Exhibit 10.2
CONSTRUCTION
AGREEMENT
AMENDMENT #1
August 25, 2005
WHEREAS , Alberta Energy Holding, Inc.
(“Alberta”), a private company organized and in good
standing under the laws of Delaware and Blast Energy Services, Inc.
(“Blast” and formerly known as Verdisys, Inc.), a
public company organized and in good standing under the laws of
California entered into a Construction Agreement dated March 17,
2005 (the “Agreement”). Alberta and Blast shall
collectively be known as the Party or Parties;
WHEREAS , the Parties now wish to reaffirm the
provisions of the Agreement and make certain amendments thereto.
The original objective is reaffirmed that Alberta will engineer,
design, source, and build the AFJ Coiled Tubing Rig System under
the terms and conditions in the Agreement as modified herein.
Alberta has undertaken to ensure the integration of the various rig
systems and to assist Blast in deploying the rig through
commissioning and into commercial operation;
WHEREAS the Parties are executing a Technology Purchase
Agreement as of this date;
THEREFORE , in view of the good and valuable consideration
stated below, Blast and Alberta agree as follows:
1. The scope of the construction
project is defined in the Agreement and the factory acceptance test
criteria are defined herein in Schedule A.
2. The modified lump sum price in
Section 3 of the Agreement is hereby amended from $850,000 to
$900,000 to recognize delays in funding and costs to expedite
delivery.
3. The Budget Overrun sharing
arrangements for Alberta in section 4 of the Agreement is hereby
amended to range from costs in excess of $900,000 but not to exceed
$1,000,000. Such range was previously $850,000 to
$950,000.
4. The Budget Overrun sharing
arrangements for Blast to assume in section 4 of the Agreement is
hereby amended to amounts in excess of $1,000,000. Such limit was
previously $950,000.
5. Alberta will now use its best
efforts to deliver Blast Rig #1, as specified in Appendix A of the
Agreement, for Factory Acceptance Testing on or before October 1,
2005. Such testing criteria are defined in Schedule A
herein.
6. Alberta will provide a weekly
update to David Adams including the following items: a critical
path schedule, allocation of costs to date by major line item,
upcoming major equipment/integration activities, areas of concern
for the timing and mechanical viability of the project.
7. Blast hereby covenants to wire
transfer additional advances and payments due under the Agreement
as are requested by Alberta.
8. The incomplete sentence
(“Need to refer to this superseding the Licensing
Agreement”) immediately prior to the WITNESS provision of the
Agreement is hereby stricken and has no binding effect.
9. Exhibit B of the Agreement is
hereby cancelled and deleted.
10. Legal jurisdiction and binding
arbitration provisions from the Agreement are reaffirmed
