng paragraph. Where it becomes necessary to restnct traffic. the work shall be restricted to a manmum Of 500 feet at any one ame• Adequate Signs. flagmen and/or bamcatles shall be provided to protect the traveling public at all times. - .. Large holes resulting from free removal shall bebackfilled and compacted tonot less than 90percent Orequivalent surrounding ground. whichever is the greater compaction as determined by the totne Im08ct Of field method. Compaction tests shall Comptrwith Seaton 6.3.01 of the Standard Scecdications. Division at Highways. State of California, sated January 1973. R32 TREE TRIMMING: a. Only the necessary, trimming snail be accomplished to Proyme clearance of the factlity for one calendar year. All broken or weak sections within the trimming snail be removed. b. Where 11 be as necessary to restrict traffic. the work Snail be restricted to a maximum of 500feet atanvone time. Adequate signs• flagmen. and/or barricades snail be provided to protea the tra~g public at all times. C. If tree trunks are partially outside of the City of La Quints road right of way. parmmee shall mete his own mmngemenamth adjoining property, owners for consent to the trimming In addition to the authorization provided by this permit d. All tree trimmalg on EVERGREEN TREES. PALM TREES. and other ORNAMENTAL TR the aallsfaatat of the City Public Works Inspector - EES shell be accomplished to .. e.. Abutting property owners shall be M all ihftartpq, poor to trimming or topping t»ea f. Pruning coal. n au atvarc*& Deat me sneulaer Of thecrOtcly mrrm -. r►s. core ti .� �. �_ . SPECIAL CONDITIONS --PERMIT NO. 2235 --- INCO HOMES --- In addition to the standard permit conditions, the following shall apply: 1. All work shall be performed in accordance with the latest edition of the Standard Specifications For Public Works Construction. 2. Permittee shall be responsible for providing continuous dust and erosion control. 3. Streets shall be kept clean. They shall be completely cleaned at the end of each working day and more frequently if required. 4. Contractor shall comply with the local noise ordinance. Operation and maintenance of equipment within one half mile of human occupancy shall be performed only during the following time periods: October 1 st to April 30: Monday -Friday 7:00 a. m. to .5:30 p.m. Saturday 8:00 a.m. to 5:00 P.M. May 1 st to September 30: Monday -Friday 6:00 a. m. to 7:00 p. in. Saturday 8:00 a.m. to 5:00 p.m. Work shall be prohibited on legal holidays including Sundays. 5. Permittee shall assume responsibility for repair of any pavement breakdown at the haul road .access to any public or private street and for any damage to other City streets or facilities. 6. Permittee shall submit a traffic control plan to the Engineering Dept. for approval prior to starting work in travel way. Advance warning signs and traffic control shall be installed and maintained in accordance with Cal Trans Standards or the Work Area Traffic Control Handbook (WATCH Manual) . It shall be the permittee's responsibility. to detour and barricade this site. 7. Street closures shall not be permitted. A minimum of one travel lane on paved surface shall be maintained with flagmen at all times. 8. Permanent pavement replacement section. shall be one inch greater than existing, but not less . than 3"of A.C. over 4.5" of A.B. whichever is greater. 9. All landscaping irrigation decorative rock etc. shall be protected in place as much as possible or replaced to its original condition. 10. Prior to excavating, the permittee shall contact Underground Service Alert at 1(800) 422-4133. 11. All work shall be coordinated with the City's contractor and others working within the area as directed by and to the satisfaction of the City "'Engineer. Special Conditions - Pennit No. 2235 Y Page l of 2 SPECIAL CONDITIONS - PERMIT NO. 2235 CONTINUED 12. Should additional work, materials, or modifications of the work be required in order to meet city standards, safety requirements, signage requirements, or to fit actual field conditions, the work shall be performed by the permittee as directed by and to the satisfaction of the City Engineer at no cost to the City of La Quinta. 13. All backfill and subgrade soil shall be compacted to 90% relative dry density, all backfill soil within the top 2' of finish pavement surface shall be compacted to 95% relative dry density, all base material shall be compacted to 95% relative dry density. 14. When work is within 500' of .a signalized intersection the permittee shall notify Riverside County Signal Dept. at (909) 275-6894 or Caltrans Signal Dept at (619) 688-6845 as appropriate. 15. Site clearance of 600' in either direction shall be assured and maintained at all times. 16. Street striping that is damaged, removed etc. shall be replaced to its original condition by the permittee at no cost to the City. 17. All excavations at or near the travel way shall be backfilled and paved as directed by and to the satisfaction of the City Engineer at the end of each work day for the protection of the traveling public. 18. This permit authorizes work in the City of La Quinta Right -of -Way only. It is the permittee's responsibility to secure permission from any other abutting agencies or property owners. 19. Ingress and egress for all properties shall be maintained at all times. 20. The City will determine -the final limits of asphalt replacement. 21. The pavement replacement section width shall be one foot greater on each side of the trench. 22. Contractor/permittee shall provide a 2" irrigation tap and meter at a location to be determined in the field to serve the future median island on Miles Ave. 23. A construction schedule shall be provided to the Engineering Dept for review prior to any work in the Right -of -Way. If the schedule deviates an update shall be provided. Special Conditions - Permit No. 2235 Page 2 of 2 �.4Ccess��,l t L-4AIF- C-2 C-2 C-5 �RT� C-$ CRI) dL -� O • s • � • / • • • 4w — 40 C3A 1p DUNE PALMS ROAD -�- c- 113 C-3ta C-1 OR e -9A 360 s � o L G, j,np 0,.05E To TH RU TeA Fes' I c- - ROAD CMaED L-5 CRT) . DETOUR ARRov4 0-9 -FLAG PERSON C.19 ROAD CON6TRUC-110% . AtW-AD DEL114EAT O R �. ADVAKCE- WARKIMa 6IGN TYPE- I. BFtvRRIcAoE7 t -LAG PER I C-36 PRS NTE TO STOP 0 MEET ION of 'FRAY E L • •- • , cr oc V) QC Q Q +{ cl EE L lig LIZ • a �r � t'L W u 2 � � >- w . X- Q +{ cl EE L lig LIZ • 4 NOTE: With proper validation this form constitutes an eneroacnmern permit CITY OF LA QUINTA APPLICATION FOR PERMIT -PUBLIC WORKS CONSTRUCTION (ENCROACHMENT) For the construction of public or private curbs, driveways, pavements, sidewalks, Parking and other like public works improvements in connection with MINOR IMPROVEMENTS and APPROVED SUBDIVISIONS 0 DATE: - c? LOCATION OF CONSTRUCTION � Al 7_+Z3; �>tJ/ l� D� GXn1ri IVI�fF 071j (Succi address or Oescription of Locetionl PURPOSE OF CONSTRUCTION ;fir Wi j &-R FjZen,., 1✓l,ir-� DESCRIPTION OF CONSTRUCTION DIMENSION OF INSTALLATION OR REMOVAL SIZE OF EXCAVATION, IF NEEDED APPROXIMATE TIME WHEN WORK WILL BEGIN Subdivision Improvement Permit - Class ill Minor Improvement Permit Class IV C9 --j rt[MS �„rlc� o>•= lnlCtlLv�O , Sketch (attach construction plans if appropWillip) P T� APPROXIMATE TIME OF COMPLETION ESTIMATED CONSTRUCTION COST S (Including removal of all obstruction, materials, and debris, backfilling, com. Pachon and placing permanent resurfacing and/or replacing improvements) In consideration of the granting of this permit, the applicant hereby agrees to: Indermnfy, defend and saw the City, Its authorized agents. officers. representatives and amployap. harmless from and penaltils, liabilities or loss resulting from clams or court action and arising out of any acadant, loss oragainst any arid all happening or occurring as a proximate result of any work undertaken under the Permit granted pursuant to cage t otieet Persons or prppjrsy Notify the AdminittretM Authority at least twenty-four (24) hours in advance of the time when worn will be started. Comply with all applicable City Ordinnneas, the taints and conditions of V Quints and to pay for any additional the permit and all applicebla rules and regulations of the Gtr of mvisc rwnt negm"V as the result of this work. Name of Applicant (please print) Signature of Applicant or Agent Business Address 3, 731 6.074 Telephone No. Name of Contractor and Job Foreman �J t r `07A- A -79-95 Business Address Telephone No. Contractor's License No. City Business License No. 7/+ 69 -91'vo Applicant's Insurance Company — Z9o% 07 Policy Number FEES: Subdivision Improvement Permit _Class III Public improvements: 3% of estimated construction costs Private improvements: 3% of estimated construction costs Minor Improvement Permit — Class IV: See attached schedule Inspection Fee $ � 53 Zq Permit Fee IV I Penalty Cash Oeposit-Surety Bond if required TOTAL: Receipt No. . Received by Date — a PERMIT VALIDATION PERMIT NO. 2 2 :�'S DATE APPROVED - /Q EXPIRATION DATE _17- DATE ,7- DATE ISSUED By Administrative Autho -recordrlty ed by ;cel , TELEPHONE: (619) 564-2246 � , ♦ i ' � I r 1 �� z � , ♦ i ' � I r 1 . ` y INCO HOMES CORPORATION SUB -ACCOUNT CODE: 0102 General liability: CNA Insurance Exp. 5119/95 TRADE: Water Woricmans Comp: Freemont Insurance Exp. 11/94 PROJECT NAME; REUNION TRACT #: 23995, LOT NUMBERS: Phase H (Lots 1-29N Phase I (Lots 1-40) SUBCONTRACT SECTION 1 Parties THIS SUBCONTRACT (herein referred to as "Agreement") is made and entered into as of SEPTEMBER 7,1994 , at the Inland Division, between INCO HOMES CORPORATION, A Delaware Corporation, Contractors license Number B523968, whose address is 250 E Rincon Ave.,Suite 202, Corona, CA 91719 (hereinafter referred to as "Contractor") and SJ Burkhart, Inc., Contractors license Number 510982-A, whose address is: 6157 Marlatt, Mira Loma, CA 91752, 909-685-7489, (hereinafter referred to as "Subcontractor" SECTION 2 Fundamental Agreement Provisions 2.1 Fundamental Agreement Provisions: The fundamental agreement provisions of this Agreement are the provisions referred to in this Section and the Articles and Exhibits referred to herein. Reference to fundamental agreement provisions shall not be deemed as a limitation on any of the other terms and conditions, including but not by way of limitation the GENERAL TERMS AND CONDITIONS of this Agreement, contained in this AgreemenL Each reference in this Agreement to any of the fundamental agreement provisions contained in this Section shall be construed to incorporate all of the terms and conditions provided under each fundamental agreement provision and the Articles and Exhibits referred to therein. In the event of any conflict between any fundamental agreement provision and the balance of any other terms and conditions of this Agreement, the latter shall control. 2.2 Project The tern "Project" as used in this agreement is the improvement being built by contractors at the location and legal desorption hereinafter set forth in accordance with the plans, drawings and specifications. 2.3 Location and legal Description of Property: Tract 23995, Phase I (40 lots), & Phase II (29 lots), as per attached "highlighted" map. 2.4 Work to be Performed: Subcontractor shall perform the work specifically set forth on Exhibit "A" (Article I and Exhibit "A'). 2.5 Subcontract Documents: "Subcontract Documents" shall mean this Agreement and the plans, drawings and specifications for the Project prepared by B3 CSA. A.I.A. Architect and KWC Engineering C.E. (Article 5). 2.6 Owner. The term "Owner" as used in this Agreement is INCO HOMES CORPORATION, its successors and assigns. 2.7 Prime Contract "Prime Contract" shall mean that certain contract entered into by Owner and Contractor for the construction of the Project 2.8 Contract Price: The Contract Price to be paid to Subcontractor is set forth in Articles 2, 3, 4, 6, 7, 17, Exhibit "A", Addendum thereto, and Exhibit "B". 2.9 Time of Performance: Worts to be performed in accordance with Superintendent's schedule. (Article 10 and 11). CONTRACTORS ARE REQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE CONTRACTORS STATE LICENSE BOARD. ANY QUESTIONS CONCERNING A CONTRACTOR MAYBE REFERRED TO THE REGISTRAR OF THE BOARD WHOSE ADDRESS IS: CONTRACTORS' STATE LICENSE BOARD 9835 Goethe Road Sacramento, Ca 95827 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, the addendum to Exhibit "A", Exhibit "B", Exhibit "C", and Exhibit "D" , attached hereto as of the date and year above written, all of which comprise the complete agreement. INCO HOMES CORPORATION, laware Corporation Joseph Pano , irector 6 Purchasing "Contracto Dated: l-/( W B Inc By. y Steve Schmitz, Secretary-Treasur "Subcontractor" Dated: 7 el - 7 - GENERAL TERIMS AND CONDITIONS ARTICLE 1 Subcontractor's Performance 1.1 Subcontractor agrees to furnish all labor, materials and equipment necessary to perform the work described in Exhibit "A" upon the terns and conditions and in the manmer required by the Subcontract Documents. 1.2 Subcontractor agrees to perform in a good and workmanlike manner and to furnish all labor and materials (all materials shall be of first quality and new unless Ocher— specified by the plans and specifications), supplies. equipment, services. machinery and tools necessary for the complete and satisfactory performance in strict aecordance the Subcontract Documents all the work specifically set forth on Exhibit "A". ARTICLE 2 Contract Price 2.1 As compensation for the performance of all of Subcontractor's work and other obligations hereunder, Contractor shall pay Subcontractor the total sum set forth ;.- Exhibit "A" (hereinafter referred to as "Contract Price") in the manner provided in Article 3 of this Agreement and subject to the additions and deductions through char.;... orders approved in writing by Contractor in accordance with the provisions of Article 6 of this Agreement. 2.2 The Contract Price to be paid Subcontractor pursuant to this Agreement includes the payment by Subcontractor of any sales tax or use tax pursuant to any Sales Te= Law or Use Tax Law, or respective amendments thereto, or any law now existing, or which may hereafter be adopted by Federal, State, local or ocher governmental author.:-. taxing materials, services required, or labor furnished, or any other tax levied by reason of the work performed or to be performed under this Agreement ARTICLE 3 Full Compensation - Payment Schedule 3.1 Subcontractor agrees to accept the compensation set forth in Article 2 of this Agreement as full compensation for doing all work and fur- ishing ail materia:_ contemplated by and embraced in this Agreement; for all loss and damage arising out of the nature of the work or from the action of the elements or from any unforeseen :: unknown difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by Contractor and Owner, and for all risks of ever: description connected with the work and the furnishing of equipment and materials. 3.2 Once each month on the day determined by the date of Contractor's requisition for release of construction funds, Subcontractor shall submit to Contractor reports form acceptable to Contractor of work completed during the period from the date of the last previous report So long as Subcontractor is not in default under this Agreemen:, payment for the work completed. subject to the retentions herein provided for in subparagraph 3.3 of this Article, shall be made within twenty-five (25) days from the date Contractor's requisition for payment of invoices presented to Contractor prior to the date of Subcontractor's requisition for payment; provided, that Contractor shall not obligated to make progress payments to Subcontractor until Contractorhas received (i) city, county, state orother applicable governmental inspections: (ii) if applicable, inspection.: of FHA and VA as hereinafter provided in Article 7 of this Agreement (iii) release of funds from the lender covering the state of completion reported by Subcontractor and (iv, 3 material and labor releases as herein provided for in Article 4 of this Agreement Any payment made hereunder or advances made by Contractor prior to full completion and :Lna. acceptance of the work shall not be construed as evidence of acceptance of any of Subcontractor's work. If cons t^ucdon loan funds are deposited in a joint account. Subcoatrac:cr' : reports shall be submitted on or before the appropriate cut-off date for Subcontractor and im suppliers, or any of them. Subcontractor's requisition for release of construction t-Und: and any report not accompanied by all proper releases and invoices as required by .Article 4 of this Agreement shall be returned and not considered until the fodoaing payment a:r and only then when accompanied by all such releases and invoices. 3.3 In addition to all other provisions of this Agreement, and separate therefrom, ten percent (107.) of :he total Contract Price, plus or minus any change orders, ma, withheld by Contractor from Subcontractor's invoices. As soon as practicable after Subcontractor's comple^_on of all of its work hereunder, feral inspection and tests 3h&L t- made thereof by Contractor and Owner. When such inspection and tests prove 3atisfactor:, the work shall he accepted, subject, however, to the inspeccens provided for subparagraph 3.4 of this Article. Subcontractor shall furnish Contractor and Owner with a eiease of ail c!ai s against Contractor and Owner arising ander or by rir-,:e of : Agreement as more specifically requited by .Article 4 of this .Agreement, other than 3ucb claims, if any, made with the consenc•of Contractor and Owner, and spec_:cai:. excepted by Contractor from the operation of the release in stated amounts to be set forth therein. Contractor shall be entitled to withhold the retention due to Subcontract..:: for a period of (i) thirty-five (35) days from acceptance by Contractor and Owner of work per.'ormed. subject. however, to the provisions of subparagraph 3.4 of :his .Aric:e. �. (u) for the period established by law to insure that there are no claims or liens in connection with the work or against the Project, or any portion thereof, which ever period 3ha.: occur last Contractor may off -set against retentions payable any back charges, overpayments on any other work performed by Subcontractor pursuant to any other cor.tr3c:: between Subcontractor and Contractor or the retention thereof, and any other claims which Contractor may have against Subcontractor. 3.4 Payments otherwise due may be withheld by Contractor until completion of ill city, county, state, or other applicable governmental inspections, Lot! u& g, if spplicscie. inspections of FHA and VA as hereinafter provided in Article 7 of this .Agreement: or on account of defective work act remedied or claims filed or reasonable evidence indicac mg probability of filing of claims; or failure of Subcontractor to make payments properly to contractors for material or labor, or s reasonable doubt that the .Agreement csc be completed for the balance then unpaid. If the foregoing causes are removed, the withheld payment shall promptly be made. If said causes are not removed on written notice. Cantrsctor may rectify the same at Subcontractor's expense. Should say valid indebtedness arse after final payment is made, Subcontractor shall mimburse Contractor (o: any amount that it may pay in discharging any lien therefor or any claim affecting title to the work or the Project 3.5 The provisions of this Article are subject to all of the other provisions of Lhi3 Agreement, inc!uding, but not limited to, .Articles 7, 17 and 20 of this .Agreement. ARTICLE 4 Nister!al and Labor Releases 4.1 Subcontractor agrees to furnish to Contractor and Contractor may refuse payment to Subcontrac:or uniess and until Subcontractor furnishes to Contractor notices establishing rights to claim of liens and releases of all such claims of all laborers, materialmsn, contractors, and subcontractors performing work or furnishing material order this .Agreement all in a form satisfactory to Contractor, and it is agreed that no pay -meat hereunder shall be made, except at Contractor'3 option, unless and until such relesses are furnished to Contractor. ARTICLE 5 Adherence to Subcontract Documents 5.1 Subcontractor's work shall be performed strictly in accordance with the Subcontract Documents and the plans, specifications and this .Agreement, and all such documents are to be construed to supplement each other so that any work mentioned in one such document but not in the other shall be performed in the same manner ss if mentioned in all such documents. Should a conflict arise between such documents, the specifications shall control over the plans, and this .Agreement shell control over both the plans and specifications. Anything mentioned in the specifications and not shown on the drawings, or shown on the drawings and not mentioned in the specifications, shall be of like effect as if shown or mentioned in both. In case of discrepancies, the mater shall be submitted immediately to Contractor for determination. ARTICLE 6 Changes in Work 6.1 Contractor reserves the right by written notice to correct any errors or to matte any changes in the specifications and the drawings. If such changes cause a material increase or decrease in the costs of performing the work or the time of performance, and written notice thereof i3 given to either parry, within five (5) days after the giving of Such notice of change an equitable adjustment in the compensation and the time of performance shall be made. Subcontractor agrees to make any and all changes, furni3h the materials and perform the work that Contractor may require without nullifying this .Agreement at a reasonable addition to, or a reduction from, the Contract Price stated herein. and pro rate to the same. If the parties cannot agree upon such adjustment within five (5) days after the receipt of the notice of change referred to herein, the matter shall be submitted to arbitration as hereinafter provided, but Subcontractor shall proceed immediately with the work as changed. 6.2 Under no conditions shall Subcontractor make any changes either as additions or deductions without :he prior written order and approval of Contractor and Contractor shall not pay any extra charges made by the Subcontractor that have not been agreed upon prior thereto in r.t -.g by Contractor. In no event shall Contractor make payment for any such extra charges unless and until the Contractor itself receives a payment from Owner. Subcontractor shall submit immediately to the Contractor written copies of its cost or credit proposal for changes in the work. Disputed work shall be performed as ordered in writing by the Contractor and the proper costs or credit breakdowns therefor shall be submitted without delay by Subcontractor to Contractor. 6.3 If Subcontractor fails to give notice of claim relating to any work for which compensation is asserted within thirty (30) days after such work is performed. Subcontractor shall be liable for the expense thereof. 6.4 11 Subcontractor initiates s substitution, deviation or change in the work which affecs the scope of the work or the expense of other trades. Subcqntrac:or shall be liable for he expense thereof. 11 I INITIAL:�7 ARTICLE Inspection and Rejection of Materials and Workmanship 7.1 All work and materials furnished shall conform to the requirements of all city, county, and state ordinances and laws. all work shall meet with the approval and - mryection of the city, county and state where the work is to be performed or materials are to be furnished. If the work being performed is being constructed under spec_?t.2 of the Federal Housing Administration ('FHA') and the Veterans Administration ("VA"), or either of hem. such work and materials furnished shall also meet with all c: applicable requirements of the FHA and VA and shall be subject to applicable inspection of the FHA and VA. No work is to be deemed completed until final inspec-:c: approved by the city, county, state and if erected under FHA and VA, or either of them. by the applicable inspectors of the FHA and VA, as well as inspection and aceeptar _ : hereinafter provided by Contractor and Owner. 7.2 All materials and workmanship furnished or performed by Subcontractor shall be further subject to final inspection, tests and acceptance by Contractor and 0= - upon completion of all work and whether or not previously paid far by Contractor. At any and all proper times during manufacture or performance of the wort[, all matersia workmanship furnished or performed by Subcontractor shall be subject to inspection, tests and approval by inspectors of Contractor, or Owner, at any and all places wit such manufacture or performance shall be carried on. Failure of such inspectors to matte inspections or tests or to discover defective workmanship or materials 3haL1 - prejudice the rights of Contractor or Owner on final inspection and tests. All expenses of teats and inspections to prove or establish the acceptability of performance of wo. s materials hereunder shall be borne by Subcontractor. 7.3 If upon any such inspections or tests as provided in subparagraphs 7.1 or 7.2 of this Article, any material or workmanship shall be found to be defective or not to car -:-.- to the requirements therefor, it shall be rejected and the Subcontractor shall be notified thereof. Subcontractor, at its expense, shall promptly correct workmanship whit= :: ant comply with such requirements by making the same comply therewith and shall promptly replace any material or equipment (except such as may have been furniahe•_ Contractor) which does not conform to such requirements. If Subcontractor shall fail to replace or correct :ejected material or workmanship immediately and without de... Contractor, at its option. may replace or correct the same and all coats and expenses of Contractor, including, but in no way limited to. compensation for Coacsc:: managerial and administrative expenses, in connection therewith shall be borne by Subcontractor. 7.4 Neither the final payment nor any provision in the Subcontract Documents shall relieve the Subcontractor of responsibility for faulty materials or workmanship, arc Subcontractor shall, when notified of any such defects, promptly remedy same and pay for any damage to :he Project and other work resulting therefrom. ARTICLE 3 Leas and Claims 8.1 Contractor shall pay when due all claims for labor or material incurred by it in the performsnce of :his Agreement. If any lien, notice of intention. Scop notice. ::a_ mechanics or materialmen. or attachment, garni3hments or suits are filed in connection with the work or against the Project, or any portion thereof, whether or not any :: ' going aro vslid, Subcontractor shall, within ten (10) days after written demand o it by Contactor. cause :he effect of such lien. attachment or suit to be removed L••om or a;:.:. tate Project, and all portions thereof, and in the event Subcontractor shall fail :o do so. Contractor and Owner are each hereby authorized CO use wherever means they =sy best m cause she lien, attachment or suit together with its effect upon the tide. to be removed, discharged. satisfied. comprised or dismissed and .he cost _hereof.:nc:__ reasonable attorneys' fees incurred by Contractor and Owner, shall ixmediateiv beccme due :.ac Subcontractor and Owner, or Contractor. at its option, Jhalhave ��e nyn: deduc: such costs directly from the compensation due or to become due to Subcontractor unless such costs exceed said compensation• in which latter event :ie excess ;hd- debt imcediately due from Subcontractor to Contractor. It is understood that Contrac:or's ngcts here:.n inc'.ude Ics .right m Satisfy such lien by payment, icd upon. ;ay -=c Subcontractor shall have no right or remedy against Contactor. and such -g=t.r i.d recedes of Subcontractor, if any against Contractor are hereby expressly >•a:'. - Subcontractor may contest any such lien. attachment. or suit provided it shall cease _e effect • ereof :o be retroved .`tom the Project and all portions 'hereof. and shad_c further things as may be necessary to cause any lender of the Owner not A withhold monies due :o Contractor, or L.om Owner by reasons of such !sena, actacbcencs o: 8.3 In addition to the foregoing, Subcontractor shall indemnify and save Con.t:3c:0r. 0a-er. !en.der3.:a!e _nsu ante companies and any sureties rise and :artless cr_ claims, demands, causes of actions or suits of whatever nature arising out of '-'-e ser -ices. 'abor and cscerals furnished by Subconcnccor or its contractors, once.- :: Agreement. AR7C ._ Desigraccn if Supe=-teadenc 9.: Subcontractor shall designate a competent individual thereinafter :efered to as "Supe.^.: cenden:"1 which designation shall be sec forth on Exhibit "A", who. on be. - s -of Subcontractor shall have complete charge of all work and such Superintendent shall be at Se job size dun.: g all aces when Subconcrac:or's work is in progress. and su.- Superintendent shall be authorized to represent Subcontractor durag all phases of Subcontactor's York. In the event of any change of the Superintendent. Subcont:7c:,-- shail notify the Contractor who the new Superintendent is co be prior to such charge becoming effective. AR :?CL-- W Work Schedule and Subconcrsctor's Examination 10.! Contractor represents that it, the Owner, and other contractors and 3ubconcr2ctor3 may be war's: ng at :ie Project during the perfor +ante of this Agreement. ConescxV reser,ea the =ghc co direct the Subcontractor to schedule the order of performance of Subcontr3car's work '-ereunder'..n such manner as not unressonable :o :acerfere wt:'- :n - performance of :he work by Contractor. Owner, and other contractors and subcont.iactors. 10.2 Subcontractor has by careful examination ascertained the nature and :ocsccn of he work. the conformity of the ground on which the work is to be pperfot-_•ed.:.`.e character, quality and quantity of the materials, equipment and facilities necessary to complete :he work, the general and local conditions pertaining to the worSc, and all it:.e: matters by which in any way can affect the performance of this Agreement by Subcontractor. Subcontractor assumes full responsibility for the accuracy of all Lines. levels attic measurements and their relation to the benchmarks, property lines and reference !fines. In all cases where dimensions are governed by conditions already established. the respoosibility for correct knowledge of the conditions shall rest entirely on Subcobt:sc or. Va ver anion from the specified lines or grades or dimensions shall be mode e:cep: on written authority of Contractor. All work shall be made to conform to actual. final conditions as they develop in the course of the work. Subcontractor acknowledges baa entered into this Agreement solely on the basis of its prior examination of the !ocscon and not because of any representations or warranties pertaining o the work o :t b;' Cont -actor or Owner or any agent of the Contractor or Owner and not contained in this Agreement. It is further agreed that there shall be no extra charge, coat or expense :o Contractor or Owner for work done by Subcontractor because of surface or subsurface conditions, latent or otherwise, whether or not indicated in the specification an drawings and that Subcontractor shall be solely responsible at its costs and expenses for the correction of the work of Subcontractor caused by any such surface or subsurface conditions. ARTICLE 11 Tune of ?erformance 11.1 Time is of the essence of the Agreement and all actions taken by the panes hereto shall be taken to the end that the performance of this Agreement shall be full, expedited. Subcontractor shall commence the work covered by this .agreement imceciiately upon notification from Contractor. From commencement of work. unless not"`ec to the contrary. Subcontractor shall complete its work and obligations hereunder within the cce period set forth in subparagraph 2.9 of Section 2 of chis Agreement. Should Contractor's work schedule be changed, Subcontractor shall proceed in strict accordance with Contractor's di:eccions. ARTICLE 12 Extension of Tice 12.1 In case of any delay caused by Contractor, or Owner,or any delay which is beyond he reasonable cont:vl of the Subcontractor, the cause of which was not reasonably eacetime this Agreement was entered into. wrir an notice of such delay and of anticipated results thereof shall be given promptly o rainabie by Subcontractor at the Cobcector by Subcontractor. Failure to give such written notice promptly shall be deemed suff:ctient reason Lor denial of any extension of time by Contractor. Canesctor shat] notify Subcontractor promptly if. in its opinion, the cause of delay specified is such as to entit!e or not to entitle Subcontractor to an extension of time. After such opinion of Connector, that the cause of delay was beyond the reasonable control of Subcontractor and that it was not reasonably ascertainable by Subcontractor at the time this Agreement was entered into. then the duration of delay shall be determined and that it was not reasonably ascertainable by Subcontractor at the time this Agreement was satered into. hen the duration of delay shall be determined by Contractor and the ti=e of performance of :.he -ark. the performance of which has been delayed thereby, shall be extended, in writing by Contractor. INITIAL_ 60L- ARTICLE 13 Damages for Delay 13.1 Subcontractor shall not be entitled to and hereby expressly waives any and all rights to make claims or to be entitled to receive any compensation or damages w Subcontractor may suffer by reason of Contractor, Owner or other contractors or subcontractors delaying Subcontractor in performance of the work. or any portion :her, lfom any cause whatsoever. 13.2 Should Subcontractor default in the proper performance of its work, thereby causing delay to the Prime Contract work, it shall be liable for any and all loss and da --_4 including consequential damages, sustained by Contractor as a result thereof. Subcontractor sb" not be liable under this Article if such default be caused by strikes, lockc . acts of God or other reasons beyond the control of Subcontractor providing Subcontractor gives prompt written notice as provided in Article 12 of this Agreement. ARTICLE 14 Subcontractor's Insurance 14.1 Subcontractor, at its own coat and expense, shall procure and maintain on all of its operations hereunder the following policies of insurance: 14.1.1 Unlimited worker's compensation and employer's liability insurance as required by law; 14.1.2 Combined single limit public liability and property damage insurance with limits as hereinafter set forth: 14.1.3 Combined single limit Contractor's contingent liability and property damage insurance with limits as hereinafter set forth: and 14.1.4 Motor vehicle public liability and property damage insurance covering all vehicles used by Subcontractor in the performance of the work with hereinafter set forth. 14.2 Limits for coverage described in subsections 14.1.2, 14.1.3, and 14.1.4 shall be in the sum of One Million Dollars (3 1.000,000.00) on account of bodily injuries :nc:_�-- death on one (1) or more persons, and for property damage resulting from any one accident which may arise from the operations of Subconc9c:or in perfor=.,'*.; �e z covered by this Agreement 14.3 Each policy of insurance shall be in such form and shall be issued by such company or companies as may be satisfactory to Contractor and delivered :o Coetrac:cr to commencement of any work. Each policy of insurance shall name Contractor and Owner as additional insureds and the worker's compensation and ampioye%3 :lacy_ insurance described in subsection 14.1.1 shall also name Contractor's insurer as an additional insured. Subcontractor shall cause to be furnished to Contractor cen=t?cats insurance from the insurance companies which certificates shall include the following clause: "Thirry (30) days advance notice shall be given in writing to Cont-ac:or 3t 3dd:ess shown in Section 1 hereof, on cancellation. te=instion or il:e:sc:on :i ... policies evidenced by this certificate." Neither Contractor, Owner, or Contractor's insurer shall by reason of the; inc!usion under said policies acur Liability for payment of any premiums. All pu_Ec ::a* ---'-- property damage. contingent liability and other casualty policies required :n his Ar_c!e 14 shall be xr.^en as primary policies not concibutor; with, and net :n ezce-, coverage which the Contractor and Owner may carry. 14.4 Nothing contained in this Aric!e 14 shall in any way relieve, exonerate or oche:-i3e release Subcontractor sons any of its responsibilities or obligation to Cootrscwr and Owner pursuant :o the provisions of ar^c!e 16 of this agreement. ARTICL`. i5 Surec/ Bonds 15.1 Before the commencement of the work. Subcontractor shall at its own cost and expense procure and deliver to Contractor a Surety Faithful Performance 3ond ss.c : Surety Labor and Materials Bond which shall comply fully with requirements of the California Civil Code. The Faithful Performance Bond shall be in an amount equal :o :n: hundred percent (100'.) of the Contract Price set forth m Ezhibit "A" to this agreement and the Labor sod Materials Bond shall he in an amount of fifty percent (50`3) of is: : Contract Price. Said bond shall be executed by a corporate surety acceptable :o Contractor and shail be in a for satisfactory to Contractor. No change, alteration modi5csdon in or deviations from :his .agreement of the drawing, plans and 3pecircatis. orwhether made in the manner provided in the Agreement or not, shall :v!esse ; exoeerste in whole or in part any surety on any bond given in connection with the Agreement and neither Owner nor Contractor shall be under any obligation to not.°::he 3u:e:1. or sureties of any such change, alteration, modification or deviation. ARTICLE 16 Hold Harmless - Indemnity 16.1 Subcontractor shall be responsible for any damage or injury to any person or property resulting from defects or obstructions or from any cause whatsoever arsi .g out or in connection with the performance of the work, except the sole negligence or willful misconduct of Contractor, its agents. servants or independent contractors who ate directly respoosible to Contractor. Subcontractor shall indemnify, protect and save harmless Contractor and Owner, their agents and employees against any and all 3ctior.. claims, damages to persona or property, penalties, obligations or liabilities that may be asserted or claimed by any person, firm, entity, corporation. political subdivision or other organization ariain out of or in connection with the work, operation or activities of Subcontractor, its agents, employees, contractors, subcontractors or invitees. provided for herein, whether or not there is concurrent passive or active negligence on the part of Contractor or Owner, their respective agents and employees (but exc!udi .s such actions, claims, damages to persona or property, penalties, obligations or liabilities arising from he sole negligence or willful misconduct of Contractor, its agents. servants or independent contractors, or Contractor, its agents, servants or independent contractors, as the case may be, who are directly responsible to Contrsctoror Owner), and ;-- connection therewith (i) Subcontractor shall defend any action or actions filed in connection with any of said claims, damages, ppenalties, obligations or liabilities, and shall pay sill Costa and expenses of Subcontractor. Contractor, and Owner, including attorneys' fees incurred in connection herewith, and (ti) Subcontractor shall promptly pay any judgmen: rendered against Subcontractor, Contractor, and Owner, or any of them, their respective agents and employees, covering such claims. damages, penalties. obligations and liabilities arising out of or in connection with such work, operations or activities. So much of the money due to Subcontractor under and by virtue of this agreement as shall be considered necessary by the Contractor, may be retained by Contractor until disposition Sas been made of such acticns or claims for damages as aforesaid. 16.2 Proposition 65 Indemnification. Subcontractor shall indemnify, protect and save Contractor and Owner, and their respective parents, subsidiaries. partners, 3harebolders. agents and employees, against any and all actions, claims, damages, penalties, obligations and/or liabilities that may be asserted or claimed against them by any person. entity or verrmental body, private or public, arising out of or based upon any violation and/or alleged violation of the Califor ua Safe Drinking Water sod Toxic Enforcement Act of 1960 .oposition 65), including particularly Section 25249.5 (discharge of a "toxic" chemical) and Section 25249.6 (prior notice). Subcontractor acknowledges that it has read anal understands therovisions of Proposition 65 and the regulations promulgated thereunder and agrees to fully comply with all of the terms and conditions thereofas may be in force at any time during the term hereof. In the event any such claim is asserted oraction riled against Contractor and/orOwner, (i) Subcontractor shall defend them against any such claim or ac=oo and shall pay all costs and expenses which they incur, including attorneys' fees, and (6) Subcontractor shall promptly pay, r. and fully indemnify Contractorand Ower ,`tom an and all judgments, penalties, fines, damages and the like based upon any violation or alleged violation by Subcontractor of Proposition 65. ART1CLF l7 Right of Offset • Cross Default 17.1 Subcontractor agrees that USubcontractor should breach this Agreement or any other agreement with Contractor. whether written or oral. that Contractor may, at its opcion. dec!sre that such a breach will constitute a breach of all agreements and that. in addition to all other rights herein provided. Contractor may withhold any monies which might otherwise then be due or thereafter become due under any agreements, including this agreement, and Contr sctor Say apply such monies by wayofoffset toward remedying any such defaults orbresches in all agreements, including this Agreement. This right to withhold shall conunue in time and as to such amount as Cont actor in its sole discretion shaU deter: ir.e is Ts3onably necessary to satisfactorily car/ out the terms and conditions of all sgreement3 between Subcontractor and Contractor including warranties thereof. INITIAL: ARTICLE 18 Responsibility for Work and Risk of Loss 18.1 Subcontractor shall be responsible for all materials delivered and work performed until completion and final acceptance of the work. Upon completion the work 3hai ; delivered complete and undamaged. Until completion and final acceptance of the work. Subcontractor shall have charge and care thereof and shall bear the risk of injury damage to any part thereof by action of the elements or from any other cause. Subcontractor shall rebuild. repair, restore and make good all injuries or damages to any portor: . the worst occasioned by any of the above causes before its completion and acceptance, and shall bear the expense thereof, except for such injuries or damages as are occasion, by acts of the federal government and the public enemy. In case of suspension of work for any cause whatever. Subcontractor shall be responsible for all materials, and shad. . Subcontractors expense, properly store them if necessary and shall erect temporary structures where necessary. ARTICLE 19 Removal of Debris and Waste Material 19.1 During performance of the work under this Agreement and upon termination or completion thereof. Subcontractor shall (i) keep and leave the site of the work Ln condition satisfactory to Contractor, and (ii) remove all debris and waste material Subcontractor shall not dump or discharge any materials or chemicals an the ground in a . manner or for any reason whatsoever. As the work covered by this Agreement is completed. Subcontractor shall remove from the site thereof, to the satisfaction of Contractor, all of Subcontractor's rubbish, debris, materials, tools and equipment, and if Subcontractor fails to do so promptly, Contractor may remove the same to any place : storage, or dumping ground. at Subcontractor's risk (including liability under Proposition 65 as set forth in Paragraph 16.2 hereof) and expense and without (ncurr= g an. responsibility to Subcontractor for lose, damage, or theft. All storage and removal costs thus incurred by Contractor shall be a debt due and owing from Subconasc=. : Contractor. ARTICLE 20 Taking Over Performance - Termination of Contract 20.1 Should Subcontractor at any time refuse or neglect to supply a sufficiency of properly skilled workmen or materials of the proper quality or quantity or fail �n a:. respect to prosecute the work or any separate portion thereof with promptness and diligence, or fail in the performance of any of the agreements on its pan contained here::..: become insolvent, or make an assignment for the benefit of creditors, or voluntarily submit to any bankruptcy or creditor proceeding, Contractor say, after twenty -fou: = = hours written notice to Subcontractor. provide any such labor or materials and deduct the coat :hereof from any monies due or thereafter to become due Subcontractor - ice -thin Agreement; and Contractor may also terminate Subconttactnr's right to proceed with the work or such par- of the work es to which such default3 have occurred. In :he ave of such termination. Contractor may enter upon the premises and, for he purpose of compleaag the work, take possession of all materials, supplies. equipment, coots an : attained belonging to or under the control of Subcontractor, including materials, supplies. equipment, tools and appliances located :hereon or elsewhere which have pee: obtained ani ordered in connection with the performance of this Agreement and all rights under toocscs of Subcontractor, and may finish the work by whatever method :: deem expedient including the hiring of another subcontractor or subcontractors under such far= of contract as Contractor may deem advisable. In such case. Subcnneac::: shall not be entitled to receive any further payment until the work is finished. If the unpaid balance of the amount to be paid on this .agreement shell exceed he expense .: finishing the work, compensation for Contractor's additional managerial and administrative serfices and such other costs and damages as Contractor say suffer• suc'.: &hall be paid to Subconc:actor. If such expense, compensation for managerial and admiaistrecve serices. costs and damages exceed such :unpaid :oaisr.ce. Subconesrcr sr. . its sureties, shall be liable for and shall pay he difference to Contractor. Failure of Com7actor :o exercise any of the nights gi,en it under this Ar.:c!e 3hai1 not ezc-a. Subcontractor for noncompliance with the provisions of this Agreement nor prejudice any ighs of Coct sc:or or Owner to recover csmages for such :efauit nor be deeme•- : waiver of any .rights of Contractor or Owner. 20.2 Should conditions arise which, in the opinion of Contractor, make it advisable w cease work :under L'nis Agreement, Contractor may ter=inace �hi3 Agreement by w ---r notice to Subcontractor. Such termination shall be effective in the maturer specified in said incite and shall be without prejudice to any claims which Contractor or 0•Lr.er =&•- have against Subcontractor. 20.2.1 On receipt of such notice. Subcontractor shall. unless the notice di;ecs otherwise• ia^ediacely discontinue the work and placing of orders for =scene;— facilities and supplies in connection with the performance of this .Agreement, and shall. if requested.. -sae every reasonable effort to procure cance!lacion of all exist^.g orconescs, upon terms sacsfactory to Contractor, and shall thereafter do only such -ark as may be necessary :o preserve and protect work already in progress and to prate:: material, plant and equipment on the work or in transit thereto. 20.2.2 Upon such termination it is agreed: (i) That the obligations of this .Agreement shall continue as to work already pe:forrec and ss :o bona fide obligation incurred by Subcontractor prior to :he date of cancellation or termination. (ii) That the Subcontractor shall be entitled only to pro rata compensation .for a porion of :he .Agreement already perfor^ed and shall also be compensated s for atersi ordered by it under the firm contracts which cannot be cancelled, and in such eves: 'he mater:ai shall became he proper -Z; of the Contac:or. ARTICLE 21 Unemployment Insurance, Taxes, and Weilere Funds 21.1 Subcontractor shall accept full and exclusive liability for the payment of any snd all taxes and any and all contrbucions for unemployment insurance, old age reti:ement benefits and life pensions and annuities which may now or hereafter be imposed by the United States or any state, whether measured by the wages, salaries or renumeraeor. paid to persons employed by Subcontractor or otherwise. for the work required to be performed hereunder. Subcontractor shell comply with all .federal and state laws on suc- subjects and all alae and regulations promulgated thereunder. and shall maintain suitable forms. books and records and save Contractor and Owner harmless from :he payment of any and all taxes and contribution, or penalties. Subcontractor shall likewise pay any and all taxes, excise assessments or other charges levied by any govetnmentai authority on or because of work to be done hereunder, or any equipment, supplies or materials used in :he performance thereof. 21.2 Subcontractor shall maintain current payments to any appropriate health and welfare, pension. vacation and apprenticeship fund, or funds, as required of it by its appropriate Collective Bargaining Agreements. In the event Subcontractor or its contractors (and Subcontractor shell provide in contacts with its contractors) are delinquent in the payment or payments to appropriate health and welfare, pension, vacation and apprenticeship fund, of funds, regardless of the job in connection which he delinquency occurred. Contractor shall have the right (but shall not be obligated to do so) to fust deduct the amount of such delinquency from payments to be made to Subcontrsctor pursuant to this Agreemeot, Contractor shall in such event pay the amount so deducted directly over :o the appropriate fund, of funds, and Subcontractor hereby expressly designates and authorizes Contractor to act as its agent for this purpose. All of the provision of his subparagraph 21.2 of this Article shall apply to Subcontractor. its contractor, or any of them performing work on the Project under any change of name or aaeociaaon or joint venture (including any person who may have been a principal anancially associated with Subcontractor, its contractors, or any of them, who was delinquent in fringe benefit payments to any of the aforesaid funds). ARTICLE 2222 Occupational, Safety and Health Warsnty 22.1 All materials and equipment used by Subcontractor, all work methods and procedures of Subcoocractor. and the area in which Subcontractor is performing work shall conform to and shall at all times be maintained so as to conform to the standards and regulations promulgated by the United Mates Department of Labor uncle. the Occupational Safety and Health Act of 1970 (29 U.S.C. Section 651. et seq) ("OSHA") and all state statutes which pertain to occupational safety. In the event said materials. equipment procedures, work area or any other services performed by Subcontractor does not conform to :he OSHA or state stsrdarda. Subcontractor shall correct the defective material, equipment, or condition. In a failure thereof, Contractor shall be entitled to caret: the defective material, equipment or condiron at Subcontractor's expense. Cont actor shall have the right to deduct the amount of any fine against Contractor under OSHA or comparable state statutes caused by the act or omission of Subcontractor from the compensation herein and if in excess thereof such excess shall be a debt immediately due and payable by Subcontractor to Contractor. ARTICLE 23 Waranry of Titre 23.1 No materials, supplies or equipment for use under this.Agreement shall be purchased subject :a a chattel mortgage or under s conditional sales contract or other agreement by which an interest therein or any pathereof is retained by he seller or supplier. Subcontractor warranta clear• good and marketable ode to all metersle, supplies n and equipment installed and incorporated in the work. INITIAL*- ARTICLE 24 Guarantee 24.1 In addition to (and not in lieu of) the guarantees required and remedies of Contractor and Owner contained elsewhere in this Agreement or in the Submac, Doc msents. Subcontractor guarantees Contractor and Owner against any lou or damage arising from any defect in material and workmanship furnished under this Agreem a-. Upon notification of defect& from Contractor or Owner, Subcontractor shall proceed within twenty-four (24) hours with due diligence at its own expense to replace any =o- - end upon failure of Subcontractor to do so. Contractor or Owner may furnish or secure, at Subcontractor's expense, such materials or labor as are necessary to bring the work . to the re toured standard, all costs thus incurred thereupon becoming a debt immediately due and payable by Subcontractor. it is further agreed that final acceptance of work by Contactor or Owner, or any portions thereof, shall in no way relieve the Subcontractor from liability under this Article. ARTICLE 25 Patents and Royalties 25.1 Subcontractor shall defend all suits relating to and shall hold Contractor and Owner harmless from any and all claims, royalties, damages and coats resulting 5nm L. infringement or alleged infringement of any patents or for the misuse of any patented article by Subcontractor or its subcontractors, in the performance of the work. ARTICLE 26 Contractual Relationship 26.1 In performance of this Agreement. Subcontractor shall operate as an independent contractor and not as an agent or representative of Contractor or Ow-=: Subcontractor shall hold Contractor and Owner free and harmless &am all liability, costs, attorneys' fees. and chargee arising out of or in connection with any ac: - represent&tion of Subcontractor, its agents or employees. ARTICLE 27 Laws and Regulations 27.1 Subcontractor. its employees and representatives shall at all times comply with all applicable laws, ordinances, statutes, rules and regulations, federal, state. :ct_: and municipal. including those relating to wages, hours and working conditions. Subcontractor shall procure and pay for all permits and inspections required by ir. governmental authority for any part of the work and shall furnish any bonds, security or deposits required to permit performance of the work. ARTICLE 28 Use of Concsc:or's Equipment 28.1 The use of any of the Contractor's equipment, rigging, blocking, hoist or scaffolding by Subcontrsctor, given, loaned. or rented to Subcontr3ctor by Contractor, si_ i upon the distinct understanding that Subcontractor uses the equipment, rigging, blocking, hoist or scaffolding at its own risk and takes the same "AS 18" and Subcort.-sc,.: assumes all responsibility for and agrees to protect, defend. indemnify and hold Coa=c:or and Owner harmless from any claims or damages whatsoever, resulting frac :he _s - thereof, whether such claims or damages result to Subcontractor or its employees or prope.,y or to other persons or the employees or properties of other persons. otherwise provided for in writing, no rigging, blocking, hoist or other equipment shall be provided for. !owned or rented to Subcontractor or Contractor. ARTICLE 29 Notices 29.1 Any notices or statement required or desired to be given under this Agreemeat shall be personally served or sent by United States Mail. to the address, unci notice of : different address be given. as set forth on the Gat page of this Agreement. Notices not personally served shall be deemed given upon deposit in the United States Mail proper::. addressed with postage prepaid. ARTICLE 30 Arbitracon 30.1 Any controversy between the parties hereto involving the construction or spplicstion of any of :he terms. covenants, or conditions of this Agreement, shall be on he written request of one parry served on the other be submitted to arbitration, and such arbitration shall comply •+rich and be governed by the provisions of the Califom. a Arbitrscen Act, Sections 1280 through 1294.2 of the California Code of Civil Procedure. ARTICLE 31 Non -Assignment 31.1 Subcontractor shall neither assign nor subcontract the whole or any portion of this Agreement, without Coat obtaining in each and every instance permiaaion in writing &am Contractor, and then only subject to, and upon the same terms, cooditiona and proviaioas of this Agreement and such other terms and conditions as may be required by Contractor. Any permission granted by Contractor shall act be deemed permission to any subsequent sasignment. Any assignment by Subcontractor made without the consent of the Contractor as herein provided shall be null and void and shall, at the option of Contractor, be grounds for termination of this Agreement and Contractor shall have the right to elect and proceed in accordance with the provisions of Article 20 of this Agreement Any such permitted assignment or subcontracts shall contain all the provisions of this Agreement and shall require new Subcontractor thereunder to be directly liable to Contractor and Owner in all respects 83 herein required of Subcontractor under his Agreement. Any assignment of this Agreement shall be submitted to Contractor for its prior written approval and shall not be binding upon Contractor until so approved. No assignment shall relieve Subcontractor from its duties, obligations and liabilities hereunder unless specifically relieved in writing by Contractor. This prohibition against usigament shall not apply to monies becoming due to Subcontractor under the terms and conditions cf this Agreement: provided, however, that any assignment of monies becoming due shall be subject to the right of offset as hereinabove provided in Ardcle I7 of 't is .4greemeat. and all of the other terms and conditions of this Agreement Any assignmeat by operation of law, for the benefit of creditors, or under any provision of the federal bankruptcy statutes or any applicable state statutes shell specifically he a breach of this Agreement and the assignee, receiver or trustee shall take subject to all the terms and conditions of this Agreement and such assignees, receiver or trustee shall have no right, title or interest in this Agreement or any of Subcontractor's rights thereunder. ARTICLE 32 Temporary Electric Power and Water 32.1 Contractor will provide temporary outlets for electrical power and water at such locations as it may select for the use of all subcontractors and will pay for the cost of electric power and water which Subcontractor requires for the performance of its work. Any extension of these outlets which Subcontractor may require shall be installed and romoved by Subcontractor at its own expense, but only with Contractor's prior approval. ARTICLE 33 Drawings and Specifications 33.1 Contractor will furaiah to Subcontractor a set of the plans. drawings and specifications, together with amendments. and changes thereto. Any additional seta requested by Subcontractor will be furnished at Subcontractor's expense. All plans, drawings and speciEcstions tw-nished. whether paid for or not. are the property of Contractor and are to be returned to Contractor at the completion of Subcontractor's nark. INITIAL:. ARTICLE 34 Attorney's Fees and Costa 34.1 Should any litigation arbitration be commenced between the parties hereto concerning the work, any provision of this Agreement, or the rights and obligations or either in relation thereto, the party, Contractor, Owner or Subcontractor, prevailing in such litigation or arbitration shall be entitled, in addition to relief as may be granted, to a reasonable sum as and for its attorney's fees and such litigation or such arbitration In addition thereto, should any action be brought against Subcontractor by third parties in which Contractor and Owner, or either of them, are joined as a party, whether the same proceeds to judgment or not, Subcontractor shall pay Contractor and Owner for the reasonable attorneys' fees and costs incurred by Contractor and Owner in such action. This provision shall also apply to any suit on any bond furnished hereunder. ARTICLE 33 Subcontract Includes Entire Agreement 35.1 This Agreement, including the Exhibits attached hereto, embodies the entire Agreement between Contractor and Subcontractor. Subcontractor represents that in entering into this Agreement, it does not rely on any previous representation, inducement, or understandings of any kind or nature whether expressed or implied, oral or written, including bid documents or other writings not set forth as Subcontract Documents under Section 2 hereto. ARTICLE 36 Captions and Terms 36.1 The captions of Sections and Articles of this Agreement are for convenience only, are not a part of this Agreement and do not in any way limit or amplify the terms and provision of this Agreement The masculine pronoun used in the Agreement shall include the feminine or the neuter as the case may be, and the use of the singular shall include the plural. ARTICLE 37 Place of Contract 37.1 Execution of this Agreement shall be at Contractor's principle place of business at the Inland Division Office, Corona, California and shall be deemed the proper county and state for all legal purposes ARTICLE 38 Severability 38.1 If any provision of this Agreement shall be determined to be void by any court of competent jurisdiction, then such determination shall not affect any other provision of this Agreement and all such other provisions shall remain in full force and effect; and it is the intention of the parties hereto that if any provision of this Agreement is capable of two construction, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid. ARTICLE 39 Successors and Assigns 39.1 This Agreement and addendum shall be binding upon and inure to the benefit o4 as the case may be, the heirs, executor, administrators, successors, and assigns of the parties hereto. EXHIBIT "A" TO SUBCONTRACT Sub- Account Code: 0102 Trade: Water hist -nation Project Name: REUNION Tract #: 2399S, Lot Numbers: Phase 11(Lots 1-29), Phase I (Lots 140) A WORK TO BE PERFORMED AS FOLLOWS: (Section 2, subparagraph 2.4) SEE EXHIBIT "A" & "B", Attached hereto and made a permanent and intergral part of this contract agreement dated SEPTEMBER 7, 1994. B. CONTRACT PRICE AND PAYMENT SCHEDULE: (Section 2, subparagraph 2.5) SEE EXHIBIT "C", Attached hereto and made a permanent and integral part of this subcontract agreement. C. SUPERINTENDENT (Article 9) Name: Phone 9: INCO HOMES CORPORATION By: 1<7✓Lc°j� JosepliVanegiA, D1r0Wr4fPurc4aslngCSAtractoF Dated: fl / Contract Prepared by: Dp Steve Moffatt 909-482-9040 (Pager) SJ Burkhart, Inc By Stevi tz, Sec -Treasurer "Subcontractor" Dated: SUBCONTRACTORS PROCEDURES Detailed below is some of the more important information and procedures that all subcontractors involved with La Quinta should be aware of and should follow (this includes REUNION). 1. This contract is not an authorization to proceed with work. You will receive a product mix release for construction You must contact the superintendent to obtain work schedule and an authorization to proceed with construction on any and all building trades. The Superintendent is Steve Moffatt His number at the jobsite in La Quinta is 909482-9040 (Pager) (construction trailer) and at the Inland Division is 909/736-0700. The Superintendent will be scheduling "pre - job" conferences to coordinate the work and to open lines of communication. If you are requested to attend these meetings, please attend either yourself and/or with your field foreman. 2. Before starting work, please meet with the Superintendent to ensure that you are working with the latest revised set of plans; he will initial your work set which is your only assurance that you have the latest and correct set If you fail to obtain the superintendent's initials, you and not the developer will be responsible for any loss arising from using the wrong set of plans; your contract and contract price pertain only to the final plans marked for construction use. 3. It is important that you make known to all of our respective people the names of those persons in your employ who will be responsible for working on our job. Therefore, you must identify to the superintendent the name(s) of your field foreman 4. We build homes of high quality — in a timely and professional manner, and request your full cooperation in this regard. We therefore urge that you perform your work to the highest standard of quality and in a timely manner — and that you clean up after you have finished. Your contract clearly points up your responsibilities in this area — everyone benefits if the job is done properly and timely. Also, the contract points out you will be held responsible for damage you create to the work of other trades — and this will be enforced. 5. Your contract requires you to carry certain insurance with Inco Homes Corporation named as co- insured. The amounts of coverage required are: Liability Coverage and Property Damage: $1,000,000/$1,000,000 Automobile Liability: $1,000,000 Workers Compensation: Standard Insurance certificates must be in our hands before you commence work 6. We pay based on the terms of your contract The contract also spells out various other requirements relative to your billings (i.e., submission of labor and material releases, etc.). All billings must be approved by the Field Superintendent or the Customer Service Manager to verify the quality and quantity of the work done, and by the Purchasing Agent to verify the pricing, retention, documentation, etc. It is your responsibility to submit accurate and complete billings, INCO HOMES C RPORATION SJ Burkhart, c. i INITIAL: INITIAL• DATED: DATED: J- 7 ' �� Subcontractor Procedures Cont' with all required documentation; if you have any questions, please call the Purchasing Agent beforehand. Regarding releases, if any third party has filed a Preliminary Notice, then their releases must be notarized in order to be accepted by us. Retentions will be paid as per your contract and will be released in accordance therewith and with the provision of the Mechanics's Lien Laws. 7. Occasionally — after the house is completed and sold to a buyer - warranty/repair work is needed. Our customer service personnel will determine the cause of the problem. If the problem requires you to return to the job for corrective action, we expect that you will do so promptly. 8. The Corporate Office is located at 1282 W. Arrow Highway, Upland, California. The phone # is 909/981-8989. For matters primarily relating to invoicing and related matters, please contact the Accounts Payable Department at the Corporate Office. Our Inland Division is located at 250 E. Rincon Ave., Corona, Ca 91719. Our phone 909/736-0700. The people with whom you will be dealing with are: Gary Sorley, Director of Purchasing — for matters of general policy, etc.; and Anthony Monaco, Vice President of Production — for matters pertaining to production. 9. This Subcontract Agreement is all-inclusive. There are to be NO EXTRAS. Authorization for additional work not covered by this Subcontract Agreement must be through the Inland Division Office. Field Personnel are not granted any rights to authorize payment for work not covered by this Agreement The signature of any Field Personnel on any document does not constitute commitment for payment 10. This contract is separate and distinct from any other contract entered on this property. Inco Homes Corporation will not and cannot be held responsible for payment on liens claimed under any other contract for this Tract and property. This procedure sheet is not meant to supersede the contract but rather is for amplification of certain points therein and also to outline certain procedural matters. This was designed to increase efficiency and communication on the job—for the benefit of all. Thanks for your help. INCO HOMES CORPORATION WITIAL: (. DATED:t SJ Burkhart, Inc. INl TIAL: 4b DATED: `Z` 2 ._ j EXHIBIT "A" PERFORMANCE REQUIREMENTS & SPECIFICATIONS TRADE WATER INSTALLATION PROJECT: REUNION -LA QUINTA Exhibit A herein is intended to supplement the Subcontract Agreement. If there is any conflict in language or intent the Subcontract Agreement, and its Terms and Conditions shall prevail. The Subcontractor under this Agreement has represented himself as an expert and as such has included in Exhibit C, Schedule of Prices, all of the following unless noted otherwise, labor, material, installation, storage, transportation, supervision and all applicable taxes, permits and inspection/reinspection fees. In essence, this contract provides for a complete job. All items shown on Construction Drawings, described in the Description of Materials, listed herein or not specifically shown, but reasonably inferable for completion of the project indicated, shall be included as part of this contract. The scope of work to be performed by SUBCONTRACTOR shall be in accordance with and shall include, without being limited to, the following: 1. SUBCONTRACTOR shall provide all labor, material, and equipment necessary to complete the job and all the work reasonably inferable from the construction documents. 2. SUBCONTRACTOR shall complete all work per the plans, specifications and requirement for the City of La Quinta , California. 3. SUBCONTRACTOR shall take every precaution and provide suitable means to protect finished work from damage. 4. SUBCONTRACTOR shall cooperate and coordinate with the CONTRACTOR'S scheduling of other trades. 5. SUBCONTRACTOR shall, at his own expense, correct any work which is not acceptable to the CONTRACTOR and the CONTRACTOR'S Vice President of Construction. 6. SUBCONTRACTOR, his employees, and his SUBCONTRACTORS shall at all times comply with the requirements of O.S.H.A. 7. SUBCONTRACTOR shall be responsible for repairing any damage caused to the site or the work of other trades. If repairs are not made within a reasonable length of time, the CONTRACTOR will have the damage repaired and back charge this SUBCONTRACTOR. 8. SUBCONTRACTOR shall, upon receipt of signed contract, order and have in stock all necessary materials so as to prevent any loss of time on CONTRACTOR'S production schedule. 9. SUBCONTRACTOR shall be responsible for the damage sustained by CONTRACTOR, including the repair/replacement of SUBCONTRACTOR'S work as necessary, at no extra charge to CONTRACTOR, if said work is placed over faulty workmanship of others in relation to the installation of his work. 10. SUBCONTRACTOR acknowledges that he has visited the site and reviewed all construction documents and is familiar with and has provided for the conditions that exist thereon and that he has checked with appropriate governing agencies and has made provisions for any and all requirements of those agencies. 11. All telegrams necessitated by SUBCONTRACTOR'S default shall be back -charged against SUBCONTRACTOR'S contract. 12. With respect to EXTRAS, the following is dearly understood: INCO HOMES CORPORATION SJ BURIOiA*.&c. INITIAL: lNMAL;A4_V DATED: � / � l DATED: O `� — 0-1 .-a `l EXHIBIT "A" A. All extra work MUST BE AUTHORIZED IN WRITING solely by the Purchasing Department PRIOR to commencement of work. Extras not authorized per the above stated procedures WILL NOT BE PAID. Field Superintendents cannot authorize any extras or changes to the contract. Any requests for extras MUST BE directed SOLELY TO THE PURCHASING DEPARTMENT OF OPERATIONS. B. SUBCONTRACTOR acknowledges that the only instrument that will be valid to authorize extra work is a change order on the CONTRACTOR'S forms only, signed by the Purchasing Agent of Inco Homes High Desert Division. Change orders shall become a part of this Subcontract Agreement. Any signatures on any forms other than as indicated above, regardless of their verbiage, will not be valid. The Job Superintendent is not authorized to sign for any extras under this agreement by signing a Subcontractor's Work Order or any other job site work order or ticket. All extra work performed by the SUBCONTRACTOR shall be borne by the SUBCONTRACTOR without recourse to CONTRACTOR, unless properly authorized as stated above. 13. Any expense incurred through error, incompetence, or negligence on the part of the SUBCONTRACTOR will be borne by the SUBCONTRACTOR. 14. The parties agree that commencement of all or any portion of the work pursuant to this contract shall be in the sole discretion of the CONTRACTOR. The work authorized by this contract may be implemented in phases in the sole discretion of the CONTRACTOR. Allor any portion of the work authorized by this contract may be canceled due to market conditions or other factors in the sole discretion of the CONTRACTOR and SUBCONTRACTOR shall be paid for the portion of the work completed and other actual costs necessarily incurred to the time of such cancellation. 15. SUBCONTRACTOR shall be solely responsible for personally verifying with the CONTRACTOR'S Job Superintendent that SUBCONTRACTOR has all the latest sets of plans and specifications prepared and approved for construction. 16. SUBCONTRACTOR shall furnish CONTRACTOR'S Job Superintendent with the name and telephone number of a person to contact for emergency work. 17. SUBCONTRACTOR shall at all times provide responsible on-site supervision of this operation. 18. SUBCONTRACTOR shall provide drinking water for its employees. 19. SUBCONTRACTOR shall endeavor at all times to keep his work neat. 20. It is understood and agreed hereon that alcoholic beverages, children and pets are not permitted on the construction site at any time. It is the responsibility of SUBCONTRACTOR to enforce this policy with his workers. Failure to comply will constitute grounds for revocation of this contract agreement. 21. SUBCONTRACTOR shall neatly pile in garage from job site all trash and debris which has accumulated or accumulates as a result of the SUBCONTRACTOR'S performance under the terms and conditions stated herein for removal by others. 22. SUBCONTRACTOR will begin work in the area designated by CONTRACTOR and cooperate with the CONTRACTOR in regard to, CONTRACTOR'S scheduling of construction and subsequent trades. 23. The SUBCONTRACTOR acknowledges examining and receiving the approved plans and specifications for this work and guarantees the system to function for the purpose for which it was designed. INCO HOMES CORPORATION SJ B , c. INITIAL: C G INITIAL: DATED: j( U ``� DATED: 9 - el - "i'1 EJEE[BIT "A" 24. All material will be free from defects occurring in manufacturing and/or delivery process. SUBCONTRACTOR shall replace merchandise if so damaged. 25. SUBCONTRACTOR shall follow progress of job and maintain sufficient stock to keep up with tract progress. 26. SUBCONTRACTOR agrees to correct any and all pick up work that is not completed during construction or that is found unsatisfactory due to SUBCONTRACTOR'S workmanship or faulty materials. In the event SUBCONTRACTOR has failed to correct said defect within 48 hours of initial contact, CONTRACTOR shall employ another SUBCONTRACTOR to correct said work and back -charge against your contract per the Terms and Conditions of the SUBCONTRACT AGREEMENT. If SUBCONTRACTOR has been paid in full, he shall remit upon receipt of written demand and supporting back -charge documents, the amount paid by CONTRACTOR to such other SUBCONTRACTOR. 27. SUBCONTRACTOR is responsible for unloading of all their material. 28. Price of contracts or change order items shall include manufacture and installation, applicable taxes and cartage, and permit fees. 29. If SUBCONTRACTOR causes damage to material furnished by other trades, SUBCONTRACTOR will be held responsible for the cost of repair. If SUBCONTRACTOR fails to repair immediately and causes CONTRACTOR delay in scheduling and/or causes CONTRACTOR to repair, costs incurred by CONTRACTOR will be back -charged to SUBCONTRACTOR, per the Terms and Conditions of the SUBCONTRACT AGREEMENT. 30. Notwithstanding the exercise by CONTRACTOR of any remedies provided in the SUBCONTRACT AGREEMENT, including but not limited to termination of SUBCONTRACTOR'S right to proceed with the work, SUBCONTRACTOR shall not be discharged from any guarantee or responsibilities for work performed or materials supplied and shall remain liable therefore. 31. SUBCONTRACTOR agrees to a seven day a week work schedule, at no extra charge, during the construction of the models. 32. SUBCONTRACTOR is required to send a representative to attend a pre job meet with CVWD, INCO Homes and Engineer. d 33. Price includes raising of valve cans one time only. Any additional work with respect to raising of valve cans will be done at a negotiated price. 34. All work to be done in accordance with the Coachella Valley Water District and the City of La Quinta standards and procedures. 35. Contract price includes the providing and replacing (if any) of the following items: fire hydrant heads, blow -off assemblies, set air vac assemblies. Fire hydrants to be painted per CVWD and City specifications. 36. CONTRACTOR to receive a copy of all test results. 37. All excess material to be spread in the streets by SUBCONTRACTOR. 38. Adjust 1" services as necessary and set meter boxes; water meters supplied by others. 39. This is a LUMP SUM contract. INCO HOMES CORPORATION INITIAL: V, DATED: UJ q &�,114— SJ B T, nc. INITIA . DATED: EDIT "A" 40. SUBCONTRACTOR to employ a crew immediately at the top of the project where models will be located so CONTRACTOR can meet model opening deadline. 41. Contract price includes all off-site AC removal and replacement along Adams Avenue. Street section to be a minimum of 4" AC/ 12" AB or approved alternate from governing agency. 42. Any ground rock or condition that exists that cannot be freely excavated with a 235 excavator. will be negotiated. 43. Contract price excludes any repair to water system due to damage by utility contractor. INCO HOMES CORPORATION INITIAL: DATED: SJ BURS HART, c INITIAL: DATED: ©`l - Q_q �I EXHIBIT "B" TERMS OF PAYMENT 1. Contractor will make progress payment for each operation only upon completion of all labor, installation of all material, acceptance by Contractor's job site superintendent and approval by the City Inspector when applicable. 2. Subcontractor shall bill according to the Payment Schedule as outline in Exhibit "C". 3. Subcontractor shall submit its progress payment requests to Contractor for work actually completed by Subcontractor. Labor, material and equipment lien waivers and releases in a form approved by Contractor shall accompany each progress payment request unless joint checks are to be used. Subcontractor's final release form, supplied by Contractors, shall be completed and returned with the retention billing before the retention payment will be released. Incorrect or incomplete invoices will be returned to the Subcontractor unpaid. 4. No payments will be released until all Insurance and licenses requirements have been met by the Subcontractor. 5. All invoices must be submitted to the Corporate Office in Upland. The Address is 1282 W. Arrow Hwy, Upland, Ca 91786 . Accounting Department phone number is (909)981-8989. 6. Subcontractor acknowledges that the only instruments that will be valid to authorized extra work are Change Order or Purchase Order on the Contractor's form only; signed by the Purchasing Department of Inco Homes Inland Division. The job superintendent is not authorized to sign for any extras under the Agreement by signing a subcontractor work order or any other job site work order or ticket. All extra work performed by the Subcontractor shall be borne by the Subcontractor without recourse to Contractor unless properly authorized as stated above. The price paid to the Subcontractor by the Contractor for properly authorized extra work shall be negotiated. 7. Subcontractor shall, if a union Subcontractor, provide to Contractor upon request a copy of ,all monthly reports and check copies to the applicable union funds as proof that the Subcontractor is current in all his union obligations. 8. Subcontractor shall provide Contractor with the name, address and Certificate of Insurance of any Secondary subcontractor who will be performing any work with or for Subcontractor within the terms of the Subcontract Agreement. This information shall be provided within 48 hours to the commencement of work to be performed by the Secondary Subcontractor. 9. Subcontractor shall respond to a twenty four (24) hour notice for that portion of his work not finished per the Subcontract Agreement. If the work is not completed or corrected within twenty four (24) hours of the date of the 24 hour notice, then the Contractor has the right to hire others to perform the work and backcharge the Subcontractor, and the Subcontractor agrees to pay any and all costs of that correction. 10. Subcontractor shall submit all invoices for extra work on separate forms indicating the Subcontract Agreement number, Project Name and Lot Numbers. The Invoice must also be accompanied by the appropriate Change Order, Labor and Material releases before payment will be Made INCO HOMES CORPORATION SJ Burkhart, I c. INITIAL INITIAL DATED ��A4 DATED EXHIBIT "C" CONTRACT PRICE AND PAYMENT SCHEDULE - CODE: 0102 TRADE: Water installation PROJECT NAME: REUNION TRACT #: 23995, LOTS: Phase H (Lots 1-29) & Phase I (Lots 140) Lump sum: $285,976.50 retention: 10% Additional work from major plan changes will be negotiated but will not in any event exceed $20.00 per hour ( maximum) for extra work. Prices shall be firm through the duration of Tract 23995 OPTIONS All invoices must be submitted in proper form as specified in Exhibit "B". INCO HOMES CORPORATION INI'T'IAL DATED: SJ Burkhart, Inc. INITIAL !, i DATED: G� .- �c ADDENDUM The undersigned do hereby agree to incorporate all the terms of the contract dated SEPTEMBER 7, 1991 between INCO HOMES CORPORATION and SJ Burkhart, Inc., this addendum shall apply to said contract and shall supplement the same with the addition by agreed and accepted Change Order, the following.- 1. ollowing: 1. Scope of work 2 Compensation 3. Delivery 4. Special Instructions Sincerely INCO HOMES CORPORATION Joseph P zzo Director of Purchasing AGREED AND ACCEPTED BY Sj Burkhart, Inc. BY. DATE: REUNION AT LA QUINTA TRACT 23995 - 300 LOTS PADS GRADED LOTS W1773 OFFSI7E'S COMPLETED LOTS RELEASED UNDER CONSTR UCTLON MODELS HOUSES FINISHED -NOT CLOSED LOTS CLOSED ARLES A VEN E v- dzsl Selz fi� a J INCO HOMES CORPORATION 9&ACCOUNT CODE: 0117 & 0103 General Liability: CNA Insurance Exp. 5/19/95 TRADE: Off-site (0117) & On-site sewer (0103) Workman Comp: Freemont Insurance Exp.11/94 PROJECT NAME; REUNION TRACT #: 23995, LOT NUMBERS: Phase VHots 131), Phase H (Lots 1-29), Phase I (Lots 140) SUBCONTRACT SECTION 1 Parties THIS SUBCONTRACT (herein referred to as "Agreement") is made and entered into as of SEPTEMBER 7,1994 , at the Inland Division, between INCO HOMES CORPORATION, A Delaware Corporation, Contractors License Number B523968, whose address is 250 E Rincon Ave.,Suite 202, Corona, CA 91719 (hereinafter referred to as "Contractor') and Si Burkhart, Inc., Contractors license Number 510982-A, whose address is: 6157 Marlatt, Mira Loma, CA 91752, 90948.5.7488 , (hereinafter referred to as "Subcontractor" SECTION 2 Fundamental Agreement Provisions 2.1 Fundamental Agreement Provisions: The fundamental agreement provisions of this Agreement are the provisions referred to in this Section and the Articles and Exhibits referred to herein Reference to fundamental agreement provisions shall not be deemed as a limitation on any of the other term and conditions, including but not by way of limitation the GENERAL TERMS AND CONDITIONS of this Agreement, contained in this Agreement Each reference in this Agreement to any of the fundamental agreement provisions contained in this Section shall be construed to incorporate all of the terms and conditions provided under each fundamental agreement provision and the Articles and Exhibits referred to therein. In the event of any conflict between any fundamental agreement provision and the balance of any other terms and conditions of this Agreement, the latter shall control. 2.2 Project: The term "Project" as used in this agreement is the improvement being built by contractors at the location and legal description hereinafter set forth in accordance with the plans, drawings and specifications. . 2.3 Location and legal Description of Property: Tract 23995, Phase I (40 lots), Phase II (29 lots), & Phase VII (31 lots), as per attached "highlighted" map. 2.4 Work to be Performed: Subcontractor shall perform the work specifically set forth on Exhibit "A" (Article I and Exhibit "A"). 2.5 Subcontract Documents: "Subcontract Documents" shall mean this Agreement and the plans, drawings and specifications for the Project prepared by B3 CSA. A.I.A. Architect and KWC Engineering C.E. (Article 5). 2.6 Owner. The term "Owner" as used in this Agreement is INCO HOMES CORPORATION, its successors and assigns. 2.7 Prime Contract: "Prime Contract" shall mean that certain contract entered into by Owner and Contractor for the construction of the Project. 2.8 Contract Price: The Contract Price to be paid to Subcontractor is set forth in Articles 2, 3, 4, 6, 7, 17, Exhibit "A", Addendum thereto, and Exhibit "B". 2.9 Time of Performance: Work to be performed in accordance with Superintendent's schedule. (Article 10 and 11). CONTRACTORS ARE REQUIRED BY LAW TO BE LICENSED AND REGULATED BY THE CONTRACTORS STATE LICENSE BOARD. ANY QUESTIONS CONCERNING A CONTRACTOR MAY BE REFERRED TO THE REGISTRAR OF THE BOARD WHOSE ADDRESS IS: CONTRACTORS' STATE LICENSE BOARD 9835 Goethe Road Sacramento, Ca 95827 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, the addendum to Exhibit "A", Exhibit "B", Exhibit "C", and Exhibit "D", attached hereto as of the date and year above written, all of which comprise the complete agreement. INCO HOMES RPORATION Delaware Corporation By: Joseph Pan zzo , DffictorofPurchasing Dated ILS l��//t-+ Si B Inc. By: Ste itz,-Treasur Subcontractor" Dated: Oct—k,-%7 —,=I GENERAL TERMS AND CONDITIONS ARTICLE 1 Subcontractor's Performance 1.1 Subcontractor agrees to furnish all labor, materials and equipment necessary to perform the work described in Exhibit "A" upon the terns and conditions and in the manner required by the Subcontract Documents. 1.2 Subcontractor agrees to perform in a good and workmanlike manner and to furnish all labor and materials (all materials shall be of first quality and new unless otherw{se rcified by the plans and specifications), supplies, equipment, services, machinery and tools necessary fcr the complete and satisfactory performance in strict accordance wit - Subcontract Documents all the work specifically set forth on Exhibit "A". ARTICLE 2 Contract Price 2.1 As compensation for the performance of all of Subcontractor's work and other obligations hereunder, Contractor shall pay Subcontractor the total sum set forth on Exhibit "A" (hereinafter referred to as "Contract Price") in the manner provided in Article 3 of this Agreement and subject to the additions and deductions through change orders approved in writing by Contractor in accordance with the provisions of Article 6 of this Agreement. 2.2 The Contract Price to be paid Subcontractor pursuant to this Agreement includes the payment by Subcontractor of any sales tax or use tax pursuant to any Sales Tax Law or Use Tax Law, or respective amendments thereto, or any law now existing, or which may hereafter be adopted by Federal, State, local or other governmental authority. tering materials, services required, or labor furnished, or any other tax levied by reason of the work performed or to be performed under this Agreement. ARTICLE 3 Full Compensation - Payment Schedule 3.1 Subcontractor agrees to accept the compensation set forth in Article 2 of this Agreement as full compensation for doing all work and furnishing all materials contemplated by and embraced in this A ement; for all loss and damage arising out of the nature of the work or from the action of the elements or from any unforeseen or unknown difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by Contractor and Owner, and for all risks of ever.- description ver;description connected with the work and the furnishing of equipment and materials. 3.2 Once each month on the day determined by the date of Contractor's requisition for release of construction funds, Subcontractor shall submit to Contractor reports i. -n form acceptable to Contractor of work completed during the period from the date of the last previous report So long as Subcontractor is not in default under this Agreement. payment for the work completed subject to the retentions herein provided for in subparagraph 3.3 of this Article, shall be made within twenty-five (25) days from the date of Contractor's requisition for payment of invoices presented to Contractor prior to the date of Subcontractor's requisition for payment; provided, that Contractor shall not be obliguted to make progress payments to Subcontractor until Contractor has received (i) city, county, state orother applicable governmental inspections; (ii) if applicable, inspections of FHA and VA as hereinafter provided in Article 7 of this Agreement; (iii) release of funds from the lender covering the state of completion reported by Subcontractor and (iv) ad material and labor releases as herein provided for in Article 4 of this Agreement Any payment made hereunder or advances made by Contractor prior to full completion and final acceptance of the work shall not be construed as evidence of acceptance of any of Subcontractor's work. If construction loan funds are deposited in a joint account, Subcontractor'3 reports shall be submitted on or before the appropriate cut-off date for Subcontractor and its suppliers, or any of them. Subcontractor's requisition for release of construction funds and any re ort not accompanied by all proper releases and invoices as required by Article 4 of this Agreement shall be returned and not considered until the following payment date and only then when accompanied by all such releases and invoices. 3.3 In addition to all other provisions of this Agreement, and separate therefrom, ten percent (10%) of the total Contract Price, plus or minus any change orders, may be withheld by Contractor from Subcontractor's invoices. As soon as practicable after Subcontractor's completion of all of its work hereunder, final inspection and tests shall he made thereof by Contractor and Owner. When such inspection and tests prove satisfactory, the work shall be accepted, subject, however, to the inspections provided for by subparagraph 3.4 of this Article. Subcontractor shall furnish Contractor and Owner with a release of all claims against Contractor and Owner arising under or by virtue of this Agreement as more specifically requited by Article 4 of this Agreement, other than such claims, if any, made with the consent of Contractor and Owner, and apecfcally excepted by Contractor from the operation of the release in stated amounts to be set forth therein. Contractor shall be entitled to withhold the retention due to Subcontractor for a period of (i) thirty-five (35) days from acceptance by Contractor and Owner of work performed, subject, however, to the provisions of subparagraph 3.4 of this Article, or (ii) for the period established by law to insure that there are no claims or liens in connection with the work or against the Project, or any portion thereof, whichever period shall occur last Contractor may off -set against retentions payable any back charges, overpayments on any other work performed by Subcontractor pursuant to any other contracts between Subcontractor and Contractor or the retention thereof, and any other claims which Contractor may have against Subcontractor. 3.4 Payments otherwise due may be withheld by Contractor until completion of all city, county, state, or other applicable governmental ins t3 including, if applicable. inspections of FHA and VA as hereinafter provided in Article 7 of this Agreement: or on account of defective work not remedied or claims filed: or reasonable evidence indicst• mg probability of filing of claims; or failure of Subcontractor to make payments properly to contractors to: material or labor, or a reasonable doubt that the Agreement can be completed for the balance then unpaid. If the foregoing causes are removed, the withheld payment ahail promptly be made. If said causes are not removed on written notice. Contractor may rectify the same at Subcontractor's expense. Should any valid indebtedness arise after final payment is made. Subcontractor shall reimburse Contractor for any amount that it may pay in discharging any lien therefor or any claim affecting title to the work or the Project 3.5 The provisions of this Article are subject to all of the other provisions of this Agreement, including, but not limited to. Articles 7, 17 and 20 of this Agreement. ARTICLE 4 Material and Labor Releases 4.1 Subcontractor agrees to furnish to Contractor and Contractor may refuse payment to Subcontractor unless and until Subcontractor furnishes to Contractor notices establishing rights to claim of hens and releases of all such claims of all laborers, materialman, contractors, and subcontractors performing work or furnishing material under this Agreement, all in a form satisfactory to Contractor, and it is agreed that no payment hereunder shall be made, except at Contractor's option, unless and until such releases are furnished to Contractor. ARTICLE 5 Adherence to Subcontract Documents 5.1 Subcontractor's work shall be performed strictly in accordance with the Subcontract Documents and the plans, specificati and this Agreement, and all such documents are to be construed to supplement each other so that any work mentioned in one such document but not in the other shall be performed in the same manner as if mentioned in all such documents. Should a conflict arise between such documents, the specifications shall control over the plans, and this Agreement shall control over both the plans and specifications. Anything mentioned in the specifications and not shown on the drawings, or shown on the drawings and not mentioned in the specifications, shall be of like effect as if shown or mentioned in both. In case of discrepancies, the matter shall be submitted immediately to Contractor for determination. ARTICLE 6 Changes in Work 6.1 Contractor reserves the right by written notice to correct any errors or to make any changes in the specifications and the drawings. If such changes cause a material increase or decrease in the costs of performing the work or the time of performance, and written notice thereof is given to either party, within rive (5) days after the giving of such notice of change an equitable adjustment in the compensation and the time of performance shall be made. Subcontractor agrees to make any and all changes, furnish the materials and perform the work that Contractor may require without nullifying this Agreement at a reasonable addition to, or a reduction from, the Contract Price stated herein, and pro rata to the same. If the parties cannot agree upon such adjustment within five (5) days after the receipt of the notice of change referred to herein, the matter shall be submitted to arbitration as hereinafter provided, but Subcontractor shall proceed immediately with the work as changed. 6.2 Under no conditions shall Subcontractor make any changes either as additions or deductions without the prior written order and approval of Contractor and Contractor shall not pay any extra charges made by the Subcontractor that have not been agreed upon prior thereto in writing by Contractor. In no event shall Contractor make payment for any such extra charges unless and until the Contractor itself receives a payment from Owner. Subcontractor shall submit immediately to the Contractor written copies of its cost or credit proposal for changes in the work. Disputed work shall be performed as ordered in writing by the Contractor and the proper costs or credit breakdowns therefor shall be submitted without delay by Subcontractor to Contractor. 6.3 If Subcontractor fails to give notice of claim relating to any work for which compensation is asserted sr thin thirty (30) days after such work is performed, Subcontractor shall be liable for the expense thereof. 6.4 If Subcontractor initiates a substitution, deviation or change in the work which affects the scope of :he work or the expense of other trades. Subcontractor shell be liable for the expense thereof. INITIAL- ARTICLE T Inspection and Rejection of Materials and Workmanship 7.1 All work and materials furnished shall conform to the requirements of all city, county, and state ordinances and laws. All work shall meet with the approval and inspection of the city, county and state where the work is to be performed or materials are to be furnished. If the work being performed is being constructed under speciEcac: of the Federal Housing Administration ("FHA") and the Veterans Administration ("VA"), or either of them. such work and materials furnished shall also meet with all of applicable requirements of the FHA and VA and shall be subject to applicable inspection of the FHA and VA. No work is to be deemed completed until final inapec:!cn approved by the city, county, state and if erected under FHA and VA, or either of them, by the applicable inspectors of the FHA and VA, as well as inspection and acceptance hereinafter provided by Contractor and Owner. 7.2 All materials and workmanship furnished or performed by Subcontractor shall be further subject to final inspection, tests and acceptance by Contractor and 0—.. upon completion of ail work and whether or not previously paid for by Contractor. At any and all proper times during manufacture or performance of the work, all materials -. workmanship furnished or performed by Subcontractor shall be subject to inspection, tests and approval by inspectors of Contractor, or Owner. at any and all places wits- such manufacture or performance shall be carried on. Failure of such inspectors to make inspections or tests or to discover defective workmanship or materials shall -•: prejudice the rights of Contractor or Owner on final inspection and tests. All expenses of tests and inspections to prove or establish the acceptability of performance of work materials hereunder shall be borne by Subcontractor. 7.3 If upon any such inspections or tests as provided in subparagraphs 7.1 or 7.2 of this Article, any material or workmanship shall be found to be defective or not to cor_'c to the requirements therefor, it shall be rejected and the Subcontractor shall be notified thereof. Subcontractor, at its expense, shall promptly correct workmanship which not comply with such requirements by making the same comply therewith and shall promptly replace any material or equipment (except such as may have been furnished - Contractor) which does not conform to such requirements. If Subcontractor shall fail to replace or correct rejected material or workmanship immediately and without de:_ Contractor, at its option. may replace or correct the same and all costs and expenses of Contractor, including, but in no way limited to, compensation for Contac::,: managerial and administrative expenses, in connection therewith shall be borne by Subcontractor. 7.4 Neither the final payment nor any provision in the Subcontract Documents shall relieve the Subcontractor of responsibility for faulty materials or workmanship, and Subcontractor shall, when notified of any such defects, promptly remedy same and pay for any damage to the Project and other work resulting therefrom. ARTICLE 3 Liens and Claims 8.1 Contractor shall pay when due all claims for labor or material incurred by it in the performance of this Agreement. If any lien. notice of intention, atop nocice.:!a_ mechanics or materialmen, or attschmene, garnishments or suits are filed in connection with the work or against the Project, or any portion thereof, whether or not any :f ' going ora valid. Subcontractor shall, within ten (10) days after written demand to it by Contractor, cause he effect of such lien, attachment or suit to be removed from or sga:- the Project, and all portions thereof, and in the event Subcontractor shall fail to do so. Contractor and Owner are each hereby authorized to use whatever means they msy de-- best to cause the lien, attachment or suit together with its effect upon the title, to be removed. discharged. satisfied, comprised or dismissed and the cost _hereof. ?nc!_.:r.- reasonable attorneys' fees incurred by Contractor and Owner, shall immediately become due from Subcontractor and Owner, or Contractor. at icv option, shall have the deduct such costs directly from the compensation due or to become due to Subcontractor unless such costs exceed said compensation, in which latter event :he excess shat: _- debt immediately due from Subcontractor to Contractor. It is understood that Contractor's rights hereLn include its right CO satisfy such lien by payment. and upon pay=e Subcontractor shall have no right or remedy against Contractor. and such rights and remedies of Subconrsctor, if any against Contractor are hereby expressly we:,i . Subcontractor may contest any such lien, attachment, or suit provided it shall cease he effect :hereof to be removed from the Project and all portions thereof, and shall do ru • - furher things as may be necessary to cause any lender of the Owner not to withhold monies due to Contractor, or from Owner by reasons of such liens, attachments or ;u:: 8.2 In addition to the foregoing, Subcontractor shall indemnify and save Contractor. Owner, lenders.:it!e insurance companies and any sureties free and :ar...less er_ :. dais, demands, causes of actions or suits of whatever nature arising out of he serices, labor and macerals furnished by Subcontractor or its contractors, under Agreement. A.FMCLE 9 Desigrsaon of Superintendent 9.1 Subcontractor shall designate a competent individual (hereinafter refered to as "Superintendent-). which designation shall be set forth on Exhibit "A", who, on of Subcontractor shall have complete charge of all work and such Superintendent shall be at be job site durrrg all times when Subconcractor's work is in progress, and nuc Superintendent shall be authorized to represent Subcontractor during all phases of Subcontractor's work. In the event of any change of the Superintendent. Subcontrsc:.-. &hall notify -he Contractor who the new Superintendent is to be prior to such change becoming effective. ARTICLE 10 Work Schedule and Subcontractor's Examination 10.: Contractor represents that it, the Owner, and other contractors and subcontractors may be working at :he Project during the performance of chis Agreement. Contrac:or reserves the right to direct the Subcontractor to schedule the order of performance of Subcontractor's work hereunder s such manner as not unreasonable to interfere with :.^.e performance of the work by Contractor, Owner, and other contractors and subcont.9ctors. 10.2 Subcontractor has by careful examination ascertained the nature and location of the work. the conformity of the ground on which the work is to be performed. the character, quality and quantity of the materials, equipment and facilities necessary to complete the work, the general and local conditions pertaining to the work, and all other matters by which in any way can affect the performance of this Agreement by Subcontractor. Subcontractor assumes full responsibility for the accuracy of all lines, levels and measurements and their relation to the benchmarks, property lines and reference lines. In all cases where dimensions are governed by conditions already established. the responsibility for correct knowledge of the conditions shall rest entirely on Subcontractor. No variation from the specified lines or grades or dimensions shall be made except on written authority of Contractor. All work shall be made to conform to actual, final conditions as they develop in the course of the work. Subcontractor acknowledges that :t ham entered into this Agreement solely on the basis of its prior examination of the location and not because of any representations or warranties pertaining to the work to it by Contractor or Owner or any agent of the Contractor or Owner and not contained in this Agreement It is further agreed that there shall be no extra charge. cost or expense to Contractor or Owner for work done by Subcontractor because of surface or subsurface conditions, latent or otherwise, whether or not indicated in the specification and drawings and that Subcontractor shall be solely responsible at its costs and expenses for the correction of the work of Subcontractor caused by any such surface or subsurface conditions. ARTICLE t 1 Time of Performance 11.1 Time is of the essence of the Agreement and all actions taken by the parties hereto shall be taken to the end that the performance of this Agreement shall be full;: expedited. Subcontractor shall commence the work covered by this .agreement immediately upon notification from Contractor. From commencement of work, unless notified to the contrary. Subcontractor shall complete its work and obligations hereunder within the time period set forth in subparagraph 2.9 of Section 2 of this Agreement. Should Contractor's work schedule be changed, Subcontractor shall proceed in strict accordance with Contractor's directions. ARTICLE 12 Extension of Time 12.1 In case of any delay caused by Contractor, or Owner, or any delay which is beyond the reasonable control of the Subcontractor, the cause of which was not reasonably ascertainable by Subcontractor at the time this Agreement was entered into, written notice of such delay and of anticipated results thereof shall be given promptly to Coacactor by Subcontractor. Failure to give such written notice promptly shall be deemed sufficient reason for denial of anyextension of time by Contractor. Contractor shall notify Subcontractor promptly if. in its opinion, the cause of delay specified is such as to entitle or not to entitle Subcontractor to an extension of time. After such opinion of Contactor, that the cause of delay was beyond the reasonable control of Subcontractor and that it was not reasonably ascertainable by Subcontractor at the time this Agreement was entered into, then the duration of delay shall be determined and that it was not reasonably ascertainable by Subcontractor et the time this Agreement was metered into. then the duration of delay shall be determined by Cont_-ector and the time of performance of he work. the performance of which has been,pelay d thereby, shall be mrtended. in writing by Contractor. 'I INITIAL: ARTICLE 13 Damages for Delay 13.1 Subcontractor shall not be entitled to and hereby expressly waives any and all rights to make claims or to be entitled to receive any compensation or damages wf : Subcontractor may suffer by reason of Contractor. Owner or other contractors or subcontractors delaying Subcontractor in performance of the work or any portion there-: from any cause whatsoever. 13.2 Should Subcontractor default in the proper performance of its work, thereby causing delay to the Prime Contract work, it shall be liable for any and all loss and damag= including consequential damages, sustained by Contractor as a result thereof. Subcontractor shall not be liable under this Article if such default be caused by stripes, lockcu: seta of God or other reasons beyond the control of Subcontractor providing Subcontractor gives prompt written notice as provided in Article 12 of this Agreement ARTICLE 14 Subcontractor's Insurance 14.1 Subcontractor, at its own cost and expense, shall procure and maintain on all of its operations hereunder the following policies of insurance: 14.1.1 Unlimited worker's compensation and employer's liability insurance as required by law; 14.1.2 Combined single limit. public liability and property damage insurance with limits as hereinafter set forth; 14.1.3 Combined single limit Contractor's contingent liability and property damage insurance with limits as hereinafter set forth; and 14.1.4 Motor vehicle public liability and property damage insurance covering all vehicles used by Subcontractor in the performance of the work with limits hereinafter set forth. 14.2 Limits for coverage described in subsections 14.1.2, 14.1.3, and 14.1.4 shall be in the sum of One Million Dollars ($1.000,000.00) on account of bodily injuries iaclucL--._ death on one (1) or more persons, and for property damage resulting from any one accident which may arise from the operations of Subcontractor in performing 'he wor:. covered by this Agreement 14.3 Each policy of insurance shall be in such form and shall be issued by such company or companies as may be satisfactory to Contractor and delivered to Coatrsc o. = :: to commencement of any work. Each policy of insurance shall name Contractor and Owner as additional insureds and the worker's compensation and employer's !isi : insurance described in subsection 14.1.1 shall also name Contractor's insurer as an additional insured. Subcontractor shall cause to be furnished to Contractor cer.:icstes : insurance from the insurance companies which certificates shall include the following clause: "Thirty (30) days advance notice shall be given in writing to Contractor at add ess shown in Section 1 hereof, on cancellation. termination or alteration :i policies evidenced by this certificate." Neither Contractor, Owner, or Contractor's insurer shall by reason of their inclusion under said policies incur liability for payment of any premiums. All public property damage, contingent liability and other casualty policies required in this article 14 shall be written as primary policies not coneibutor� with, and not in excess coverage which the Contractor and Owner may carry. 14.4 Nothing contained in this Article 14 shall in any way relieve, exonerate or otherwise release Subcontractor from any of its responsibilities or obligation to Contractor and Owner pursuant to the provisions of article 16 of this agreement. ARTICLE 15 Surety Bonds 15.1 Before the commencement of the work. Subcontractor shall at its own cost and expense procure and deliver to Contractor a Surety Faithful Performance Bond and Sure teI Bond which shall comply fully with re e. all be in an amount equal :o onehundred percent (100,a o ct Prices r it' A" to this agreement and the Labor and Materials Bond shall he in an amount o 0 0) of said Cootrsct Price. Said bond sh u tractor and shall be in a form satisfactory to Contractor. No change, alteration ;r modification in or ns from this Agreement of the drawing, plans and specifications, whet er ma a vided in the Agreement or not, shall release o- exonerate' o e or n pert any surety on any band given in connection with this Agreement and neither Croner nor Contractor sha e u the sure:_: o es of any such change, alteration, modification or deviation. ARTICLE 16 Hold Harmless - Indemnity 16.1 Subcontractor shall be responsible for any damage or injury to any person or property resulting from defects or obstructions or from any cause whatsoever arising out of or in connection with the performance of the work, except the sole negligence or willful misconduct of Contractor, its agents, servants or independent contractors who are directly responsible to Contractor. Subcontractor shall indemnify, protect and save harmless Contractor and Owner, their agents and employees against any and all action. claims. damages to persona or property, penalties, obligations or liabilities that may be asserted or claimed by any person, firm, entity, corporation, political subdivision or other organization wising out of or in connection with the work, operation or activities of Subcontractor, its agents, employees, contractors, subcontractors or invitees. provided for herein, whether or not there is concurrent passive or active negligence on the part of Contractor or Owner, their respective agents and employees (but excluding such actions, claims, damages to persons or property, penalties, obligations or liabilities arising from the sole negligence or willful misconduct of Contractor, its agents, servants or independent contractors, or Contractor, its agents, servants cr independebt contractors, as the case may be, who are directly responsible to Contractoror Owner), and Ln connection therewith (i) Subcontractor shall defend any action or actions fled in connection with any of said claims, damages. PPenaltiea. obligations or liabilities, and shall pay all coats and expenses of Subcontractor, Contractor, and Owner, including attorneys' fees incurred in connection therewith, and (ii) Subcontractor shall promptly pay any judgment rendered against Subcontractor, Contractor, and Owner, or any of them, their respective agents and employees, covering such claims, damages, penalties, obligations and liabilities arising out of or in connection with such work, operations or activities. So much of the money due to Subcontractor under and by virtue of this agreement, as shall be considered necessary by the Contractor, may be retained by Contractor until disposition has been made of such actions or claims for damages as aforesaid. 16.2 Proposition 65 Indemnification. Subcontractor shall indemnify, protect and save Contractor and Owner, and their respective parents, subsidiaries, partners, shareholders. agents and employees, against any and all actions, claims, damages, penalties, obligations and/or Liabilities that may be asserted or claimed against them by any person, entity or governmental body, private or public, arising out of or based upon any violation and/or alleged violation of the California Safe Drinking Water and Toxic Enforcement act of 1986 )Proposition 65), including particularly Section 25249.5 (discharge of a "toxic" chemical) and Section 25249.6 (prior notice). Subcontractor acknowledges that it has read and understands the provisions of Proposition 65 and the regulations promulgated thereunder and agrees to fully comply with allof the terms and conditions thereof as may be in force at any time during the term hereof. In the event any such claim is asserted or action filed against Contractor and/or Owner, (i) Subcontractor shall defend them against any such claim or action and shall pay all costs and expenses which they incur, including attorneys' fees, and (is) Subcontractor shall promptly pay, and fully indemnify Contractor and Owner from any and all judgments, penalties, fines, damages and the like based upon any violation or alleged violation by Subcontractor of Proposition 65. ARTICLE l7 Right of Offset • Cross Default 17.1 Subcontractor agrees that if Subcontractor should breach this Agreement or any other agreement with Contractor, whether written crorsl, that Contractor may, at its option. declare that such a breach will constitute a breach of all agreements and that. in addition to all other rights herein provided, Contractor may withhold any monies which might otherwise then be due orthereafterbecome due underanyagreements, including this Agreement. and Contractormayap lysuchmoniesbywayofoffsettowardremedyinganysuch defaults or breaches in all agreements. including this Agreement. This right to withhold shall continue in time and as to such amount as Contractor in its sole discreaonshall determine is reasonably necessary to satisfactorily carry out the terms and conditions of all agreements between Subcontractor and Contractor including warranties thereof. INITIAL: ARTICLE 18 Responsibility for Work and Risk of Loss 18.1 Subcontractor shall be responsible for all materials delivered and work performed until completion and final acceptance of the work Upon completion the work shall b - delivered complete and undamaged. Until completion and final acceptance of the work. Subcontractor shall have charge and care thereof and shall bear the risk of injury ;: damage to any part thereof by action of the elements or from any other mune. Subcontractor shall rebuild, repair. restore and make good all injuries or damages to any portion the work occasioned by any of the above causes before its completion and acceptance, and shall bear the expense thereof, except for such injuries or damages as are occasione•: by acts of the federal government and the public enemy. In case of suspension of work for any cause whatever, Subcontractor shall be responsible for all materials, and shall. s: Subcontractor's expense, properly store them if necessary and shall erect temporary structures where necessary. ARTICLE 19 Removal of Debris and Waste Material 19.1 During performance of the work under this Agreement and upon termination or completion thereof, Subcontractor shall (i) keep and leave the site of the work in a condition satisfactory to Contractor, and (ii) remove all debris and waste material. Subcontracmr shall not dump or discharge any materials or chemicals on the ground in an.: manner or for any reason whatsoever. As the work covered by this Agreement is completed, Subcontractor shall remove from the site thereof, to the satisfaction of the Contractor, all of Subcontractor's rubbish. debris, materials, tools and equipment, and if Subcontractor fails to do so promptly, Contractor may remove the same to any place of storage, or dumping ground, at Subcontractor's risk (including liability under Proposition 65 as set forth in Paragraph 16.2 hereof) and expense and without incurring ar..: responsibility to Subcontractor for lose, damage. or theft. All storage and removal coats thus incurred by Contractor shall be a debt due and owing from Subcontractor :c Contractor. ARTICLE 20 Taking Over Performance - Termination of Contract 20.1 Should Subcontractor at any time refuse or neglect to supply a sufficiency of properly skilled workmen,or materials of the proper quality or quantity or fail in ar..• respect to prosecute the work or any separateportion thereof with promptness and diligence, or fail in the performance of any of the agreements on its part contained herein c: become insolvent, or make an assignment for the benefit of creditors, or voluntarily submit to any bankruptcy or creditor proceeding, Contractor may, after tweary-fou .'2; hours written notice to Subcontractor, provide any such labor or materials and deduct the coat thereof from any monies due or thereafter to become due Subcontractor .ince: this Agreement rt and Contractor may also terminate Subcontractor's right to proceed with the work or such paof the work ae to which such defaults have occurred. In the even: of such termination, Contractor may enter upon the premises and, for the purpose of completing the work. take posseaaion of all materials, supplies. equipment, toois snit appliances belonging to or under the control of Subcontractor, including materials, supplies, equipment, tools and appliances located thereon or elsewhere whits have been obtained or ordered in connection with the performance of this Agreement and all rights under contracts of Subcontractor, and may finish the work by whatever method it ma.. deem expedient including the hiring of another subcontractor or subcontractors under such form of contract as Contractor may deem advisable. In such case. Subconcac:c: shall not be entitled to receive any further payment until the work is futished. If the unpaid balance of the amount to be paid on this agreement shall exceed the expense ;f finishing the work, compensation for Contractor's additional managerial and administrative services and such other costs and damages as Contractor may suffer, such exce=s shall be paid to Subcontractor. If such expense, compensation for managerial and administrative services, costs and damages exceed such unpaid balance. Subconcacx: an,-- its n,:its sureties, shall be liable for and shall pay the difference to Contractor. Failure of Cunt_-sctor :o exercise any of the rights given it under this Aric!e shall not exe_3e Subconasctor for noncompliance with the provisions of this Agreement nor prejudice any rights of Contractor or Owner to recover damages for such default nor be deemed i waiver of any rights of Contractor or Owner. 20.2 Should conditions arise which, in the opinion of Contractor, make it advisable to cease work under this Agreement, Contractor may terminate this Agreemerit by wr:-an notice to Subcontractor. Such termination shall be effective in the manner specified in said notice and shall be without prejudice to any claims which Contractor or Owr.er =a., have against Subcontractor. 20.2.1 On receipt of such notice, Subcontractor shall, unless the notice directs otherwise. immediately discontinue the work and placing of orders for materials. facilities and supplies in connection with the performance of this Agreement. and 3bail, if requested. make every reasonable effort to procure cancellation of all ezisrng orders or concsct3, upon terms satisfactory to Contractor, and shall thereafter do only such work as may be necessary to preserve and protect work already in progress and to procec: material. plant and equipment on the work or in transit thereto. 20.2.2 Upon such termination it is agreed: (i) That the obligations of this Agreement shall continue as to work already performed and as to bona fide obligation incurred by Subcontrsctor prior to the date of cancellation or termination. (ii) That the Subcontractor shall be entitled only to pro rata compensation for 5e por=on of the .agreement already performed and shall also be compensated for material ordered by it under the firm contracts which cannot be cancelled, and in such event the material shall become the property of the Contractor. ARTICLE 21 Unemployment Insurance, Taxes, and Welfare Funds 21.1 Subcontractor shall accept full and exclusive liability for the payment of any and all taxes and any and all contributions for unemployment insurance, old age retirement benefits and life pensions and annuities which may now or hereafter be imposed by the United States or any state, whether measured by the wages, salaries or renumeration paid to persons employed by Subcontractor or otherwise, for the work required to be performed hereunder. Subcontractor shall comply with all federal and state laws on such subjects Lad all rules and regulations promulgated thereunder, and shall maintain suitable forme, books and records and save Contractor and Owner harmless from the payment of any and all taxes and contribution, or penalties. Subcontractor shall likewise pay any and all taxes, excise assessments or other charges levied by any governmental authority on or because of work to be done hereunder, or any equipment, supplies or materials used in the performance thereof. 21.2 Subcontractor shall maintain current payments to any appropriate health and welfare, pension. vacation and apprenticeship fund. or funds, as required of it by its appropriate Collective Bargaining Agreements. In the event Subcontractor or its contractors (and Subcontractor shall provide in contracts with its contractors) are delinquent in the payment or payments to appropriate health and welfare, pension, vacation and apprenticeship fund, of funds, regardless of the job in connection which the delinquency occurred. Contractor shall have the right (but shall not be obligated to do so) to first deduct the amount of such delinquency from payments to be made to Subcontractor pursuant to this Agreement, Contractor shall in such event pay the amount so deducted directly over to the appropriate fund, of funds, and Subcontractor hereby expressly designates and authorizes Contractor to act as its agent for this purpose. All of the provisions of this subparagraph 21.2 of this Article shall apply to Subcontractor, its contractors, or any of them performing work on the Project under any change of name or aeaociadon or joint venture (including any person who may have been a principal financially associated with Subcontractor, its contractors, or any of them, who was delinquent in fringe benefit payments to any of the aforesaid funds). ARTICLE 22 Occupational. Safety and Health Warranty 22.1 All materials and equipment used by Subcontractor, all work methods and procedures of Subcontractor, and the area in which Subcontractor is performing work shall conform to and shall at all times be maintained so as to conform to the standards and regulations promulgated by the United States Department of Labor under the Occupational Safety and Health .act of 1970 (29 U.S.C. Section 651, et seq) ("OSHA") and all state statutes which pertain to occupational safety. In the event said materials. equipment, procedures, work area or any other services performed by Subcontractor does not conform to the OSHA or state standards, Subcontractor shall correct the defective material, equipment, or condition. In a failure thereof, Contractor shall be entitled to correct the defective material, equipment or condition at Subcontractor's expense. Contractor shall have the right to deduct the amount of any fine against Contractor under OSHA or comparable state statutes caused by the act or omission of Subcontractor from the compensation herein and if in excess thereof such excess shall be a debt immediately due and payable by Subcontractor to Contractor. ARTICLE 23 Warranty of Title 23.1 No materials, supplies or equipment for use under this Agreement shall be purchased subject to a chattel mortgage or under a conditional sales contract or other agreemeat by which an interest therein or any part thereof is retained by the seller or supplier. Subcontractor warrants clear, good and marketable title to all materials, supplies and equipment installed and incorporated in the work. INITIAL. ARTICLE 24 Guarantee 24.1 In addition to (and not in lieu of) the guarantees required and remedies of Contractor and Owner contained elsewhere in this Agreement or in the Subconcs_- Doct mens, Subcontractor guarantees Contractor and Owner against any lou or damage arising from any defect in material and workmanship furnished under this Agreemeni Upon notification of defects from Contractor or Owner, Subcontractor shad proceed within twenty-four (24) hours with due diligence at its own expense to replace any wo:.-- and upon failure of Subcontractor to do so. Contractor or Owner may ftumiah or secure, at Subcontractor's expense, such materials or labor as are necessary to bring the work to the required standard, all costs thus incurred thereupon becoming a debt immediately due and payable by Subcontractor. It is further agreed that final acceptance of work by Contractor or Owner, or any portions thereof, shall in no way relieve the Subcontractor from liability under this Article. ARTICLE 25 Patent& and Royalties 25.1 Subcontractor shall defend all suite relating to and shall hold Contractor and Owner harmless From any and all claims, royalties, damages and costa resulting from i.:. infringement or alleged infringement of any patents or for the misuse of any patented article by Subcontractor or its subcontractors, in the performance of the work. ARTICLE 26 Contractual Relationship 26.1 In performance of this Agreement, Subcontractor shall operate as an independent contractor and act as an agent or representative of Contractor or Owr.e. Subcontractor shall hold Contractor and Owner free and barmleaa from all liability, costs, attorneys' fees. and chargee arising out of or in connection with any ac_ representation of Subcontractor, its agents or employees. ARTICLE 27 Laws and Regulations 27.1 Subcontractor, its employees and representatives shall at all times comply with all applicable laws, ordinances, statutes, rules and regulations, federal. state, cot: and municipal, including those relating to wages, hours and working conditions. Subcontractor shall procure and pay for all permits and inspections required by ir.: governmental authority for any part of the work and shall furnish any bonds, security or deposits required to permit performance of the work. ARTICLE 28 Use of Contractor's Equipment 28.1 The use of any of the Contractor's equipment. rigging, blocking, hoist or scaffolding by Subcontractor. given. loaned, or rented to Subcontractor by Contractor, shsi upon the distinct understanding that Subcontractor uses the equipment rigging, blocking, hoist or scaffolding at its own risk and takes the same "AS IS" and Subcont-ac:Z. m assues all responsibility for and agrees to protect, defend. indemnify and hold Cont -actor and Owner haraless from any claims or damages whatsoever, resulting from the :se thereof, whether such claims or damages result to Subcontractor or its employees or property or to other persona or he employees or properties of other persons. Uniess otherwise provided for in writing, no rigging, blocking, hoist or other equipment shall be provided for, loaned or rented to Subcontractor or Contractor. ARTICLE 29 Notices 29.1 Any notices or statement required or desired to be given under this Agreement shall be personally served or sent by United States Mail. to the address, until notice of j different address be given, as set forth on the Drat page of this Agreement Notices not personally served shall be deemed given upon deposit in the United States Mail proper:-.- addressed roper:::addressed with postage prepaid. ARTICLE 30 Arbitration 30.1 Any controversy between the parties hereto involving the construction or application of any of the terms, covenants• or conditions of this Agreement, shall be on _4e written request of one parry served on the other be submitted to arbitration, and such arbitration shail comply with and be govemed by the provisions of the California Arbicration Act Sections 1280 through 1294.2 of the California Code of Civil Procedure. ARTICLE 31 Non -Assignment 31.1 Subcontractor shall neither assign nor subcontract the whole or any portion of this Agreement without foot obtaining in each and every instance permission in wntiig from Contractor, and then only subject to, and upon the same terms, conditions and provisions of this Agreement and such other terms and conditions as may be required by Contractor. Any permission granted by Contractor shall not be deemed permission to any subsequent assignment Any assignment by Subcontractor made without the consent of the Contractor as herein provided shall be null and void and shall, at the option of Contractor, be grounds for termination of this Agreement and Contractor shall have the right to elect and proceed in accordance with the provisions of Article 20 of this Agreement. Any such permitted assignment or subcontracts shall contain all the provisions of this Agreement and shall require new Subcontractor thereunder to be directly liable to Contractor and Owner in all respects as herein required of Subcontractor under this Agreement Any assignment of this Agreement shall be submitted to Contractor for its prior written approval and shall not be binding upon Contractor until so approved. No assignment shall relieve Subcontractor from its duties, obligations and liabilities hereunder unless specifically relieved in writing by Contractor. This prohibition against assignment &hall not apply to monies becoming due to Subcontractor under the terms and conditions of this Agreement: provided, however, that any assignment of monies becoming due shall be subject to the right of offset as hereinabove provided in Article 17 of this Agreement. and all of the other terms and conditions of this Agreement Any assignment by operation of law, for the benefit of creditors, or under any provision of the federal bankruptcy statutes or any applicable state statutes shall specifically be a breach of this Agreement and the assignee, receiver or trustee shall take subject to all the terms and conditions of this Agreement and such assignees, receiver or trustee shall have no right title or interest in this Agreement or any of Subcontractor's rights thereunder. ARTICLE 32 Temporary Electric Power and Water 32.1 Contractor will provide temporary outlets for electrical power and water at such locations as it may select for the use of all subcontractors and will pay for the cost of electric power and water which Subcontractor requites for the performance of its work. Any extension of these outlets which Subcontractor may require shall be installed sod removed by Subcontractor at its own expense, but only with Contractor's prior approval. ARTICLE 33 Drawings and Specifications 33.1 Contractor will furnish to Subcontractor a set of the plana, drawings and specifications. together with amendments. and changes thereto. Any additional sets requested by Subcontractor will be furnished at Subcontractor's expense. All plane, drawings and specifications furnished, whether paid for or not are the property of Contractor and are to be returned to Contractor at he completion of Subcontractor's work. INITIAL- ARTICLE 34 Attorney's Fees and Casts 34.1 Should any litigation arbitration be commenced between the parties hereto concerning the work, any provision of this Agreement, or the rights and obligations or either in relation thereto, the party, Contractor, Owner or Subcontractor, prevailing in such litigation or arbitration shall be entitled, in addition to relief as may be granted, to a reasonable sum as and for its attorney's fees and such litigation or such arbitration. In addition thereto, should any action be brought against Subcontractor by third parties in which Contractor and Owner, or either of them, are joined as a party, whether the same proceeds to judgment or not, Subcontractor shall pay Contractor and Owner for the reasonable attorneys' fees and costs incurred by Contractor and Owner in such action. This provision shall also apply to any suit on any bond furnished hereunder. ARTICLE 33 Subcontract Includes Entire Agreement 33.1 This Agreement, including the Exhibits attached hereto, embodies the entire Agreement between Contractor and Subcontractor. Subcontractor represents that in entering into this Agreement, it does not rely an any previous representation, inducement, or understandings of any kind or nature whether expressed or implied, oral or written, including bid documents or other writings not set forth as Subcontract Documents under Section 2 hereto. ARTICLE 36 Captions and Terms 36.1 The captions of Sections and Articles of this Agreement are for convenience only, are not a part of this Agreement and do not in any way limit or amplify the terns and provision of this Agreement The masculine pronoun used in the Agreement shall include the feminine or the neuter as the case may be, and the use of the singular shall include the plural. ARTICLE 37 Place of Contract 37.1 Execution of this Agreement shall be at Contractor's principle place of business at the Inland Division Office, Corona, California and shall be deemed the proper county and state for all legal purposes. ARTICLE 38 Severability 38.1 If any provision of this Agreement shall be determined to be void by any court of competent jurisdiction, then such determination shall not affect any other provision of this Agreement and all such other provisions shall remain in full force and effect; and it is the intention of the parties hereto that if any provision of this Agreement is capable of two construction, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the meaning which renders it valid ARTICLE 39 Successors and Assigns 39.1 This Agreement and addendum shall be binding upon and inure to the benefit o1; as the case may be, the heirs, executor, administrators, successors, and assigns of the parties hereto. EXHIBIT "A" TO SUBCONTRACT Sub- Account Code: 0117 & 0103 Trade: Off-site (0117) & On-site sewer (0103) Project Name: REUNION Tract #: 23995, Lot Numbers: Phase VII, (Lots 1-31), Phase H (Lots 1-29), Phase I (Lots 140) A. WORK TO BE PERFORMED AS FOLLOWS: (Section 2, subparagraph 2.4) SEE EXHIBIT "A" & "B", Attached hereto and made a permanent and intergral part of this contract agreement dated SEPTEMBER 7, 1994. B. CONTRACT PRICE AND PAYMENT SCHEDULE: (Section 2, subparagraph 2.5) SEE EDIT "C", Attached hereto and made a permanent and integral part of this subcontract agreement. C. SUPERINTENDENT (Article 9) Name: Phone #: INCO HOMES CORPORATION By: Joseph Panozw, q f hwchasing "Con Dated: I / g / l Contract Prepared by: jjp Steve Moffatt 90982-9040 (Pager) SJ Burkhart. Inc Dated: 09-0-) Treasurer "Subcontractor" SUBCONTRACTORS PROCEDURES Detailed below is some of the more important information and procedures that all subcontractors involved with La Quints should be aware of and should follow (this includes REUNION). 1. This contract is not an authorization to proceed with work. You will receive a product mix. release for construction. You must contact the superintendent to obtain work schedule and an authorization to proceed with construction on any and all building trades. The Superintendent is Steve Moffatt His number at the jobsite in La Quinta is 909482-9040 (Pager) (construction trailer) and at the Inland Division is 909/736-0700. The Superintendent will be scheduling "pre - job" conferences to coordinate the work and to open lines of communication. If you are requested to attend these meetings, please attend either yourself and/or with your field foreman. 2. Before starting work, please meet with the Superintendent to ensure that you are working with the latest revised set of plans; he will initial your work set which is your only assurance that you have the latest and correct set If you fail to obtain the superintendent's initials, you and not the developer will be responsible for any loss arising from using the wrong set of plans; your contract and contract price pertain only to the final plans marked for construction use. 3. It is important that you make known to all of our respective people the names of those persons in your employ who will be responsible for working on our job. Therefore, you must identify to the superintendent the name(s) of your field foreman 4. We build homes of high quality — in a timely and professional manner, and request your full cooperation in this regard. We therefore urge that you perform your work to the highest standard of quality and in a timely manner — and that you clean up after you have finished. Your contract clearly points up your responsibilities in this area — everyone benefits if the job is done properly and timely. Also, the contract points out you will be held responsible for damage you create to the work of other trades — and this will be enforced. 5. Your contract requires you to carry certain insurance with Inco Homes Corporation named as co- insured. The amounts of coverage required are: Liability Coverage and Property Damage: $1,000,000/$1,000,000 Automobile Liability: $1,000,000 Workers Compensation: Standard Insurance certificates must be in our hands before you commence work 6. We pay based on the terms of your contract The contract also spells out various other requirements relative to your billings (i.e., submission of labor and material releases, etc.). All billings must be approved by the Field Superintendent or the Customer Service Manager to verify the quality and quantity of the work done, and by the Purchasing Agent to verify the pricing, retention, documentation, etc. It is your responsibility to submit accurate and complete billings, INCO HOMES CORPORATION INITIAL: DATED: M SJ Burkhart Inc. INITIAL. DATED: Cl -q Subcontractor Procedures Cont! with all required documentation; if you have any questions, please call the Purchasing Agent beforehand. Re-garding releases, if any third party has filed a Preliminary Notice, then their releases must be notarized in order to be accepted by us. Retentions will be paid as per your contract and will be released in accordance therewith and with the provision of the Mechanics's Lien Laws. 7. Occasionally — after the house is completed and sold to a buyer - warranty/repair work is needed. Our customer service personnel will determine the cause of the problem. If the problem requires you to return to the job for corrective action, we expect that you will do so promptly. 8. The Corporate Office is located at 1282 W. Arrow F ighwaLPpland, California. The phone # is 909/981-8989. For matters primarily relating to invoicing and related matters, please contact the Accounts Payable Department at the Corporate Office. Our Inland Division is located at 250 E. Rincon Ave., Corona, Ca 91719. Our phone 909/736-0700. The people with whom you will be dealing with are: Gary Sorley, Director of Purchasing — for matters of general policy, etc.; and Anthony Monaco, Vice President of Production — for matters pertaining to production. 9. This Subcontract Agreement is all-inclusive. There are to be NO EXTRAS. Authorization for additional work not covered by this Subcontract Agreement must be through the Inland Division Office. Field Personnel are not granted any rights to authorize payment for work not covered by this Agreement The signature of any Field Personnel on any document does not constitute commitment for payment 10. This contract is separate and distinct from any other contract entered on this property. Inco Homes Corporation will not and cannot be held responsible for payment on liens claimed under any other contract for this Tract and property. This procedure sheet is not meant to supersede the contract but rather is for amplification of certain points therein and also to outline certain procedural matters. This was designed to increase efficiency and communication on the job—for the benefit of all. Thanks for your help. INCO HOMES CORPORATION INITIAL: / DATED: SJ Burkhart, c. INITIAL: DATED: 09 - QD - `� EXHIBIT "A" PERFORMANCE REQUIREMENTS & SPECIFICATIONS TRADE; OFF-SITE & ON-SITE SEWER PROJECT: REUNION -LA QVINTA Exhibit A herein is intended to supplement the Subcontract Agreement. If there is any conflict in language or intent the Subcontract Agreement, and its Terms and Conditions shall prevail. The Subcontractor under this Agreement has represented himself as an expert and as such has included in Exhibit C, Schedule of Prices, all of the following unless noted otherwise, labor, material, installation, storage, transportation, supervision and all applicable taxes, permits and inspection/reinspection fees. In essence, this contract provides for a complete job. All items shown on Construction Drawings, described in the Description of Materials, listed herein or not specifically shown, but reasonably inferable for completion of the project indicated, shall be included as part of this contract. The scope of work to be performed by SUBCONTRACTOR shall be in accordance with and shall include, without being limited to, the following: 1. SUBCONTRACTOR shall provide all labor, material, and equipment necessary to complete the job and all the work reasonably inferable from the construction documents. 2. SUBCONTRACTOR shall complete all work per the plans, specifications and requirement for the City of La Quinta , California. 3. SUBCONTRACTOR shall take every precaution and provide suitable means to protect finished work from damage. 4. SUBCONTRACTOR shall cooperate and coordinate with the CONTRACTOR'S scheduling of other trades. 5. SUBCONTRACTOR shall, at his own expense, correct any work which is not acceptable to the CONTRACTOR and the CONTRACTOR'S Vice President of Construction. 6. SUBCONTRACTOR, his employees, and his SUBCONTRACTORS shall at all times comply with the requirements of O.S.H.A. 7. SUBCONTRACTOR shall be responsible for repairing any damage caused to the site or the work of other trades. If repairs are not made within a reasonable length of time, the CONTRACTOR will have the damage repaired and back charge this SUBCONTRACTOR. 8. SUBCONTRACTOR shall, upon receipt of signed contract, order and have in stock all necessary materials so as to prevent any loss of time on CONTRACTOR'S production schedule. 9. SUBCONTRACTOR shall be responsible for the damage sustained by CONTRACTOR, including the repair/replacement of SUBCONTRACTOR'S work as necessary, at no extra charge to CONTRACTOR, if said work is placed over faulty workmanship of others in relation to the installation of his work. 10. SUBCONTRACTOR acknowledges that he has visited the site and reviewed all construction documents and is familiar with and has provided for the conditions that exist thereon and that he has checked with appropriate governing agencies and has made provisions for any and all requirements of those agencies. 11. All telegrams necessitated by SUBCONTRACTOR'S default shall be back -charged against SUBCONTRACTOR'S contract. 12. With respect to EXTRAS, the following is clearly understood: INCO HOMES CORPORATION Si B C. INITIAL: =1AL: DATED:y 61/9,Z211- DATED: EXHIBIT "A" A. All extra work MUST BE AUTHORIZED IN WRITING solely by the Purchasing Department PRIOR to commencement of work. Extras not authorized per the above stated procedures WILL NOT BE PAID. Field Superintendents cannot authorize any extras or changes to the contract. Any requests for extras MUST BE directed SOLELY TO THE PURCHASING DEPARTMENT OF OPERATIONS. B. SUBCONTRACTOR acknowledges that the only instrument that will be valid to authorize extra work is a change order on the CONTRACTOR'S forms only, signed by the Purchasing Agent of Inco Homes High Desert Division. Change orders shall become a part of this Subcontract Agreement. Any signatures on any forms other than as indicated above, regardless of their verbiage, will not be valid. The Job Superintendent is not authorized to sign for any extras under this agreement by signing a Subcontractor's Work Order or any other job site work order or ticket. All extra work performed by the SUBCONTRACTOR shall be borne by the SUBCONTRACTOR without recourse to CONTRACTOR, unless properly authorized as stated above. 13. Any expense incurred through error, incompetence, or negligence on the part of the SUBCONTRACTOR will be borne by the SUBCONTRACTOR. 14. The parties agree that commencement of all or any portion of the work pursuant to this contract shall be in the sole discretion of the CONTRACTOR. The work authorized by this contract may be implemented in phases in the sole discretion of the CONTRACTOR. All or any portion of the work authorized by this contract may be canceled due to market conditions or other factors in the sole discretion of the CONTRACTOR and SUBCONTRACTOR shall be paid for the portion of the work completed and other actual costs necessarily incurred to the time of such cancellation. 15. SUBCONTRACTOR shall be solely responsible for personally verifying with the CONTRACTOR'S Job Superintendent that SUBCONTRACTOR has all the latest sets of plans and specifications prepared and approved for construction. 16. SUBCONTRACTOR shall furnish CONTRACTOR'S Job Superintendent with the name and telephone number of a person to contact for emergency work. 17. SUBCONTRACTOR shall at all times provide responsible on-site supervision of this operation. 18. SUBCONTRACTOR shall.provide drinking water for its employees. 19. SUBCONTRACTOR shall endeavor at all times to keep his work neat. 20. It is understood and agreed hereon that alcoholic beverages, children and pets are not permitted on the construction site at any time. It is the responsibility of SUBCONTRACTOR to enforce this policy with his workers. Failure to comply will constitute grounds for revocation of this contract agreement. 21. SUBCONTRACTOR shall neatly pile in garage from job site all trash and debris which has accumulated or accumulates as a result of the SUBCONTRACTOR'S performance under the terms and conditions stated herein for removal by others. 22. SUBCONTRACTOR will begin work in the area designated by CONTRACTOR and cooperate with the CONTRACTOR in regard to, CONTRACTOR'S scheduling of construction and subsequent trades. 23. The SUBCONTRACTOR acknowledges examining and receiving the approved plans and specifications for this work and guarantees the system to function for the purpose for which it was designed. INCO HOMES CORPORATION SJ B Inc. INITIAL: ro q� % INITIAL - DATED: l/ , DATED: EJiEI[BIT "A" 24. All material will be free from defects occurring in manufacturing and/or delivery process. SUBCONTRACTOR shall replace merchandise if so damaged. 25. SUBCONTRACTOR shall follow progress of job and maintain sufficient stock to keep up with tract progress. 26. SUBCONTRACTOR agrees to correct any and all pick up work that is not completed during construction or that is found unsatisfactory due to SUBCONTRACTOR'S workmanship or faulty materials. In the event SUBCONTRACTOR has failed to correct said defect within 48 hours of initial contact, CONTRACTOR shall employ another SUBCONTRACTOR to correct said work and back -charge against your contract per the Terms and Conditions of the SUBCONTRACT AGREEMENT. If SUBCONTRACTOR has been paid in full, he shall remit upon receipt of written demand and supporting back -charge documents, the amount paid by CONTRACTOR to such other SUBCONTRACTOR. 27. SUBCONTRACTOR is responsible for unloading of all their material 28. Price of contracts or change order items shall include manufacture and installation, applicable taxes and cartage, and permit fees. 29. If SUBCONTRACTOR causes damage to material furnished by other trades, SUBCONTRACTOR will be held responsible for the cost of repair. If SUBCONTRACTOR fails to repair immediately and causes CONTRACTOR delay in scheduling and/or causes CONTRACTOR to repair, costs incurred by CONTRACTOR will be back -charged to SUBCONTRACTOR, per the Terms and Conditions of the SUBCONTRACT AGREEMENT. 30. Notwithstanding the exercise by CONTRACTOR of any remedies provided in the SUBCONTRACT AGREEMENT, including but not limited to termination of SUBCONTRACTOR'S right to proceed with the work, SUBCONTRACTOR shall not be discharged from any guarantee or responsibilities for work performed or materials supplied and shall remain liable therefore. 31. SUBCONTRACTOR agrees to a seven day a week work schedule, at no extra charge, during the construction of the models. 32. Final air test, mandril (if necessary), and TV camera must be done prior to paving, and/or connection of house laterals. 33. Price includes raising of manholes one time only. Any additional work with respect to raising of manholes will be done at a negotiated price. 34. Sewer lines and manholes will be cleaned one time and balled one time. Any dirt, rock or debris infiltrating any portion of the sewer system caused by others, will be cleaned on a time and material basis. 35. All work to be done in accordance with the Coachella Valley Water District and the City of La Quinta standards and procedures. 36. CONTRACTOR to receive a copy of all test results. 37. All excess material to be spread in the streets by SUBCONTRACTOR. 38. Sewer laterals to be ca` ed at property line; location to be marked with wire firmly attached to lateral and a 2" x 4" above grade. - c-v-�- W -f— 39. This is a LUMP SUM contract. INCO HOMES CORPORATION INITIAL: DATED: TZ/lI SJ BURKRATVInc. 1NTTIA DATED: 4 q EJEI[BTT "A" 40. SUBCONTRACTOR to employ a crew immediately at the top of the project where models will be located so CONTRACTOR can meet model opening deadline. 41. Storm drain structures shall be built m accordance with all local, county, and/or state agency requirements. 42. Any ground rock or condition that exists that cannot be freely excavated with a 235 excavator will be negotiated. INCO HOMES CORPORATION INITIAL: DATED: Lgl,14- SJ BMT, c. INITIAL - DATED: ILN ct - 0 EXHIBIT "B" TERMS OF PAYMENT Contractor will make progress payment for each operation only upon completion of all labor, installation of all material, acceptance by Contractor's job site superintendent and approval by the City Inspector when applicable. 2. Subcontractor shall bill according to the Payment Schedule as outline in Exhibit "C". 3. Subcontractor shall submit its progress payment requests to Contractor for work actually completed by Subcontractor. Labor, material and equipment lien waivers and releases in a form approved by Contractor shall accompany each progress payment request unless joint checks are to be used. Subcontractor's final release form, supplied by Contractors, shall be completed and returned with the retention billing before the retention payment will be released. Incorrect or incomplete invoices will be returned to the Subcontractor unpaid. 4. No payments will be released until all Insurance and licenses requirements have been met by the Subcontractor. 5. All invoices must be submitted to the Corporate Office in Upland. The Address is 1282 W. Arrow Hwy, Upland, Ca 91786 . Accounting Department phone number is (909)981-8989. 6. Subcontractor acknowledges that the only instruments that will be valid to authorized extra work are Change Order or Purchase Order on the Contractor's form only; signed by the Purchasing Department of Inco Homes Inland Division. The job superintendent is not authorized to sign for any extras under the Agreement by signing a subcontractor work order or any other job site work order or ticket. All extra work performed by the Subcontractor shall be borne by the Subcontractor without recourse to Contractor unless properly authorized as stated above. The price paid to the Subcontractor by the Contractor for properly authorized extra work shall be negotiated. 7. Subcontractor shall, if a union Subcontractor, provide to Contractor upon request a copy of all monthly reports and check copies to the applicable union funds as proof that the Subcontractor is current in all his union obligations. 8. Subcontractor shall provide Contractor with the name, address and Certificate of Insurance of any Secondary subcontractor who will be performing any work with or for Subcontractor within the terms of the Subcontract Agreement. This information shall be provided within 48 hours to the commencement of work to be performed by the Secondary Subcontractor. 9. Subcontractor shall respond to a twenty four (24) hour notice for that portion of his work not finished per the Subcontract Agreement. If the work is not completed or corrected within twenty four (24) hours of the date of the 24 hour notice, then the Contractor has the right to hire others to perform the work and backcharge the Subcontractor, and the Subcontractor agrees to pay any and all costs of that correction. 10. Subcontractor shall submit all invoices for extra work on separate forms indicating the Subcontract Agreement number, Project Name and Lot Numbers. The Invoice must also be accompanied by the appropriate Change Order, Labor and Material releases before payment will be Made INCO HOMES CORPORATION SJ Burkhart, nc INITIAL INTTIA q��DATED /�Q- DATED 9 _L -1 -c1 �� . EXHIBIT "C" CONTRACT PRICE AND PAYMENT SCHEDULE CODE: 0117 & 0103 TRADE: Off-site (0117) & On-site sewer (0103) PROJECT NAME: .REUNION TRACT #: 23995, LOTS: Phase III (lots 1-31), Ph II (Lo 9), Phase I (Lots 140) $o Off-site(0117) $#S On-site (0103) $114.885.00 Total lump sum: '" retention: 10% Additional work from major plan changes will be negotiated but will not in any event exceed $20.00 per hour ( maximum) for extra work. Prices shall be firm through the duration of Tract 23995 - Qom- -2- OPTIONS All invoices must be submitted in proper form as specified in Exhibit "B". INCO HOMES CORPORATION INITIAL DATED: UJG SJ Burk41nc. I DATED: 09 -0-1 -1 `1 I ADDENDUM The undersigned do hereby agree to incorporate all the berms of the contract dated SEPTEMBER 7, 1994, between INCO HOMES CORPORATION and Sj Burkhart Inc., this addendum shall apply to said contract and shall supplement the same with the addition by agreed and accepted Change Order, the following- 1. ollowing 1. Scope of work 2 Compensation 3. Delivery 4. Special Instructions Sincerely INCO HOMES CORPORATION Joseph P Director of Purchasing AGREED AND ACCEPTED BY Sj Burkhart, Inc. BY• DATE: ® w - 0 y ft REUNION AT LA QUINTA TRACT 23995 - 300 LOTS PADS GRADED LOTS WITH OFFSITES COMPLETED LOTS RELEASED UNDER CONSTR UC 1ON MODELS HOUSES FINISHED - NOT CLOSED LOTS CLOSED MILES AVENUE ----------------