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livTERLVI AGREEMENT FOR GENERAL CONTRACTOR CONSULTATION SERVICES Agreement made, effective as of _ Sentember 29_ 1997 by and between Marion Couniy, a political subdivision and body politic of the state of Oregon, and the Salem Area Mass Transit District, a po litical subdivision and body politic of the state of Oregon, hereinafter referred to as "Owner", and Pence;~eIly Construction, Inc., an Oregon corporation, hereinafter referred to as "Contractor". The parties recite, declare and agree as follows: 1. Owner owns Btock 5, SALEM, Marion County, Oregon. Owner intends to build a mixed use facility on the real property generaily consisting of undergound parking facilities, a transit center, administrarive o~ces for Owner, and a commercial retail site to be leased to private parties for development of retail and other private facilities. The project is known as Courthouse Square. 2. The project is undergoing substantial redesign. Owner needs consultation services of a general contractor. Contractor has provided similar services for the original design of the project, and wishes to continue in a consulta.tive role. Owner wishes to retain the consulting services of Contractor. 3. Owner and Contractor acknowledge and agree that for services rendered through May 31, 1997, Owner has pa.id Contractor the sum of $ 67.687.13 , which amount is payment in full for services rendered to that date. The parties have no further commitment to each other, except as set forth in this agreement. 4. Both parties expect to negotiate an agreement reta.ining Contractor to act as general contractor for canstrucrion of the project. Both parties shall negotiate, in good faith with the Contractor, the terms of a construction contract by November 15, 1997. Both parties eYpect construction to begin on or about January l, 1998, and to be completed within 18 months of the authorization to start. Both parties expect the GMP to be submitted to Owner by December 12, 1997. The GNIP shall contain a fee of 4.75%, including preconstruction fees. Contractor understands that Owner has retained a project management company (Melvin Mark Development Co., M1~II~C) to independently review cost estimates and GMP. Contractor understands that Owner is under no obligation to si,n final construction agreements with Contractor unless the parties can reach mutual agreement on the terms of such agreements, including an accepta.ble GNIP within the budget and financing capabilities of Owner as determined by Owner. a. The parties a~-ee that all of the amour~ts paid or payable to Contractor for services rendered on and after June 1, 199' are subject to the following: