EXHIBIT 10.1 CONTRACT AND ALL EXHIBITS

 

                                                                    Exhibit 10.1

 

[(CONFIDENTIAL  TREATMENT OF CERTAIN DESIGNATED  PORTIONS OF THIS AGREEMENT HAVE

BEEN REQUESTED BY REGISTRANT.  SUCH CONFIDENTIAL  PORTIONS HAVE BEEN OMITTED, AS

INDICATED BY AN (*) IN THE TEXT, AND SUBMITTED TO THE COMMISSION).]

 

                            CONTRACT AND ALL EXHIBITS

 

                                     HEREIN

 

                                     BETWEEN

 

               RIVERSIDE CEMENT COMPANY AND ORO GRANDE CONTRACTORS

 

        THIS CONTRACT  made the 27th day of September,  2005, by and between Oro

Grande Contractors,  a Joint Venture between Zachry Construction Corporation and

AMEC E&C Services,  Inc. with its principal office at 527 Logwood,  San Antonio,

Texas 78221,  hereinafter called  "CONTRACTOR",  and Riverside Cement Company, a

California general  partnership with its principal office at 1341 W. Mockingbird

Lane, Dallas, Texas 75247, hereinafter called "OWNER":

 

        WITNESSETH, that CONTRACTOR and OWNER, for the consideration hereinafter

named, agree as follows:

 

ARTICLE 1. SCOPE OF THE WORK

 

1.1     OWNER hereby  engages  CONTRACTOR to perform the following as more fully

defined  in the Scope of Work,  attached  as Exhibit  "A"  hereto,  referred  to

hereafter as the "Work".  In  completing  the Work required  herein,  CONTRACTOR

shall:

 

        (a)     Furnish all of the  materials  as are  necessary to complete the

                Work described herein, except as otherwise provided herein;

 

        (b)     do everything  required by this Contract  (including the General

                Conditions  as defined in Article 6 and  Special  Conditions  as

                defined in Article 11), the Drawings and Specifications, and any

                other documents,  drawings and specifications  and/or agreements

                which now or in the future become a part of the entire  Contract

                of the  parties  hereto  in  respect  to the  Work  contemplated

                herein.

 

        Hereinafter,   this   Contract,   which   includes   the   Drawings  and

Specifications,  and all Exhibits,  Attachments,  and Schedules hereto, shall be

collectively referred to as the "Contract" or "Contract Documents". The specific

Work to be performed by CONTRACTOR, as more fully set out in Exhibit A, Scope of

Work, is as follows:

 

<PAGE>

 

        (1)     CONTRACTOR  shall  furnish  all  project  management   services,

        construction  management,   engineering,  design,  drawings,  materials,

        equipment,  tools,  installation labor,  supervision,  and insurance (as

        more  fully set forth in the Scope of Work  attached  hereto as  Exhibit

        "A"), to provide OWNER with a Mechanically  Complete new 6600 short tons

        per day (STPD)  clinker  production  line at OWNER'S  Oro Grande  Cement

        Plant, Oro Grande, California (hereinafter called "Plant Site").

 

        (2)     CONTRACTOR   shall  furnish   Parent   Guarantees   from  Zachry

        Construction  Corporation  and AMEC plc in the form  attached  hereto as

        Exhibit B-1.

 

1.2     OWNER shall furnish or otherwise be responsible for the following:

 

        (1)     OEM  Equipment  and OEM  Services  as set  forth in the  Project

        Progress Schedule, including OEM engineered drawings;

        (2)     Environmental  permits and fees;

        (3)     Geotechnical investigation report and topographical surveys;

        (4)     Electrical   power  (480  volt),   non-potable   water  for  the

        CONTRACTOR'S   main   construction    offices;

        (5)     Temporary construction power necessary to completely perform the

        Work within close proximity to the Jobsite.  OWNER shall pay for cost of

        such services.  The CONTRACTOR  will be responsible  for extending these

        services  to its  Jobsite.  Water and  sanitary  for other  construction

        trailers and CONTRACTOR'S employees will be provided by CONTRACTOR;

        (6)     Appoint an OWNER'S Representative who shall be authorized to act

        on behalf of Owner;

        (7)     Provide  full and  unrestricted  access  to the  Plant  Site for

        construction of the Work;

        (8)     Abide by, and require  others under OWNER'S  control to abide by

        all reasonable  Jobsite safety rules promulgated by CONTRACTOR;

        (9)     Pay all real property taxes assessed  against the Plant Site and

        the  Work;

        (10)    Advise of the existence of any known  contamination,  and supply

        data which shall evidence that the Jobsite is clean and free of above or

        underground  obstructions,  fissures,  faults or other similarly  hidden

        features or  obstructions  which might  interfere with the completion of

        the Work;

        (11)    Report   to   CONTRACTOR   any  known   pre-existing   hazardous

        conditions,  and to the extent correction is necessary and advisable for

        the Work to be  completed,  to correct such known  conditions;  provided

        that this shall not shift from CONTRACTOR to OWNER the duty of safety at

        the Jobsite,  which shall remain the sole  responsibility of CONTRACTOR;

        (12)    All Owner Services in Section 6.10;

        (13)    Timely  performance  of all  Owner  obligations  in the  Project

        Progress  Schedule;

        (14)    *

        (15)    OWNER will participate,  and require others under its control to

        participate  in the Z-PEPP(TM)  Program;  and

        (16)    Timely   delivery   as  per   Project   Progress   Schedule   of

        Owner-Supplied Equipment and design information and OEM Equipment to the

        Jobsite in a manner that will not delay CONTRACTOR in the performance of

        its obligations as set forth in the approved Project Progress Schedule;

 

                                  Page 2 of 32

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        Provided,  however,  in the event of  OWNER's  failure  to  comply  with

        subsections  (1), (2),  (3), (4), (5), (13) or (16) above,  CONTRACTOR's

        sole  remedy  shall be the right to a Change  Order  pursuant to Section

        6.13.

 

ARTICLE 2. TIME OF COMPLETION

 

        A Limited Notice to Proceed  ("Limited Notice to Proceed" or "LNTP") was

executed by and between the Parties on May 4, 2005. The Parties intend that this

Contract will supersede the LNTP and that any Work performed in accordance  with

the LNTP shall be subject to the terms of this Contract.

 

        CONTRACTOR will perform the Work in accordance with the Project Progress

Schedule and shall be completed on or before October 5, 2007, as may be adjusted

pursuant  to this  Contract.  OWNER and  CONTRACTOR  agree that these  dates are

subject  to timely  execution  of this  Contract,  on time  delivery  of the OEM

Equipment,  and any  extensions  of time provided for elsewhere in this Contract

and OWNER meeting its obligations hereunder.

 

ARTICLE 3. THE CONTRACT PRICE

 

        OWNER shall pay CONTRACTOR for the performance of this Contract, subject

to any additions and deductions provided for herein, the Lump sum Contract Price

("Lump Sum Contract Price") as follows:

 

        LUMP SUM CONTRACT PRICE             *

 

ARTICLE 4. PROGRESS PAYMENTS

 

        Payments made  pursuant to the Agreement for Limited  Notice to Proceed,

dated May 4, 2005 between OWNER and CONTRACTOR  shall suffice as advance payment

and be applied to this Contract.  All succeeding progress payments shall be made

in  accordance  with the  terms set forth in the  following  paragraphs  of this

Article.

 

        Prior to Contract signing,  CONTRACTOR shall submit a Schedule of Values

for  Progress  Payments  against  which,  once it has been  accepted by OWNER in

writing,  progress  payments  shall be paid. The Schedule of Values for Progress

Payments shall include  engineering,  equipment,  and construction  totaling the

Lump Sum  Contract  Price.  On or before  the tenth  (10th)  Day of each  month,

CONTRACTOR shall submit an itemized invoice for payment pursuant to the Schedule

of Values for Progress Payments which is subject to verification and approval by

OWNER.   CONTRACTOR  shall  substantiate   engineering   services,   procurement

commitments  and  equipment  and  materials-in-progress   with  such  additional

documentation as shall reasonably be requested by OWNER. CONTRARCTOR will retain

and make available for tax purposes supporting detail information related to the

invoice as  requested  by OWNER,  including  details of  engineering  and design

services  performed by the CONTRACTOR or its  subcontractor.  If required by the

California  Board of Equalization  Sales and Use Tax audit of OWNER,  CONTRACTOR

will provide OWNER with the  necessary  documentation  supporting  the amount of

Sales and Use Taxes paid by CONTRACTOR.

 

                                  Page 3 of 32

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        OWNER  shall  make  payments  on  account  of this  Contract,  except as

otherwise provided herein, as follows:  On or before the tenth (10th) Day of the

following  month after  receipt of the invoice,  OWNER shall pay the  undisputed

amount of the invoice,  as per the Project  Progress  Schedule.  Provided,  that

OWNER  shall be  entitled  to  withhold  from the final  payment or  immediately

preceding  payments,  as necessary,  a sum, not to exceed  $3,000,000.  If OWNER

foresees that the final  payment will not equal this amount,  OWNER may withhold

from the immediately  preceding invoice or invoices,  as necessary to accumulate

this sum.  OWNER may retain  this sum for a period of time not to exceed  ninety

(90) Days after Mechanical Completion,  and may deduct from such sum any amounts

necessary  to  obtain  release  of  liens on the Work or  complete  other  items

required to be completed by CONTRACTOR  hereunder but which remain unreleased or

uncompleted after reasonable  notice to CONTRACTOR.  After expiration of such 90

Day period, OWNER will refund to CONTRACTOR any amounts remaining from such sum.

 

        Within ten (10) Days after OWNER receives  CONTRACTOR's  invoice,  OWNER

shall notify  CONTRACTOR  concerning any invoiced  amount that is in dispute and

the  contractual  basis  for such  dispute.  OWNER'S  payment  and  CONTRACTOR's

acceptance  of any payment  shall not be deemed to constitute a waiver by either

party of amounts that are then in dispute.  CONTRACTOR and OWNER shall use their

reasonable  efforts to resolve all disputed amounts as expeditiously as possible

in accordance with the provisions of Article 8.

 

        If an invoice is not  delivered by  CONTRACTOR  on or before the 10th of

the month,  payment may be withheld for an additional  thirty (30) Days for that

portion  of  the  invoice  which  is  not  in  compliance   with  the  invoicing

requirements  in this Article 4. OWNER shall in no event make payments in excess

of the  contract  value of  labor,  materials,  equipment,  services,  etc.,  in

progress, furnished or completed to date. CONTRACTOR agrees that monies received

for the  performance  of this  Contract  shall be used  primarily  for labor and

materials  entering  into Work under this  Contract and said monies shall not be

diverted to satisfy obligations of CONTRACTOR on other contracts.

 

        Upon receipt of the partial  payments,  CONTRACTOR  shall  furnish OWNER

with  such   partial   releases   and  waivers  of  lien  from  itself  and  its

subcontractors  and significant  suppliers as OWNER may reasonably  request from

time to time on labor and/or material and/or other claims.

 

        All invoices shall  reference  OWNER'S  Contract  Number and Item Number

____________ and be mailed to:

 

                               Riverside Cement Company

                               3500 Porsche Way, Suite 150

                               P.O. Box 51479

                               Ontario, Ca.  91761-0079

                               Attention: William O. Brown

 

        Payments made to CONTRACTOR by OWNER  hereunder  shall be made by an ACH

electronic payment in the following format, in order of preference:  CCD+ or CTX

or CTP format,  to the account of  CONTRACTOR  as specified  on the invoice.  If

undisputed  payments are not made as required by the Contract terms,  CONTRACTOR

may invoice  interest at the prime rate of  interest as  published  from time to

time in the Wall Street Journal plus one percent (1%) until paid.

 

                                  Page 4 of 32

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ARTICLE 5.  SUBSTANTIAL COMPLETION AND MECHANICAL COMPLETION

 

5.1     Certificate of Substantial Completion.  Once all of the requirements for

Substantial  Completion have been satisfied CONTRACTOR shall so certify to OWNER

by submitting a Certificate of Substantial  Completion to OWNER, a copy of which

is  attached  hereto as an Exhibit to Section 4 of Exhibit A.  Within  seven (7)

Days following  receipt of such  Certificate of  Substantial  Completion,  OWNER

shall notify  CONTRACTOR by execution of this Certificate  whether OWNER concurs

that  CONTRACTOR  has met the  requirements  for  Substantial  Completion.  Such

certification  shall  not be  deemed  to  waive  any  rights  of  OWNER  against

CONTRACTOR   under  this  Contract.   Concurrent  with  such   certification  of

acceptance,  which  shall  be  evidenced  by  execution  of the  Certificate  of

Substantial  Completion by OWNER,  Substantial Completion will have occurred and

OWNER shall assume care,  custody,  and control of and shall  thereafter  assume

sole  responsibility  for risk of loss for that  portion  of the Work.  If OWNER

determines that CONTRACTOR has not met Substantial Completion,  then OWNER shall

deliver a written  notice to  CONTRACTOR  describing  in  reasonable  detail the

deficiencies  noted and corrective action  recommended.  Substantial  Completion

shall  not be deemed to have  occurred,  and  CONTRACTOR  shall be  required  to

perform the  remaining  requirements  for  Substantial  Completion  and submit a

revised  Certificate  of  Substantial  Completion.  Any dispute  regarding  such

certification  shall be resolved in  accordance  with the procedure set forth in

Article  8.  If,  following  the  initial  or  any  subsequent   Certificate  of

Substantial  Completion,  OWNER has not delivered to CONTRACTOR an acceptance or

rejection of such certificate as required herein, Substantial Completion will be

deemed to have occurred and the date of CONTRACTOR's most recent  Certificate of

Substantial  Completion shall be deemed the date that Substantial Completion was

actually achieved.

 

5.2     Certificate of Mechanical Completion.  Once CONTRACTOR has performed all

of the  requirements for Mechanical  Completion,  CONTRACTOR shall so certify to

OWNER by submitting a Certificate  of Mechanical  Completion to OWNER, a copy of

which is attached  hereto as an Exhibit to Section 4 of Exhibit A. Within  seven

(7) Days following receipt of such Certificate of Mechanical  Completion,  OWNER

shall notify  CONTRACTOR by execution of this Certificate  whether OWNER concurs

that  CONTRACTOR  has met  the  requirements  for  Mechanical  Completion.  Such

certification  shall  not be  deemed  to  waive  any  rights  of  OWNER  against

CONTRACTOR   under  this  Contract.   Concurrent  with  such   certification  of

acceptance,  which  shall  be  evidenced  by  execution  of the  Certificate  of

Mechanical  Completion by OWNER,  Mechanical  Completion  will have occurred and

OWNER shall assume care,  custody,  and control of and shall  thereafter  assume

sole  responsibility  for risk of loss for the Work.  If OWNER  determines  that

CONTRACTOR has not met Mechanical Completion, then OWNER shall deliver a written

notice to CONTRACTOR  describing in reasonable detail the deficiencies noted and

correction action recommended. Mechanical Completion shall not be deemed to have

occurred and CONTRACTOR shall be required to perform the remaining  requirements

for  Mechanical  Completion  and  submit a  revised  Certificate  of  Mechanical

Completion.  Any  dispute  regarding  such  certification  shall be  resolved in

accordance with the procedure set forth in Article 8. If,  following the initial

or any  re-issuance of the Certificate of Mechanical  Completion,  OWNER has not

delivered to CONTRACTOR an acceptance or rejection of such certification  within

seven (7) Days as required herein,  Mechanical Completion will be deemed to have

occurred and the date of  CONTRACTOR's  most recent  Certificate  of  Mechanical

Completion  shall be deemed the date that  Mechanical  Completion  was  actually

achieved.

 

                                  Page 5 of 32

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        OWNER shall execute the Certificate of Mechanical  Completion,  provided

that each of the following conditions has been fulfilled:

 

        (a)     Said Work has been completed in all respects in accordance  with

        the Contract Documents;

        (b)     CONTRACTOR has performed all its obligations under this Contract

        (except  warranty and other  obligations  which, by their terms, are not

        then due); and

        (c)     CONTRACTOR  has submitted  reasonable  evidence in the form of a

        final release and waiver of lien from itself and its  subcontractors  to

        OWNER that  CONTRACTOR  and its  subcontractors  have paid all payrolls,

        material bills, and other indebtedness connected with said Work.

 

ARTICLE 6. GENERAL CONDITIONS

 

        The general conditions of this Contract are as follows:

 

6.1     Performance of Work.  All Work to be performed by CONTRACTOR  under this

        --------------------

Contract shall be executed in conformity  with the Drawings and  Specifications,

and  CONTRACTOR  shall do no Work  without  OWNER'S  approval  of  Drawings  and

Specifications, in accordance with Section 6.4.

 

        CONTRACTOR shall provide and pay for all materials, labor, water, tools,

equipment,  light,  transportation,  and  other  facilities  necessary  for  the

execution  and  completion  of Work as set out in Exhibit A, Scope of Work.  All

materials and equipment  incorporated into the Work shall be new, and CONTRACTOR

represents that all Work under the Contract shall be of a finished nature.

 

        CONTRACTOR  agrees to  prosecute  its Work as is  necessary to cause the

Work to be completed in accordance with the schedule described in Section 4.1 of

Exhibit A, Project Progress Schedule, attached hereto, subject to adjustments as

provided herein.

 

        CONTRACTOR  shall be fully  responsible for all necessary  expediting of

its orders for  materials  and  equipment,  regardless  of where placed to avoid

delays in its Work.  Defective  materials or materials  damaged in the course of

installation or test shall be replaced or repaired in a manner conforming to the

Contract Documents. All necessary cutting shall be neatly and carefully done and

repaired in an approved and workmanlike manner. No cutting into the constructive

parts of the buildings and structures  shall be done without  approval of OWNERS

Representative.  All sheets  shall be saw cut. No torch burned metal sheets will

be accepted.

 

        CONTRACTOR  shall be fully  responsible  to install all OEM Equipment in

the manner  recommended by the  manufacturer of such equipment,  and to maintain

such  OEM  Equipment  as  recommended  by  the  manufacturer  until  Substantial

Completion.  In the event  CONTRACTOR  does not have necessary  installation  or

maintenance  documentation for a particular piece of OEM Equipment,  it shall be

CONTRACTOR's  responsibility  to  inform  the  OEM  or  OWNER  of its  need  for

additional  information or  specifications  in advance of such  installation  or

maintenance.

 

                                  Page 6 of 32

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6.2     Prosecution  of the Work.  CONTRACTOR  agrees to  prosecute  its Work in

        -------------------------

accordance with the Contract and Exhibit A, Scope of Work.

 

6.3     Construction  Drawings.  CONTRACTOR  shall furnish promptly to OWNER all

        -----------------------

drawings and  schedules  required in connection  with its Work,  but approval of

such drawings and schedules shall not relieve  CONTRACTOR of its  responsibility

of complying with the requirements of the Drawings and  Specifications of OWNER.

CONTRACTOR  shall take all field  measurements  necessary for its Work and shall

assume responsibility for their accuracy.

 

6.4     Approval of Drawings.  Detail, design and schematic drawings of the Work

        ---------------------

shall be submitted  electronically (via AMEC website) by CONTRACTOR to the OWNER

for approval  thereof.  CONTRACTOR,  upon  request  from OWNER,  shall submit to

OWNER,  for  review  only,  all  relevant  design  calculations.  One (1) set of

drawings  is to be  marked  by OWNER  as  "Approved",  "Approved  as  Noted"  or

"Disapproved as Noted" and returned to CONTRACTOR. Provided CONTRACTOR and OWNER

agree with  changes  made by OWNER in  drawings  marked  "Approval  as Noted" or

"Disapproved  as Noted" said  drawings  shall be  corrected  by  CONTRACTOR  and

provided  to OWNER.  If OWNER and  CONTRACTOR  agree that any of the  changes or

modifications are outside the Scope of Work or Project Progress Schedule, and if

changes or modifications  are made after OWNER's written approval (which is only

deemed to be provided if CONTRACTOR  has complied with all  procedures set forth

in this Contract regarding change orders),  such changes or modifications  could

adjust  the Lump Sum  Contract  Price  (either up or down)  and/or  the  Project

Progress Schedule as provided in Section 6.13, Changes. CONTRACTOR shall utilize

the most reasonably expeditious means of mail or electronic transmittal delivery

to assure timely submittal of drawings to OWNER. The failure of OWNER to approve

or  disapprove  drawings  within seven (7) Days after  receipt  thereof shall be

construed as approval  thereof by OWNER.  Upon approval of such  drawings,  they

shall  become part of the  Contract  deliverables.  Approved  drawings  shall be

issued by CONTRACTOR and one (1) set of electronic drawings will be furnished to

OWNER.  Approval of drawings hereunder by OWNER shall not constitute a waiver or

release of any kind, and shall not relieve  CONTRACTOR of its  responsibility to

comply fully and completely with the Scope of Work, warranties,  representations

and all other commitments or responsibilities set forth in this Contract.

 

        CONTRACTOR  shall furnish to Owner one (1) electronic (via AMEC website)

certified drawing of machinery or equipment  procured by CONTRACTOR as described

herein,  including  all  applicable  electrical  wiring  diagrams  or to invoice

address shown above if not available electronically.

 

        CONTRACTOR  shall  furnish  to Owner an  electronic  version  (via  AMEC

Website) of  installation,  operation and maintenance  manuals and an electronic

version of recommended spare parts list or to invoice address shown above if not

available electronically.

 

6.5     As-Built  Drawings.  Within sixty (60) Days after Mechanical  Completion

        -------------------

(as  hereinafter  defined)  CONTRACTOR  shall  furnish  to  the  OWNER  one  (1)

electronic  version of drawings depicting the Work as actually  completed;  such

drawings shall show the "as-built"  details of the Work, limited to MFDs, P&IDs,

electrical connection and underground.

 

                                  Page 7 of 32

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6.6     Specifications and Drawings.

        ----------------------------

 

6.6.1.  Data Furnished by CONTRACTOR. The CONTRACTOR shall furnish an electronic

        -----------------------------

version of drawings and pertinent instructions required for the installation and

operation of equipment  supplied  hereunder in accordance with the provisions of

this  Contract.  A nominal  charge will be made to cover the cost of  additional

copies. All copies of drawings, plans, specifications and instructions developed

by  CONTRACTOR   for  the  Contract  which  are  not  owned  by  or  subject  to

confidentiality  restrictions  by a third  party  shall  become the  property of

OWNER. OWNER agrees that any reuse of such drawings,  plans,  specifications and

instructions  without prior written verification or adaptation by CONTRACTOR for

the specific purpose intended will be at OWNER's sole risk and without liability

or legal exposure to CONTRACTOR.  All such drawings,  plans,  specifications and

instructions  shall at OWNER'S  request be  delivered  to OWNER upon  Mechanical

Completion of the Work, but CONTRACTOR may retain and use copies thereof and any

technology embodied therein. Any data or drawings required by the Contract to be

given to the OWNER  identified as  confidential  or proprietary to a third party

shall  remain the property of such third  party,  to be used only in  connection

with the construction,  operation and maintenance of the equipment and shall not

be  disclosed  to  third   parties   without  the  prior   written   consent  of

CONTRACTOR/OWNER. Provided, however, that any party which OWNER or its successor

wishes to hire to maintain, enhance, or add to the Work may be permitted to view

and copy  solely for such  purposes  any data or  documents  delivered  to OWNER

pursuant to this  Contract,  to the extent  necessary  or helpful to perform the

duties for which such  third  party was  retained.  Provided,  further,  that no

confidentiality  restrictions  shall apply to information which becomes publicly

available through no fault of the OWNER, is independently developed by OWNER, or

was in the possession of OWNER or provided to OWNER through some other source.

 

6.6.2.  Data Furnished by OWNER.  The OWNER shall furnish  CONTRACTOR  with such

        -----------------------

information as is specified in this Contract to be the  responsibility of OWNER,

and CONTRACTOR shall be entitled to rely on the accuracy and completeness of all

such  information in the performance of its Work hereunder.  OWNER shall furnish

the  CONTRACTOR  an  electronic  copy,  if  available,  or  hard  copy  of  such

information required hereunder; additional copies will be furnished upon request

by CONTRACTOR. Information regarding the Jobsite, the business and operations of

OWNER,  and any other  information  provided by the OWNER which is not  publicly

known and not developed independently by CONTRACTOR shall remain the proprietary

and confidential property of OWNER and shall not be disclosed to any third party

without the advance  written  consent of OWNER.  Operational  data regarding the

completed plant,  including  estimated  production costs to produce clinker from

the completed plant, and other sensitive  financial and operational  information

regarding  OWNER'S operation of the plant shall remain the property of OWNER and

shall not be  disclosed by the  CONTRACTOR  or its  subcontractors  to any party

without the advance written  consent of OWNER.  In the event any  specification,

direction,  design or innovation provided by OWNER can be protected under patent

or other  intellectual  property laws, such  intellectual  property  provided by

OWNER shall  remain the sole and  exclusive  property of OWNER and no license of

any intellectual property of OWNER is deemed given by OWNER.

 

                                  Page 8 of 32

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6.7     Storage of Equipment and Materials.  CONTRACTOR  shall receive,  unload,

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

store,  and take proper care of all  materials  and  equipment  involved in this

Contract. All equipment and materials to be stored or used at OWNER'S Plant Site

must be stored so as not to interfere  with the  construction  of the balance of

the Plant  Site.  Attention  must be given to the  storage  of  materials  as no

watermarked, dirty, or marred materials shall be accepted in the installation.

 

6.8     Safety.  CONTRACTOR shall provide for safety precautions and programs in

        -------

connection  with its  activities  at the Jobsite and, in  connection  therewith,

shall  comply  with the  requirements  of MSHA,  Occupational  Safety and Health

Administration  (OSHA),  OWNER's  Safety  Procedures,  and any  and  all  state,

federal,  and local  regulations  relating to the performance of the Work at the

Jobsite.

 

        CONTRACTOR shall submit to OWNER a copy of its Safety  Procedures Manual

for OWNER'S approval.

 

        All of  CONTRACTOR'S  employees  will be  required  upon  entering  onto

OWNER'S Plant Site to wear hard hats, safety glasses, safety shoes and any other

protective  equipment  either required by law or otherwise  deemed necessary for

the safety of OWNER'S employees as well as CONTRACTOR'S employees.

 

        CONTRACTOR shall comply with MSHA  regulations.  Citations  arising as a

result of CONTRACTOR or its  Subcontractors  not following MSHA regulations will

be for CONTRACTOR to pay or defend.

 

        CONTRACTOR  shall  provide  safety  training  as  required  by MSHA  for

CONTRACTOR'S  employees  who  work on the  Plant  Site.  This  training  must be

completed  and written  confirmation  of such must be  furnished to OWNER before

Work  can  commence.  Training  will be  provided  by  CONTRACTOR  obtaining  an

MSHA-certified  instructor  permit and  providing  training  as required by MSHA

under CFR Part 6 or Subpart 13.

 

6.9     Ingress and Egress from OWNER'S  Premises.  At all times during the term

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

of this Contract, all of CONTRACTOR'S employees shall ingress and egress OWNER'S

Jobsite using the entrance/construction gate and parking area agreed to by OWNER

for  CONTRACTOR'S  workers adjacent to the Plant Site. OWNER shall, at all times

necessary for  CONTRACTOR'S  performance  under the  Contract,  provide free and

clear  access  to  the  Jobsite  to  CONTRACTOR,   its  agents,   employees  and

subcontractors.

 

6.10    OWNER'S Services. OWNER shall at its expense provide CONTRACTOR with the

        -----------------

following:

 

        (a)     Information locating all above ground or underground  utilities,

        obstructions  and services  (electrical,  water,  gas, etc.) as known to

        OWNER;

        (b)     An Owner's  Representative  designated  in writing  who shall be

        authorized to act on OWNER'S  behalf with respect to the  Contract;

        (c)     All  the  required  fuel,  flushing  oil,  utilities,   and  raw

        materials   required   for  Dry  Run   Testing;

 

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        (d)     Accurate  topographical  plans and  subsurface  data;

        (e)     "First Fill" lubricant material;

        (f)     Phone lines for CONTRACTOR to tie into for temporary facilities;

        (g)     Free and clear  access  across the  Jobsite;

        (h)     All  necessary  operating  and design data for OEM/BOP and OWNER

        supplied  equipment;

        (i)     A prompt  review and,  if  acceptable,  approval  of  CONTRACTOR

        Drawings and  Specifications  in  accordance  with this Contract and any

        other assistance that CONTRACTOR may reasonably require for carrying out

        the Work hereunder including prompt review and, if acceptable,  approval

        of all equipment  and  fabricated  items and vendor and  vendor-supplied

        equipment  in  accordance  with this  Contract,  and  prompt  and timely

        performance  of  all  OWNER  required   obligations;

        (j)     Commercially   reasonable  efforts  to  help  CONTRACTOR  obtain

        concrete,  if  CONTRACTOR  so requests,  in the event it has  difficulty

        obtaining  same due to local market  conditions;  with no  obligation to

        OWNER relating to the provision or failure to provide such concrete; and

        (k)     All of the items OWNER shall furnish in accordance  with

        Article 1.

 

6.11    CONTRACTOR'S  Representative.  The CONTRACTOR  shall employ a qualified,

        -----------------------------

competent  representative  who shall be in  attendance  at the site  during  the

progress of the Work and shall represent the CONTRACTOR.

 

6.12    Concealed Conditions.  Should concealed conditions be encountered in the

        ---------------------

performance  of the Work below the surface of the ground or should  concealed or

unknown conditions be at variance with the conditions indicated by the documents

provided by OWNER to CONTRACTOR  and referenced in the Basis of Price section of

the Scope of Work in Exhibit  A, then the Lump Sum  Contract  Price and  Project

Progress  Schedule  may be  equitably  adjusted by Change  Order as  hereinafter

defined in accordance with Section 6.13,  Changes.  Such varying  conditions may

include without  limitation  previously  unknown  subsurface and latent physical

conditions  at the  Jobsite,  archeological  finds  of  historical  or  cultural

significance,  protected or endangered  species of plants and animals,  or other

conditions  that  may  preclude  CONTRACTOR  from  proceeding  with the Work for

reasons of health,  safety,  or legal  restriction.  Without  waiving its rights

hereunder,  CONTRACTOR  agrees  to  notify  OWNER of such  conditions  promptly,

whereupon OWNER will promptly  investigate the same and issue appropriate orders

or instructions to CONTRACTOR.

 

6.13    Changes.  The right is reserved by OWNER to make changes in,  deviations

        --------

from, additions to, and omissions from the Work herein contracted,  and the Lump

Sum Contract Price and Project Progress Schedule shall be adjusted  accordingly.

Before proceeding with any change, deviation,  addition or omission,  CONTRACTOR

will first obtain written  authorization from OWNER, to be signed exclusively by

William O. Brown,  or such person as OWNER or he may  designate in writing.  Any

and all changes to the Scope of Work and the Lump Sum Contract  Price must first

be agreed to in writing by OWNER and CONTRACTOR.

 

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        6.13.1  CONTRACTOR shall be entitled to adjustments,  in accordance with

        Section  6.13.2,  in the Lump Sum  Contract  Price and Project  Progress

        Schedule for the following events:

 

        (a)     Any part of the Work is  delayed by any act or failure to act by

        OWNER or third  parties  performing  Work for OWNER to the  extent  such

        action is the  responsibility  of OWNER as set forth in this Contract or

        by Force Majeure as provided in Section 6.17;

        (b)     CONTRACTOR'S   costs  are   increased  due