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<br />EXHIBIT 'A' <br />TAX EXEMPTION AGREEMENT TO CONTRACT <br />City of Sunny Isles Beach <br />April 11, 2002 <br /> <br />The Contractor and the Owner desire to enter into an arrangement whereby certain purchases under the Contract can be <br />made through the Owner as a means of taking advantage ofthe Owner's status of being exempt from sales and use tax. <br /> <br />1. Notwithstanding anything in the Contract to the contrary, the Owner shall directly purchase all <br />materials and equipment identified in the Contract Documents as required for incorporation into the <br />Project ("Owner-Provided Materials"). The Owner does hereby grant to the Contractor the full <br />authority as an agent of the Owner to prepare, place and execute Purchase Orders for and in the name <br />of the Owner for all Owner-Provided Materials. The Contractor as agent of the Owner shall sign such <br />Purchase Orders. <br /> <br />2. The Owner will be liable for the timely payment for all Owner-Provided Materials. The Contractor <br />will submit requisitions for orders of Owner-Provided Materials to the Owner for approval when <br />required. Vendors will render statements ("OPM Invoices") to the Owner for any Owner-Provided <br />Materials purchased. The Owner will provide copies of all OPM Invoices to the Contractor upon <br />approval by the Owner. After reviewing the OPM Invoices, the Contractor will return these OPM <br />Invoices with proper back up to the Owner for payment. The Owner shall make payment directly to the <br />respective vendors as provided in the OPM Invoices. The Owner will send such vendor payments <br />along with Contractor payment to the Contractor who will, as Owner's agent, distribute such vendor <br />payments to the respective vendors in return for Releases of Lien. The Owner will provide Contractor <br />with any tax exemption certificates or other documents required or useful to provide to the vendors of <br />Owner-Provided Materials to evidence the tax-exempt status of the Owner. <br /> <br />3. The Contract Sum and GMP shall be reduced by the sum of all Costs of the Work paid by the Owner <br />for Owner-Provided Materials plus any applicable sales and use tax amounts initially included in the <br />Contract Sum and GMP for such Owner-Provided Materials. <br /> <br />4. The Contractor shall maintain separate accounting records for all transactions carried out under the <br />authority of this Agreement. Such records shall be open to the Owner during normal business hours of <br />the Contractor. <br /> <br />5. The Contractor shall select, obtain approvals, submit samples, price shop drawings, pursue, receive, <br />inspect, and accept or reject all Owner-Provided Materials purchased in the manner described herein <br />per the Contract. The Contractor shall remain responsible for the proper installation of all Owner- <br />Provided Materials and will continue to warrant its installation of these Owner-Provided Materials as <br />provided in the Contract. This Agreement will not be an acceptable excuse for delay to the <br />construction schedule. <br /> <br />6. The authority granted the Contractor hereunder may be revoked by the Owner at any time upon written <br />notice delivered to the Contractor at its offices located at: 560 Village Boulevard, Suite #120, West <br />Palm Beach, Florida 33409, during normal business hours. <br /> <br />7. The Owner agrees that the Contractor's Fee as set forth in the Contract shall not be reduced as a result <br />of any Owner-Provided Materials deduct change orders; i.e., the Contractor's Fee shall continue to <br />apply to the total sum of all remaining Costs of the Work plus the costs of all Owner-Provided <br />Materials and plus the applicable tax amounts. L' ewise, all agreed charging rates based on the GMP <br />or Contract Sum, including without limitation r nds and insurance, shall continue to be charged <br />based on the total sum of the Contract Sum 0 GM amount plus the costs of all Owner-Provided <br />M_.I' ond pI.. the .pplk.ble ,ox omou ,. ! <br /> <br /> <br />~~g:~~, . V <br /> <br /> <br />.'1 \ <br />~/~-t./ <br />