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STANDARD FORM OF DESIGN-BUILD AGREEMENT AND

                      GENERAL CONDITIONS BETWEEN OWNER AND

                                 DESIGN-BUILDER

 | Document Parties: CINCINNATI FINANCIAL CORP You are currently viewing:
This Construction Agreement involves

CINCINNATI FINANCIAL CORP

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Title: STANDARD FORM OF DESIGN-BUILD AGREEMENT AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER
Date: 3/14/2005
Industry: Insurance (Prop. and Casualty)    

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                                                                    EXHIBIT 10.1

 

                 THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA

 

              [THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA LOGO]

--------------------------------------------------------------------------------

                              AGC DOCUMENT NO. 410

 

                   STANDARD FORM OF DESIGN-BUILD AGREEMENT AND

                      GENERAL CONDITIONS BETWEEN OWNER AND

                                 DESIGN-BUILDER

 

      (WHERE THE BASIS OF PAYMENT IS THE COST OF THE WORK PLUS A FEE WITH A

                            GUARANTEED MAXIMUM PRICE)

 

This standard form agreement was developed with the advice and cooperation of

the AGC Private Industry Advisory Council, a number of Fortune 500 Owners'

design and construction managers who have been meeting with AGC contractors to

discuss issues of mutual concern. AGC gratefully acknowledges the contributions

of these owners' staff who participated in this effort to produce a basic

agreement for construction.

 

                                TABLE OF ARTICLES

 

1.     AGREEMENT

 

2.     GENERAL PROVISIONS

 

3.     DESIGN-BUILDER'S RESPONSIBILITIES

 

4.     OWNER'S RESPONSIBILITIES

 

5.     SUBCONTRACTS

 

6.     TIME

 

7.     COMPENSATION

 

8.     COST OF THE WORK

 

9.     CHANGES IN THE WORK

 

10.    PAYMENT FOR CONSTRUCTION PHASE SERVICES

 

11.    INDEMNITY, INSURANCE, BONDS, AND WAIVER OF SUBROGATION

 

12.    SUSPENSION AND TERMINATION OF THE AGREEMENT AND OWNER'S RIGHT TO PERFORM

DESIGN-BUILDER'S RESPONSIBILITIES

 

13.    DISPUTE RESOLUTION

 

 

 

 

                                       1

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

14.    MISCELLANEOUS PROVISIONS

 

15.    EXISTING CONTRACT DOCUMENTS

 

AMENDMENT NO. 1

 

This Agreement has important legal and insurance consequences. Consultation with

an attorney and an insurance adviser is encouraged with respect to its

completion or modification.

 

                                   ARTICLE 1

 

                                   AGREEMENT

 

 

 

 

                                       2

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

This Agreement is made as of the 6th day of January in the year two thousand

five, by and between the

 

OWNER

 

      Cincinnati Financial Corporation

 

      6200 South Gilmore Road

 

      Fairfield, OH 45014

 

and the

 

DESIGN-BUILDER

 

      Messer Construction Co.

 

       5158 Fishwick Drive

 

for services in connection with the following PROJECT

 

      CFC Tower Number 3 Expansion, includes construction and design of a

      three-story underground garage and seven-story office building along with

      campus site improvements at 6200 S. Gilmore Road, Fairfield, Ohio 45014.

 

Notice to the parties shall be given at the above addresses.

 

The parties intend that this Agreement govern the relationship between them for

work undertaken in furtherance of the project, whether such work occurred before

or after the effective date of this Agreement.

 

                                    ARTICLE 2

 

                               GENERAL PROVISIONS

 

2.1 TEAM RELATIONSHIP Cincinnati Financial Corporation and Messer Construction

Co. agree to proceed with the Project on the basis of trust, good faith and fair

dealing and shall take all actions reasonably necessary to perform this

Agreement in an economical and timely manner, including consideration of design

modifications and alternative materials or equipment that will permit the Work

to be constructed within the Guaranteed Maximum Price (GMP) and by the Dates of

Substantial Completion and Final Completion if they are established by Amendment

No. 1. Messer Construction Co. agrees to procure or furnish, as permitted by the

law of Ohio, the design phase services and construction phase services as set

forth below.

 

      2.1.1 Messer Construction Co. represents that it is an independent

      contractor and that it is familiar with the type of work it is

      undertaking.

 

      2.1.2 Neither Messer Construction Co. nor any of its agents or employees

      shall act on behalf of or in the name of Cincinnati Financial Corporation

      unless authorized in writing by Cincinnati Financial Corporation's

      Representative.

 

2.2 ARCHITECT/ENGINEER Architectural and engineering services shall be performed

by licensed, and qualified independent design professionals selected and paid by

Messer Construction Co. or furnished by licensed employees of Messer

Construction Co. The standard of care for architectural and engineering services

performed under this Agreement shall be the care and skill ordinarily used by

members of the architectural and engineering professions practicing under

similar conditions at the same time and locality. Messer Construction Co. shall

be responsible to Cincinnati Financial Corporation for

 

 

 

 

                                       3

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

the acts and omissions of the parties in privity of contract with Messer

Construction Co., including, but not limited to, the architectural and

engineering services procured as referenced above. The architect/engineer for

the project is Roth Partnership, 212 E. 3rd Street, Cincinnati, OH 45202.

 

2.3 EXTENT OF AGREEMENT This Agreement is solely for the benefit of the parties,

represents the entire and integrated agreement between the parties, and

supersedes all prior negotiations, representations or agreements, either written

or oral. The Agreement and each and every provision is for the exclusive benefit

of Cincinnati Financial Corporation and Messer Construction Co. and not for the

benefit of any third party nor any third party beneficiary, except to the extent

expressly provided in the Agreement.

 

2.4 DEFINITIONS

 

      .1 The Contract Documents consist of:

 

            a. Change Orders and written amendments to this Agreement including

            exhibits and appendices, signed by both Cincinnati Financial

            Corporation and Messer Construction Co., including Amendment No. 1

             if executed;

 

            b. this Agreement except for the existing Contract Documents set

            forth in item e. below;

 

            c. the most current documents approved by Cincinnati Financial

            Corporation pursuant to Subparagraph 3.1.4, 3.1.6 or 3.1.7;

 

            d. the information provided by Cincinnati Financial Corporation

            pursuant to Clause 4.1.2.1;

 

            e. the Contract Documents in existence at the time of execution of

            this Agreement which are set forth in Article 15;

 

            f. Cincinnati Financial Corporation's Program provided pursuant to

            Subparagraph 4.1.1;

 

            In case of any inconsistency, conflict or ambiguity among the

            Contract Documents, the documents shall govern in the order in which

            they are listed above.

 

      .2 The term day shall mean calendar day, unless otherwise specifically

      defined.

 

      .3 Messer Construction Co.'s Fee means the compensation paid to Messer

      Construction Co. for salaries and other mandatory or customary

      compensation of Messer Construction Co.'s employees at its principal and

      branch offices except employees listed in Subparagraph 8.2.2, general and

      administrative expenses of Messer Construction Co.'s principal and branch

      offices other than the field office, and Messer Construction Co.'s capital

      expenses, including interest on Messer Construction Co.'s capital employed

      for the Work, and profit.

 

      .4 Defective Work is any portion of the Work not in conformance with the

      Contract Documents as more fully described in Paragraph 3.8.

 

      .5 The term Fast-track means accelerated scheduling which involves

      commencing construction prior to the completion of drawings and

      specifications and then using means such as bid packages and efficient

      coordination to compress the overall schedule.

 

      .6 Final Completion occurs on the date when Messer Construction Co.'s

      obligations under this Agreement are complete and accepted by Cincinnati

      Financial Corporation and final payment becomes due and payable.

 

      .7 A Material Supplier is a party or entity retained by the Messer

      Construction Co. to provide material and equipment for the Work.

 

 

 

 

                                       4

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

      .8 Others means all persons at the Work Site who are agents, employees,

      contractors, or invitees of Cincinnati Financial Corporation, and who are

      not otherwise Messer Construction Co., its agents, employees, contractors,

      Subcontractors or Material Suppliers, or any of their subagents,

      Subcontractors, and Material Suppliers.

 

      .9 Cincinnati Financial Corporation is the person or entity identified as

      such in this Agreement and includes Cincinnati Financial Corporation's

      Representative.

 

      .10 Cincinnati Financial Corporation's Program is an initial description

      of Cincinnati Financial Corporation's objectives, that may include budget

      and time criteria, space requirements and relationships, flexibility and

      expandability requirements, special equipment and systems, and site

      requirements.

 

      .11 The Project, as identified in Article 1, is the building, facility

      and/or other improvements for which Messer Construction Co. is to perform

      the Work under this Agreement. It may also include improvements to be

      undertaken by Cincinnati Financial Corporation or Others.

 

      .12 A Subcontractor is a party or entity retained by Messer Construction

      Co. as an independent contractor to provide the on-site labor, materials,

      equipment and/or services necessary to complete a specific portion of the

      Work. The term Subcontractor does not include Roth Partnership or any

       separate contractor employed by Cincinnati Financial Corporation or any

      separate contractors subcontractors.

 

      .13 Substantial Completion of the Work, or of a designated portion, occurs

      on the date when Messer Construction Co.'s obligations are sufficiently

      complete in accordance with the Contract Documents so that Cincinnati

      Financial Corporation can or does occupy or utilize the Project, or a

      designated portion, for the use for which it is intended, in accordance

      with Paragraph 10.4. The issuance of a Certificate of Occupancy is not a

      prerequisite for Substantial Completion if the Certificate of Occupancy

      cannot be obtained due to factors beyond Messer Construction Co.'s

      control. This date shall be confirmed by a Certificate of Substantial

      Completion signed by Cincinnati Financial Corporation and Messer

      Construction Co.. The Certificate shall state the respective

      responsibilities of Cincinnati Financial Corporation and Messer

       Construction Co. for security, maintenance, heat, utilities, damage to the

      Work, and insurance. The Certificate shall also list the items to be

      completed or corrected, and establish the time for their completion and

      correction, within the time frame, if any, established in Amendment No. 1

      for the Date of Final Completion. Cincinnati Financial Corporation may

      withhold retainage in an amount not to exceed 150% of the estimated cost

      of the items to be completed or corrected, to be disbursed upon

      completion.

 

      .14 A Subsubcontractor is a party or entity who has an agreement with a

      Subcontractor to perform any portion of the Subcontractor's work.

 

      .15 The Work is the Design Phase Services procured or furnished in

      accordance with Paragraph 3.1, the GMP Proposal provided in accordance

      with Paragraph 3.2, the Construction Phase Services provided in accordance

      with Paragraph 3.3, Additional Services that may be provided in accordance

      with Paragraph 3.10, and other services which are necessary to complete

      the Project in accordance with and reasonably inferable from the Contract

      Documents.

 

      .16 Worksite means the geographical area at the location mentioned in

      Article 1 where the Work is to be performed.

 

                                    ARTICLE 3

 

                        DESIGN-BUILDER'S RESPONSIBILITIES

 

 

 

 

                                       5

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

Messer Construction Co. shall be responsible for the design and for the

construction of the Work consistent with Cincinnati Financial Corporation's

Program, as such Program may be modified by Cincinnati Financial Corporation

during the course of the Work. Messer Construction Co. shall exercise reasonable

skill and judgment in the performance of its services consistent with the team

relationship described in Paragraph 2.1, but does not warrant nor guarantee

schedules and estimates other than those that are part of the GMP proposal.

 

Messer Construction Co. and Cincinnati Financial Corporation may establish a

Fast-track approach to the design and construction services necessary to

complete the Project. Such agreement establishing a Fast-track approach and the

Schedule of the Work shall be included as an exhibit to this Agreement. In the

absence of such agreement, the parties shall proceed in accordance with

Paragraphs 3.1 and 3.3 below.

 

3.1 DESIGN PHASE SERVICES

 

      3.1.1 PRELIMINARY EVALUATION. Messer Construction Co. shall review

      Cincinnati Financial Corporation's Program to ascertain the requirements

      of the Project and shall verify such requirements with Cincinnati

      Financial Corporation. Messer Construction Co.'s review shall also provide

      to Cincinnati Financial Corporation a preliminary evaluation of the site

      with regard to access, traffic, drainage, parking, building placement and

      other considerations affecting the building, the environment and energy

      use, as well as information regarding applicable governmental laws,

      regulations and requirements. Messer Construction Co. shall also propose

      alternative architectural, civil, structural, mechanical, electrical and

      other systems for review by Cincinnati Financial Corporation, to determine

      the most desirable approach on the basis of cost, technology, quality and

      speed of delivery. Messer Construction Co. will also review existing test

      reports but will not undertake any independent testing nor be required to

      furnish types of information derived from such testing in its Preliminary

      Evaluation. Based upon its review and verification of Cincinnati Financial

      Corporation's Program and other relevant information Messer Construction

      Co. shall provide a Preliminary Evaluation of the Projects feasibility for

      Cincinnati Financial Corporation's acceptance. Messer Construction Co.'s

      Preliminary Evaluation shall specifically identify any deviations from

      Cincinnati Financial Corporation's Program.

 

      3.1.2 PRELIMINARY SCHEDULE. Messer Construction Co. shall prepare a

      preliminary schedule of the Work. Cincinnati Financial Corporation shall

      provide written approval of milestone dates established in the preliminary

      schedule of the Work. The schedule shall show the activities of Cincinnati

      Financial Corporation, Roth Partnership and Messer Construction Co.

      necessary to meet Cincinnati Financial Corporation's completion

      requirements. The schedule shall be updated periodically with the level of

      detail for each schedule update reflecting the information then available.

      If an update indicates that a previously approved schedule will not be

      met, Messer Construction Co. shall recommend corrective action to

      Cincinnati Financial Corporation in writing.

 

      3.1.3 PRELIMINARY ESTIMATE. When sufficient Project information has been

      identified, Messer Construction Co. shall prepare for Cincinnati Financial

      Corporation's written acceptance a preliminary estimate utilizing area,

      volume or similar conceptual estimating techniques. The estimate shall be

      updated periodically with the level of detail for each estimate update

      reflecting the information then available. If the preliminary estimate or

      any update exceeds Cincinnati Financial Corporation's budget, Messer

      Construction Co. shall make written recommendations to Cincinnati

      Financial Corporation.

 

      3.1.4 SCHEMATIC DESIGN DOCUMENTS. The Design-Builder shall submit for

      Cincinnati Financial Corporation's written approval Schematic Design

      Documents, based on the agreed upon Preliminary Evaluation. Schematic

      Design Documents shall include drawings, outline specifications

 

 

 

 

                                       6

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

      and other conceptual documents illustrating the Projects basic elements,

      scale, and their relationship to the Worksite. One set of these documents

      shall be furnished to Cincinnati Financial Corporation. When Messer

      Construction Co. submits the Schematic Design Documents Messer

      Construction Co. shall identify in writing all material changes and

      deviations that have taken place from Messer Construction Co.'s

      Preliminary Evaluation, schedule and estimate. Messer Construction Co.

      shall update the preliminary schedule and estimate based on the Schematic

      Design Documents.

 

      3.1.5 PLANNING PERMITS. Messer Construction Co. shall obtain and

      Cincinnati Financial Corporation shall pay for all planning permits

      necessary for the construction of the Project.

 

      3.1.6 DESIGN DEVELOPMENT DOCUMENTS. Messer Construction Co. shall submit

      for Cincinnati Financial Corporation's written approval Design Development

      Documents based on the approved Schematic Design Documents. The Design

      Development Documents shall further define the Project including drawings

      and outline specifications fixing and describing the Project size and

      character as to site utilization, and other appropriate elements

      incorporating the structural, architectural, mechanical and electrical

      systems. One set of these documents shall be furnished to Cincinnati

      Financial Corporation. When Messer Construction Co. submits the Design

      Development Documents, Messer Construction Co. shall identify in writing

      all material changes and deviations that have taken place from the

      Schematic Design Documents. Messer Construction Co. shall update the

      schedule and estimate based on the Design Development Documents.

 

      3.1.7 CONSTRUCTION DOCUMENTS. Messer Construction Co. shall submit for

      Cincinnati Financial Corporation's written approval Construction Documents

      based on the approved Design Development Documents. The Construction

      Documents shall set forth in detail the requirements for construction of

      the Work, and shall consist of drawings and specifications based upon

      codes, laws and regulations enacted at the time of their preparation. When

      Messer Construction Co. submits the Construction Documents, Messer

      Construction Co. shall identify in writing all material changes and

      deviations that have taken place from the Design Development Documents.

      Construction shall be in accordance with these approved Construction

      Documents. One set of these documents shall be furnished to Cincinnati

      Financial Corporation prior to commencement of construction. If a GMP has

      not been established, Messer Construction Co. shall prepare a further

      update of the schedule and estimate based on the Construction Documents.

 

      3.1.8 OWNERSHIP OF DOCUMENTS. Upon the making of payment pursuant to

      Paragraph 10.5, Cincinnati Financial Corporation shall receive ownership

      of the property rights, except for copyrights, of all documents, drawings,

      specifications, electronic data and information prepared, provided or

      procured by Messer Construction Co., Roth Partnership, Subcontractors and

      consultants and distributed to Cincinnati Financial Corporation for this

      Project. (Design-Build Documents)

 

            .1 If this Agreement is terminated pursuant to Paragraph 12.2,

            Cincinnati Financial Corporation shall receive ownership of the

            property rights, except for copyrights, of the Design-Build

            Documents upon payment for all Work performed in accordance with

            this Agreement, at which time Cincinnati Financial Corporation shall

            have the right to use, reproduce and make derivative works from the

            Design-Build Documents to complete the Work.

 

            .2 If this Agreement is terminated pursuant to Paragraph 12.3,

            Cincinnati Financial Corporation shall receive ownership of the

            property rights, except for copyrights, of the Design-Build

            Documents upon payment of all sums provided in Paragraph 12.3, at

            which time Cincinnati Financial Corporation shall have the right to

            use, reproduce and make derivative works from the Design-Build

            Documents to complete the Work.

 

 

 

 

                                       7

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

            .3 Cincinnati Financial Corporation may use, reproduce and make

            derivative works from the Design-Build Documents for subsequent

            renovation and remodeling of the Work, but shall not use, reproduce

            or make derivative works from the Design-Build Documents for other

            projects without the written authorization of Messer Construction

            Co., who shall not unreasonably withhold consent.

 

            .4 Cincinnati Financial Corporation's use of the Design-Build

            Documents without Messer Construction Co.'s involvement or on other

            projects is at Cincinnati Financial Corporation's sole risk, except

            for Messer Construction Co.'s indemnification obligation pursuant to

            Paragraph 3.7, and Cincinnati Financial Corporation shall defend,

            indemnify and hold harmless Messer Construction Co., Roth

            Partnership, Subcontractors and consultants, and the agents,

            officers, directors and employees of each of them from and against

            any and all claims, damages, losses, costs and expenses, including

             but not limited to attorney's fees, costs and expenses incurred in

            connection with any dispute resolution process, arising out of or

            resulting from Cincinnati Financial Corporation's use of the

            Design-Build Documents. If Messer Construction Co. defaults in the

            performance of this Agreement, Cincinnati Financial Corporation

            shall receive ownership of the property rights, except for

            copyrights, of the Design-Build Documents and shall have the right

            to use, reproduce and make deerivative works from the Design-Build

            Documents to complete the Work.

 

            .5 Messer Construction Co. shall obtain from Roth Partnership,

            Subcontractors and consultants property rights and rights of use

            that correspond to the rights given by Messer Construction Co. to

            Cincinnati Financial Corporation in this Agreement.

 

3.2 GUARANTEED MAXIMUM PRICE (GMP)

 

      3.2.1 GMP PROPOSAL. At such time as Cincinnati Financial Corporation and

      Messer Construction Co. jointly agree, Messer Construction Co. shall

      submit a GMP Proposal in a format acceptable to Cincinnati Financial

      Corporation. Unless the parties mutually agree otherwise, the GMP shall be

      the sum of the estimated Cost of the Work as defined in Article 8 and

      Messer Construction Co.'s Fee as defined in Article 7. The GMP is subject

      to modification as provided in Article 9.

 

            3.2.1.1 If the Design-Build Documents are not complete at the time

            the GMP Proposal is submitted to Cincinnati Financial Corporation,

            Messer Construction Co. shall provide in the GMP for further

            development of the Design-Build Documents consistent with Cincinnati

            Financial Corporation's Program. Such further development does not

            include changes in scope, systems, kinds and quality of materials,

            finishes or equipment, all of which if required, shall be

             incorporated by Change Order.

 

      3.2.2 BASIS OF GUARANTEED MAXIMUM PRICE. Messer Construction Co. shall

      include with the GMP Proposal a written statement of its basis, which

      shall include:

 

            .1 a list of the drawings and specifications, including all addenda,

            which were used in preparation of the GMP Proposal;

 

            .2 a list of allowances and a statement of their basis;

 

            .3 a list of the assumptions and clarifications made by Messer

            Construction Co. in the preparation of the GMP Proposal to

            supplement the information contained in the drawings and

            specifications;

 

            .4 the Date of Substantial Completion and/or the Date of Final

            Completion upon which the proposed GMP is based, and the Schedule of

            Work upon which the Date of Substantial Completion and/or the Date

            of Final Completion is based;

 

 

 

 

                                       8

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

            .5 a schedule of applicable alternate prices;

 

            .6 a schedule of applicable unit prices;

 

            .7 a statement of Additional Services included, if any;

 

            .8 the time limit for acceptance of the GMP proposal;

 

            .9 Messer Construction Co.'s Contingency as provided in Subparagraph

            3.2.7; and Owner Contingency if, so directed by Owner,

 

            .10 a statement of any work to be self-performed by Messer

            Construction Co.; and

 

            .11 a statement identifying all patented or copyrighted materials,

            methods or systems selected by Messer Construction Co. and

            incorporated in the Work that are likely to require the payment of

            royalties or license fees, and

 

            .12 100% payment and performance bonds.

 

      3.2.3 REVIEW AND ADJUSTMENT TO GMP PROPOSAL Messer Construction Co. shall

      meet with Cincinnati Financial Corporation to review the GMP Proposal. In

      the event that Cincinnati Financial Corporation has any comments relative

      to the GMP Proposal, or finds any inconsistencies or inaccuracies in the

      information presented, it shall give prompt written notice of such

      comments or findings to Messer Construction Co., who shall make

      appropriate adjustments to the GMP, its basis or both. Nothing contained

      herein shall require Cincinnati Financial Corporation to discover any such

      matter and Cincinnati Financial Corporation's failure to discover any such

      matter shall not limit, excuse or diminish Messer Construction Co.'s

      obligations hereunder in any way whatsoever.

 

      3.2.4 ACCEPTANCE OF GMP PROPOSAL Upon acceptance by Cincinnati Financial

      Corporation of the GMP Proposal, as may be amended by Messer Construction

      Co. in accordance with Subparagraph 3.2.3, the GMP and its basis shall be

      set forth in Amendment No. 1. The GMP and the Date of Substantial

      Completion and/or the Date of Final Completion shall be subject to

      modification as provided in Articles 6 and 9.

 

      3.2.5 FAILURE TO ACCEPT THE GMP PROPOSAL Unless Cincinnati Financial

      Corporation accepts the GMP Proposal in writing on or before the date

      specified in the GMP Proposal for such acceptance and so notifies the

      Messer Construction Co., the GMP Proposal shall not be effective. If

      Cincinnati Financial Corporation fails to accept the GMP Proposal, or

      rejects the GMP Proposal, Cincinnati Financial Corporation shall have the

      right to:

 

            .1 Suggest modifications to the GMP Proposal. If such modifications

            are accepted in writing by Messer Construction Co., the GMP Proposal

            shall be deemed accepted in accordance with Subparagraph 3.2.4;

 

            .2 Direct Messer Construction Co. to proceed on the basis of

            reimbursement as provided in Articles 7 and 8 without a GMP, in

            which case all references in this Agreement to the GMP shall not be

            applicable; or

 

            .3 Terminate the Agreement for convenience in accordance with

            Paragraph 12.3.

 

            In the absence of a GMP the parties may establish a Date of

            Substantial Completion and/or a Date of Final Completion.

 

      3.2.6 PRE-GMP WORK Prior to Cincinnati Financial Corporation's acceptance

      of the GMP Proposal, Messer Construction Co. shall not incur any cost to

      be reimbursed as part of the Cost of the Work, except as provided in this

      Agreement or as Cincinnati Financial Corporation may

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

                                        9

<PAGE>

 

      specifically authorize in writing.

 

      3.2.7 DESIGN-BUILDER'S CONTINGENCY The GMP Proposal will contain, as part

      of the estimated Cost of the Work, Messer Construction Co.'s Contingency,

      a sum mutually agreed upon and monitored by Messer Construction Co. and

      Cincinnati Financial Corporation for use at Messer Construction Co.'s

      discretion to cover costs which are properly reimbursable as a Cost of the

      Work but are not the basis for a Change Order.

 

Design-Builder's Contingency is to cover such things as (but not limited to)

changes in market conditions, estimating variances or judgment errors in pricing

at the time of establishing the GMP, delay costs not otherwise compensated,

unanticipated changes in construction methods, default by a Subcontractor or

supplier, and acceleration costs required to meet the Contract Time. Any funds

remaining in the Design-Builder's Contingency upon the completion of the work

including any warranty work shall belong to Cincinnati Financial Corporation.

The Owner, in its discretion, may establish an Owner's Contingency, which is

entirely separate from the Design-Builder's Contingency. The Owner's

Contingency, if established, is for the Owner's exclusive use in its sole

discretion to add scope to the Project, to pay for unanticipated costs incurred

by the Design-Builder which are the Owner's responsibility, or for other

purposes that the Owner may designate. The Owner's Contingency is not part of

the Guaranteed Maximum Price. If requested by the Owner, the Design-Builder will

advise the Owner of the expenditures against the Owner's Contingency on a

monthly basis but will not guarantee the sufficiency of the Owner's Contingency

for any purpose.

 

3.3 CONSTRUCTION PHASE SERVICES

 

      3.3.1 The Construction Phase will commence upon the issuance by Cincinnati

      Financial Corporation of a written notice to proceed with construction. If

      construction commences prior to execution of Amendment No. 1, Messer

       Construction Co. shall prepare for Cincinnati Financial Corporation's

      written approval a list of the documents that are applicable to the part

      of the Work which Cincinnati Financial Corporation has authorized, which

      list shall be included in Cincinnati Financial Corporation's written

      notice to proceed.

 

      3.3.2 In order to complete the Work, Messer Construction Co. shall provide

      all necessary construction supervision, inspection, construction

      equipment, labor, materials, tools, and subcontracted items.

 

      3.3.3 Messer Construction Co. shall give all notices and comply with all

      laws and ordinances legally enacted at the date of execution of the

      Agreement which govern the proper performance of the Work.

 

      3.3.4 Messer Construction Co. shall obtain and shall pay for the building

      permits necessary for the construction of the Project.

 

      3.3.5 Messer Construction Co. shall keep such full and detailed accounts

      as are necessary for proper financial management under this Agreement.

      Cincinnati Financial Corporation shall be afforded access to all Messer

      Construction Co.'s records, books, correspondence, instructions, drawings,

      receipts, vouchers, memoranda and similar data relating to this Agreement.

      Messer Construction Co. shall preserve all such records for a period of

      three years after the final payment or longer where required by law.

 

      3.3.6 The Messer Construction Co. shall provide no less than monthly

      written reports to Cincinnati Financial Corporation on the progress of the

      Work in such detail as is required by Cincinnati Financial Corporation and

      as agreed to by Cincinnati Financial Corporation and Messer

 

 

 

 

                                        10

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

      Construction Co..

 

      3.3.7 Messer Construction Co. shall develop a system of cost reporting for

      the Work, including regular monitoring of actual costs for activities in

      progress and estimates for uncompleted tasks and proposed changes in the

      Work. The reports shall be presented to Cincinnati Financial Corporation

      at mutually agreeable intervals, no less than monthly.

 

      3.3.8 Messer Construction Co. shall regularly remove debris and waste

      materials at the Worksite resulting from the Work. Prior to discontinuing

      Work in an area, Messer Construction Co. shall clean the area and remove

      all rubbish and its construction equipment, tools, machinery, waste and

      surplus materials. Messer Construction Co. shall minimize and confine dust

      and debris resulting from construction activities. At the completion of

      the Work, Messer Construction Co. shall remove from the Worksite all

      construction equipment, tools, surplus materials, waste materials and

      debris. Messer Construction Co. acknowledges that Cincinnati Financial

      Corporation and its affiliates and tenants are conducting business in the

      existing office towers of which the Project will become a part, and Messer

      Construction Co. agrees it will exercise its reasonable efforts to

      minimize disruption to such activities that will be ongoing in the

      existing office towers and at the Project site. Messer Construction Co.'s

      operating hours and procedures will be specified in greater detail in the

      GMP documents to be submitted for Cincinnati Financial Corporation's

      approval. Messer Construction Co. will not be required to operate outside

      normal working hours unless approved by Cincinnati Financial Corporation,

      or unless Cincinnati Financial Corporation issues a Change Order to this

      effect and agrees to be responsible for resulting cost and time impacts.

 

      3.3.9 Messer Construction Co. shall prepare and submit to Cincinnati

      Financial Corporation:

 

            final marked up as-built drawings

 

      in general documenting how the various elements of the Work including

      changes were actually constructed or installed, or as defined by the

      parties by attachment to this Agreement.

 

3.4 SCHEDULE OF THE WORK. Messer Construction Co. shall prepare and submit a

Schedule of Work for Cincinnati Financial Corporation's acceptance and written

approval. This schedule shall indicate the dates for the start and completion of

the various stages of the Work, including the dates when information and

approvals are required from Cincinnati Financial Corporation. The Schedule shall

be revised by Messer Construction Co. as required by the conditions of the Work,

subject to approval by Cincinnati Financial Corporation.

 

3.5 SAFETY OF PERSONS AND PROPERTY

 

      3.5.1 SAFETY PRECAUTIONS AND PROGRAMS. Messer Construction Co. shall have

      overall responsibility for safety precautions and programs in the

      performance of the Work. Messer Construction Co. shall take reasonable

      steps to comply and cause all Subcontractors and Material Suppliers to

      comply with all applicable provisions of Federal, State and Municipal

      safety laws to prevent accidents or injuries to persons or damage to

      property on, about or adjacent to the Work Site. While the provisions of

      this Paragraph establish the responsibility for safety between Cincinnati

      Financial Corporation and Messer Construction Co., they do not relieve

      Subcontractors of their responsibility for the safety of persons or

      property in the performance of their work, nor for compliance with the

      provisions of applicable laws and regulations.

 

      3.5.2 Messer Construction Co. shall seek to avoid injury, loss or damage

      to persons or property by taking reasonable steps to protect:

 

 

 

 

                                       11

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

            .1 its employees and other persons at the Worksite;

 

            .2 materials, supplies and equipment stored at the Worksite for use

            in performance of the Work; and

 

            .3 the Project and all property located at the Worksite and adjacent

            to work areas, whether or not said property or structures are part

             of the Project or involved in the Work.

 

      3.5.3 DESIGN-BUILDER'S SAFETY REPRESENTATIVE. Messer Construction Co.

      shall designate an individual at the Worksite in the employ of Messer

      Construction Co. who shall act as Messer Construction Co.'s designated

      safety representative with a duty to prevent accidents. Unless otherwise

      identified by Messer Construction Co. in writing to Cincinnati Financial

      Corporation, the designated safety representative shall be Messer

      Construction Co.'s project superintendent. Messer Construction Co. will

      report immediately in writing all accidents and injuries occurring at the

      Worksite to Cincinnati Financial Corporation. When Messer Construction Co.

      is required to file an accident report with a public authority, Messer

      Construction Co. shall furnish a copy of the report to Cincinnati

      Financial Corporation.

 

      3.5.4 Messer Construction Co. shall provide Cincinnati Financial

      Corporation with copies of all notices required of Messer Construction Co.

      by law or regulation. Messer Construction Co.'s safety program shall

      comply with the requirements of governmental and quasi-governmental

      authorities having jurisdiction over the Work.

 

       3.5.5 Damage or loss not insured under property insurance which may arise

      from the performance of the Work, to the extent of the negligence

      attributed to such acts or omissions of Messer Construction Co., or anyone

      for whose acts Messer Construction Co. may be liable, shall be promptly

      remedied by Messer Construction Co.. Damage or loss attributable to the

      acts or omissions of Cincinnati Financial Corporation or Others and not to

      Messer Construction Co. shall be promptly remedied by Cincinnati Financial

      Corporation.

 

      3.5.6 If Cincinnati Financial Corporation deems any part of the Work or

      Worksite unsafe, Cincinnati Financial Corporation, without assuming

      responsibility for Messer Construction Co.'s safety program, may require

      Messer Construction Co. to stop performance of the Work or take corrective

      measures satisfactory to Cincinnati Financial Corporation, or both. If

      Messer Construction Co. does not adopt corrective measures, Cincinnati

      Financial Corporation may perform them and reduce by the costs of the

      corrective measures the amount of the GMP, or in the absence of a GMP, the

      Cost of the Work as provided in Article 8. Messer Construction Co. agrees

      to make no claim for damages, for an increase in the GMP, compensation for

      Design Phase Services, Messer Construction Co.'s Fee and/or the Date of

      Substantial Completion and/or the Date of Final Completion based on Messer

      Construction Co.'s compliance with Cincinnati Financial Corporation's

      reasonable request.

 

3.6 HAZARDOUS MATERIALS

 

      3.6.1 A Hazardous Material is any substance or material identified now or

      in the future as hazardous under any federal, state or local law or

      regulation, or any other substance or material which may be considered

      hazardous or otherwise subject to statutory or regulatory requirements

      governing handling, disposal and/or clean-up. Messer Construction Co.

      shall not be obligated to commence or continue work until all Hazardous

      Material discovered at the Worksite has been removed, rendered or

      determined to be harmless by Cincinnati Financial Corporation as certified

      by an independent testing laboratory approved by the appropriate

      government agency.

 

      3.6.2 If after the commencement of the Work, Hazardous Material is

      discovered at the Work Site,

 

 

 

 

                                       12

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

      Messer Construction Co. shall be entitled to immediately stop Work in the

      affected area. Messer Construction Co. shall report the condition to

      Cincinnati Financial Corporation and, if required, the government agency

      with jurisdiction.

 

      3.6.3 Messer Construction Co. shall not be required to perform any Work

      relating to or in the area of Hazardous Material without written mutual

      agreement.

 

      3.6.4 Cincinnati Financial Corporation shall be responsible for retaining

      an independent testing laboratory to determine the nature of the material

      encountered and whether it is a Hazardous Material requiring corrective

      measures and/or remedial action. Such measures shall be the sole

      responsibility of Cincinnati Financial Corporation, and shall be performed

      in a manner minimizing any adverse effects upon the Work of Messer

      Construction Co.. Messer Construction Co. shall resume Work in the area

      affected by any Hazardous Material only upon written agreement between the

      parties after the Hazardous Material has been removed or rendered harmless

      and only after approval, if necessary, of the governmental agency or

      agencies with jurisdiction.

 

      3.6.5 If Messer Construction Co. incurs additional costs and/or is delayed

       due to the presence or remediation of Hazardous Material, Messer

      Construction Co. shall be entitled to an equitable adjustment in the GMP,

      compensation for Design Phase Services, Messer Construction Co.'s Fee

      and/or the Date of Substantial Completion and/or the Date of Final

      Completion.

 

      3.6.6 Provided Messer Construction Co., its Subcontractors, Material

      Suppliers and Subsubcontractors, and the agents, officers, directors and

      employees of each of them, have not, acting under their own authority,

      knowingly entered upon any portion of the Work containing Hazardous

      Materials, and to the extent not caused by the negligent acts or omissions

      of the Messer Construction Co., its Subcontractors, Material Suppliers and

      Subsubcontractors, and the agents, officers, directors and employees of

      each of them, Cincinnati Financial Corporation shall defend, indemnify and

      hold harmless the Messer Construction Co., its Subcontractors and

      Subsubcontractors, and the agents, officers, directors and employees of

      each of them, from and against any and all direct claims, damages, losses,

      costs and expenses, including but not limited to attorney's fees, costs

      and expenses incurred in connection with any dispute resolution process,

      arising out of or relating to the performance of the Work in any area

      affected by Hazardous Material.

 

      3.6.7 Material Safety Data (MSD) sheets as required by law and pertaining

      to materials or substances used or consumed in the performance of the

      Work, whether obtained by Messer Construction Co., Subcontractors,

      Cincinnati Financial Corporation or Others, shall be maintained at the

      Project by Messer Construction Co. and made available to Cincinnati

      Financial Corporation and Subcontractors.

 

      3.6.8 During Messer Construction Co.'s performance of the Work, Messer

      Construction Co. shall be responsible for the proper handling of all

      materials, including Hazardous Materials, brought to the Work Site by

      Messer Construction Co., its Subcontractors, Material Suppliers,

      Sub-Subcontractors, and the agents, officers, directors and employees of

      each of them. Except for those Hazardous Materials improperly handled,

      referenced in Section 3.6.6 hereof, Messer Construction Co. shall defend,

      indemnify and hold harmless Cincinnati Financial Corporation from and

      against any and all direct claims, damages, losses, costs and expenses,

      including but not limited to attorneys' fees, costs and expenses incurred

      in connection with any dispute resolution process, arising out of or

      relating to the performance of the Work in any area whether or not

      affected by Hazardous Materials. Upon the issuance of the Certificate of

      Substantial Completion, Cincinnati Financial Corporation shall be

      responsible under this paragraph for materials and substances brought to

      the site by Messer Construction Co. if such materials or substances are

      required by the Contract Documents.

 

 

 

 

                                       13

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

      3.6.9 The terms of this Paragraph 3.6 shall survive the completion of the

      Work under this Agreement and/or any termination of this Agreement.

 

3.7 ROYALTIES, PATENTS AND COPYRIGHTS. Messer Construction Co. shall pay all

royalties and license fees which may be due on the inclusion of any patented or

copyrighted materials, methods or systems selected by Messer Construction Co.

and incorporated in the Work. Messer Construction Co. shall defend, indemnify

and hold Cincinnati Financial Corporation harmless from all suits or claims for

infringement of any patent rights or copyrights arising out of such selection.

Cincinnati Financial Corporation agrees to defend, indemnify and hold Messer

Construction Co. harmless from all suits or claims of infringement of any patent

rights or copyrights arising out of any patented or copyrighted materials,

methods or systems specified by Cincinnati Financial Corporation.

 

3.8 WARRANTIES AND COMPLETION

 

      3.8.1 Messer Construction Co. warrants that all materials and equipment

      furnished under the Construction Phase of this Agreement will be new

      unless otherwise specified, of good quality, in conformance with the

      Contract Documents, and free from defective workmanship and materials.

      Warranties shall commence on the Date of Substantial Completion of the

      Work or of a designated portion. The Messer Construction Co. agrees to

       correct all construction performed under this Agreement which is defective

      in workmanship or materials within a period of one year from the Date of

      Substantial Completion or for such longer periods of time as may be set

      forth with respect to specific warranties required by the Contract

      Documents.

 

      3.8.2 To the extent products, equipment, systems or materials incorporated

      in the Work are specified and purchased by Cincinnati Financial

      Corporation, they shall be covered exclusively by the warranty of the

      manufacturer. There are no warranties which extend beyond the description

      on the face of any such warranty. To the extent products, equipment,

      systems or materials incorporated in the Work are specified by Cincinnati

      Financial Corporation but purchased by the Messer Construction Co. and are

      inconsistent with selection criteria that otherwise would have been

      followed by the Messer Construction Co., the Messer Construction Co. shall

       assist Cincinnati Financial Corporation in pursuing warranty claims. ALL

      OTHER WARRANTIES EXPRESSED OR IMPLIED INCLUDING THE WARRANTY OF

      MERCHANTABILITY AND THE WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE ARE

      EXPRESSLY DISCLAIMED.

 

      3.8.3 The Messer Construction Co. shall secure required certificates of

      inspection, testing or approval and deliver them to Cincinnati Financial

      Corporation.

 

      3.8.4 The Messer Construction Co. shall collect all written warranties and

      equipment manuals and deliver them to Cincinnati Financial Corporation in

      a format directed by Cincinnati Financial Corporation.

 

      3.8.5 With the assistance of Cincinnati Financial Corporation's

      maintenance personnel, the Messer Construction Co. shall direct the

      checkout of utilities and start up operations, and adjusting and balancing

      of systems and equipment for readiness.

 

3.9 CONFIDENTIALITY. The Messer Construction Co. shall treat as confidential and

not disclose to third persons, except Subcontractors, Subsubcontractors and Roth

Partnership as is necessary for the performance of the Work, or use for its own

benefit any of Cincinnati Financial Corporation's developments, confidential

information, know-how, discoveries, production methods and the like that may be

disclosed to the Messer Construction Co. or which the Messer Construction Co.

may acquire in connection with the Work. Cincinnati Financial Corporation shall

treat as confidential information all of the Messer Construction Co.'s

estimating systems and historical and parameter cost data that may be disclosed

to Cincinnati Financial Corporation in connection with the performance of this

Agreement.

 

 

 

 

                                       14

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

3.10 ADDITIONAL SERVICES. The Messer Construction Co. shall provide or procure

the following Additional Services upon the request of Cincinnati Financial

Corporation. A written agreement between Cincinnati Financial Corporation and

the Messer Construction Co. shall define the extent of such Additional Services

before they are performed by the Messer Construction Co.. If a GMP has been

established for the Work or any portion of the Work, such Additional Services

shall be considered a Change in the Work, unless they are specifically included

in the statement of the basis of the GMP as set forth in Amendment No. 1.

 

      .1 Development of Cincinnati Financial Corporation's Program, establishing

      the Project budget, investigating sources of financing, general business

      planning and other information and documentation as may be required to

      establish the feasibility of the Project.

 

      .2 Consultations, negotiations, and documentation supporting the

      procurement of Project financing.

 

      .3 Site evaluations and legal descriptions.

 

      .4 Appraisals of existing equipment, existing properties, new equipment

      and developed properties.

 

      .5 Soils, subsurface and environmental studies, reports and investigations

      required for submission to governmental authorities or others having

      jurisdiction over the Project.

 

      .6 Consultations and representations before governmental authorities or

      others having jurisdiction over the Project other than normal assistance

      in securing building permits.

 

      .7 Investigation or making measured drawings of existing conditions or the

      reasonably required verification of Cincinnati Financial Corporation

      -provided drawings and information.

 

      .8 Artistic renderings, of the Project or any part of the Project or the

      Work.

 

      .9 Inventories of existing fixtures, furnishings and equipment which might

      be under consideration for incorporation into the Work.

 

      .10 Interior design and related services including procurement and

      placement of furnishings, artwork and decorations.

 

      .11 Making revisions to the Schematic Design, Design Development,

      Construction Documents or documents forming the basis of the GMP after

      they have been approved by Cincinnati Financial Corporation, and which are

      due to causes beyond the control of the Messer Construction Co.. Causes

      within the control of the Messer Construction Co. include but are not

      necessarily limited to, acts or omissions on the part of Subcontractors,

      Material Suppliers, Subsubcontractors or Roth Partnership.

 

      .12 Design, coordination, management, expediting and other services

      supporting the procurement of materials to be obtained, or work to be

      performed, by Cincinnati Financial Corporation, including but not limited

      to telephone systems, and other specialty systems which are not a part of

      the Work as defined in the GMP document.

 

      .13 Estimates, proposals, appraisals, consultations, negotiations and

      services in connection with the repair or replacement of an insured loss,

      provided such repair or replacement did not result from the negligence of

      the Messer Construction Co..

 

      .14 The premium portion of overtime work ordered by Cincinnati Financial

      Corporation, including productivity impact costs, other than that required

      by the Messer Construction Co. to maintain the Schedule of Work.

 

      .15 Out-of-town travel approved in advance by Cincinnati Financial

       Corporation.

 

 

 

 

                                       15

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

      .16 Obtaining service contractors and training maintenance personnel,

      assisting and consulting in the use of systems and equipment after the

      initial start up.

 

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

 

      .18 Services requested by Cincinnati Financial Corporation or required by

      the Work which are not specified in the Contract Documents and which are

      not normally part of generally accepted design and construction practice.

 

      .19 Serving or preparing to serve as an expert witness in connection with

      any proceeding, legal or otherwise, regarding the Project.

 

      .20 Document reproduction exceeding the limits provided for in this

      Agreement.

 

3.11 DESIGN-BUILDER'S REPRESENTATIVE The Messer Construction Co. shall designate

a person who shall be the Messer Construction Co.'s authorized representative.

The Messer Construction Co.'s Representative is J. Steve Eder.

 

                                     ARTICLE 4

 

                            OWNER'S RESPONSIBILITIES

 

4.1 INFORMATION AND SERVICES PROVIDED BY OWNER

 

      4.1.1 Cincinnati Financial Corporation shall provide full information in a

      timely manner regarding requirements for the Project, including Cincinnati

      Financial Corporation's Program and other relevant information.

 

      4.1.2 Cincinnati Financial Corporation shall provide:

 

            .1 all available information describing the physical characteristics

            of the site, including surveys, site evaluations, legal

            descriptions, existing conditions, subsurface and environmental

            studies, reports and investigations;

 

            .2 unless otherwise provided in the Contract Documents, necessary

            approvals, site plan review, rezoning, easements and assessments,

            fees and charges required for the construction, use, occupancy or

            renovation of permanent structures, including legal and other

            required services.

 

      4.1.3 Cincinnati Financial Corporation shall provide reasonable evidence

      satisfactory to the Messer Construction Co., prior to commencing the Work

      and during the progress of the Work, that sufficient funds are available

      and committed for the entire cost of the Project, including a reasonable

      allowance for changes in the Work as may be approved in the course of the

      Work. Unless such reasonable evidence is provided, the Messer Construction

       Co. shall not be required to commence or continue the Work. The Messer

      Construction Co. may stop Work after seven (7) days' written notice to

      Cincinnati Financial Corporation if such evidence is not presented within

      a reasonable time. The failure of the Messer Construction Co. to insist

      upon the providing of this evidence at any one time shall not be a waiver

      of Cincinnati Financial Corporation's obligation to make payments pursuant

      to this Agreement, nor shall it be a waiver of the Messer Construction

      Co.'s right to require that such evidence be provided at a later date.

 

      4.1.4 The Messer Construction Co. shall be entitled to rely on the

      completeness and accuracy of the information and services required by this

      Paragraph 4.1.

 

 

 

 

                                       16

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

4.2 RESPONSIBILITIES DURING DESIGN PHASE

 

      4.2.1 Cincinnati Financial Corporation shall provide Cincinnati Financial

      Corporation's Program at the inception of the Design Phase and shall

      review and timely approve in writing schedules, estimates, Preliminary

      Estimate, Schematic Design Documents, Design Development Documents and

      Construction Documents furnished during the Design Phase as set forth in

       Paragraph 3.1, and the GMP Proposal as set forth in Paragraph 3.2.

 

4.3 RESPONSIBILITIES DURING CONSTRUCTION PHASE

 

      4.3.1 Cincinnati Financial Corporation shall review and timely approve the

      Schedule of the Work as set forth in Paragraph 3.4.

 

      4.3.2 If Cincinnati Financial Corporation becomes aware of any error,

      omission or failure to meet the requirements of the Contract Documents or

      any fault or defect in the Work, Cincinnati Financial Corporation shall

      give prompt written notice to the Messer Construction Co.. Nothing

      contained herein shall require Cincinnati Financial Corporation to

      discover any such matter and Cincinnati Financial Corporation's failure to

      discover any such matter shall not limit, excuse or dimish Messer

      Construction Co.'s obligations hereunder in any way whatsoever.

 

      4.3.3 Cincinnati Financial Corporation shall communicate with the Messer

      Construction Co.'s Subcontractors, Material Suppliers and Roth Partnership

      only through or in the presence of the Messer Construction Co.. unless

      otherwise agreed by Messer Construction Co. and Cincinnati Financial

      Corporation provided Messer shall not allow any Subcontractor, Material

      Supplier or the Roth Partnership to take any action based on

      communications with Cincinnati Financial Corporation unless also

      authorized by Messer Construction Co. Cincinnati Financial Corporation

      shall have no contractual obligations to Subcontractors, Material

      Suppliers, or Roth Partnership.

 

      4.3.4 Cincinnati Financial Corporation shall provide insurance for the

      Project as provided in Article 11.

 

4.4 OWNER'S REPRESENTATIVE. Cincinnati Financial Corporation's Representative is

Norm Settle. The Representative:

 

      .1 shall be fully acquainted with the Project;

 

      .2 agrees to furnish the information and services required of Cincinnati

      Financial Corporation pursuant to Paragraph 4.1 so as not to delay the

      Messer Construction Co.'s Work; and

 

      .3 shall have authority to bind Cincinnati Financial Corporation in all

      matters requiring Cincinnati Financial Corporation's approval,

      authorization or written notice. If Cincinnati Financial Corporation

      changes its representative or the representatives authority as listed

      above, Cincinnati Financial Corporation shall notify the Messer

      Construction Co. in writing.

 

4.5 TAX EXEMPTION. If in accordance with Cincinnati Financial Corporation's

direction the Messer Construction Co. claims an exemption for taxes, Cincinnati

Financial Corporation shall defend, indemnify and hold the Messer Construction

Co. harmless for all liability, penalty, interest, fine, tax assessment,

attorney's fees or other expense or cost incurred by the Messer Construction Co.

as a result of any action taken by the Messer Construction Co. in accordance

with Cincinnati Financial Corporation's direction.

 

                                    ARTICLE 5

 

                                  SUBCONTRACTS

 

Work not performed by the Messer Construction Co. with its own forces shall be

performed by

 

 

 

 

                                       17

 

IMPORTANT: This document may contain modifications to the text of the original

AGC standard form. Its author has chosen not to reflect any modifications in the

electronic or printed output. Consultation with legal and insurance counsel and

careful review of the entire document are strongly encouraged.

 

DocuBuilder(R) - AGC DOCUMENT NO. 410 - STANDARD FORM OF DESIGN-BUILD AGREEMENT

AND GENERAL CONDITIONS BETWEEN OWNER AND DESIGN-BUILDER (Where the Basis of

Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price) (C)

1999, The Associated General Contractors of America. All rights reserved. This

document was produced electronically under the grant of license provided to

subscribers of the AGC DocuBuilder Contract Document Software.

 

 

<PAGE>

 

Subcontractors or Roth Partnership.

 

5.1 RETAINING SUBCONTRACTORS. The Messer Construction Co. shall not retain any

Subcontractor to whom Cincinnati Financial Corporation has a reasonable and

timely objection, provided that Cincinnati Financial Corporation agrees to

compensate the Messer Construction Co. for any additional costs incurred by the

Messer Construction Co. as a result of such objection. Cincinnati Financial

Corporation may propose Subcontractors to be considered by the Messer

Construction Co.. The Messer Construction Co. shall not be required to retain

any Subcontractor to whom the Messer Construction Co. has a reasonable

objection.

 

5.2 MANAGEMENT OF SUBCONTRACTORS. The Messer Construction Co. shall be

responsible for the management of the Subcontractors in the performance of their

work.

 

5.3 ASSIGNMENT OF SUBCONTRACT AGREEMENTS. The Messer Construction Co. shall

provide for assignment of subcontract agreements in the event that Cincinnati

Financial Corporation terminates this Agreement for cause as provided in

Paragraph 12.2. Following such termination, Cincinnati Financial Corporation

shall notify in writing those Subcontractors whose assignments will be accepted,

subject to the rights of sureties.

 

5.4 BINDING OF SUBCONTRACTORS AND MATERIAL SUPPLIERS. The Messer Construction

Co. agrees to bind every Subcontractor and Material Supplier (and require every

Subcontractor to so bind its Subsubcontractors and Material Suppliers) to all

the provisions of this Agreement and the Contract Documents as they apply to the

Subcontractors and Material Suppliers portions of the Work.

 

                                     ARTICLE 6

 

                                      TIME

 

6.1 DATE OF COMMENCEMENT. The Date of Commencement is the effective date of this

Agreement as first written in Article 1 unless otherwise set forth below:

(Insert here any special provisions concerning Notices to Proceed and the Date

of Commencement.)

 

      Notice to Proceed issued 8/24/04 based on Design-Builder's submission -

      Addendum A.

 

      Construction start scheduled for 1/'05.

 

      The Work shall proceed in general accordance with the Schedule of Work as

      such schedule may be amended from time to time, subject, however, to other

      provisions of this Agreement.

 

6.2 SUBSTANTIAL/FINAL COMPLETION. Unless the parties agree otherwise, the Date

of Substantial Completion and/or the Date of Final Completion shall be

established in Amendment No. 1 to this Agreement subject to adjustments as

provided for i


 
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