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Exhibit 10.(ix)
CONTRACT
BETWEEN
NEVADA MANHATTAN MINING, INC.
AND
XXXXXXXX WESTERN CONSTRUCTION CORPORATION
DATED
6/12/96
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INDEX
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ARTICLE ONE DEFINITIONS
1.1 Contract Documents
1.2 Other Contractor
1.3 Owner's Representative
1.4 Owner's Representative's Decision
1.5 Subcontractor
1.6 Work
ARTICLE TWO TIME OF COMPLETION
ARTICLE THREE SCOPE OF WORK
3.1 Scope
3.2 Generalization of Description
3.3 Site Location
3.4 Variations, Additions or Deletions
ARTICLE FOUR AGREEMENTS OF CONTRACTOR
4.1 Observance of Laws
4.2 Contractor's Understanding
4.3 Oral Modifications
4.4 Contractor's Organization
4.5 Progress Charts
4.6 Employees
4.7 Job Assignments and Classification
4.8 Personnel Policies
4.9 Project Manager
4.10 Performance
4.11 Defective Work
4.12 Inspection of Work
4.13 Equipment Requirements
4.14 Building Maintenance
4.15 Work Correlation
4.16 Permits
4.17 Qualification
4.18 Liens
4.19 Contractor's Responsibility
ARTICLE FOUR AGREEMENTS OF CONTRACTOR
4.20 Hand Tools
4.21 Protection of Work and Property
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4.22 Subcontracts
4.23 Subcontractor's Compliance
4.24 Wage Rates
4.25 Use of Premises
4.26 Temporary Buildings
4.27 Temporary Roads
4.28 Construction Facilities
4.29 Cleaning Up
4.30 Purchasing Services
ARTICLE FIVE AGREEMENTS OF OWNERS
5.1 Observance of Laws
5.2 Permits
5.3 Owner's Representative
5.4 Timely Approvals
ARTICLE SIX REIMBURSEMENT OF COSTS
6.1 Reimbursable Costs
6.2 Non-Reimbursable Costs
6.3 Advance of Funds
6.4 Availability of Records
ARTICLE SEVEN PAYMENT
7.1 Contractor's Fee
ARTICLE EIGHT INSURANCE
8.1 Workmen's Compensation
8.2 Commercial General Liability
8.3 Business Auto Policy
8.4 Umbrella Liability
8.5 Insurance Coverage
8.6 Additional Insured
8.7 Insurance Certificates
8.8 Bond
8.9 Subcontractors' Insurance
ARTICLE NINE TAXES
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ARTICLE TEN GENERAL
10.1 Notices
10.2 Ownership of Data
10.3 Drawings and Specifications
10.4 Continuance of Work
10.5 Assignment
10.6 Waiver
10.7 Captions
10.8 The Owner's Right To Do Work
10.9 Use of Completed Portions
10.10 Law Governing
10.11 Third Party Beneficiary
10.12 Force Majeure
10.13 Warranty
ARTICLE ELEVEN TERMINATION - SUSPENSION
ARTICLE TWELVE COMPLETION OF WORK
ARTICLE THIRTEEN ARBITRATION
ARTICLE FOURTEEN EQUAL EMPLOYMENT OPPORTUNITY
ARTICLE FIFTEEN WITHDRAWAL OF WORK
APPENDICES LABOR COSTS
EQUIPMENT RENTAL RATES
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THIS CONTRACT, made as of this 6th day of June 1996, by and
between Nevada Manhattan Mining, Inc., a Nevada corporation (being and
hereinafter called "Owner") and Xxxxxxxx Western Construction Corporation, a
Colorado corporation (being and hereinafter called "Contractor").
WITNESSETH:
That, in consideration of the mutual agreements hereinafter contained,
Owner and Contractor agree as follows:
ARTICLE ONE
DEFINITIONS
The terms defined in this ARTICLE ONE, wherever used in this Contract,
shall, unless the context shall otherwise require, have the respective meanings
hereinafter specified in this ARTICLE ONE.
1.1 The "Contract Documents" consist of:
a. This Contract and appropriate appendices.
The Contract supersedes all previous negotiations and constitutes the
entire agreement between the parties.
1.2 "Other Contractor" shall mean an individual, partnership, or
corporation having a direct contract with the Owner for work involved in the
Owner's general project, but outside the scope of this Contract, and shall
include any Subcontractor of any Other Contractor.
1.3 "Owner's Representative" means the person from time to time
designated, by written notice to Contractor, by Owner as Owner's
Representative.
1.4 "Owner's Representative's Decision" or any like terms appearing in the
Contract
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shall at all times be the decision of a reasonable and prudent man.
1.5 "Subcontractor" shall mean an individual, partnership, or corporation
having a direct contract with the contractor for the performance of any part of
the Work to be performed under this Contract.
1.6 "Work" includes all labor, superintendency, materials, supplies,
equipment, and all other items necessary to perform this Contract, and the
furnishing of all material or equipment required for either temporary or
permanent use in connection with such performance.
1.7 "Contractor's Representative" means the person from time to time
designated, by written notice to Owner, by Contractor as Contractor's
Representative.
ARTICLE TWO
TIME OF COMPLETION
2.1 Work shall be commenced on a date mutually agreed to by the parties.
Contractor agrees that it will use its best efforts to complete the Work in a
timely, cost efficient manner.
ARTICLE THREE
SCOPE OF THE WORK
3.1 SCOPE OF WORK -- The Work to be performed hereunder shall include
- Rehabilitation of an existing decline.
- Rehabilitation of underground workings of the Manhattan
Consolidated Mine.
- Extension of a decline and related drifting to the WC-49 area
and White Caps Shaft.
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- Mining of ore from Manhattan Consolidated workings, WC-49 area
and other locations designated by the Owner. Delivery of ore
to locations designated by Owner.
- From time to time the Owner may elect to add other Works
subject to a written change order.
Under mutual agreement, the Work scope may be expanded to include:
- Rehabilitation of the White Caps Shaft.
- Mining White Caps Mine.
- Conversion of contract form to unit price for mining.
3.2 GENERALIZATION OF DESCRIPTION -- The itemization appearing in the
foregoing does not purport to be a complete description of the features and
details of the required construction work and all such items are subject to
change and development as hereinafter provided.
3.3 SITE LOCATION -- The site of the Work is Manhattan, Nevada.
3.4 VARIATIONS, ADDITIONS, OR DELETIONS -- Owner may at any time and from
time to time by written notice to Contractor make variations, additions, or
deletions to the definitive scope of the Work to be performed under this
ARTICLE THREE.
ARTICLE FOUR
AGREEMENTS OF CONTRACTOR
In addition to and without restricting the agreements and undertakings of
Contractor set forth elsewhere in this Contract:
4.1 OBSERVANCE OF LAWS -- Contractor agrees that it will observe and abide
by all applicable laws, rules, regulations, and ordinances of the United States
and the State of Nevada and of any subdivision of and of any Federal or State
governmental agency in
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the performance of the Work. Contractor will ensure that its Subcontractors
and their employees observe all such laws, rules, regulations, and ordinances.
4.2 CONTRACTOR'S UNDERSTANDING -- Contractor has by careful examination,
informed itself as to (a) the amount, nature, and location of the Work, (b) the
nature of the water and the ground conditions at the site of the Work, (c) the
conditions of adjoining properties, roads, and structures, (d) the character,
quality, and quantity of materials to be encountered, (e) the character of the
equipment and facilities needed preliminary to and during the prosecution of
the Work, (f) the availability of labor for the Work (g) the availability of
facilities for housing and feeding employees, (h) the availability of
transportation to the sites of the Work, and (i) other general and local
conditions which can in any way affect the Work.
4.3 ORAL MODIFICATIONS -- Any oral agreements or conversation by
Contractor with any officer, agent, or employee of Owner, either before or
after the execution of this Contract, shall not affect or modify any of the
terms or obligations contained herein.
4.4 CONTRACTOR'S ORGANIZATION -- Contractor represents and warrants that
it has available to it the key organization, financial means and experience
required for, and that it is skilled in, the performance of the Work hereunder.
4.5 PROGRESS CHARTS -- Contractor shall furnish to the Owner a progress
schedule. The Contractor also shall prepare a progress chart made in the form
of a plan, at suitable scale, which shall indicate the salient features of the
Work, with symbols to indicate the progress. All Work under this Contract
shall be done in such order and by such method as shall produce the maximum
economy, safety, and speed, and as shall be approved by the Owner's
Representative.
Further, the Contractor shall submit such other reports as Owner may
reasonably request bearing on the performance of the Work and the cost of any
changes in the Work or Extra Work.
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4.6 EMPLOYEES -- Excepting as in this Contract otherwise expressly
provided, Contractor agrees that it will employ in its own name and furnish and
supply at the time and in the manner hereinafter set forth, all labor,
supervision, superintendency, and like services required in connection with the
construction of the shafts and entries.
Contractor shall at all times enforce strict discipline and good order
among its employees, and shall not employ on the Work any unfit person or
anyone not skilled in the Work assigned to him. Whenever the Owner's
Representative shall notify the Contractor, in writing, that any man on the
Work is, in his opinion, incompetent, unfaithful, disorderly, or otherwise
unsatisfactory, such man shall be discharged from the Work and shall not again
be employed in it, except with the consent of the Owner's Representative.
Neither party to this Contract shall employ or hire any employee or former
employee of the other party or Other Contractors without the consent of the
other party and neither party will proselytize any employees of the other party
during the life of this Contract. The Contractor shall comply with all
provisions of the Workmens' Compensation Act and other laws of the State of
Nevada relating to or affecting the employment of labor.
4.7 JOB ASSIGNMENTS AND CLASSIFICATION -- Contractor shall furnish a
complete list of the employees, exclusive of manual employees, which it
contemplates will work entirely or part time on the Work for written approval
of Owner, which written approval shall not be unreasonably withheld. Such list
shall be revised from time to time as conditions may require, such revisions to
be subject to Owner's written approval. Contractor shall not be entitled to
reimbursement for wages and salaries paid to employees disapproved by Owner,
nor shall Contractor be entitled to reimbursement for the portion of wages and
salaries which are in excess of those approved by Owner. The foregoing list,
as revised from time to time, shall include the names of the individual
employees, their respective wage rates and job classifications. Any changes or
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additions to the aforementioned list, including job reclassifications, shall be
subject to the approval of Owner in writing.
A Salary Range Schedule will be submitted for the approval of the
Owner, defining classifications of hourly rated employees and respective hourly
rates and fringe benefits. Changes in said Salary Range Schedule or any part
thereof, shall be subject to Owner's prior written approval.
4.8 PERSONNEL POLICIES -- Contractor will promptly submit to Owner a
statement outlining its personnel policies with respect to manual and
supervisory employees, including without being limited to, recruiting,
reimbursement for travel, hours of work, term of employment, and rates of
employees' pay. Contractor agrees that it will not charge wages in excess of
the rates prescribed in such schedules or change other provisions of its
personnel policy without first submitting such changes to Owner sufficiently in
advance to allow for consideration, discussion, and approval by Owner.
4.9 PROJECT MANAGER -- Contractor designates Xxxxxx Xxxxxx as Project
Manager for Contractor's operations who shall be responsible for carrying out
Contractor's obligations hereunder and upon or to whom all requests and notices
from Owner to Contractor may be served or delivered as provided in ARTICLE TEN
hereof. Contractor may designate such assistants to the Project Manager as may
be suitable. Whenever Contractor shall employ workers at the site of the Work,
such Project Manager, or his designee, shall at all times be available at the
site of the work. The Project Manager so designated by Contractor shall not be
changed except with the written consent of Owner, unless the Project Manager
shall prove to be unsatisfactory to the Contractor or shall cease to be in its
employ.
4.10 PERFORMANCE -- Contractor agrees that it will perform all Work in a
good workmanlike manner to the end that the Work may be completed properly and
as expeditiously as possible, that the Work shall be done in the manner
required by plans
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and specifications approved by Owner and the same shall be subject at all times
to the inspection and written approval of Owner's Representative.
4.11 DEFECTIVE WORK -- At Owner's request, in writing, any time within one
(1) year following Owner's acceptance of each major segment of the Work,
Contractor agrees to repair, replace, or correct any defective workmanship
performed or furnished by Contractor, as the case may be, under this Contract,
relative to such segment. For any such repair, replacement or correction work,
Contractor shall be paid its costs of such work determined in accordance with
the reimbursement of costs provisions of this Contract. If and to the extent
that any defects or deficiencies in contract work, or in equipment, machinery,
or materials, are due to the willful or negligent acts or omissions of
Contractor or any of its subcontractors, the remedial work shall be performed
at Contractor's expense, without reimbursement by Owner.
4.12 INSPECTION OF WORK -- The Owner's Representative shall at all times
have access to the work wherever it is in preparation or progress, and the
Contractor shall provide facilities for such access and for inspection. All
Work and materials done or furnished by the Contractor hereunder shall be of
the kind and quality described in said Specifications and shall be first-class
throughout. Full opportunity shall be given the Owner's Representative to make
such inspection as he may desire at the site of the Work, and/or in the case of
materials manufactured by or for the Contractor at the works of the
manufacturer thereof. The decision of the Owner's Representative that any
materials or workmanship are not of the proper quality or do not comply with
the Drawings and Specifications and with the provisions hereof shall be final
and conclusive upon the Contractor and the Contractor shall promptly remove any
such material or Work and replace it with material and Work of the proper
quality, or correct any such defects in such other manner as the Owner's
Representative may direct. Any failure on the part of the Owner's
Representative or the Owner to inspect any material or
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workmanship at any time or to reject the same shall not be deemed to be an
acceptance of any defective material or workmanship, and shall not prevent
subsequent inspection and rejection thereof. The Contractor further agrees
that in case any defects appear in the Work within one year after the date of
final completion and acceptance, which defects in the opinion of the Owner's
Representative are due to or caused by defective material or workmanship or by
failure of the Contractor to perform the Work in accordance with the Drawings
and Specifications of this Contract, the Contractor will replace the defective
Work with Work of the proper quality or otherwise remedy such defects as the
Owner's Representative may direct. For the correction of any such defective
work performed or furnished by Contractor, Contractor shall be paid its cost of
such Work determined in accordance with the reimbursement provisions of this
Contract, without fee or profit, for or account of such Work. Defects in any
Work performed by a Subcontractor will be corrected by such Subcontractor
pursuant to the terms and conditions of its subcontract. In the event of a
failure by a Subcontractor to correct the defective Work for which it is
responsible, Contractor will correct such defective Work under the terms and
conditions of this Contract and take such legal action against the
Subcontractor for the benefit of Owner as Owner shall reasonably determine.
4.13 EQUIPMENT REQUIREMENTS -- Contractor shall prior to performing any
Work hereunder, advise Owner of the types and numbers of various pieces of
construction equipment needed to complete the Work and the rental rates
therefor (Attachment Equipment Rental Rates). Contractor will furnish the
equipment needed; however, no equipment is to be purchased or rented by
Contractor without Owner's prior knowledge and written approval, and such
purchase or rental shall be made in accordance with Section 4.30 hereof.
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4.14 BUILDING MAINTENANCE -- Contractor will maintain and keep in good
repair all buildings that may be supplied to it by Owner, and upon demand of
Owner will return the same to Owner in as good condition as when received,
ordinary wear and tear and loss, damage, or destruction for which Contractor is
not responsible under Section 4.19 hereof excepted. Contractor shall maintain,
staff, and operate all Contractor shops and offices necessary in connection with
the Work.
4.15 WORK CORRELATION -- Contractor recognizes that the Work to be performed
by it may be done on the Project in part at the same time as the performance of
other work by Other Contractors, or by Subcontractors, or by Owner, and
Contractor agrees that it will cooperate with such Other Contractors and
Subcontractors and Owner in the correlation of all such Work and in the maximum
elimination of all interference among those concerned.
4.16 PERMITS -- Contractor shall procure all necessary permits, licenses,
consents, and authority which normally may be required of a Contractor from
public or private interests in connection with and necessary for the performance
of the Work, and shall cooperate with Owner in procuring any such permits,
licenses, consents, and authority required by Owner.
4.17 QUALIFICATION -- Contractor agrees to take all necessary steps to
qualify itself or maintain its qualification to do business in the State of
Nevada.
4.18 LIENS -- The Contract retainage of ten percent (10%) of the average of
the last twelve (12) monthly invoices shall not become due until the Contractor,
if required, shall have delivered to the Owner a complete release of all liens
arising from the performance of the Work under this Contract, or receipts in
full in lieu thereof and, if required in either case, an affidavit that so far
as the Contractor has knowledge or information the release and receipts include
and cover all bills for labor or material for which a lien could be filed;
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but the Contractor may, if any Subcontractor shall refuse to furnish a release
or receipt in full, furnish a bond satisfactory to the owner to indemnify the
Owner against any lien.
The Contractor shall promptly pay all just claims for labor, material
or other costs in and about the performance of the Work, and the Contractor
expressly covenants and agrees that no lien shall be filed either by the
Contractor or by any Subcontractor, xxxxxxx, or materialman against the
property of the Owner for any Work done or materials furnished in or for the
performance of the Work. The Contractor further agrees that if,
notwithstanding the foregoing covenant, any liens should be filed by any
Subcontractor, xxxxxxx, or materialman against the property of the Owner or any
part thereof or in case any attachment, mesne, or otherwise should be levied by
any such Subcontractor, xxxxxxx, or materialman against any moneys then due or
to become due to the Contractor from the Owner under this Contract, the
Contractor will promptly discharge by bond or otherwise such lien or attachment
and will indemnify and protect the Owner against any loss or expense in
connection therewith, including in such expense counsel fees which the Owner
may reasonably incur for its protection. And as further protection to the
Owner, the Contractor agrees that in case the Owner shall at any time have
reason to believe that the Contractor has not paid or is not paying all proper
claims for labor, service, and material done or furnished in or about the
performance of the Work, which claims might under any law or statute form the
basis of a lien against the property of the Owner, the Owner may at its option
withhold all or any part of any moneys then or thereafter due the Contractor
hereunder until it shall have been furnished with a certificate from the proper
public officials that there are not any such liens undischarged of record and
reasonably convincing proof that there are no unsettled claims which may become
liens. In case the Contractor shall fail to pay such claims within thirty (30)
days after payment of the same shall be due, the Owner at its option may pay
out of the moneys so retained the amount of such claims and the
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amount so paid shall be considered as payment on account of moneys due or to
become due the Contractor hereunder.
4.19 CONTRACTOR'S RESPONSIBILITY -- The Contractor shall be an independent
Contractor and not an agent or representative of the Owner. The Contractor
shall assume all responsibility for the Work under its control and supervision
and take all reasonable precautions to prevent injuries to persons and property
on or adjacent to the Work. The mention of any specific duty or liability of
the Contractor in any part of this Contract shall not be construed as a
limitation or restriction upon any general liability or duty imposed on the
Contractor by this Contract or by Law. The Contractor shall be solely
responsible for the safety of the Work under its control and supervision and of
all equipment and materials to be used in connection therewith until final
completion thereof and shall promptly repair any damage thereto, however
caused, with the cost of such damage to be borne by Owner. Contractor hereby
agrees to indemnify and hold harmless the Owner against and from all losses,
damages, injuries, and deaths (including losses or damage to property of the
Owner occupied, used by or in the care, custody, or control of the Contractor
or in proximity to the site of said Work and including injuries or deaths
sustained by any employee, xxxxxxx, servant, or agent of Contractor or any of
its Subcontractors), and all claims and liabilities therefore, arising out of
said Work caused in whole or in part by any act or omission, negligent or
otherwise, of Contractor or any of its Subcontractors or of any employee,
xxxxxxx, servant, or agent of Contractor or any of its Subcontractors, to the
extent that such losses, damages, injuries, or deaths are covered by insurance
policies obtained by Contractor or its Subcontractors pursuant to ARTICLE EIGHT
hereof or otherwise provided in this Contract.
4.20 HAND TOOLS -- Contractor shall, in accordance with Section 4.30,
purchase all hand tools to be used in the performance of the Work. Contractor
agrees to exercise
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due care in the maintenance and control of the hand tools with the objective of
delivering the Owner at the completion of the Work, all such hand tools,
reasonable loss through normal wear and tear and normal hazards excepted.
Contractor's control procedure for hand tools shall be subject to
Owner's approval. Owner, at its discretion, may, by written notice to
Contractor modify this procedure with respect to the furnishing of tools to the
extent of furnishing all or part of the hand tools to be furnished by
Contractor.
4.21 PROTECTION OF WORK AND PROPERTY -- The Contractor shall perform the
Work in such a manner as to maintain adequate protection from damage from all
causes whatsoever. It shall protect the Owner's property from damage or loss
arising in connection with this Contract. It shall adequately protect adjacent
property and roads as provided by laws and this Contract. It shall provide and
maintain all passageways, guard fences, lights, watchmen, and other facilities
for protection required by public authority or local conditions. The
Contractor shall take all reasonable precautions in the performance of the Work
to protect the health and safety of its employees, the employees of Other
Contractors and Subcontractors, and of members of the public, and to minimize
the danger from all hazards to life and property, and shall comply with the
health, safety, inspection, and fire protection laws and regulations of the
United Sates and the State of Nevada and all political subdivisions having
jurisdiction in the premises, and all regulations and requirements thereto
prescribed by Owner. In any emergency affecting the safety of life or risk of
loss or of damage to the Work or adjoining property, the Contractor, without
special instruction or authorization, shall act to prevent such threatened loss
or damage or injury. Any compensation claimed by the Contractor on account of
such emergency work shall be determined by agreement between the Owner and the
Contractor.
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4.22 SUBCONTRACTS -- The Contractor shall as soon as practicable notify the
Owner in writing of the name of any subcontractors it proposes to employ. The
Contractor shall not employ any Subcontractors except with the prior written
approval of the Owner as to the identity and competency of the Subcontractor
and the form of the proposed subcontract, it being understood that each
Subcontractor shall be obligated to comply with each provision hereof in the
performance of Work thereunder in the same manner as the Contractor itself
would have been. Each such Subcontract shall contain provisions not
inconsistent with the provisions of this Contract. The Contractor shall be
responsible for the proper performance of subcontracted work.
4.23 SUBCONTRACTOR'S COMPLIANCE -- Contractor shall provide and pay, and
require his Subcontractors if any, to provide and pay, and to secure payment
of:
a. Compensation for occupational diseases and for injuries
sustained by or death resulting to employees of Contractor and
its Subcontractors, as required by law.
b. Contributions and payments with respect to employees of
Contractor and its Subcontractors to unemployment compensation
funds when and as required by applicable unemployment
compensation laws.
Contractor shall furnish to Owner's Representative satisfactory
evidence that Contractor and its Subcontractors have complied fully with all of
the requirements of law and shall save harmless owner from and against any and
all actions, claims, damages, and costs resulting from their failure fully to
comply with all such laws.
4.24 WAGE RATES -- Wage rates shall not be in excess of those normally in
effect in this area and the Owner reserves the right to prior approval of wage
rates and employment conditions (Appendix - Labor Costs).
4.25 USE OF PREMISES -- The Contractor shall confine its equipment, the
storage of materials and the operations of workmen to limits indicated by law,
ordinance or permits or directions of the Owner and of the Owner's
Representative, and shall not unreasonably encumber the premises with its
material and equipment. The Contractor
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shall confine its employees' parking to those areas that may be designated from
time to time by the Owner's Representative.
The Contractor shall enforce the Owner's instructions regarding signs,
advertisements, fires, and smoking.
4.26 TEMPORARY BUILDINGS -- The Contractor shall provide such temporary
buildings as may be needed for the execution of the Work. The location of all
such buildings shall be subject to the approval of the Owner's Representative.
4.27 TEMPORARY ROADS -- Prior to constructing any lay-down areas, shop
facilities, parking areas or temporary work roads into and at the site of the
Work, Contractor shall prepare and submit to Owner's Representative for
approval a plan for the location of such facilities. Contractor shall secure,
also, Owner's Representative's approval for any additional temporary facilities
that subsequently may have to be construed from time to time. If any facility
is constructed without Owner's Representative's written approval, Owner's
Representative may require its movement or removal at the Contractor's expense.
Approvals of Owner's Representative to such plan and such additional temporary
work roads shall not be unreasonably withheld.
The Contractor assumes all responsibility for the maintenance of
property and roads surrounding or adjoining the Work.
4.28 CONSTRUCTION FACILITIES -- The Contractor shall provide all light,
heat, power, water, including potable water, office space, outdoor and indoor
storage areas, sanitary facilities, equipment lay-down areas, and other
temporary facilities as it may require in connection with the Work.
4.29 CLEANING UP -- The Contractor shall at all times keep the premises
free from accumulation of waste material or rubbish caused by its employees or
its operations, and at the completion of the Work shall remove from and about
the site all rubbish produced in the Work and all the Contractor's tools,
equipment, buildings, and surplus
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materials. Waste and rubbish shall not be disposed of in the rock stockpiles
produced by disposal of excavated material.
4.30 PURCHASING SERVICES -- Contractor shall perform such purchasing
services as may be requested by Owner in connection with the Work, subject to
the following conditions:
a. All orders, contracts, subcontracts and obligations placed by
Contractor for the Work shall be in Contractor's name.
Contractor will prepare and furnish to Owner's Representative
copies of all requisitions, purchase orders, and contracts,
including design and engineering specifications, for purchase
of materials, supplies, machinery, and equipment to be
obtained by Owner or Contractor. Contractor will obtain
proposals or bids, analyze and evaluate proposals or bids and
will make recommendations to Owner's Representative concerning
purchase orders, subcontracts and contracts to be placed by
Contractor or Owner, as Owner may determine. Contractor will
work closely with Owner's Representative to ensure that all
items to be purchased or procured is on a basis which is in
the best interest of the Owner, taking into consideration
cost, use, quality, specification requirements, delivery, and
purchasing policies of Owner. Contractor will submit major
purchase requisitions to the Owner's Representative for prior
written approval of Owner before purchasing.
b. Contractor will take all reasonable precautions to make
payment on behalf of Owner for all materials in such fashion
which will enable it to take advantage of all cash discounts
of the suppliers of the materials.
c. For the benefit of Owner, Contractor shall obtain from
equipment and material vendors warranties of performance and
against defects in materials and workmanship to the extent
that such warranties are reasonably obtainable, and liability
of Contractor therefore shall be limited to such warranties so
obtained.
ARTICLE FIVE
AGREEMENTS OF OWNER
In addition to and without restricting the agreements and undertakings
of Owner set forth elsewhere in this Contract:
5.1 OBSERVANCE OF LAWS -- Owner agrees that it will observe and abide by
all applicable laws, rules, regulations, and ordinances of the United States
and the State of Nevada and of any subdivision of each of them in the
performance of the Work.
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5.2 PERMITS -- Owner shall procure, and contractor will assist in
obtaining, all necessary permits, licenses, consents and/or authority which may
be required of Owner from public or private interests in connection with and
necessary for the performance of the Work.
5.3 OWNER'S REPRESENTATIVE -- Owner will promptly designate the Owner's
Representative and will give Contractor written notice of such appointment and
of any changes therein from time to time. The Owner's Representative shall be
the authorized representative of Owner in connection with performance of the
Work. Contractor is authorized and directed to accept, rely upon and act upon
any requests, information, advice, notices, and written approvals given by the
Owner's Representative as if given by Owner itself; provided, however, that
Contractor shall not rely upon or act upon any thereof which shall have the
effect of waiving any of the provisions of, or requiring any change in this
Contract or in the plans and Specifications approved by Owner, unless the same
are given in writing. The Owner's Representative shall have general
supervision and direction of the Work so far as may be necessary to insure that
it shall be performed in accordance with this Contract. The Owner's
Representative shall decide all matters relating to the acceptability, the
execution and progress of the Work but such direction by the Owner's
Representative shall not relieve the Contractor of its full responsibility
under this Contract except as is otherwise set forth in this Contract. The
Owner's Representative may delegate a portion of these responsibilities upon
written notice to the Contractor.
5.4 TIMELY APPROVALS -- All approvals and authorizations to be given by
Owner under and pursuant to the provisions hereof will be given in a timely
manner.
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ARTICLE SIX
REIMBURSEMENT OF COSTS
6.1 REIMBURSABLE COSTS -- Owner agrees that it will reimburse Contractor
for the following costs and expenses incurred in connection with the Work.
a. Salaries and wages of manual labor, workmen's compensation
insurance premiums, employer's share of social security
contributions, employer's share of unemployment compensation
insurance contributions and other payroll taxes, and other
charges against payroll in accordance with Appendix - Labor
Cost.
b. Salaries and wages of Contractor's field office staff incurred
in the performance of the Work at the Manhattan, Nevada site,
including, but not limited to, salaries and wages of
supervisory employees, plus all other payroll costs and
expenses in accordance with Appendix - Labor Cost.
c. Cost of travel, subsistence, and other expenses directly
chargeable to the Work, including living and traveling
expenses of all officers or employees in visiting the mine
site, and attending conferences. Reasonable moving, living,
and traveling allowances of field supervisory and inspection
staff in accordance with Contractor's standard practices, as
approved by the Owner's Representative; provided, however,
that reimbursement shall not be made to Contractor for costs
which are reimbursed to Contractor by its other clients.
d. Cost of all materials, machinery, hand tools, equipment, and
supplies required in connection with the performance of the
Work and the cost of purchase or rental of construction
equipment in accordance with Section 4.13 hereof.
e. All subcontracts made for the performance of the Work to the
extent that such subcontracts have been approved in writing by
Owner in accordance with Section 4.22 hereof.
f. Long distance telephone calls and fax expenses associated with
the Work.
g. Cost of reproduction and computer services and the usage of
electronic composing and related equipment in accordance with
schedules approved by Owner in advance setting forth rates not
to exceed current commercial rates, except for reproduction
work in the field for which Contractor shall be reimbursed at
actual costs.
h. The cost of outside consultants providing the use thereof and
the rates were first approved in writing by Owner, and
incidental purchased labor and services.
i. Such other items of direct cost reasonably and necessarily
incurred by Contractor in the prosecution of the Work,
including, but not limited to, the cost of incidental
purchases, premiums on Owner-authorized insurance, labor, and
services, to the extent such costs were paid or incurred
pursuant to written approval of Owner.
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j. Such other items of indirect cost reasonably and necessarily
incurred in the field in the performance of the Work as may be
approved in writing by Owner, including, but not limited to,
office supplies, furniture, and equipment, rent, light, heat,
water, and local telephone services and accounting expenses.
k. Such other items of indirect cost, if any, incurred in the
performance of the Work not provided for elsewhere in this
Contract as are specifically approved in writing by Owner.
6.2 NON-REIMBURSABLE COSTS -- It is understood that the reimbursable costs
specified in Section 6.1 hereof, except for those items of indirect cost
covered by paragraphs j and k of said Section 6.1, consist of direct
out-of-pocket expenses and costs incurred by Contractor in the performance of
the Work hereunder and shall not include indirect costs and expenses
attributable to the Work in the home office of Contractor. Without limiting
the generality of the foregoing, reimbursable costs shall not include:
a. The cost of any item which, by the terms of the Contract, is
expressly stated to be a non-reimbursable cost.
b. Salaries of home office personnel unless assigned to the Work
on a temporary basis.
c. Interest on Contractor's capital.
d. Depreciation or amortization of any kind by Contractor at
locations other than the mine site.
e. License fees ordinarily obtained by Contractor necessary to
permit the engineering portion of the performance of the Work.
f. Allowances for Contractor's profit.
g. Royalties paid by Contractor for the use of any patented
inventions in connection with the Work unless the use thereof
shall have first been specified or approved by Owner.
6.3 ADVANCE OF FUNDS -- On or before the 20th day of each calendar month
during the performance of the Work hereunder, Contractor will furnish Owner
with its estimate of the expenditures to be incurred by Contractor in the next
succeeding calendar month, whereupon Owner shall by the end of the month during
which such
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estimate is forwarded, advance to Contractor the amount stated therein,
adjusted as hereinafter set forth. The estimate so established shall be
reviewed and approved by Owner. Not later than the 20th day of each calendar
month after the effective date of this Contract, Contractor shall prepare and
submit to Owner invoices for that portion of the Work performed by Contractor
during the preceding month.
Should the total amount, including all amounts reimbursable under
ARTICLE SIX hereof set forth in such invoices be greater than the estimated
amount advanced to Contractor for such month, Owner shall pay to Contractor the
difference promptly after the receipt of such invoices. Should such total
amount set forth on such invoices (with the exception above provided) be less
than the estimated amount advanced to Contractor for such month, the difference
shall be deducted from the next estimate to be forwarded to Owner. The
invoices submitted by Contractor to Owner pursuant to this provision shall be
certified and accompanied by such information as Owner may reasonably request.
6.4 AVAILABILITY OF RECORDS -- Contractor shall keep and maintain adequate
records of all reimbursable costs to be paid under this ARTICLE SIX, which
records shall be available in Contractor's home office and its office at the
site of the Work for inspection and audit by Owner and Owner's firm of auditors
at all reasonable times. In addition thereto, they shall have the right to
inspect and audit any of the books, records, or original data of Contractor
used by it in determining such reimbursable costs and also shall have access to
the Work and may conduct spot checks in the field to determine the accuracy of
such records and data.
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ARTICLE SEVEN
PAYMENT
7.1 CONTRACTOR'S FEE -- Owner agrees that it will pay, and Contractor
agrees that it will accept, as its sole compensation for the performance of the
Work, as defined herein, other than reimbursement of costs as provided in
article six hereof, a Fixed Monthly Fee in the amount of Fifteen Thousand
Dollars ($15,000). Should the work proceed for a period in excess of twelve
(12) months, the fee will become a subject for further negotiations.
ARTICLE EIGHT
INSURANCE
Contractor shall provide and maintain at all times during the
performance of this Contract, the following insurance policies:
8.1 WORKERS COMPENSATION. Through the State Industrial Insurance System
for the State of Nevada -- with statutory limits. Employers liability will be
maintained in the amount of $1,000,000.
8.2 COMMERCIAL GENERAL LIABILITY. Limits shall be:
General Aggregate $2,000,000
Products/Comp Ops AGG. $2,000,000
Personal & Advertising Injury $1,000,000
Each Occurrence $1,000,000
Commercial general liability shall include personal injury including bodily
injury and death, property damage, products completed, operations and
contractual liability hereunder (including but not limited to all work
performance and operation of automobiles, trucks and other vehicles) including
explosion, collapse and underground hazards.
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8.3 BUSINESS AUTO POLICY. $1,000,000 combined single limit bodily injury
and property damage including owned, hired and non-owned vehicles.
8.4 UMBRELLA LIABILITY. $5,000,000 each occurrence, $5,000,000 aggregate.
8.5 INSURANCE COVERAGE. Insurance shall be maintained in full force and
effect in a company or companies satisfactory to the Owner, at Contractor's
expense, and until performance in full hereof has been accomplished and final
payment has been issued in evidence thereof. Such insurance shall be subject
to the requirement that the Owner must be notified by thirty (30) days' written
notice before cancellation of any such policy. Certificates of insurance as
required must be filed with the Owner within thirty days of the date hereof.
8.6 ADDITIONAL INSURED. The owner and any other party required by the
Owner to be indemnified under the Contract document shall be named as an
additional insured on the contractor's policy. All such insurance shall be
policies held by the Owner or any other additional insured.
8.7 INSURANCE CERTIFICATES -- Prior to commencement of Work, Contractor
shall furnish to Owner certified copies of the securing and maintenance in
force and payment of premiums on all coverage which it is obligated to furnish
under the provisions hereof. Contractor may, at its own cost and expense,
secure and maintain such additional insurance coverage as it shall regard as
adequate for its purposes. If Contractor purchases such additional insurance,
then Owner shall be included as a named insured. All insurance certificates to
be provided by Contractor must be satisfactory to Owner as to insurance
carriers covering the risks and must bear a cancellation clause providing at
least thirty (30) days advance written notice to Owner. Contractor shall have
all policies endorsed to include interest of Owner.
Upon receiving approval from Owner that insurances to be secured by
Contractor are satisfactory as to type and amount, all such costs of insurance,
including all deductibles and premiums, shall be reimbursable under ARTICLE SIX
hereof.
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8.8 BOND -- The Contractor and the Owner agree not to procure a bond in
excess of the Contractor's License Bond.
8.9 SUBCONTRACTORS' INSURANCE -- Contractor shall require each of its
Subcontractors to procure and maintain during the time any Work is being
performed, the following insurance coverages:
a. WORKERS COMPENSATION. Through the State Industrial Insurance
System for the State of Nevada -- with statutory limits.
Employers liability will be maintained in the amount of
$1,000,000.
b. COMMERCIAL GENERAL LIABILITY. Limits shall be:
General Aggregate $1,000,000
Products/Comp Ops AGG. $1,000,000
Personal & Advertising Injury $1,000,000
Each Occurrence $1,000,000
Commercial general liability shall include personal injury
including bodily injury and death, property damage, products
completed, operations and contractual liability hereunder
(including but not limited to all work performance and
operation of automobiles, trucks and other vehicles) including
explosion, collapse and underground hazards.
c. BUSINESS AUTO POLICY. $1,000,000 combined single limit bodily
injury and property damage including owned, hired and
non-owned vehicles.
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ARTICLE NINE
TAXES
9.2 All Federal, State and local taxes, except income taxes, shall be
reimbursable under ARTICLE SIX, except as hereinafter provided. The Contractor
will review all purchases and pay Nevada Sales and Use Tax only on those items
not otherwise exempt under the provisions of the Nevada Sales and Use Tax Law.
The Contractor will supply Owner with sufficient detail of purchases made to
enable Owner to ascertain the correct application of the statutory Sales and
Use Tax exemptions. Owner will reimburse the Contractor for any Nevada Sales
and Use Tax properly assessed and paid by the Contractor for material purchase
for the Work.
ARTICLE TEN
GENERAL
10.1 NOTICES -- Any notice required or permitted to be given pursuant
hereto shall be given in writing and delivered personally or by registered or
certified mail to the parties at the following respective addresses set forth
below or at such other addresses as the parties may from time to time designate
in writing:
If to Owner: Xxxxx Xxxxxxxx
Nevada Manhattan Mining Co.
0000 X. Xxxxxxx, Xxxxx 000
Xxxxxxxxx, Xxxxxxxxxx 00000
cc: Xxxxxxx X. Xxxxxx
000 - 00xx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxx 00000
If to Contractor: Xxxxxx X. Xxxxxx
Xxxxxxxx Western Construction Corporation
0000 Xxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxx 00000
10.2 OWNERSHIP OF DATA -- All plans, drawings, specifications and the like
relating to the Work (hereinafter called "data") furnished by or for Contractor
and any inventions of Contractor conceived and first actually reduced to
practice as a part of the Work,
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including patent rights thereon, shall be and remain the property of Owner.
Upon completion, or upon any prior termination of the Contract, Contractor
shall deliver to Owner a complete corrected set of original or duplicate
tracings of the work as completed and such additional copies of drawings made
therefrom as Owner may request. Provided, however, that Contractor may retain
copies of all essential specifications, drawings, blueprints and engineering
data necessary to constitute a record of the work done by Contractor and shall
have the right, subject to the non-disclosure provisions of this Section 10.2,
to freely use such data in connection with its business activities.
In the event Owner shall request or otherwise advise Contractor to
incorporate in the Work any invention of Owner the subject matter of which is
covered by a valid patent under the laws of the United States, Canada or any
other country, Contractor shall not utilize the subject matter of said
invention without the written consent of Owner for any purpose other than
performance of work under this Contract until such time as such patent shall
have expired. In the event Owner shall desire Contractor to utilize any
invention of Owner which is covered by a pending patent application, the
parties agree to arrive at a mutually satisfactory agreement relative to
disclosure of such invention to Contractor prior to any such disclosure. Owner
agrees to defend and save Contractor harmless from and against any and all
claims of infringement of proprietary rights of others, including patents,
arising out of Contractor's use, in connection with the performance of this
Contract, of technical information obtained from or through Owner in connection
with the performance of this Contract.
Contractor agrees that it will not divulge to third parties, without
the written consent of Owner, any information obtained from or through Owner or
any other Contractor of Owner in connection with the performance of this
Contract unless,
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a. the information is known to Contractor prior to obtaining same
from Owner,
b. the information is, at the time of disclosure by Contractor,
then in the public domain, or
c. the information is obtained by Contractor from a third party
who did not receive the same, directly or indirectly, from
Owner. Contractor further agrees that it will not, without
the prior written consent of Owner, disclose to any third
party any information developed or obtained by Contractor in
the performance of this Contract, except to the extent that
said information falls within one of the categories described
in a, b, or c above. This restriction as to disclosure of
information set forth above shall terminate at the expiration
of three (3) years from the date hereof.
For purposes of this paragraph, Contractor shall have met its
obligation if it notifies its employees, concerned with the Work, of the
aforesaid non-disclosure obligation and requests such employees to prevent
unauthorized publication or disclosure of said technical information and to
this end ensures that each Contractor's employee, concerned with the Work,
signs a Contractor's 'Secrecy Agreement' in which the employee protects the
Owner and Contractor against non-disclosure of technical information.
Owner shall advise Contractor of the form of title block to be used on
all drawings and give such other reasonable directions regarding the
preparation of drawings as Owner may determine from time to time.
10.3 DRAWINGS AND SPECIFICATIONS -- All design drawings and specifications
will be in accordance with generally accepted procedures and practices common
to this type of work and in compliance with all applicable Federal, State, and
local regulations and guidelines. The Contractor shall be responsible for the
professional and technical accuracy and the coordination of all designs,
drawings, specifications, and other work or materials furnished by the
Contractor under this Contract. The Contractor shall without additional cost
or fee to the Owner correct or revise any errors or deficiencies in
Contractor's drawings or specifications.
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10.4 CONTINUANCE OF WORK -- Notwithstanding any disagreement or disputes
between the parties hereto as to any provisions hereof, there shall be no
interruption of the Work during the continuance of any dispute or disagreement.
10.5 ASSIGNMENT -- The Contractor shall not assign this Contract or sublet
the Work or any part thereof without the prior written consent of the Owner,
and any such assignment or sub-letting with such consent shall not relieve the
Contractor from its responsibility for the performance of the Work in
accordance with the terms hereof or from its responsibility for the performance
of any other obligations hereunder. The Contractor shall not assign any moneys
due or to become due to it hereunder without the previous written consent of
the Owner.
10.6 WAIVER -- No waiver, indulgence, or consent to depart from, or
violation of, any provisions of this Contract, by either party shall be
construed as continuing, nor shall it affect or constitute a waiver of any
other rights, privilege, duty or obligations of either party hereto.
10.7 CAPTIONS -- The captions of the ARTICLES of this Contract are for ease
of reference only and are to be disregarded in considering the meaning and
intent hereof.
10.8 THE OWNER'S RIGHT TO DO WORK -- If the Contractor shall neglect to
prosecute the Work properly or fail to perform any provision of the Contract,
the Owner, after thirty (30) days' written notice to the Contractor may,
without prejudice to any other remedy the Owner may have, make good such
deficiencies.
10.9 USE OF COMPLETED PORTIONS -- The Owner shall have the right to take
possession of and use any completed or partially completed portions of the
Work, notwithstanding that the time for completing the entire Work or such
portions may not have expired; such taking of possession and use shall be
deemed an acceptance of any Work not completed in accordance with this
Contract.
10.10 LAW GOVERNING -- This Contract shall be interpreted, construed
and enforced in accordance with the laws of the State of Nevada.
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10.11 THIRD PARTY BENEFICIARY -- Nothing in this Contract, express or
implied, is intended or shall be construed to confer upon, or to give to, any
person other than the parties hereto, any right, remedy or claim under or by
reason of this Contract or any covenant, condition or agreement hereof. The
covenants, conditions and agreements in this Contract contained shall inure to
the benefit of, and shall be for the sole and exclusive benefit of, the parties
hereto and their respective successors and assigns, to the exclusion of the
rights of any third party beneficiaries.
10.12 FORCE MAJEURE -- Any delays in or failure of performance by either
party under this Contract shall not constitute default hereunder or give rise
to any claim for damages which may be caused by circumstances reasonably beyond
the control of the party concerned, including, but not limited to, decrees or
orders of Government, acts of God, strikes, or other concerted actions of
workmen, fires, floods, explosions, riots, war, rebellion and sabotage.
10.13 WARRANTY -- Contractor warrants all of the materials entering into the
Project covered by the Specifications are to be first-class and new, unless
otherwise specified, and shall conform to the Specifications.
ARTICLE ELEVEN
TERMINATION - SUSPENSION
11.1 Owner shall have the right at any time to terminate this Contract and
at its sole discretion stop the Work hereunder for any reason whatsoever. Such
right shall be exercised by giving the Contractor thirty (30) days' written
notice of its intention to terminate, setting forth the date of such
termination and the extent of the services to be performed by Contractor prior
to such termination. In such case, Contractor shall be entitled forthwith upon
the completion of such services as it may be required to perform under this
Contract and such notices of termination to be paid in full for all legitimate
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claims arising under this Contract including: (i) Fee payable pursuant to
ARTICLE SEVEN hereof, less any part of said Fee previously paid pursuant to
ARTICLE SEVEN; (ii) any costs reimbursable under ARTICLE SIX hereof not
previously paid by Owner; (iii) all reasonable costs incurred by Contractor in
connection with the stoppage of the Work, if not for cause; and (iv) less any
amounts advanced by Owner to Contractor pursuant to ARTICLE SIX and not
previously credited against Contractor's invoices as therein provided.
ARTICLE TWELVE
COMPLETION OF WORK
12.1 Contractor shall use its best efforts to complete the Work
expeditiously on or before the dates referred to in Section 2.1. When, in the
opinion of Contractor, the Work under this Contract, or any individual unit
thereof, has been completed, Contractor shall give the Owner's Representative
notice in writing that said Work, or individual unit thereof, is ready for
inspecting (and/or testing where applicable) preparatory to acceptance by
Owner. Thereupon, the Owner's Representative shall within a reasonable time
inspect the Work, or individual unit thereof, and at the Owner's
Representative's option arrange for appropriate mechanical and operational
tests to demonstrate that Contractor has performed satisfactorily its Work
under this Contract. Upon successful completion of inspection and tests, the
Owner's Representative shall promptly give notice to Contractor in writing of
his acceptance of the Work, or individual unit thereof, as the case may be, or
shall notify Contractor of Work to be done by Contractor prior to acceptance.
Upon satisfactory performance by Contractor of work mentioned in said notice
and successful completion of inspection and tests of such Work, the Work, or
individual unit thereof, shall be deemed accepted by Owner and such acceptance
shall be confirmed in writing.
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ARTICLE THIRTEEN
ARBITRATION
13.1 All disputes under this Contract, whether as to its validity,
interpretation, or performance, shall be subject to arbitration, and shall be
submitted to arbitration at the request of either party to the dispute. The
Contractor shall not cause a delay of the Work during an arbitration
proceedings, except by agreement with the Owner. The arbitration proceedings
shall be conducted pursuant to the applicable law of the State of Nevada and
shall be commenced as follows:
a. Either party may institute such arbitration by notice in
writing to the other specifying the question or questions to
be submitted to arbitration and naming a disinterested and
qualified person to act as arbitrator.
b. Within thirty (30) days after receipt of such written notice,
the other party shall name a second disinterested and
qualified person to act as arbitrator and shall give notice in
writing thereof to the party instituting the arbitration.
c. The first two arbitrators so named shall forthwith select a
third disinterested and qualified arbitrator and shall give
written notice to both parties informing them of the selection
so made and fixing a date within a reasonable time at Los
Angeles for the hearing of the question or questions submitted
to arbitration.
d. In case the party first notified of the institution of the
arbitration shall neglect or refuse to name an arbitrator
within the time hereinabove specified or in case the first two
arbitrators chosen by any method shall fail to agree upon a
third arbitrator within thirty (30) days after the appointment
of the second arbitrator, then such second or third arbitrator
or both, as the case may be, shall upon the application of
either party be appointed by a Judge of the United States
District Court, located in Nevada.
e. The decision of the arbitrators shall be made in writing with
reasonable promptness after completing the hearing or hearings
thereon and a decision signed by a majority of the arbitrators
shall be final and binding upon both parties.
f. The expense of any such arbitration, including reasonable
compensation for the arbitrators, shall be borne and paid
equally by the parties or as the arbitrators otherwise direct.
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ARTICLE FOURTEEN
EQUAL EMPLOYMENT OPPORTUNITY
14.1 The Contractor agrees that it will conform to all statutes and laws,
both State, Federal and local, and any regulations thereunder, to provide equal
employment opportunity for all individuals without regard to race, creed,
color, national origin, religion, sex or age.
ARTICLE FIFTEEN
WITHDRAWAL OF WORK
15.1 Owner reserves for its own convenience the right to withdraw from the
Work to be performed by Contractor any portion or portions thereof from time
to time, and to do or perform such portion or portions of the Work for its own
account, or to contract for the doing or performance of said Work by others.
IN WITNESS WHEREOF, the Owner and the Contractor, respectively, have
caused this Contract to be duly executed in duplicate by them and on their
behalf as of the day and year first above written.
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OWNER:
NEVADA MANHATTAN MINING, INC.
By C.D. MICHAELS
----------------------------------
Attest XXXXXXX X. XXXXXX
------------------------------
CONTRACTOR:
XXXXXXXX WESTERN CONSTRUCTION
CORPORATION
By XXXXXX X. XXXXXX
----------------------------------
Attest XXXXXXX X. XXXXXX
------------------------------
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APPENDIX
LABOR COSTS
SALARY RANGE SCHEDULE
HOURLY EMPLOYEES
Classification Base Rate Health & Welfare
______________________________________________________________________________________
Shift Leader/Xxxxxxx $20.00 $1.35
Miner $18.00 $1.35
Mechanic $18.00 $1.35
Surface Laborer $12.00 $1.35
Payroll Burdens
FICA & Medicaid 7.65%
Federal Unemployment 0.08%
State Unemployment 3.00%
Workers Compensation 20.84%
SALARIED EMPLOYEES
Project Superintendent $5,200/month $200/month
Personnel utilized on an occasional basis will be charged at the following rates,
which rates include burdens, fringes and salary:
Project Manager (X. Xxxxxx) $60/hour
Staff Engineer (X. Xxxxxxx, X. Xxxxxxx) $48/hour
Drafter (X. Xxxxxx) $40/hour
Clerical/Secretarial (X. Xxxxxx, X. Xxxx) $25/hour
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APPENDIX
EQUIPMENT RENTAL RATES
1. Company-Owned Equipment (bore rental maintenance, parts, fuel, lube
and consumables NIC)
Air Drills (jacklegs, stopers, sinkers) $100/month/each
2-cy LHD $2,400/month
1 cy LHD $1,800/month
10-ton underground truck $4,700/month
Xxxxxxx $500/month
1050 cfm diesel compressor $3,600/month
13-hp pump $500/month
20-hp vent fan $540/month
Air pump $180/month
Cat 955 loader $4,800/month
Shop van (parts van) $250/month
1-ton flat bed $600/month
Pick-up truck $500/month
Welder-diesel $230/month
Additional company-owned equipment will be charged at 85% of the
unadjusted monthly rate contained in the current edition of the Rental
Rate Blue Book published by DataQuest.
2. Thirty party equipment will be at invoice cost including delivery
charges and taxes.
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[PRELIMINARY BUDGET SET NEW]
39
NEVADA MANHATTAN MINING, INC.
PH. 000-000-0000
0000 X. XXXXXXX XXXXXXXXX #000
XXXXXXXXX, XX 00000
EXPLANATION AMOUNT
----------- ------
MINE PRODUCTION 00-0000-0000
CHECK
AMOUNT
$100,000.00
[LOGO]
PAY AMOUNT OF
ONE HUNDRED THOUSAND DOLLARS
WITH US STATE CHECK
DATE TO THE ORDER OF GROSS INC. TAX FICA INC. TAX SDI NUMBER
-----------------------------------------------------------------------------------------------------------------
6-11-96 XXXXXXXX WESTERN 17657
-----------------------------------------------------------------------------------------------------------------
DESCRIPTION
--------------------------------------------------------------------
CHARTER PACIFIC BANK
XXXXXX, XX 00000
