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Agreement Between FE Generation Corp. & Bechtel

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0% found this document useful (0 votes)
272 views106 pages

Agreement Between FE Generation Corp. & Bechtel

Uploaded by

Byron Mello Rosa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 106

Agreement Between FE Generation Corp.

& Bechtel 7/7/11 12:41 PM

Exhibit 10.2

General Terms and Conditions

for

Engineering, Procurement, and Construction

of

Air Quality Control (AQC) Systems

August 26, 2005

by and between

FirstEnergy Generation Corp.

and

Bechtel Power Corporation

EXECUTION COPY

General Terms and Conditions for Engineering, Procurement, and Construction

INDEX

Article 1 - Definitions 1

Article 2 - Relationship of FirstEnergy, Contractor, and Subcontractors 6

Article 3 - Contractor’s Responsibilities 8

Article 4 - FirstEnergy’s Responsibilities 18

Article 5 - Price; Payments to Contractor 18

Article 6 - Project Schedule; Commencement of Project; Mechanical and Final Completion; 21


Scheduled Liquidated Damages
Article 7 - Performance Guarantee; Performance Liquidated Damages 25

Article 8 - Change Orders 25

Article 9 - Force Majeure; FirstEnergy Delay; Recovery 29

Article 10 - Compliance with Laws, Regulations, and Permits 30

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Article 11 - Intellectual Property Rights 33

Article 12 - Insurance and Bonds 34

Article 13 - Warranty and Correction of Work 37

Article 14 - Payment of Accounts; Waiver of Lien Rights 39

Article 15 - Default, Termination and Suspension 41

Article 16 - Indemnities 42

Article 17 - Confidentiality 44

Article 18 - Limitation of Liability 45

Article 19 - Miscellaneous Provisions 47

EXECUTION COPY

General Terms and Conditions for Engineering, Procurement, and Construction

ARTICLE 1 - DEFINITIONS

1.1 Definitions. The following terms, when used in this Agreement with initial capitalization, shall have
the meanings given below unless in any particular instance the context clearly indicates otherwise:

"AE-Constructor" and/or "Contractor" means Bechtel Power Corporation, the entity primarily responsible
for performing and procuring the work.

“Affiliate” means, with respect to a Party, any Person: (i) which such Party now or hereafter owns or
controls directly or indirectly; (ii) which is owned or controlled by the same company or companies that owns,
directly or indirectly, a controlling interest in such Party; or (iii) which owns or controls, directly or indirectly, such
Party. As used herein, “control” means direct or indirect possession of the power to direct or cause the direction of
the management or policies of a legal entity, whether through ownership of voting securities, by contract or
otherwise, and the terms “controlled” and “controlling” have meanings correlative to the foregoing.

“Agreement” has the meaning set forth in Section 1.2.

“Applicable Codes and Standards” means the codes, standards or requirements set forth herein or in
any Applicable Law, which codes and standards include those described in FirstEnergy’s Requirements, and shall
govern Contractor’s performance of the Project. In the event of an inconsistency or conflict between any of the
Applicable Codes and Standards as contained in this Agreement and any referenced attachment, exhibit, schedule
or subcontract, the highest such performance standard shall govern Contractor’s performance under this Agreement.

“Applicable Law” means any federal, state, or local statute, ordinance, rule, regulation, policy or guidance,
any judicial or administrative order or judgment (whether or not by consent), any duties imposed by common law,
and any provision or condition of any permit, license, or other operating authorization of any Governmental Authority
or other body having jurisdiction over the Parties, the performance of the Project, or the Site.

“AQC Unit” means a portion of a Subproject associated with a Generating Unit.

“Available Amount” has the meaning set forth in Section 12.6.

“BAPC Ohio” means Bechtel Associates Professional Corporation, (Ohio), an Ohio professional
corporation which is an Affiliate of Contractor.

“Bond” means an on demand, non-replenishing performance and/or payment security, in form and
substance mutually agreeable to the parties.

“Business Day” means any day other than a Saturday, Sunday or other day on which banking institutions
in the State of Ohio are required to be closed.

“Change Order” means a written order issued by FirstEnergy to Contractor after the execution and delivery
of this Agreement or a written instrument signed by both Parties after execution and delivery of this Agreement in
accordance with Article 8 or a written determination pursuant to Section 19.4 that authorizes an addition to, deletion
from, suspension of or other modification to the requirements of this Agreement, and, to the extent provided for
herein, an adjustment to the Target Construction Cost, the Project Schedule, any Guaranteed Final Completion
Dates, any scope of work under the Subproject, the Performance Guarantee, any of the Warranties or any other
obligation of either Party hereunder.

“Changed Criteria” has the meaning set forth in Section 8.1(A).

“Commencement Date” for each Subproject means the date of issuance of a Notice to Proceed with full
construction, or an equivalent release to commence full construction of that Subproject.

“Contractor Indemnified Parties” means Contractor, its Affiliates, and their respective directors, officers,
agents, employees, invitees, successors, and assigns.

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"Contractor's Project Manager" means Contractor’s designated authorized Project representative actively
engaged in the supervision of the Project and in all matters relating to this Agreement, who shall have complete
authority to act on behalf of Contractor on all matters pertaining to the Project, including giving instructions and
making changes in the Project.

“Contract Price”means the Fee, reimbursable costs, and all other amounts payable by FirstEnergy to
Contractor under Section 5.1 (provided, the Contract Price shall not include any amounts paid to Contractor for
payments to FE Vendors that Contractor administers on FirstEnergy’s behalf).

“Corrective Work”has the meaning set forth in Section 13.1(B).

“Craft Labor” means building and construction trades crafts employed by the Contractor or Subcontractors
for the construction of the Project.

“Critical Path Schedule”has the meaning set forth in Section 6.4(A).

“Data" means documentation, manuals, maps, plans, schedules, programs, specifications, software,
reports, drawings, designs and other relevant information and works of authorship.

“Development Phase” shall mean with respect to each Subproject, the time period prior to the
Commencement Date.

“Drawings”mean the graphic and pictorial documents showing the design, location and dimensions of the
Project, generally including plans, elevations, sections, details, schedules and diagrams and the 3-dimensional
model. Upon approval by FirstEnergy pursuant to Section 3.3(C), such Drawings shall form a part of the Agreement.

“Effective Date”means the date of execution by FirstEnergy and Contractor of this Agreement, or such
other date as may be mutually agreed by FirstEnergy and Contractor as the Effective Date of this Agreement.

“Environmental Law” means any Applicable Law relating to, (A) the protection of (i) natural resources and
the environment, or (ii) human health and the public welfare from actual or potential exposure to any actual or
potential release, discharge, disposal or emission (whether past or present) of any Hazardous Substance, or (B) the
manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling, of any Hazardous
Substance.

“FE Vendor” means a supplier of equipment, Materials, and/or services with respect to the Project or any
Subproject, under direct contract with FirstEnergy (including any direct contract with FirstEnergy in which Bechtel
acts as FirstEnergy’s agent).

“FE Vendor Arrangement” has the meaning set forth in Section 3.1(B).

“Fee” has the meaning set forth in Exhibit 5.1.

“Final Completion Certificate”means a certificate signed by Contractor in the form of Exhibit 6.3(C).

“Final Completion”has the meaning set forth in Section 6.3(A).

“Final Document Delivery” has the meaning set forth in Section 6.3(A).

“Final Lien and Claim Waiver”means the waiver and releases provided to FirstEnergy by Contractor and
Subcontractors in accordance with the requirements of Section 6.3(A), which shall be in the form of Exhibit 6.3(A).

“Financing Assignee” has the meaning set forth in Section 19.3(C).

“Financing Documents” means any and all loan agreements, notes, indentures, security agreements,
pledges, mortgages, subordination agreements, intercreditor agreements, partnership agreements, subscription
agreements, participation agreements and other documents relating to the construction, interim or long-term
financing of any Subproject and any refinancing of any Subproject (including a leveraged lease), including any and
all modifications, extensions, renewals and replacements of any such financing or refinancing.

EXECUTION COPY

“FirstEnergy” means FIRSTENERGY GENERATION CORP., an Ohio corporation.

“FirstEnergy Indemnified Parties” means FirstEnergy, its Affiliates, and their respective directors, officers,
agents, employees, invitees, successors, and assigns.

“FirstEnergy Designated Representative” means that Person or Persons designated by FirstEnergy in a


written notice to Contractor who shall have authority to act on behalf of FirstEnergy on all matters pertaining to the
Project, including giving instructions and making changes in the Project.

“FirstEnergy Reliable Information” has the meaning set forth in Section 3.1(B).

“FirstEnergy’s Requirements” means the work scope attached hereto as Attachment A, the operating
specifications, performance data sheets, and coal analysis data sheets, in each case together with all attachments
thereto, and all other documents provided or identified by FirstEnergy to Contractor’s Project Manager specifying the
purpose, scope, and/or design and/or other technical criteria for the Project.

“Force Majeure Event”means (i) an act of God, epidemic, landslide, lightning, earthquake, flood, fire,
eruption, tornado, or other unusual natural event of any kind affecting a Party that was not voluntarily induced or
promoted by the affected Party and did not result from a breach of such Party’s obligations under this Agreement or
unlawful behavior by such Party, or (ii) failure of renewal, revocation, denial or delay in obtaining (after the affected

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Party has used due diligence and all reasonable commercial efforts to obtain) any necessary governmental
authorization or permit, (iii) acts of any Governmental Authority (not resulting from a violation, or failure to fulfill the
requirements, of Applicable Law by the affected Party), (iv) war, riot, civil disorder, terrorist act, embargo, strike or
other concerted labor action, or (v) any other event, whether similar or not to the foregoing which, in each case, is
beyond the reasonable control of the affected Party, despite such Party’s best efforts to fulfill its obligations under
this Agreement. “Best efforts to fulfill its obligations” includes attempting to anticipate any Force Majeure Event and
to address the effects of any such event (a) as it is occurring, and (b) after it has occurred, such that the delay or
violation is minimized to the greatest extent possible. Failure or delay to perform of any Subcontractor, inability to
obtain or delay in obtaining equipment, Materials or transport, and lack of availability of laborers, Subcontractors or
local materials, shall not be a Force Majeure Event as to a Party unless caused by a Force Majeure Event or,
where a Subcontractor fails to perform, an event which would, as to the Subcontractor directly affected thereby,
qualify as a Force Majeure Event hereunder.

“Generating Unit” means an electric power generating unit to which a Subproject, or a portion of a
Subproject, is being applied.

“Good Practices”means those practices and methods, and that level of competence, care, skill and
judgment, generally used by internationally recognized, experienced and prudent contractors, engineers,
manufacturers and professionals working in the electric power generation industry in the United States to design,
engineer, construct, manufacture, commission, test and operate electric power generation facilities and ancillary
equipment for the electric power industry, lawfully and safely, and with due consideration for reliability, efficiency,
operability and maintainability. It is not intended that Good Practices be limited to the optimum practices, methods or
acts to the exclusion of others, but rather a spectrum of practices, methods, or acts which internationally recognized,
experienced and prudent contractors, engineers, manufacturers and professionals would be expected to employ in
carrying out the requirements of this Agreement.

“Governmental Authority”means any federal, state, or local governmental body, including any legislative,
judicial, or executive body, or agency or subdivision thereof, in each case having jurisdiction to exercise authority or
control over a Party or its agent or over any part of or all of the Project or the Site.

“Guaranteed Final Completion Dates”has the meaning set forth in Section 6.3(B).

“Hazardous Substances”means any chemical or other material which is or may become injurious to the
public health, safety, or welfare or to natural resources or the environment; any pollutant; contaminant; waste, solid
or hazardous; any petroleum product; polychlorinated biphenyls; asbestos and asbestos-containing material; and
includes substances defined as "hazardous substances" in the Comprehensive Environmental Response
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601, et seq.

EXECUTION COPY

“Incentive Criteria” means the Scorecard Incentive Criteria, Target Construction Cost, and any other
criteria which adjusts Contractor’s Fee as provided in Exhibit 5.1.

“Interim Lien and Claim Waiver”means the waiver and release provided to FirstEnergy by Contractor and
Subcontractors, in accordance with the requirements of Section 5.2(C), which shall be in the form of Exhibit 5.2(C)

“Liquidated Damages”means Performance Liquidated Damages and Schedule Liquidated Damages.

“Losses”mean all losses, costs, damages, claims, liabilities, fines, penalties, and expenses (including
attorneys’ and other professional fees and expenses, and court costs, incurred in connection with the investigation,
defense, and settlement of any claim asserted against any Party).

‘‘Materials”means all materials and equipment required for the completion of and incorporation into the
Project.

“Mechanical Completion”has the meaning set forth in Section 6.2(A).

“Monthly Progress Reports” has the meaning set forth in Section 3.10(A).

“Notice to Proceed” means, for any Subproject, a written notice to fully proceed with all work on a
Subproject, or with that portion of the Subproject identified in such notice, that is agreed to and signed by
FirstEnergy and Contractor.

“NSR Consent Decree” means the Consent Decree, dated March 18, 2005, issued in United States of
America, et al. v. Ohio Edison Company and Pennsylvania Power Company, Civil Action No: 2:99-CV-1181 (U.S.
District Court, SD Ohio), accessible at: www.epa.gov/compliance/resources/cases/civil/caa/ohioedison.html.

“OEM” means an original equipment manufacturer providing major process equipment for a Subproject.

“Party” or “Parties” means FirstEnergy and/or Contractor and their permitted successors and assigns.

“Performance Guarantee(s)” means the guarantees identified in Exhibit 7.2.

“Performance Liquidated Damages” has the meaning set forth in Section 7.2.

“Performance Tests” means those tests required to be performed to ensure that the Project meets the
Performance Guarantee(s), as mutually determined by the Parties during the Development Phase.

“Permit” means any valid waiver, certificate, license, exemption, variance, franchise, permit, authorization
or similar order from any Governmental Authority required to be obtained and maintained in connection with the Site
or otherwise in relation to the Project.

“Person” means any individual, company, joint venture, corporation, partnership, association, joint stock
company, limited liability company, trust, estate, unincorporated organization, Governmental Authority or other entity
having legal capacity.

“Professional Services” means the engineering, design, procurement, and non-manual construction
management services performed or to be performed by Contractor under this Agreement.

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“Project” means all services, labor, Materials, apparatus, structures, supplies, Data, engineering, design,
fabrication, delivery, inspection, and testing, together with miscellaneous expendable job supplies, installation-
related equipment and tools, and any other services, work or things furnished or used or required to be furnished or
used, by Contractor in the performance of this Agreement, and including any work performed pursuant to a
Warranty. The term “Project” shall refer to the work to be performed in any Subproject only when and to the extent
that Contractor has been authorized to perform work on a Subproject during the Development Phase, and only
when and to the extent that Contractor has been authorized by receipt of a Notice to Proceed with respect to such
Subproject.

“Project Execution Plan” means a description of processes for implementation of a Subproject, as


described in Attachment A and in Article 3.

EXECUTION COPY

“Project Schedule” means the schedule of the dates for certain stages of completion of the Subproject,
such as the Scheduled Mechanical Completion Dates and the Guaranteed Final Completion Dates, as mutually
determined by the Parties during the Development Phase, and which Contractor shall, at a minimum, use its best
efforts to ensure, meets the requirements of Ohio Edison Company and Pennsylvania Power Company under the
NSR Consent Decree.

“Recovery Schedule” has the meaning set forth in Section 9.3.

“Reliability Standard” has the meaning set forth in Exhibit 7.2

“Response Period” has the meaning set forth in Section 13.2(C).

“Schedule Liquidated Damages” has the meaning set forth in Section 6.5.

“Scheduled Mechanical Completion Date” for each Subproject shall mean the date by which Contractor
is scheduled to achieve Mechanical Completion of the Subproject , as set forth in the Project Schedule to be
delivered pursuant to Section 6.4.

“Site” means FirstEnergy’s W.H. Sammis electric generation facility located in Stratton, Ohio, and all other
locations owned and exclusively operated by FirstEnergy or its Affiliates at which the Project or any Subproject is to
be performed or to which Materials are to be delivered.

“Specifications” mean those preliminary documents consisting of the written requirements for Materials,
standards, and workmanship for the Project and performance of related services. Upon approval by FirstEnergy
pursuant to Section 3.3(C), such Specifications shall form a part of the Agreement.

“Subcontract” means an agreement by Contractor with a Subcontractor or by a Subcontractor with a lower


tier Subcontractor for the performance of any portion of the Project.

“Subcontractor” means any vendor, subcontractor, materialman or supplier of any tier engaged by
Contractor, or any higher-tier Subcontractor in connection with the performance of the Project, including BAPC
Ohio, the entity to which all required engineering and design work will be subcontracted. The term “Subcontractor”
shall not include any FE Vendor.

“Subproject” means a portion of the Project as more fully described in Section 3.1(A).

“Target Construction Cost” has the meaning set forth in Exhibit 5.1

“Taxes” means any and all taxes, assessments, levies, duties, fees, charges and withholdings of any kind
or nature whatsoever and howsoever described, including gross receipts, franchise, sales, use, value added,
property, excise, capital, stamp, transfer, employment, occupation, generation, privilege, utility, regulatory, energy,
consumption, lease, filing, recording and activity taxes, levies, duties, fees, charges, imposts and withholding,
together with any and all penalties, interest and additions thereto, but excluding any taxes on the incomes of the
Parties.

“Third Party” means employees of Contractor Indemnified Parties and the FirstEnergy Indemnified Parties,
acting in their individual or personal capacity and subject to the foregoing, parties other than Contractor,
FirstEnergy, and their respective Affiliates, successors and assigns.

“Updated Critical Path Schedule” has the meaning given it in Section 6.4(C).

“Vendor Termination Costs” has the meaning set forth in Section 12.6

“Warranty” has the meaning set forth in Section 13.1.

“Warranty Non-Conformance” has the meaning set forth in Section 13.2(B).

“Warranty Period”has the meaning set forth in Section 13.1.

“Work Scope” means the work scope mutually determined by the Parties during the Development Phase,
which will include the matters described generally in Attachment A and such other matters as are mutually agreed
by the Parties.

EXECUTION COPY

“Wrap Arrangement” has the meaning set forth in Section 3.1(B).

1.2 Entire Agreement; Modification. The terms and conditions set forth in these General Terms and
Conditions for Engineering, Procurement, and Construction (including all exhibits and schedules attached hereto),
together with the Purchase Order to be delivered by FirstEnergy, FirstEnergy’s Requirements, and the Drawings and
Specifications approved by FirstEnergy pursuant to Section 3.3(C), in each case as they may be amended and

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supplemented from time to time, shall constitute the entire agreement between FirstEnergy and the Contractor with
respect to the performance of the Project (the “Agreement”), and supersedes any and all other prior
understandings, correspondence and agreements, oral or written, between them. This Agreement may not be
altered, amended, or modified in any way except by a written modification signed by all Parties.

1.3 Priority. The documents making up this Agreement are intended to be complementary and
mutually explanatory of one another. For the purposes of interpretation, the priority of the documents shall be in
accordance with the following sequence:

(A) the Purchase Order to be issued by FirstEnergy;

(B) these General Terms and Conditions;

(C) FirstEnergy’s Requirements;

(D) the Drawings and Specifications;

(E) any other documents forming a part of this Agreement.

The latest dated amendment or Change Order shall take precedence over that part of the foregoing documents that
it supersedes. Either Party, upon becoming aware of any such conflict or variance, shall promptly notify the other
Party in writing.

ARTICLE 2 - RELATIONSHIP OF FIRSTENERGY, CONTRACTOR, AND SUBCONTRACTORS

2.1 Status of Contractor. The relationship of Contractor to FirstEnergy shall be that of an independent
contractor. Except to the extent set forth in this Agreement, nothing herein shall be interpreted to create a master-
servant or principal-agent relationship between Contractor or any of its Subcontractors and FirstEnergy.
Nevertheless, the fact that Contractor is an independent contractor does not relieve it from its responsibility to fully,
completely, timely and safely perform the work in strict compliance with this Agreement. Nothing in this Agreement
or in the performance of the Project shall be construed to create a partnership, joint venture or other joint business
arrangement between FirstEnergy and Contractor.

2.2 Subcontractors. FirstEnergy acknowledges and agrees that Contractor intends to have portions of
the Project accomplished by Subcontractors pursuant to written Subcontracts between Contractor and such
Subcontractors. All Subcontractors shall be reputable, qualified firms with an established record of successful
performance in their respective trades performing identical or substantially similar work. All Subcontracts with
Subcontractors shall at all times be consistent with the terms or provisions of this Agreement. No Subcontractor is
intended to be or shall be deemed a third-party beneficiary of this Agreement. Contractor shall be fully responsible
to FirstEnergy for the acts and omissions of Subcontractors and of persons directly or indirectly employed by them,
as it is for the acts or omissions of persons directly employed by Contractor. The work of any Subcontractor shall be
subject to inspection by FirstEnergy to the same extent as the work of Contractor. All Subcontractors and personnel
of Subcontractors are to be instructed in the terms and requirements of FirstEnergy-approved safety and
environmental protection regulations and shall be expected to comply with such regulations. In the event that
personnel are not adhering to such regulations, then they shall be removed by Contractor. Nothing contained herein
shall (i) create any contractual relationship between any Subcontractor and FirstEnergy, or (ii) obligate FirstEnergy
to pay or see to the payment of any Subcontractor.

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY

2.3 Subcontracts.

(A) Proposed Subcontractors. Prior to engaging any Subcontractor (other than any Contractor
Affiliate) for performance of any part of the Project having an aggregate value in excess of [$ ******],
Contractor shall (i) notify FirstEnergy of such proposed Subcontractor as soon as possible during the
selection process and furnish to FirstEnergy all information reasonably requested by FirstEnergy with
respect to Contractor’s selection criteria (including copies of bid packages furnished to prospective
Subcontractors and the qualifications of the proposed Subcontractors), and (ii) notify FirstEnergy no less
than fifteen (15) Business Days prior to the execution of such Subcontract. FirstEnergy shall have the
discretion, not to be unreasonably exercised, to reject any proposed Subcontractor. Contractor shall not
enter into any Subcontract with a proposed Subcontractor rejected by FirstEnergy. FirstEnergy shall
undertake in good faith to review the information provided by Contractor pursuant to this Section 2.3(A)
expeditiously and shall notify Contractor of its decision to accept or reject a proposed Subcontractor as soon
as practicable after such decision is made, provided, in the event that FirstEnergy does not inform
Contractor of its decision to accept or reject a Subcontractor within five (5) Business Days, Contractor shall
be entitled to deem that FirstEnergy has accepted such proposed Subcontractor.

(B) Delivery of Subcontracts. Contractor shall furnish FirstEnergy with a copy of all
Subcontracts within ten (10) days after execution thereof.

(C) Terms of Subcontracts. In addition to the requirements in Section 2.2, each Subcontract
will contain the following provisions:

(1) the Subcontract (other than Subcontracts with Affiliates of Contractor) may be
assigned to FirstEnergy or its designee, at the request of FirstEnergy and without the consent of
the Subcontractor; and

(2) the Subcontractor shall comply with and perform for the benefit of FirstEnergy all
requirements and obligations of Contractor to FirstEnergy under this Agreement, as such
requirements and obligations are applicable to the performance of the work under the Subcontract,
including an indemnity for the benefit of FirstEnergy in substance the same as that included in
Article 16, the insurance requirements specified in Article 12, and the provisions of Section 3.7.

2.4 FE Vendors. FirstEnergy may elect to obtain certain products or services relating to each
Subproject directly from an FE Vendor rather than through Contractor or its Subcontractors. Contractor will provide

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construction management and such other management and administrative services with respect to FE Vendors as
provided herein. However, nothing contained herein shall (i) create any contractual relationship between any FE
Vendor and Contractor, or (ii) obligate Contractor to pay or see to the payment of any FE Vendor, except as
otherwise expressly agreed. No FE Vendor is intended to be or shall be deemed a third-party beneficiary of this
Agreement. FirstEnergy shall use best efforts to include in its contracts with FE Vendors (or in the case that
Contractor performs any work pursuant to this Agreement other than in respect of the Work Scope as contemplated
in Exhibit 5.1, in any contracts with any other FirstEnergy contractor if such Contractor work has any physical or
technical interfaces with such other FirstEnergy contractor’s work) a waiver of subrogation, indemnity, and waiver
and release of consequential damages for the benefit of Contractor, and shall use reasonable commercial efforts to
include in such contracts a waiver of property damage liability for the benefit of Contractor.

2.5 Bechtel Associates Professional Corporation (Ohio). As required by applicable Ohio law(s),
Contractor intends to subcontract engineering and design services performed under this Agreement to BAPC Ohio.
With respect to all services performed by BAPC Ohio, Contractor agrees that FirstEnergy shall have all rights in and
to such services as though such services were performed directly by Contractor (including the rights described in
Article 11). Contractor shall guaranty and be fully responsible to FirstEnergy for the acts and omissions of BAPC
Ohio and of persons directly or indirectly employed by them, as it is for the acts or omissions of persons directly
employed by Contractor, and FirstEnergy agrees that it shall look solely and exclusively to Contractor for fulfillment
of any obligations in respect of such services. Contractor shall cause BAPC Ohio to perform, for the benefit of
FirstEnergy, all of the obligations of Contractor under this Agreement that are applicable to the scope services
provided by BAPC Ohio. Any Subcontract with BAPC Ohio shall be subject to approval by FirstEnergy.

EXECUTION COPY

Article 3 - Contractor’s Responsibilities

3.1 General Scope of Project; Phased Release of Project.

(A) The Project tasks are described generally in Attachment A. The Project will be divided
into a number of Subprojects, with each Subproject made up of an Air Quality Control system applied to
one or more Generating Units. FirstEnergy, at its option, may proceed with any, all, or none of the
Subprojects.

(B) Development Phase. During the Development Phase of each Subproject, Contractor shall
perform engineering, design, and development of the Subproject in accordance with Attachment A and in
consultation with FirstEnergy. The Parties will mutually determine the scope of the Subproject, the Work
Scope, and other parameters of the Subproject, the Target Construction Cost, the Project Schedule, and the
Project Execution Plan, and will perform the other tasks described generally in this Agreement and in
Attachment A. During the Development Phase of each Subproject, the Parties will mutually determine
whether Contractor will contract with and assume responsibility for OEMs as a Subcontractor (a “Wrap
Arrangement”), or whether FirstEnergy will contract with major equipment vendors as an FE Vendor (an
“FE Vendor Arrangement”). Except as otherwise agreed, the Parties anticipate that the AQC Units
associated with Generating Units 1 through 4 of the Sammis Plant will be performed as FE Vendor
Arrangements. With respect to the AQC Units associated with Generating Units 5, 6, and 7 of the Sammis
Plant, FirstEnergy, at its sole discretion, will determine whether the Subproject will be performed as an FE
Vendor Arrangement or as a Wrap Arrangement. Except as otherwise mutually agreed, if the AQC Units
associated with Generating Units 5, 6, and 7 are performed as Wrap Arrangements, then all such AQC
Units will be treated together as a single Subproject. Further, to the extent that FirstEnergy elects to utilize
Powerspan ECO technology with respect to a Wrap Arrangement, the Parties agree that the terms and
conditions in this Agreement relating to such Wrap Arrangement shall be adjusted in a mutually agreeable
manner to reflect that: (A) Contractor shall not be responsible for, among other things, (1) any Performance
Liquidated Damages relating to the actual performance of the Powerspan ECO technology, or (2) any
intellectual property indemnity obligations relating to the Powerspan ECO technology, (B) Schedule
Liquidated Damages shall be applicable to achievement of Mechanical Completion after the Scheduled
Mechanical Completion Date (instead of the achievement of Final Completion after the Guaranteed Final
Completion Date), and (C) Contractor shall be entitled to a Change Order related to any changes in project
scope to the Subproject related to the Powerspan ECO technology. Contractor may perform preliminary
procurement or construction work prior to the Commencement Date under a partial Notice to Proceed. To
the extent that FirstEnergy desires to utilize this Agreement in connection with any Subproject to be
performed at a Site other than the W.H. Sammis facility, the Parties agree that it is their mutual anticipation
that such Subprojects will be performed as part of this Agreement (subject to negotiation of and mutual
agreement to site-specific changes hereto).

(C) Construction Phase. After the Commencement Date of each Subproject, Contractor shall
perform construction management, procurement, engineering, design, construction, startup, testing, and
operations training for the Subproject in accordance with the Work Scope and the Project Execution Plan,
in compliance with the Project Schedule and in consultation with FirstEnergy.

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(D) The Project shall include all engineering, procurement, construction, and testing of the
Project, all equipment, Materials, labor, workmanship, apparatus, structures, inspection, manufacture,
delivery, fabrications, transportation, and storage required in connection therewith, and all other items or
tasks that are required to achieve Final Completion and Final Document Delivery for the individual
Subprojects in accordance with the requirements of this Agreement. Contractor shall perform the Project in
accordance with Good Practices, all Applicable Laws, all Applicable Codes and Standards, and all other
terms and provisions of this Agreement. It is understood and agreed that the Project shall include any
incidental work necessary to complete the Project in accordance with Good Practices, Applicable Law,
Applicable Codes and Standards, and all other terms and provisions of this Agreement. Contractor shall be
entitled to rely on only such items of information supplied by FirstEnergy as the Parties have mutually
specified in the project design basis document during the Development Phase (the “FirstEnergy Reliable
Information”). Contractor’s Project Manager shall inform FirstEnergy if he learns of any inaccuracy, error,
fault, or other defect in the FirstEnergy Reliable Information.

3.2 Specific Obligations. Without limiting the generality of Section 3.1, or the requirements of any
other provision of this Agreement, Contractor shall:

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(A) Procure, supply, transport, handle, and properly store and install all Materials, except
where the Parties have agreed that FirstEnergy or its agents, subcontractors, or vendors will perform such
services;

(B) Provide construction, construction management (including the furnishing of all field
supplies, tools, construction equipment, and all Site supervision and Craft Labor), inspection and quality
control services required to ensure that the Project is performed in accordance herewith;

(C) Negotiate all guarantees, warranties, delivery schedules and performance requirements
(including schedule guarantees and performance guarantees) with all Subcontractors and FE Vendors on
terms that are consistent with this Agreement, to the extent achievable;

(D) Perform shop and other inspections of the work of Subcontractors and FE Vendors to
ensure that such work meets all of the relevant requirements of this Agreement;

(E) Contractor shall use reasonable commercial efforts to achieve FirstEnergy’s corporate
supplier sourcing goals in awarding Subcontracts under the Project. By way of example, FirstEnergy’s
corporate supplier sourcing goals for 2005 are as follows:

(1) Small business spend > or = 20.00%

(2) Small disadvantaged business spend > or = 3.00%

(3) Small woman owned business spend > or = 3.00%

(4) HUBZone Business spend > or = 0.27%

(5) Veteran owned business spend > or = 0.04%

(6) Service disabled veteran business spend> or = 0.0013%

3.3 Design and Engineering.

(A) General. Contractor shall, as part of the Project, perform all design and engineering work
in accordance with this Agreement. Before commencing design and engineering, the Contractor shall satisfy
itself regarding FirstEnergy’s Requirements (including design criteria and calculations). Contractor’s Project
Manager shall give notice to FirstEnergy of any error, fault or other defect in FirstEnergy’s Requirements of
which he becomes aware.

(B) Drawings and Specifications. Contractor shall prepare the Drawings and Specifications for
the Project. The Drawings and Specifications shall be based on the requirements of this Agreement,
including FirstEnergy’s Requirements, Good Practices, Applicable Codes and Standards, Applicable Law,
and all applicable provisions of the Agreement, and in a fashion consistent therewith shall develop in detail
the requirements of this Agreement.

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(C) Review Process. The Project Execution Plan to be developed by the Parties during the Development
Phase shall establish a review process including the following:

(1) General Review. During the development of the Drawings and Specifications,
Contractor shall provide FirstEnergy with the opportunity to perform informal reviews of the design
and engineering in progress. The informal reviews may be conducted at Contractor’s office located
in Frederick, Maryland, or at any of its Subcontractor’s offices. The reviews may be of progress
prints, computer images, draft documents, working calculations, draft specifications or reports,
Drawings, Specifications or other design documents determined by FirstEnergy.

(2) Submission by Contractor. Contractor shall submit copies of the Drawings and
Specifications identified in the Project Execution Plans or as subsequently requested by FirstEnergy
as requiring formal review, comment, and approval to FirstEnergy. Each submission of Drawings
and Specifications shall include a statement that to the best of Contractor’s knowledge such
Drawings and Specifications comply with Section 3.3(B).

(3) Review Periods. If Contractor submits Drawings and Specifications within the
applicable time frame set forth in the Project Schedule, FirstEnergy shall have a period of [******]
Business Days after receipt of such submission to issue written comments, proposed changes
and/or written approvals or disapprovals of the submission. FirstEnergy’s review periods shall be
extended by the period of any delay due to a Force Majeure Event.

If FirstEnergy does not issue any comments, proposed changes or written approvals or
disapprovals within such time periods, Contractor may proceed with the development of such
Drawings and Specifications, but FirstEnergy’s lack of comments, approval or disapproval, if
applicable, shall in no event constitute an approval of the matters submitted or bar FirstEnergy from
subsequently commenting thereon or disapproving thereof; provided, however, Contractor shall not
proceed with construction until the required Drawings and Specifications have been approved in
writing by FirstEnergy as set forth in this Section 3.3(C)(3).

In the event that FirstEnergy disapproves the Drawings or Specifications, FirstEnergy shall provide
Contractor with a written statement of the reasons for such rejection, and Contractor shall provide
FirstEnergy with revised and corrected Drawings and Specifications as soon as possible thereafter;
provided that Contractor shall not receive any extensions of time to perform any of its obligations
hereunder.

If Contractor submits Drawings and Specifications at times other than shown in the Project
Schedule, Contractor shall give FirstEnergy advance notice prior to such submissions to facilitate
schedule adjustments when and if necessary. Thereafter, FirstEnergy shall use good faith efforts to

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provide comments, approval and/or disapproval as expeditiously as reasonably practical, and at


Contractor’s request, FirstEnergy shall state the date by which it believes that it will be able to
respond to such submission.

FirstEnergy’s review or approval of any Drawings and Specifications shall not in any way be
deemed to limit or in any way alter Contractor’s responsibility to perform and complete the Project
in strict accordance with the requirements of this Agreement.

Upon FirstEnergy’s written approval of the Drawings and Specifications, such Drawings and
Specifications shall be the Drawings and Specifications that Contractor shall use to construct the
Project. Upon approval by FirstEnergy, such Drawings and Specifications shall form a part of this
Agreement.

Additions, modifications, or deletions to the Drawings and Specifications shall constitute a Change Order
only if and to the extent FirstEnergy requests such change pursuant to Section 8.1, or FirstEnergy is notified by
Contractor of a request for such Change Order pursuant to Section 8.2 and such Change Order is thereafter
approved as provided in Article 8.

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(D) Design Licenses. Contractor shall perform all design and engineering services through
design professionals licensed in accordance with Applicable Law, and all design and engineering
deliverables shall be stamped by design professionals licensed in accordance with Applicable Law. If any
design and engineering services are to be performed offshore, then FirstEnergy shall have the right to
approve such services and the billing rates applied to such services.

(E) Other Information. Contractor shall provide all other information and documentation as
may be reasonably requested by FirstEnergy.

3.4 Contractor’s Personnel.

(A) Key Project Personnel. Exhibit 3.4(A) is a list of Contractor’s key personnel who will be
responsible for supervising the performance of Contractor’s services. Contractor shall not remove any such
personnel from the Project or from any Subproject without FirstEnergy’s prior written consent. If any such
individual is so removed or otherwise ceases to be available to the Project or any Subproject for any
reason, any replacement personnel shall be subject to the prior written approval of FirstEnergy. The
individuals identified as technical specialists on such Exhibit shall be available as needed to support the
Subproject.

(B) Employees. Contractor shall employ for the Project only persons known to it to be
experienced, qualified, reliable and trustworthy. At FirstEnergy's request, the credentials of any of
Contractor's employees assigned to perform the Project shall be submitted to FirstEnergy in advance of
such assignment. Contractor shall require all persons performing the Project at FirstEnergy's Site to be
trained in and to comply with Contractor's policies, procedures and directives applicable to activities at
FirstEnergy's Site, including security, environmental protection, worker health and safety, sexual
harassment, access, use of controlled substances, and similar activities, such policies, procedures and
directives to be no less rigorous than those of FirstEnergy. During the performance of the Project,
FirstEnergy may object to any Contractor employee who, in FirstEnergy's opinion, does not meet these
criteria. In such case, Contractor shall immediately replace or remove such employee.

(C) Supervision. Contractor and its Subcontractors shall be responsible for enforcing strict
discipline and good order among their employees, and shall assume full responsibility for their employees’
acts and omissions in and around FirstEnergy’s Site. Contractor’s Project Manager shall enforce all
environmental protection and worker health and safety and similar requirements applicable to the Project.
Contractor's Project Manager shall be thoroughly competent and experienced in the line of work to be
performed. He shall represent the Contractor on the job and have the authority to bind the Contractor.

(D) Substance Abuse. The Contractor shall comply with the FirstEnergy Generation Corp.
Substance Abuse Testing Program (FE SATP), a copy of which is attached hereto as Exhibit 3.4(D)

(E) Labor Requirements. Contractor and its Subcontractors shall comply with the
requirements set forth in Exhibit 3.4(E) with respect to labor employed in connection with the Project

3.5 Construction Plant, Facilities and Operations.

(A) On-Site Facilities. The Contractor will, unless otherwise specified, construct and remove
all temporary buildings, structures, construction plant, change houses, portable lavatories and temporary
storage buildings required for its own use or that of its Subcontractors, if any. The location of such buildings,
storage areas for materials and employees' parking space, if on FirstEnergy's site, will be designated by
FirstEnergy's Designated Representative.

Should FirstEnergy provide (at a location of its choice within reasonable distance of the Project
area) the water and power source required for performance of the Agreement, Contractor shall accept these
services at its own risk. However, FirstEnergy will diligently pursue restoration of any such services which
may be interrupted. If such water and power sources shall be provided by FirstEnergy, they shall be
identified elsewhere in the Project specification. Otherwise, Contractor shall be responsible for providing the
water and power sources necessary for the performance of the Agreement.

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The Contractor agrees that when any use is to be made by the Contractor or by any of its
Subcontractors or by any of its or their employees for its or their convenience of any equipment, facilities,
office space or apparatus (including scaffolds, ladders, cranes, derricks, platforms, runways, bridges, floor,
tools, barricades, or other facilities) which are owned, rented or leased by FirstEnergy or FirstEnergy's other
contractor(s), or contracted for from other contractors, the Contractor shall prior to and during such use

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satisfy itself as to the safety of such facilities; and the Contractor, subject at all times to the provisions and
limitations of Article 16, hereby assumes the entire responsibility and liability for all injuries, claims,
damages, or losses whatsoever resulting from the use of such equipment, facilities, or apparatus. Contractor
agrees to execute all necessary documents required by FirstEnergy or FirstEnergy's other Contractors, to
acknowledge inspection of such equipment or apparatus prior to use.

(B) Areas of Project and Non-Interference with Other Activities on Site. The Contractor shall
use only the area designated by FirstEnergy's Designated Representative, and other parts of FirstEnergy's
Site shall not be used for any purpose without the prior approval of FirstEnergy's Designated
Representative. If any part of the Project is to be performed on an easement or right-of-way held by
FirstEnergy, the Contractor shall limit its activities to that area and not allow its employees or
Subcontractors outside such area. The Contractor shall direct its employees or employees of its
Subcontractors to enter and leave the premises only through access ways, and to park only in parking
areas designated by FirstEnergy's Designated Representative.

The portion of the areas designated that constitutes the construction site shall be under the control
of the Contractor unless otherwise agreed by the Contractor and FirstEnergy's Designated Representative.

The Contractor shall, to the maximum extent reasonably practicable, so conduct its work so as to
avoid any necessity to curtail the operations of FirstEnergy's Site. Where the Project requires connection to
or modification of existing facilities, FirstEnergy's Designated Representative will arrange for the Contractor
to perform such work at FirstEnergy's convenience and the Contractor shall at all times, to the maximum
extent reasonably practicable, except when required to install such facilities, keep its employees and cause
its Subcontractors to keep their employees out of, off of, and out of contact with FirstEnergy's Site and
facilities.

FirstEnergy shall provide access to the existing facilities at the times indicated on the Project
Schedule to allow the Contractor to connect to or make modifications to the existing facilities, in accordance
with the scope of the Project. The Project Schedule completion date and the Target Construction Cost for
each Subproject shall be subject to equitable adjustment as appropriate in accordance with Article 8 in the
event that such access is not provided.

The Contractor shall conduct its services so as to minimize interference with other work in progress.
In case of dispute between the Contractor and other contractors engaged by FirstEnergy, the decision of
FirstEnergy's Designated Representative coordinating the Project shall be final.

The Contractor shall not, under the terms of this Agreement, permit its employees or the employees
of any of its Subcontractors to operate the existing FirstEnergy’s Site or any of its facilities or to perform
maintenance work on the existing FirstEnergy’s Site or any of its facilities, except such maintenance work
as is necessary for construction purposes.

(C) Access to Project; Surveillance. FirstEnergy shall be afforded free access at all
reasonable times upon prior notice to the Contractor's or any of its Subcontractors’ work, facilities, and
records, to perform surveillance and reviews of work completion and quality, and contract cost and quality
records (except with respect to the financial information described in the last sentence of Section 3.7(B)),
and to perform work sampling observation and recording surveillance activities. Any such surveillance or
review performed by FirstEnergy or any failure by FirstEnergy to so perform shall in no manner reduce the
responsibility and liability of Contractor or its Subcontractors or excuse them from performance. Access to a
Subcontractor's facilities and records will be coordinated through the Contractor.

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(D) Responsibility for Materials and Work Prior to Acceptance. The Contractor shall receive,
check in, unload, store, handle and protect all materials to be used, furnished or erected by the Contractor
or its Subcontractors. Subject to Section 18.4(A), the property being used, furnished and/or erected,
installed or constructed under the Agreement shall be considered to be in the care, custody and control of
the Contractor, and the Contractor shall be responsible for all materials and work until permanently placed,
installed or constructed and accepted by FirstEnergy.

The Contractor shall satisfactorily dispose of all rubbish resulting from the operations under this
Agreement on a day-to-day basis and upon completion of the Project shall perform all work necessary to
restore territory embraced within FirstEnergy’s Site of its operations to at least as good order and condition
as at the beginning of the Project under the Agreement.

(E) Security and Safety. The Contractor’s site-specific safety program shall, at a minimum,
comply with the FirstEnergy Contractor Safety Program for Fossil Generation, a copy of which is attached
hereto as Exhibit 3.5(E)-1 The Contractor shall take the necessary precautions to render the Project secure
in order to decrease the probability of accident from any cause and to avoid delay in completion of the
Project. The Contractor shall use proper safety appliances and provide first aid treatment and ambulance
service for emergency treatment of injuries and shall comply with all rules, laws, regulations of the United
States of America, the State of Ohio, or any political subdivision or duly constituted Governmental Authority
with regard to the safe performance of the Project. Contractor shall also comply with the requirements set
forth in Exhibit 3.5(E)-2 (OSHA compliance and safety).

The Contractor shall provide temporary fire protection facilities to the extent required by FirstEnergy
during the construction period. The Contractor may be working adjacent to or concurrent with FirstEnergy's
operations or other construction activities. The Contractor shall maintain close cooperation and flexible
working arrangements with FirstEnergy in consideration of adjacent structures and work. The Contractor
shall maintain close cooperation with other contractors working at the site.

Upon commencing work, the Contractor shall establish and maintain sanitary facilities for its
employees and those of its Subcontractors, to the extent such facilities are not provided by FirstEnergy and
in conformity with local and state regulations. The Contractor will remove these facilities upon completion of
the Agreement and clean the site to FirstEnergy's satisfaction.

Contractor shall maintain adequate project security guards and procedures for the area of any work
to be performed under a Subproject. Without limiting Contractor’s obligations hereunder, FirstEnergy may at
its discretion provide a security guard at the entrance and exits to the site who shall have the right to check
all persons entering and leaving the site, check all automobiles, cars and trucks and carry out such control
of persons and vehicles as deemed necessary.

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(F) Sales Prohibited. The Contractor is advised that the sale of anything (i.e. food, beverages,
articles of clothing, etc.) on FirstEnergy's Site by the Contractor's or Subcontractor's personnel is strictly
prohibited.

(G) Arrival and Departure of Contractor's Tools, Equipment, and Materials.

(1) Mobilization:

The Contractor shall provide the necessary resources to receive all material or equipment
the Contractor or Subcontractors have shipped to FirstEnergy’s Site.

The Contractor shall be responsible for providing FirstEnergy's Designated Representative


with the detailed packing lists of all tools, equipment, and materials the Contractor is bringing onto
the jobsite. The list(s) shall have been provided to FirstEnergy’s Designated Representative prior to
the time the shipment of such tools, equipment, and materials arrive at the site. Contractor shall,
where known, identify the specific Subproject associated therewith and itemize such tools,
equipment, and/or materials on separate forms.

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(2) Demobilization

The Contractor shall provide to FirstEnergy proper verification of ownership of all tools,
equipment, and materials being removed from the jobsite at anytime.

The Contractor shall prepare and submit new forms (not marked up original forms used to
bring the tools, equipment, and materials onto the jobsite) itemizing the tools, equipment, and
materials leaving the jobsite for each individual shipment.

The forms shall be signed by the Contractor's Project Manager or his designee signifying
that everything listed on the form(s) as being removed from the jobsite is the property of the
Contractor.

The Contractor shall prepare sufficient copies of the forms to provide at minimum one copy
for FirstEnergy's Designated Representative and one copy to be left with the security guard when
leaving the jobsite.

The Contractor shall be responsible for providing at least a minimum 24 hour notification of
the tools, equipment, and materials that are being readied for shipment off the jobsite.

The Contractor shall, prior to beginning to pack and load tools, equipment, and materials
for shipment off the jobsite, contact FirstEnergy's Designated Representative to determine if
FirstEnergy desires to be present to monitor the packing and loading process. Should the
Contractor fail to notify FirstEnergy's Designated Representative prior to packing and loading any
shipment, thus resulting in FirstEnergy's inability to verify the tools, equipment, and materials being
shipped, all costs to redo the entire loading process from the beginning will be to the Contractor's
account.

FirstEnergy retains the sole option to perform a total or partial ownership verification audit
of all Contractors' shipments leaving the jobsite.

(H) Radio Equipment. The Contractor shall not use any two-way radios or radio controlled
equipment in the performance of work covered in this Agreement unless:

(1) The Contractor shall notify FirstEnergy, in writing, listing all such frequencies
proposed, their effective radiated power (ERP) and dBm, and, in the situation of radio controlled
equipment, the receiver sensitivity, selectivity and coding.

(2) FirstEnergy has received a copy of the current FCC authorization/license


document covering the radio frequencies for which the Contractor has been granted by the FCC an
authorization/license. The Contractor shall also notify FirstEnergy as to the location of the original
document, who in the Contractor’s organization is responsible for its renewal and equipment
maintenance and whereon the jobsite the document or copy thereof will be posted.

3.6 Certificates, Permits and Licenses. Except as otherwise expressly agreed in writing, Contractor
shall obtain all Permits which are required to be obtained in Contractor’s own name to perform the Project.
Contractor shall provide FirstEnergy with copies of such Permits as soon as they are obtained. Contractor shall
provide information, assistance and documentation to FirstEnergy as reasonably requested in connection with any
Permits to be obtained by FirstEnergy.

3.7 Books, Records and Audits.

(A) Contractor shall keep such full and detailed Project records including books, construction
logs, records, daily reports, accounts, payroll records and other pertinent documents as may be necessary
for proper financial management under this Agreement and as required under Applicable Law. Contractor
shall maintain all such books and records in accordance with applicable generally accepted accounting
principles. Contractor shall also retain all non-identical copies of all records and documents (including
records and documents in electronic form) as are required to be retained under the NSR Consent Decree.
The Parties shall determine a records retention protocol during the Development Phase. Contractor shall
grant FirstEnergy such access to such records as is required for FirstEnergy to comply with the NSR
Consent Decree.

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(B) With respect to each Subproject, upon reasonable notice during the [******] year period
following Final Completion, FirstEnergy or its designee shall have the right to audit or to have audited the
Project books and records of Contractor which relate to any work under this Agreement. When requested by
FirstEnergy, Contractor shall provide the auditors with reasonable access to all personnel relevant to the
audit, property, and records, and Contractor’s personnel shall cooperate with the auditors to effectuate the
audit or audits hereunder. The auditors shall have the right to copy any and all documentation relating to
performance of cost reimbursable work under this Agreement. Contractor shall pay for all reasonable
internal costs (except personnel assigned to any Subproject) incurred by it in assisting FirstEnergy with one
yearly audit performed pursuant to this Section 3.7. For audits performed more frequently than yearly during
the foregoing period, FirstEnergy shall pay for such Contractor reasonable internal costs, except in the
event that such audits discover any errors in Contractor’s billing during such period. Contractor shall include
audit provisions identical to this Section 3.7 in all Subcontracts. FirstEnergy shall have no right to examine,
audit, or evaluate the basis underlying any hourly rates of Contractor professional labor or other fixed
elements of compensation agreed to in the rate sheets included in Exhibit 5.1.

3.8 Hazardous Substances.

(A) Use of Hazardous Substances by Contractor. Contractor, any Subcontractor or its or their
personnel, agents or representatives may only bring onto, use, store or locate on the Site such Hazardous
Substances as are necessary for the performance of the Project. If such Hazardous Substances are brought
onto, used, stored or located on the Site by Contractor or any Subcontractor or its or their personnel, agents
or representatives, Contractor shall exercise or cause to be exercised the utmost care and skill and shall
carry on its activities under the supervision of properly qualified personnel in accordance with Applicable
Law. Before Final Completion of each Subproject, Contractor shall (i) remove all such Hazardous
Substances previously brought onto, stored, used or located on the Site by Contractor or the Subcontractors
in connection with the delivery, installation, commissioning, characterization or testing of such work (unless
the same have been permanently incorporated into the Project in accordance with Applicable Law); and
(ii) certify that removal in writing to FirstEnergy.

(B) Assumption of Risk. Contractor shall retain and assume the risk of all Hazardous
Substances brought onto, used, stored or located on the Site and under the control of Contractor or a
Subcontractor or its or their personnel, agents or representatives, and shall be responsible, at its sole cost,
for the proper handling, collection, storage, removal, use, clean-up, transportation and disposal of such
Hazardous Substances.

(C) Notice of Presence. Contractor shall provide FirstEnergy with (i) written notice of the
existence of any Hazardous Substances which Contractor or the Subcontractors or its or their personnel,
agents or representatives bring onto the Site; and (ii) appropriate instructions for shipping, handling,
exposure to and disposal of such Hazardous Substances, as required by Applicable Law.

(D) Compliance with Applicable Law. Contractor or the Subcontractors or its or their
personnel, agents or representatives shall not introduce or release or allow to be introduced or released
from the Site or handle, collect, remove, transport or dispose of Hazardous Substances in violation of
Applicable Law.

(E) Other Environmental Compliance Requirements. Contractor and its Subcontractors shall
comply with the requirements set forth in Exhibit 3.8(E)-1 (Asbestos Handling and Removal ), Exhibit
3.8(E)-2 (Inorganic Arsenic), and Exhibit 3.8(E)-3 (Lead Abatement Terms of Reimbursement) in connection
with the Project.

(F) Pre-existing Hazardous Substances. Contractor shall not be responsible or liable for
dealing with, handling or disposing of Hazardous Substances which are pre-existing at, under, above, on or
adjacent to the Site. If, in the course of performance of the Project, the Contractor encounters on the Site
any matter which it reasonably believes is a Hazardous Substance, the Contractor shall immediately
suspend the work in the area affected and report the condition to FirstEnergy in writing. In any such event,
the obligations and duties of the Parties hereto shall be as follows:

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(1) If it is determined that such condition involves a pre-existing Hazardous


Substance, then any required, necessary or appropriate remedial actions shall be performed by
FirstEnergy at its sole cost and expense;

(2) If it is determined that such condition involves a Hazardous Substance introduced


to the Project Site after the date of this Agreement by the Contractor, its Subcontractors or any
Person for whom either may be liable, then any required, necessary or appropriate remedial actions
shall be performed by the Contractor at its sole cost and expense; or

(3) If it is determined that the condition does not involve a Hazardous Substance, the
Contractor shall, promptly after receiving written notice from FirstEnergy authorizing the Contractor
to recommence site activities in the subject area, resume the portion of the work that had been
suspended.

3.9 Quality Control, Testing and Inspection. The Project Execution Plan to be developed by the
Parties during the Development Phase shall establish quality control, testing, and inspection processes including the
following:

(A) Contractor Responsibility. Contractor shall be responsible for all quality assurance, quality
control, testing and inspection activities related to the Project, including all Materials, whether such work is
performed by Contractor or Subcontractors. During the Development Phase, Contractor shall submit to
FirstEnergy for its review a project specific quality assurance, quality control, testing and inspection plan,
but excluding tests and inspections relating to Performance Tests. FirstEnergy may review and comment
on, without assuming liability for, such quality assurance, quality control, testing and inspection procedures,
and Contractor shall make revisions in accordance with FirstEnergy’s comments. Contractor’s quality
assurance plan shall provide for a quality assurance individual or individuals to be present at the Site to
supervise the implementation of the quality assurance, quality control, testing and inspection plan, including

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all such quality assurance plan requirements as may be described in FirstEnergy’s Requirements.
FirstEnergy shall be provided reasonable access during normal working hours to Contractor’s and the
Subcontractors’ facilities for inspection of all testing activities related to the Project or any portion thereof
and shall be given ten (10) Business Days notice prior to the commencement of any such testing to ensure
that FirstEnergy is able to be present for all such tests. Records of all testing and inspection work by
Contractor shall be kept complete and available to FirstEnergy during the performance of this Agreement
and for such longer period as may be specified by Contractor’s standard recordkeeping practices.

(B) FirstEnergy Rights. If any work or component thereof at the Site has a Warranty Non-
Conformance and cannot be repaired, Contractor shall dispose of same at no cost to FirstEnergy. If
Contractor fails to dispose of such work or component on a timely basis, then FirstEnergy may dispose of
such work or component in a reasonable manner and shall be entitled to obtain reimbursement for all
reasonable expenses incurred by FirstEnergy in the disposition thereof.

3.10 Progress Reporting. The Project Execution Plan to be developed by the Parties during the
Development Phase shall establish a progress reporting process including the following:

(A) Monthly Progress Reports. On or before the fifth Business Day of each month, Contractor
shall submit to FirstEnergy, along with the Updated Critical Path Schedule, a monthly progress report in a
form acceptable to FirstEnergy, which shall cover all activities up through the 23 rd day of the preceding
month (the “Monthly Progress Report”). Contractor shall provide FirstEnergy with the number of copies of
such reports and shall arrange for the distribution thereof as FirstEnergy may reasonably request.

(1) The Monthly Progress Report shall include the following information:

(i) an executive summary with a description of overall status and progress of


the Project;

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(ii) a description, as compared with the Project Schedule and the Critical
Path Schedule, of engineering status including actual percentage complete versus planned
percentage, document status, significant activities accomplished the previous month and
significant activities planned for the current month;

(iii) a description, as compared with the Project Schedule and the Critical
Path Schedule, of procurement activities including actual percentage complete versus
planned percentage, manufacturing and delivery status, significant activities accomplished
the previous month and significant activities planned for the current month;

(iv) a description, as compared with the Project Schedule and the Critical
Path Schedule, of construction activities including actual percentage complete versus
planned percentage, progress summary, numbers of skilled, unskilled, and supervisory staff
on Site compared to planned levels, significant activities accomplished the previous month
and significant activities planned for the current month;

(v) a description of critical items, including an evaluation of problem areas,


and, to the extent applicable, of strategies to recovery any delays so as to comply with the
Project Schedule and the Critical Path Schedule and the expected completion date for such
delayed or problematic areas or activities;

(vi) a description of all permitting and environmental issues;

(vii) a description of all safety and security issues;

(viii) a description of quality assurance, quality control, inspection and testing


activities;

(ix) progress photos, including a description of the photograph and the date
taken; and

(x) any other information reasonably requested by FirstEnergy, including any


material information of which Contractor is aware that could reasonably be foreseen to
adversely affect the performance of the Project.

(B) Other Contractor Provided Information. Contractor shall provide FirstEnergy with such
other information as reasonably requested by FirstEnergy, including the following:

(1) Minutes for all status and other project meetings within five (5) Business Days
following such meeting; and

(2) Safety incident reports within three (3) Business Days of the occurrence of any
such incident.

(3) Progress reports at such other intervals as may be requested by FirstEnergy.

(C) Review Meetings. Contractor shall conduct review meetings with FirstEnergy in person (or
if approved by FirstEnergy, by telephone) within five (5) Business Days after the submission of each
Monthly Progress Report and Updated Critical Path Schedule and at such other intervals as may be
requested by FirstEnergy, at a mutually agreeable location and time to review the status of the Project.

(D) Additional Reports. If any material problem, emergency, strike, injury, work stoppage or
legal problem is anticipated, or any unanticipated event occurs, that might adversely affect Contractor’s
ability to perform its obligations hereunder in a timely manner, in addition to other reports, notices and
actions required hereunder, Contractor shall promptly prepare a written report detailing available information
and steps being taken or taken to correct such problem or event and shall deliver such report to FirstEnergy

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as soon as reasonably practicable. FirstEnergy may at any time request such report with respect to any
event that FirstEnergy reasonably regards as significant.

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3.11 NSR Consent Decree. Per the disclosure requirements of the NSR Consent Decree, Contractor
acknowledges that it has received a copy of the NSR Consent Decree, and shall provide a copy of the NSR
Consent Decree to all Subcontractors and any other company or other organization retained by Contractor to
perform any of the work under this Agreement.

3.12 FirstEnergy’s Review and Approvals. FirstEnergy’s review or approval of, or right to review and
approve, any work provided or performed by Contractor and its Subcontractors under this Agreement (including
approval of Drawings and Specifications, Subcontractors, safety and environmental protection guidelines, quality
assurance, quality control, testing and inspection procedures) shall not in any way be deemed to limit or in any way
alter Contractor’s responsibility to perform and complete the Project in strict accordance with the requirements of
this Agreement, or Contractor’s obligations under Article 13 (Warranty).

ARTICLE 4 - FIRSTENERGY’S RESPONSIBILITIES

FirstEnergy shall comply with the following provisions in a timely manner:

4.1 Payment. FirstEnergy shall timely pay the Contract Price required to be paid by it to Contractor
pursuant to the terms of this Agreement, and in accordance with the provisions of Article 5 hereof.

4.2 Permits. FirstEnergy shall provide Contractor with copies of all Permits obtained by FirstEnergy
related to the Project as soon as they are obtained. FirstEnergy shall provide information, assistance and
documentation to Contractor as reasonably requested in connection with the Permits to be obtained by Contractor
hereunder.

4.3 Access to the Site. FirstEnergy shall provide Contractor with reasonable access to the Site within
the time (or times) stated in the Project Schedule. Such access shall be sufficient to permit Contractor to progress
with construction on a continuous basis without substantial interruption or interference.

4.4 Other Responsibilities. FirstEnergy shall perform or cause to be performed any obligation of
FirstEnergy explicitly provided in the Agreement.

ARTICLE 5 - PRICE; PAYMENTS TO CONTRACTOR

5.1 Price. FirstEnergy will compensate Contractor in the manner and at the times specified in Exhibit
5.1. FirstEnergy may request different pricing arrangements for any Subproject, but subject to the consent and
agreement of Contractor.

5.2 Interim Payments.

(A) Invoices.

(1) With respect to each Subproject, Contractor shall submit to FirstEnergy invoices
for payments due as provided in Exhibit 5.1. An invoice shall constitute a representation by
Contractor, and Contractor shall provide to FirstEnergy and such other Persons as FirstEnergy may
designate a certificate to the effect, that: (a) the Subproject is progressing in accordance with the
Project Schedule and the Critical Path Schedule, or shall specify any reasons why such is not the
case; (b) the quality of all work described in the invoice is in accordance with the terms of this
Agreement, or shall specify any reasons why such is not the case; (c) Contractor is entitled to
payment of the amount invoiced; (d) the work (or any portion thereof) described in the statement
accompanying the invoice and all previous invoices are free and clear of all liens, security interests
and encumbrances; and (e) all Subcontractors have been paid the monies due and payable to them
for work performed (except for such amounts as may be disputed in good faith by Contractor).

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(2) Invoices shall be submitted to FirstEnergy’s Designated Representative for


approval and payment. The elements of all amounts invoiced shall be shown separately, by
applicable line items, and shall be classified or further broken down as FirstEnergy may require for
accounting and payment purposes. Any disputed invoice or portion thereof need not be paid, but in
such case, FirstEnergy shall promptly notify Contractor of any rejected invoice or portion thereof
with reasons for such rejection. Specific details of the invoicing process are as follows:

(i) By the [******] of the month in advance of the cost being incurred,
Contractor will electronically submit two payment requests to FirstEnergy. The first payment
request will be equal to [******}% of the estimated sum of all reimbursable costs that
Contractor anticipates billing to FirstEnergy for the month the cost will be incurred, adjusted
by an amount equal to the difference (deficiency or excess) between the payments
received for the month preceding the date of invoice and the actual costs incurred for such
preceding month; adding the amount of the deficiency or subtracting the amount of the
excess. The second payment request will be equal to [******]% of the estimated sum of all
reimbursable costs that Contractor anticipates billing to FirstEnergy for the month the costs
are incurred.

(ii) FirstEnergy will electronically transfer funds on a date that will allow
Contractor to receive payment for the first payment request by the [******] day of the month
in advance of the cost being incurred and the second payment request by the [******] day of

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the month the cost will be incurred.

(iii) As soon as practical after the close of each monthly accounting period,
Contractor will electronically submit to FirstEnergy a Statement of Reimbursable Cost for
the accounting period just ended. Contractor will make its best efforts to issue this
statement on or prior to the [******] day of the following month. The statement will be
supported by a schedule of charges, together with any supporting records, invoice copies,
payroll abstracts and/or other documentation that FirstEnergy reasonably requires. Along
with each statement, Contractor will submit a reconciliation of monthly payments and
reimbursable costs incurred. The reconciliation will include monthly payments received and
cost incurred for the latest period and from inception-to-date.

(iv) FirstEnergy will not withhold payment of any undisputed amount which is
due Contractor beyond the date payment is due under the Contract.

(v) Interest will be accrued and payable to Contractor on undisputed amounts


that are due and remain unpaid with such accrual to begin [******] days after the payment
due date. Interest will be due at the rate of the prime rate as specified under the caption
“Money Rates” in the Wall Street Journal (New York Edition dated the date such interest
begins to accrue) plus [******]%. The obligation to pay interest will be waived during the first
[******] billing cycles under the first Subproject.

(vi) Fee shall be calculated in accordance with Exhibit 5.1 and Fee
adjustments defined in Exhibit 5.1(A).

(vii) Payment of Fees for Engineering/Graphics Labor and Other Professional


Labor will be paid using the same methodology used for payment of costs as provided in
Sections 5.2(A)(2)(i) through (vi). Payment of Fees for all other amounts will be in
accordance with the percentage of Construction Progress, as defined in the “Project Status”
section of the Fee adjustment sheet provided in Exhibit 5.1-1(A).

(viii) Contractor will certify that all amounts due and payable to all
Subcontractors prior to the end of the period covered by a Monthly Progress Report, unless
reasonably disputed, have been paid in accordance with the terms of the Subcontracts.

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(3) Invoice charges shall be allocated to appropriate accounts, a list of which will be
furnished by FirstEnergy. For work performed by the Contractor under Article 8 of this Agreement,
the charges will be listed by FirstEnergy's Change Order documentation number (Field Change
Request (FCR) Numbers, Maintenance Work Order (MWO) Numbers, Extra Work Request (EWR)
Numbers, Contracted Services Change Order (CSCO) Numbers, etc.) and listed by current month
and shall be supported by daily time sheets, accurately describing the work being performed, signed
by FirstEnergy's Designated Representative showing the craft, first and last names and a unique
personal identification number of each worker and each piece of equipment employed on the
Project. All material charges shall be supported by the original invoices or other evidence as
required by FirstEnergy to substantiate the charges submitted.

(B) Payment. Each invoice shall, after approval by FirstEnergy, be processed for payment for
the amount of each approved invoice less any monies withheld under Section 5.4 below. Payments by
FirstEnergy shall not be deemed evidence of acceptance by FirstEnergy of the services or goods called for
hereunder.

(C) Interim Lien and Claim Waivers. Each invoice prior to Final Completion of each
Subproject shall be accompanied by a fully executed Contractor’s Interim Lien and Claim Waiver in the form
set forth in Exhibit 5.2(C) for all work performed through the date for which payment is requested, and fully
executed Interim Lien and Claim Waivers from each Subcontractor (other than with respect to Subcontracts
with a total payment obligation of less than $500,000) in the form set forth in Exhibit 5.2(C) for all work
performed through the date for which payment is requested.

5.3 Final Payment. Upon Final Completion of each Subproject, Contractor shall, in addition to the
other requirements in the Agreement, submit a statement summarizing and reconciling all previous invoices,
payments and Change Orders, and an affidavit that all payrolls, payroll taxes, liens, charges, claims, demands,
judgments, security interests, bills for Materials, and any other indebtedness connected with the Project have been
paid, accompanied by a fully executed Contractor’s Final Lien and Claim Waiver in the form set forth in Exhibit
6.3(A) and fully executed Final Lien and Claim Waivers from each Subcontractor in the form set forth in Exhibit
6.3(A).

5.4 Withholding. Should FirstEnergy in good faith dispute any portion of an invoice, FirstEnergy shall
be entitled to withhold payment of the disputed portion provided that FirstEnergy gives notice to Contractor of such
disputed portion, together with reasons for such dispute, within the period specified for payment in Section
5.2(A)(2)(ii). FirstEnergy shall also pay the undisputed portion of the invoice within such period. In addition to
disputed amounts in an invoice, FirstEnergy may withhold payment of all or any portion of any invoice, in the
amount reasonably necessary to protect FirstEnergy in the event that: (A) a third party claim has been asserted for
which Contractor has an indemnity obligation under Section 16.1 unless Contractor is satisfying the obligation; (B)
Contractor has failed to make a payment as and when due to a Subcontractor or supplier for materials, labor or
equipment; or (C) Contractor has failed to supply any affidavit, release or waiver of lien which is required pursuant
to this Agreement. If any monies are so withheld, they shall be paid only when the cause of such withholding has
been eliminated. Moreover, if any monies are so withheld, FirstEnergy shall not be responsible for any interest
payment to Contractor. In the event any controversy, claim or dispute between the Parties relating to non-payment
of any disputed amounts, including any Change Order, Contractor shall, unless otherwise agreed in writing by the
Parties or terminated by FirstEnergy pursuant to Article 15, continue with the Project, and FirstEnergy shall continue
to pay all undisputed amounts owed to Contractor under the Agreement.

5.5 Retainage for Final Subproject. FirstEnergy shall be entitled to retain a portion of the Fee payable
with respect to the final Subproject of the Project, in an amount sufficient to provide for any difference between the
amount of Fees paid to Contractor during the Project (including any other Subproject) and the amount finally
determined to be due. The retainage shall be released upon Final Completion and Final Document Delivery of the
final Subproject of the Project. No interest will be payable by FirstEnergy on the amount of the retainage prior to

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payment thereof. Contractor may provide a letter of credit with mutually satisfactory terms, or other payment security
acceptable to FirstEnergy in lieu of any retainage provided under this Section 5.5.

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5.6 Sales Tax.

(A) Direct Pay Permit. A Direct Payment Permit authorizing the purchase of tangible personal
property without payment of the tax at the time of purchase has been issued to FirstEnergy Generation
Corp. The Permit Number for FirstEnergy Generation Corp. is 98-002723. FirstEnergy agrees to maintain
adequate records of all purchases and pay tax on the taxable items directly to the Treasurer of the State of
Ohio. The Direct Payment Permit does not apply to construction contracts under which the contractor is
considered to be the consumer and liable for the tax on materials incorporated into a structure or
improvement as provided in Section 5739.01 (B) Ohio Revised Code.

(B) Tax Exempt Project - FirstEnergy states that the overall Project is defined by Ohio
Revised Code § 5709.20 and is anticipated to be exempt from Ohio Sales and Use Taxes under Ohio
Revised Code § 5709.25. All parties to this contract will work together to minimize FirstEnergy’s sale and
use tax liability by taking the following actions:

(1) Contractor - The Contractor will register for Ohio sales tax purposes as a vendor,
thereby gaining the ability to issue Ohio “Resale Exemption Certificates” when purchasing items to
be incorporated into the “facility”, and sold to FirstEnergy.

(2) Contractor retains the sales and use tax liability to report or pay Ohio sales and
use taxes on its purchase, lease or rental of office supplies, construction tools and equipment
used in performing the work. Taxes required to be paid related to the foregoing shall be reimbursed
as a reimbursable cost pursuant to Section 5.1.

(3) FirstEnergy Generation Corp. either has or will apply for an Ohio “Pollution
Control Facilities” exemption certificate as provided by Ohio Revised Code § 5709.25.

(4) In the event that FirstEnergy is unable to obtain the "pollution control facility"
exemption, or in the event that Contractor is prohibited by Ohio governmental authorities from taking
the actions provided in subsection (i) above, FirstEnergy acknowledges that Ohio sales and use
taxes as it relates to the work performed under this Agreement are reimbursable as a reimbursable
cost pursuant to Section 5.1(A).

Any questions as to the application should be submitted to:

Director, Tax Planning & Compliance


FirstEnergy Corp.
76 S. Main Street
Akron, OH 44308
Phone Number: (330) 384-5256

5.7 No Release. Final payment shall not in any way release Contractor or any surety of Contractor
from any unperformed obligations of this Agreement, including its warranties, obligations, any liabilities for which
insurance is required or any other responsibility of Contractor. It is expressly understood and agreed to by the
Parties that nothing in this Article 5 shall in any way modify or alter Contractor’s obligations under this Agreement.

ARTICLE 6 - PROJECT SCHEDULE; COMMENCEMENT OF PROJECT; MECHANICAL AND FINAL


COMPLETION; SCHEDULED LIQUIDATED DAMAGES

6.1 Commencement of Project. The Project will be released to Contractor in Subprojects, as set forth
in Section 3.1(A). Upon execution of a Notice to Proceed, Contractor shall commence with the performance of the
work specified in such Notice to Proceed.

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6.2 Mechanical Completion.

(A) Definition of Mechanical Completion. “Mechanical Completion” for each Subproject (or
any AQC Unit, as applicable) shall be deemed to have occurred only upon the completion of the
procurement, fabrication, installation, and inspection of all necessary components and systems of the
Subproject (or AQC Unit, as applicable) (including all non-destructive examinations and static integrity tests,
such as hydrostatic and pneumatic pressure or tightness tests, radiography tests, and other pre-operational
mechanical and electrical tests, calibrations, clean-outs and flushes) to the extent necessary to permit
Performance Testing. Prior to Mechanical Completion, Contractor shall perform and provide FirstEnergy with
documentation of all checks and tests required to ensure that the Subproject has been correctly installed
and is capable of being operated safely and reliably within the requirements of the Agreement and without
damage or injury to the Project, the Site, or any other property or person.

(B) Notice of Mechanical Completion. Contractor shall provide written notice to FirstEnergy at
such time as the Subproject (or AQC Unit, as applicable) has achieved Mechanical Completion. Within
fifteen Business Days of such notice, FirstEnergy shall respond to Contractor in writing that the Subproject
(or AQC Unit, as applicable) has achieved Mechanical Completion on the date stated in Contractor’s notice
or provide Contractor with reasons why FirstEnergy disputes that Mechanical Completion was achieved on
such date.

6.3 Final Completion.

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(A) Definition of Final Completion and Final Document Delivery.

“Final Completion” for each Subproject (or any AQC Unit, as applicable) shall be deemed to have
occurred only upon completion of the following requirements for the Subproject (or the AQC Unit, as
applicable): (i) Mechanical Completion has been achieved; (ii) Performance Tests have been successfully
completed, or at the election of Contractor (but provided in the case of the Wrap Arrangement, solely in the
event that the Performance Tests have resulted in the removal of at least [******]% of SO2). Contractor has
paid FirstEnergy any and all undisputed Performance Liquidated Damages owed by Contractor and its
Subcontractors; (iii) Contractor has paid FirstEnergy any and all undisputed Schedule Liquidated Damages
owed; (iv) the Reliability Standard has been achieved; (v) Contractor has delivered to FirstEnergy a Final
Completion Certificate, which FirstEnergy has approved (provided, for purposes of clarity, that the date of
delivery of a conforming and correct Final Completion Certificate, and not the date of approval thereof by
FirstEnergy, shall be deemed the date on which this requirement has been completed); (vi) Contractor has
obtained all Permits required in connection with the performance thereof; (vii) Contractor has removed all
Hazardous Substances for which it is responsible under Section 3.8(A) and provided to FirstEnergy written
certification thereof, as provided in Section 3.8(A); (viii) Contractor has removed all supplies, waste,
materials, rubbish, and temporary facilities from the Site (except to the extent the Parties mutually agree the
same are necessary to performing additional AQC Units or Subprojects); (ix) the Subproject (or AQC Unit,
as applicable) has been fully completed as required under the Agreement, except for items of incomplete
work which do not impair the operation thereof.

“Final Document Delivery” for each Subproject (or any AQC Unit, as applicable) shall be deemed
to have occurred only upon completion of the following requirements: (a) Contractor has delivered to
FirstEnergy a fully executed Contractor’s Final Lien and Claim Waiver in the form of Exhibit 6.3(A) and fully
executed Final Lien and Claim Waivers from all Subcontractors in the form of Exhibit 6.3(A); (b) Contractor
has delivered to FirstEnergy all documentation required to be delivered under the Agreement, including
Drawings and FirstEnergy’s Confidential Information ; (c) Contractor has assigned or provided FirstEnergy
with all warranties to the extent Contractor is obligated to do so pursuant to this Agreement.

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(B) Guaranteed Final Completion Dates. Contractor shall achieve Final Completion and Final
Document Delivery in accordance with the dates set forth in the Project Schedule to be developed and
delivered pursuant to Section 6.4 (“Guaranteed Final Completion Dates”). The parties anticipate that the
Project Schedule for the Subproject associated with Generating Units 1 through 4 of the Sammis Plant will
designate a separate Guaranteed Final Completion Date for each AQC Unit within that Subproject. At the
election of FirstEnergy, the Project Schedule for the Subproject associated with Sammis Plant Generating
Units 5, 6, and 7 will designate either a single Guaranteed Final Completion Date for all AQC Units within
that Subproject, or separate Guaranteed Final Completion Dates for each AQC Unit within that Subproject
(with an adequate time allowed between the Scheduled Mechanical Completion Dates established for
Generating Units 5, 6 and 7).

(C) Notice of Final Completion. When Contractor believes it has achieved Final Completion,
Contractor shall deliver to FirstEnergy a written notice and certification thereof (“Final Completion
Certificate,” which shall be in the form of Exhibit 6.3(C)), certifying to FirstEnergy that all of the
requirements for Final Completion have occurred. The Final Completion Certificate shall be accompanied by
all other supporting documentation as may be required to establish that the requirements for Final
Completion have been met.

(D) FirstEnergy Acceptance of Final Completion. FirstEnergy shall notify Contractor whether it
accepts or rejects the Final Completion Certificate within thirty (30) days following receipt of such notice. If
FirstEnergy agrees that Final Completion has occurred, FirstEnergy shall deliver to Contractor a written
acceptance of Final Completion. If FirstEnergy does not agree that Final Completion has occurred, then
FirstEnergy shall state the basis for its rejection in reasonable detail in the written notice provided to
Contractor. In the event that Final Completion has not been achieved, Contractor shall promptly take such
action or perform such additional work as will achieve Final Completion and shall issue to FirstEnergy
another Final Completion Certificate. Such procedure shall be repeated as necessary until Final Completion
is achieved.

6.4 Project Schedule.

(A) Project Schedule; Critical Path Schedule. With respect to each Subproject, during the
Development Phase, Contractor shall prepare and submit to FirstEnergy for its review a detailed Project
Schedule, and critical path method schedules for the Subprojects and for the Project as a whole, which
shall be submitted in native electronic and paper form (“Critical Path Schedule”). The Project Schedule
and Critical Path Schedule shall govern Contractor’s performance of the Subproject. The Contractor shall
use its best efforts to cause the Project Schedule and Critical Path Schedule to be consistent with the
timetables, goals and objectives of FirstEnergy, including achievement of the compliance dates established
in the NSR Consent Decree. The Critical Path Schedule shall represent Contractor’s best judgment as to
how it shall complete the Subproject in compliance with the Project Schedule and the Guaranteed Final
Completion Date. The Critical Path Schedule shall be a detailed graphic representation of all significant
aspects of the Subproject, showing Contractor’s plans for performance of the Subproject. Without limiting
the generality of the foregoing, the Critical Path Schedule shall:

(1) include separate activities for each portion of the Subproject performed by
Contractor, its Subcontractors, or FE Vendors, along with non-physical activities related to the
Subproject, such as the submittal and approval of shop drawings, product data, samples, Drawings
and Specifications, procurement of Materials, inspection and testing of the Subproject, and obtaining
Permits;

(2) be detailed such that no activity is longer than fifteen (15) days;

(3) show the duration, early/late start dates, early/late finish dates and available float
for each activity. Float time shall not belong to either Party, and shall be allocated as needed during
the progress of the Subproject;

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(4) show the percentage completion as of the date thereof;

(5) identify the Person responsible for the activity;

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(6) for cost-reimbursable work, show the projected manpower to be used per activity,
whether provided by Contractor or its Subcontractors, showing the number of personnel, the
positions and titles of such personnel and a general description of the work being performed;

(7) show the Scheduled Mechanical Completion Date, the Guaranteed Final
Completion Date and all other milestones listed in the Project Schedule;

(8) include allocations of resources among the scheduled activities; and

(9) reflect logical relationships between activities, reasonable durations and adequate
float time to account for existing conditions and foreseeable complications.

The Critical Path Schedule shall be the schedule which Contractor shall use in planning, organizing,
directing, coordinating, performing and executing the Subproject (including all activities of Subcontractors
and FE Vendors) and shall be the basis for evaluating progress of the Subproject.

(B) FirstEnergy Review of Schedule. FirstEnergy may review the Critical Path Schedule for
general conformance with this Agreement. If FirstEnergy determines at any time that the Critical Path
Schedule does not conform with this Agreement or the Project Schedule in any respect, Contractor shall
promptly revise and resubmit the Critical Path Schedule to FirstEnergy. FirstEnergy’s review of the Critical
Path Schedule shall not relieve Contractor of any obligations for the performance of the Project, change any
Project Schedule milestone or any Guaranteed Final Completion Date, or be construed to establish the
reasonableness of the Critical Path Schedule. FirstEnergy may reasonably rely upon the Critical Path
Schedule in FirstEnergy’s dealings with other contractors operating at the Site or any other Person.

(C) Updated Critical Path Schedule. Contractor shall update the Critical Path Schedule
monthly and at such other intervals as may be requested by FirstEnergy by showing the actual progress of
the Subproject; however, Contractor may not modify the Critical Path Schedule, including any of the
Guaranteed Final Completion Dates or any Project Schedule milestone, without obtaining FirstEnergy’s prior
written approval. Any modifications to any of the Guaranteed Final Completion Dates or Project Schedule
milestones shall be only by Change Order. Contractor shall provide FirstEnergy monthly (weekly during the
Generating Unit outage) with a current updated Critical Path Schedule in both hard copy and electronic
form (“Updated Critical Path Schedule”) reflecting the actual progress of work against the Critical Path
Schedule and Project Schedule. The Updated Critical Path Schedule shall be in the same detail and form
as required by the Critical Path Schedule.

6.5 Schedule Liquidated Damages. With respect to each Subproject (or any AQC Unit, as applicable),
if Final Completion occurs after the Guaranteed Final Completion Date and/or if Final Document Delivery occurs
after the date of Final Completion (or in the case of a Subproject making use of the Powerspan ECO technology, if
Mechanical Completion occurs after the Scheduled Mechanical Completion Date), and Contractor is responsible for
the payment of schedule liquidated damages for such delay in accordance with Exhibit 6.5, then Contractor shall
pay such amounts to FirstEnergy in accordance with Exhibit 6.5 until Final Completion (or Mechanical Completion,
in the case of a Subproject making use of the Powerspan ECO technology), and Final Document Delivery, as
applicable (the “Schedule Liquidated Damages”). When any Schedule Liquidated Damages payment is owed
under this Section 6.5 , FirstEnergy shall calculate such Schedule Liquidated Damages payment and invoice
Contractor for such amount. Payment of such Schedule Liquidated Damages shall be due in arrears ten (10) days
after delivery of such invoice.

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ARTICLE 7 - PERFORMANCE GUARANTEE; PERFORMANCE LIQUIDATED DAMAGES

7.1 Performance Tests and Protocol. Performance Testing will be carried out in accordance with the
Performance Test procedures to be mutually determined by the Parties during the Development Phase which shall
be consistent with the requirements of the NSR Consent Decree and, with respect to matters not indicated in such
document, in accordance with the standards and principles normally applied in test runs for plants of a similar kind.
FirstEnergy shall provide labor, equipment, supplies, and all other items necessary for the conduct of the
Performance Tests. The Performance Tests shall be conducted and the data obtained during the Performance Tests
shall be analyzed by a Third Party, coordinated by Contractor and subject to the review and approval of FirstEnergy.
A complete copy of all raw performance data and a detailed listing of all testing instrumentation utilized shall be
provided to both Parties at the completion of testing.

7.2 Performance Liquidated Damages. With respect to each Subproject, if such Subproject fails to
achieve all of the Performance Guarantees listed in Exhibit 7.2 , Contractor shall, to the extent possible, within such
time frame so as to not delay Final Completion, perform such repair, redesign and replacements as are required in
order that such Subproject might achieve all Performance Guarantees. If, after exhausting repair, redesign and
replacement alternatives, the Subproject fails to achieve all of the Performance Guarantees within the required time
frame, and if the Contractor is responsible for the payment of Liquidated Damages for such failure in accordance
with Exhibit 7.2, then Contractor shall pay, as Liquidated Damages and not as a penalty, the amount specified for
such Performance Guarantee listed on Exhibit 7.2 (“Performance Liquidated Damages”).

ARTICLE 8 - CHANGE ORDERS

8.1 Change Orders Requested by FirstEnergy. FirstEnergy shall be entitled to request change(s) to
any Subproject by way of a Change Order request in accordance with this Section 8.1.

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(A) FirstEnergy shall submit to Contractor a written proposed Change Order for each
requested change. Contractor must respond to FirstEnergy within ten (10) Business Days with a written
statement setting forth Contractor’s estimate as to the effect, if any, which such proposed Change Order
would have on the Target Construction Cost, the Project Schedule, any Guaranteed Final Completion
Dates, the Performance Guarantee, the Warranties, or any other obligation or potential liability of either
Party hereunder (collectively, the “Changed Criteria”). To the extent reasonably practicable, the written
statement shall include all information required by Section 8.5.

(B) If the Parties agree on such effect of the proposed Change Order (or modify such
Change Order so that the Parties agree on such effect of all provisions as modified), the Parties shall
execute such Change Order, and such Change Order shall become binding on the Parties.

(C) If the Parties cannot agree on such effect of the proposed Change Order within fifteen
(15) Business Days of Contractor’s receipt of FirstEnergy’s proposed Change Order, or if FirstEnergy
desires that the changed work set forth in the proposed Change Order commence immediately without the
requirement of a written statement by Contractor, FirstEnergy may, by issuance of a unilateral Change
Order, require Contractor to commence and perform such changed work (which Contractor shall be
compensated for in accordance with Section 5.1), with the effect of such unilateral Change Order on the
Changed Criteria to be determined as soon as possible. Pending resolution of any dispute, Contractor shall
perform the work as specified in such unilateral Change Order and FirstEnergy shall continue to pay
Contractor in accordance with the terms of this Agreement and any previous agreed Change Orders. When
FirstEnergy and Contractor agree on the effect of such unilateral Change Order on all of the Changed
Criteria, the Parties shall record such agreement by execution of a Change Order, which shall supersede
the unilateral Change Order previously issued and relating to such changed work. Contractor shall utilize all
reasonable efforts to commence the performance of the changed work or other obligations required in the
unilateral Change Order within three (3) Business Days of receipt of such unilateral Change Order.

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8.2 Change Orders Requested by Contractor.

(A) Contractor shall have the right to a Change Order in the event of any of the following
occurrences:

(1) acts or omissions of any Governmental Authority, including changes in Applicable


Law occurring after the Effective Date of this Agreement and changes in the terms of Permits or
issuance of new Permits occurring after the Effective Date of this Agreement, which affect
Contractor’s direct cost to perform the work under this Agreement, delay the time of performance of
such work, or materially affects Contractor’s ability to achieve any Performance Guarantee offered
by Contractor hereunder, other than with respect to United States import duties, acts of customs
authorities, or acts by a Governmental Authority requiring compliance with Applicable Law existing
prior to the Effective Date of this Agreement;

(2) acts or omissions of FirstEnergy or its agents which constitute a breach of this
Agreement by FirstEnergy and which affect Contractor’s direct cost to perform the work under this
Agreement, and, with respect to delays, interruptions, disruptions, interferences or hindrances
caused by FirstEnergy or such Persons, to the extent allowed under Section 9.2;

(3) inaccuracy in FirstEnergy Reliable Information which materially affects


Contractor’s direct cost to perform the work under the Subproject, materially delays the time of
performance of the Subproject, or materially affects Contractor’s ability to achieve any Performance
Guarantee offered by Contractor hereunder;

(4) discovery of Hazardous Substances for which Contractor has not assumed and
retained the risk under Section 3.8(B), which affects Contractor’s direct cost to perform the work
under this Agreement or delays the time of performance of such work; provided, however, that
delays or other impacts to the Project caused by the subcontractor retained by FirstEnergy to
perform lead abatement activities shall not be cause for a Change Order;

(5) a Force Majeure Event; or

(6) acts or omissions of an FE Vendor which materially and adversely affect


Contractor’s direct cost of performance and, with respect to delays, interruptions, disruptions,
interferences or hindrances caused by such FE Vendor, to the extent allowed under Section 9.2.

(B) Should Contractor desire to request a Change Order under Section 8.2, Contractor shall,
pursuant to Section 8.5, notify FirstEnergy in writing and issue to FirstEnergy a request for a proposed
Change Order in the form attached hereto as Exhibit 8.2, a reasonably detailed explanation of the proposed
change and Contractor’s reasons for proposing the change, all documentation necessary to verify the
effects of the change on the Changed Criteria, and all other information required by Section 8.5.

(C) If FirstEnergy agrees that a Change Order is necessary and agrees with Contractor’s
statement of such effect of the proposed Change Order on the Changed Criteria, then FirstEnergy shall
issue such Change Order, which shall be in the form of Exhibit 8.2 attached hereto, and such Change
Order shall become binding on the Parties upon execution by the Parties of such Change Order.

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(D) If the Parties agree that Contractor is entitled to a Change Order but cannot agree on
such effect of the proposed Change Order on the Changed Criteria within ten (10) Business Days of
FirstEnergy’s receipt of Contractor’s written notice and proposed Change Order and all other required
information, or if FirstEnergy desires that the changed work set forth in the proposed Change Order
commence immediately, FirstEnergy may, by issuance of an unilateral Change Order in the form attached

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hereto as Exhibit 8.2, require Contractor to commence and perform such changed work (which Contractor
shall be compensated for in accordance with Section 5.1), with the effect of such unilateral Change Order
on the Changed Criteria (or if the Parties agree on the effect of such Change Order for some but not all of
the Changed Criteria, the impact of each of the components of the Changed Criteria on which the Parties
disagree) to be determined as soon as possible. Pending resolution of the dispute, Contractor shall perform
the work as specified in such unilateral Change Order and FirstEnergy shall continue to pay Contractor in
accordance with the terms of this Agreement and any previous agreed Change Orders. When FirstEnergy
and Contractor agree on the effect of such unilateral Change Order on all of the Changed Criteria, such
agreement shall be recorded by execution by the Parties of a Change Order in the form attached hereto as
Exhibit 8.2, which shall supercede the unilateral Change Order previously issued and relating to such
changed work.

(E) If the Parties cannot agree upon whether Contractor is entitled to a Change Order, then
pending resolution of the dispute, Contractor shall continue to perform the work required under the
Agreement, and FirstEnergy shall continue to pay Contractor in accordance with the terms of this
Agreement and any previous agreed Change Orders.

(F) In the event that Contractor desires a change that it believes would be advantageous to
the Subproject for reasons other than those set forth in Section 8.2(A), it shall notify FirstEnergy of the
desired change and shall furnish to FirstEnergy, along with such notice, a request for a Change Order in
the form attached hereto as Exhibit 8.2, including a reasonably detailed explanation of the proposed change
and Contractor’s reasons for proposing the change, supported by all documentation necessary to verify the
effects of the change on the Changed Criteria, including the information required under Section 8.5. Within
ten (10) Business Days of receipt of Contractor’s notice and Change Order request with the required
supporting documentation, FirstEnergy shall have the right in its sole and absolute discretion to reject
Contractor’s Change Order request and shall notify Contractor of its decision. If FirstEnergy does not reply
within such ten (10) Business Day period, FirstEnergy shall be deemed to have rejected the proposed
change, and Contractor shall not be entitled to the corresponding Change Order.

8.3 No Change Orders Due to Contractor Error or Deviation. Notwithstanding anything in this Article 8
to the contrary, no adjustment for the Target Construction Cost, the Project Schedule, any Guaranteed Final
Completion Date, any scope of work under the Subproject, any of the Warranties, the Performance Guarantee or
any other obligation of Contractor hereunder shall be made in connection with any completion, correction of errors,
omissions or deficiencies in, or incomplete, improper or defective, work on the part of Contractor or any
Subcontractor, or any deviation by Contractor from the scope of the Subproject which is not the subject of a prior
Change Order.

8.4 Change Orders Act as Accord and Satisfaction. Change Orders agreed pursuant to Section 8.1(B)
or 8.2(C) by the Parties, and unilateral Change Orders entered into pursuant to Section 8.1(C) or 8.2(D) and which
the Parties have subsequently agreed upon the effect of such unilateral Change Order and have executed a
superceding and mutually agreed upon Change Order as provided in Section 8.1(C) or 8.2(D), shall constitute a full
and final settlement and accord and satisfaction of all effects of the change as described in the Change Order upon
the Changed Criteria and shall be deemed to compensate Contractor fully for such change.

8.5 Timing Requirements for Notifications and Change Order Requests by Contractor. Should
Contractor desire to seek an adjustment to the Target Construction Cost, the Project Schedule, any Guaranteed
Final Completion Date, the scope of work under the Subproject, the Performance Guarantee, Warranties or any
other modification to any other obligation of Contractor under the Agreement for any circumstance that Contractor
has reason to believe may give rise to a right to request the issuance of a Change Order, Contractor shall, with
respect to each such circumstance,

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(A) notify the FirstEnergy Designated Representative in writing of the existence of such
circumstance within fourteen (14) days (or such other period expressly provided under the Agreement) of
the date that Contractor knew or reasonably should have known of the first occurrence or beginning of such
circumstance, provided that Contractor shall use reasonable efforts to give such notice prior to the
expiration of such fourteen (14) day period should any action or inaction by FirstEnergy or Contractor be
required or necessary in relation to such circumstance to prevent or mitigate any damages to either Party
and in either case, prior to commencement of work for which a Change Order may be requested (except in
the event that such work is required to be immediately undertaken to avoid imminent loss or damage to
property or persons). In such notice, Contractor shall state in detail all known and presumed facts upon
which its claim is based, including the character, duration and extent of the claimed circumstance, the date
Contractor first knew of the circumstance, any activities impacted by the circumstance, the cost and time
consequences of the circumstance and any other details or information that are expressly required under
this Agreement. Contractor shall only be required to comply with the notice requirements of this Section 8.5
once for continuing circumstances, provided the notice expressly states that the circumstance is continuing
and includes Contractor’s best estimate of the time and cost consequences of the claimed circumstance;
and

(B) submit to the FirstEnergy Designated Representative a request for a proposed Change
Order as soon as reasonably practicable after giving FirstEnergy written notice but in no event later than
ten (10) Business Days after the completion of each such circumstance, together with a written statement
(a) detailing why Contractor believes that a Change Order should be issued, plus all documentation
reasonably requested by or necessary for FirstEnergy to determine the factors necessitating the possibility
of a Change Order and all other information and details expressly required under this Agreement (including
the information required by Exhibit 8.2, schedules, detailed estimates and cost records, daily time sheets);
and (b) setting forth the effect, if any, which such proposed Change Order would have for the work on any
of the Changed Criteria.

8.6 Adjustment Only Through Change Order. No change in the requirements of the Agreement,
whether an addition to, deletion from, suspension of or modification to the Agreement, including any Subproject,
shall be the basis for an adjustment for any change in the Target Construction Cost, the Project Schedule, any
Guaranteed Final Completion Date, the scope of work under the Subproject, the Performance Guarantee, any
Warranties or any other obligations of Contractor under this Agreement unless and until such addition, deletion,
suspension or modification has been authorized by a Change Order executed and issued in accordance with and in
strict compliance with the requirements of this Article 8 or as required pursuant to Section 19.4. No course of
conduct or dealings between the Parties, nor express or implied acceptance of additions, deletions, suspensions or
modifications to the Agreement, including any work, and no claim that FirstEnergy has been unjustly enriched by
any such addition, deletion, suspension or modification to the Agreement, whether or not there is in fact any such
unjust enrichment, shall be the basis for any claim for an adjustment in the Target Construction Cost, the Project

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Schedule, the scope of work under the Subproject, the Performance Guarantee, any Warranties or any other
obligations of Contractor under this Agreement.

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ARTICLE 9 - FORCE MAJEURE; FIRSTENERGY DELAY; RECOVERY

9.1 Force Majeure.

(A) Duties of the Affected Party. Within three (3) Business Days after becoming aware of the
occurrence of a Force Majeure Event, the affected Party shall (i) provide written notice to the other Party
containing full particulars of such Force Majeure Event (including the anticipated length of time that the
delay may persist, the cause or causes of the delay, all measures taken or to be taken by the affected
Party to prevent or minimize the delay, the schedule by which the affected Party proposes to implement
those measures, and the affected Party’s rationale for attributing a delay to a Force Majeure Event),
including the requirements set forth in Section 8.5, together with the obligations affected thereby, and (ii)
use reasonable commercial efforts to mitigate the effect of such delay or failure and to remedy the Force
Majeure Event. The affected Party shall resume performance of its obligations affected by the Force
Majeure Event as soon as practicable after the conclusion of the Force Majeure Event, and shall give
prompt written notice to the other Party of all significant facts and events concerning the affected Party’s
efforts to perform and of the conclusion of the Force Majeure Event. Force Majeure Events shall not excuse
any delay or failure to make payments when due and Contractor shall continue to be paid under this
Agreement notwithstanding any Force Majeure Event. For purposes of this Section 9.1(A), Contractor shall
be deemed to know of any circumstance of which Contractor or its Subcontractors knew or by the exercise
of due diligence should have known.

(B) Effect of Force Majeure Event. Except as otherwise provided in Section 9.1, the affected
Party’s obligations under this Agreement shall be suspended insofar as performance of such obligations is
rendered impossible by a Force Majeure Event. Any delay or failure by the affected Party in the
performance of any of its obligations under this Agreement on account of a Force Majeure Event shall not
constitute a default under this Agreement during the period the Force Majeure Event is in effect to the
extent such delay or failure is caused by the Force Majeure Event; provided that the affected Party shall
have complied with its obligations under Section 9.1(A) as an express condition precedent; and provided
that delay of Contractor in achieving Final Completion and Final Document Delivery with respect to any
Subproject shall only be excused, and the Guaranteed Final Completion Date shall be extended, by one
day for each day of delay during which (i) such Force Majeure Event made it impossible for Contractor to
carry out all activities relating to such Subproject which are necessary to the fulfillment of Final Completion
of such Subproject by the Guaranteed Final Completion Date and caused a delay to the critical path of the
Critical Path Schedule; (ii) Contractor could not practicably recover by the use of due diligence and all
reasonable commercial efforts, including the expenditure of moneys, overtime work, and work over
weekends and holidays; and (iii) such Force Majeure Event was the direct and proximate cause of
Contractor’s failure to meet such Guaranteed Final Completion Date. If Contractor seeks an extension of
time to a Guaranteed Final Completion Date, it shall comply with Sections 8.2(B) and 8.5(B).

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9.2 FirstEnergy-Caused Delay. In the event of any interruption, delay (including delay caused by
FirstEnergy’s failure to respond to Drawings and Specifications within the 15 Business Day review period provided
in Section 3.3(C)(3)), disruption, interference or hindrance to Contractor or the Subproject caused by FirstEnergy, its
Affiliates, or any Person acting on behalf of or under the control of FirstEnergy (including any FE Vendor) which
prevents or delays Contractor from performing the Project, Contractor may request, and shall justify by written notice
to FirstEnergy pursuant to Section 8.5, an extension of time to the applicable Guaranteed Final Completion Dates
and/or an adjustment of the Target Construction Cost within the time and in accordance with the notice
requirements set forth in Section 8.5 for giving written notice. In addition, Contractor shall submit a request for a
Change Order as required under Sections 8.2(B) and 8.5(B). Compliance with the requirements of Section 8.5 shall
be a condition precedent to any extension of time to the applicable Guaranteed Final Completion Date or adjustment
to the Target Construction Cost on account of a FirstEnergy-caused delay. Contractor is entitled to such extension
only to the extent such delay is the result of actions or inactions of FirstEnergy, its Affiliates, or any Person acting
on behalf of or under the control of FirstEnergy (including any FE Vendor): (a) constituting a breach of this
Agreement (or in the case of an Affiliate of, or any Person acting on behalf of or under the control of FirstEnergy
(including any FE Vendor), impacts the work being performed by Contractor under this Agreement), (b) is not
attributable to Contractor or its Subcontractors, (c) affects the performance of work that is on the Critical Path
Schedule (or the Updated Critical Path Schedule), (d) causes or will cause Contractor to finish beyond the
Guaranteed Final Completion Date, and (e) Contractor is unable to proceed with other portions of the Project so as
to not cause a delay in the Guaranteed Final Completion Date, provided that such extension is approved in writing
by FirstEnergy, which approval shall not be unreasonably withheld.

9.3 Recovery and Recovery Schedule. If at any time during the prosecution of the Subproject should
the Updated Critical Path Schedule or Monthly Progress Report show that any activity on the critical path of the
Critical Path Schedule is seven (7) or more calendar days behind schedule, FirstEnergy may require that Contractor
prepare a schedule to explain and display how it intends to regain compliance with the Critical Path Schedule
(“Recovery Schedule”). Contractor shall do the following after the determination by FirstEnergy of the requirement
for a Recovery Schedule:

(A) Within five (5) calendar days of such determination, Contractor shall prepare the Recovery
Schedule and submit it to FirstEnergy for its review and approval. The Recovery Schedule shall represent
Contractor’s best judgment as to how the Subproject may regain compliance with the Critical Path
Schedule. Contractor shall perform the Subproject in accordance with the Recovery Schedule.

(B) In preparing and executing the Recovery Schedule, Contractor shall take all steps
necessary to regain compliance with the Critical Path Schedule, including additional shifts, additional
manpower, overtime, providing additional equipment, and resequencing of activities.

(C) Contractor shall have the right to a Change Order under Section 8.2 for implementation
of a Recovery Schedule which is required as a result of Force Majeure Event or a FirstEnergy-Caused

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Delay as described in Section 9.2.

ARTICLE 10 - COMPLIANCE WITH LAWS, REGULATIONS, AND PERMITS

10.1 During the performance of this Agreement, the Contractor and FirstEnergy shall strictly comply
with all federal, state and local laws, rules or regulations and executive orders applicable to the Project.

10.2 Without limiting the foregoing, and where applicable, in connection with the Project, the
Contractor agrees as follows:

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(A) The Contractor shall not discriminate against any employee or applicant for employment
because of race, color, religion, sex or national origin. The Contractor shall take affirmative action to ensure
that applicants are employed, and that employees are treated during employment, without regard to their
race, color, religion, sex or national origin. Such action shall include employment, upgrading, demotion or
transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. Contractor shall post in conspicuous
places, available to employees and applicants for employment, notices to be provided by the U.S.
Department of Labor setting forth the provisions of this nondiscrimination clause.

(B) The Contractor shall state, in all solicitations or advertisements for employees placed by
or on its behalf, that all qualified applicants will receive consideration for employment without regard to race,
color, religion, sex or national origin.

(C) The Contractor shall send to each labor union or representative of workers with which it
has a collective bargaining agreement, contract or understanding, a notice to be provided by the U.S.
Department of Labor, advising the labor union or workers’ representative of the Contractor’s commitments
under the following provisions, as amended from time to time:

(1) Section 202 of Executive Order 11246 (Equal Opportunity);

(2) Executive Order 11701 (Employment of Veterans);

(3) Executive Order 11758 (Employment of the Handicapped);

(4) Executive Order 11141 (Employment Discrimination Because of Age); and

(5) Executive Order 11625 and Public Law 95-507 (Utilization of Disadvantaged
Business Enterprises),

and shall post copies thereof in conspicuous places available to employees and applicants for employment.

10.3 Because FirstEnergy (or if applicable, one or more affiliates or non-affiliated companies) is a
supplier of electricity and/or services to the U.S. government, it must include, and the Contractor shall comply with,
the below listed clauses from the Federal Acquisition Regulation (“FAR”), 48 Code of Federal Regulations Chapter
1, as amended from time to time, if the applicable criteria specified in the FAR (those currently applicable are
summarized parenthetically) are met. If Contractor’s subcontracts meet such criteria, Contractor shall include the
terms or substance of the applicable clause in its subcontracts. If the provisions of this Section 10.3 conflict with the
balance of the Agreement, this Section 10.3 shall prevail.

(A) 52.203-6 Restrictions on Subcontractor Sales to the Government (required in all


subcontracts under this Agreement which exceed $100,000);

(B) 52.203-7 Anti-Kickback Procedures (required in all subcontracts under this Agreement
which exceed $100,000, other than those for commercial items);

(C) 52.204-2 Security Requirements (required in all subcontracts under this Agreement which
involve access to classified information);

(D) 52.219-8 Utilization of Small Business Concerns (required in all non-personal


subcontracts with a value greater than $100,000);

(E) 52.219-9 Small Business Subcontracting Plan (Contractors receiving subcontracts


exceeding $500,000, other than small business concerns, are required to adopt a subcontracting plan that
complies with the requirements of this clause);

(F) 52.222-4 Contract Work Hours and Safety Standards Act—Overtime Compensation
(required in all subcontracts exceeding $100,000, unless otherwise exempted);

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(G) 52.222-26 Equal Opportunity (required in all contracts/subcontracts; however, if the


cumulative value of nonexempt Federal contracts/subcontracts is $10,000 or less in any 12 month period,
including the 12 months preceding the award, the contractor/subcontractor is exempt from the clause
requirements);

(H) 52.222-35 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era
(required in all contracts/subcontracts with a value of $10,000 or more);

(I) 52.222-36 Affirmative Action for Workers with Disabilities (required in all

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contracts/subcontracts with a value of $10,000 or more);

(J) 52.222-37 Employment Reports on Disabled Veterans and Veterans of the Vietnam Era
(required in all contracts/subcontracts with a value of $10,000 or more);

(K) 52.223-14 Toxic Chemical Release Reporting (Except for acquisitions of commercial
items, and unless otherwise exempt, this clause is required for competitive subcontracts expected to exceed
$100,000, including all options, and in any resultant subcontract exceeding $100,000, including all options);

(L) 52.225-13 Restrictions on Certain Foreign Purchases (required in all subcontracts for
contracts with a value exceeding $2,500, unless otherwise exempted);

(M) 52.222-11 Subcontracts (Labor Standards) (required in all service contracts in excess of
$2,000 for construction within the United States) This provision requires that the following clauses be
inserted into contracts meeting the criteria: Davis-Bacon Act, Contract Work Hours and Safety Standards
Act—Overtime Compensation, Apprentices and Trainees, Payrolls and Basic Records, Compliance with
Copeland Act Requirements, Withholding of Funds, Subcontracts (Labor Standards), Contract Termination—
Debarment, Disputes Concerning Labor Standards, Compliance with Davis-Bacon and Related Act
Regulations, and Certification of Eligibility.

(N) 52.222-41 Service Contract Act of 1965, as Amended (required in all service contracts
subject to the Act (i) which exceed $2,500; or (ii) which are for an indefinite dollar amount and the
contracting officer does not know in advance that the contract amount will be $2,500 or less).

(O) Contractor shall comply with the Department of Commerce Export Administration
Regulations (“EAR”) in 15 CFR Chapter VII, subchapter C, including 15 CFR Section 734.2 which prohibits
the export or release of controlled technology and/or software to foreign nationals within the United States
who are not lawfully admitted to the United States for permanent residence. Contractor shall confirm that
these regulations either do not apply to Contractor’s activities under the terms of this Agreement or that
Contractor has procedures to ensure compliance. If Contractor is directly or indirectly employing a foreign
national not currently lawfully admitted to the United Sates for permanent residence to perform work under
this Agreement, Contractor warrants to FirstEnergy that such employment does not violate the foregoing
regulations.

(P) FOREIGN CORRUPT PRACTICES ACT PROVISIONS The following provisions shall
apply to FirstEnergy and Contractor (unless it is a foreign concern) if it performs or obtains any of the work
in a foreign country:

(1) All payments to Contractor shall be by check or bank transfer only. No payment
shall be in cash or by bearer instrument, and no payment shall be made to any corporation or
Person other than Contractor. All payments due hereunder shall be made to Contractor at its
principal place of business in the United States, even if Contractor performs or obtains the work in
a foreign country.

(2) Each of FirstEnergy and Contractor represents that it is familiar with the Foreign
Corrupt Practices Act (the "FCPA") and its purposes; and that, in particular, it is familiar with the
prohibition against paying or giving of anything of value, either directly or indirectly, by an American
company to an official of a foreign government for the purpose of influencing an act or decision in
his official capacity, or inducing him to use his influence with that government, to assist a company
in obtaining or retaining business for or with, or directing business to, any Person.

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(3) Contractor shall not use any part of its compensation for any purpose, and shall
take no action, that would constitute a violation of any law of the United States (including the FCPA)
or of any jurisdiction where it performs services or manufactures or sells goods. Likewise,
FirstEnergy shall take no action that would constitute a violation of any law of the United States
(including the FCPA) or of any jurisdiction where it engages in business. FirstEnergy represents that
it does not desire and will not request any work by Contractor that would or might constitute any
such violation.

(4) FirstEnergy may terminate this Agreement for default at any time, without any
liability or obligation, if it believes, in good faith, that Contractor has violated this Section 10.3(P).
Any action by Contractor constituting a violation of the FCPA, or a request for such action from
Contractor's representative, shall result in immediate termination of this Agreement for default.
Should Contractor ever receive, directly or indirectly, from any FirstEnergy representative a request
that Contractor believes will or might violate the FCPA, Contractor shall immediately notify
FirstEnergy's general counsel.

(5) FirstEnergy may disclose the existence and terms of this Agreement, including the
compensation provisions, at any time, for any reason and to whomever FirstEnergy's general
counsel determines has a legitimate need to know the same in connection with obligations under
the FCPA, including the United States government, the government of any country where the work
is performed or obtained, and any regulatory agency with jurisdiction over FirstEnergy.

10.4 Contractor shall comply with the Occupational Safety and Health Act of 1970 and all rules,
regulations, standards, requirements and revisions thereof or adopted pursuant thereto.

10.5 Unless this Agreement otherwise provides, Contractor shall, at its own expense, obtain from
appropriate governmental authorities all Permits, inspections and licenses which are required for it to perform its
work under the Project and shall comply with all rules and regulations of insurance companies which have insured
any of the Project.

10.6 If applicable, Contractor agrees to comply with all Hazard Communication Standards
promulgated by the Occupational Safety and Health Administration (OSHA), 29 CFR 1910.1200, et seq., as
amended, to insure that chemical hazards produced, imported, or used with the workplace are evaluated, and that
hazard information is transmitted to affected employees of Contractor, of any subcontractor or of FirstEnergy.

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ARTICLE 11 - INTELLECTUAL PROPERTY RIGHTS

11.1 Ownership of Project and Data. All deliverables provided by Contractor (but not its
Subcontractors) to FirstEnergy associated with the Project (including Drawings and Specifications, Data, manuals,
reports, purchasing documents, Permits, calculations, and training materials), whether or not patentable, registrable
as a copyrightable work, or registrable as a trademark or service mark, shall become the property of FirstEnergy
and FirstEnergy shall own all intellectual property rights therein (including the rights to any patent, trademark or
service mark, trade secret, and copyright therein). Contractor hereby agrees that any such engineering deliverables
provided by Contractor to FirstEnergy during the term of this Agreement that pertain in any material respect to the
Project shall be done as “work made for hire” as defined and used in the Copyright Act of 1976, 17 USC §1 et seq.,
and that FirstEnergy, as the entity for which the work is prepared, shall own all right, title and interest in and to such
materials, including the entire copyright therein. To the extent that any such deliverables are not deemed to be a
"work made for hire," Contractor will assign to FirstEnergy ownership of all right, title, and interest in and to such
materials, including ownership of the entire copyright therein. Notwithstanding the foregoing, nothing herein shall be
deemed to convey or grant any ownership of intellectual property rights (i) owned by Contractor prior to the Effective
Date, or (ii) developed by Contractor outside of the scope of work on the Project; provided that FirstEnergy shall
receive with respect to any such rights a nonexclusive, irrevocable, fully-paid-up and royalty-free, transferable
license to use, copy, communicate, and prepare modifications to such rights for the purpose of completing,
operating, maintaining, repairing, modifying, adding to, improving and demolishing the Project, the Subproject, and
related systems.

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If any design and development work is to be performed by Subcontractors or FE Vendors, Contractor shall
consult with FirstEnergy prior to and during the negotiation and award of such contracts with regard to the treatment
of intellectual property rights to any inventions and works of authorship developed under such contracts, and shall
seek to obtain from each such Subcontractor (and FE Vendors to the extent directed by FirstEnergy) rights similar to
those described in the preceding paragraph.

FirstEnergy releases and agrees to hold Contractor harmless from and against any claim or liability arising
from any unauthorized use of such work product by FirstEnergy or with respect to any work made for hire, the use
of such work product by FirstEnergy for any purpose other than in connection with the Project being performed
pursuant to this Agreement.

11.2 Infringement. Contractor warrants that the goods or services provided by Contractor or its
Subcontractors hereunder are and will be original (as required by law), do not and will not infringe on or
misappropriate any United States or foreign patent, copyright, trademark, or other intellectual property rights of any
third party, and to the extent such intellectual property is to be owned by FirstEnergy in accordance with and
subject to Section 11.1, have not been and will not be previously assigned or licensed. If the goods or services
provided by Contractor or its Subcontractors hereunder or any portion thereof is held to constitute an infringement or
misappropriation of the intellectual property rights of a third party, then Section 16.3 shall apply.

11.3 Data Furnished by FirstEnergy. All Data furnished by FirstEnergy in connection with the Project
shall remain FirstEnergy's exclusive property. Contractor shall not use FirstEnergy-furnished Data for any purpose
other than for the Project. Contractor shall return such FirstEnergy-furnished Data and all copies thereof to
FirstEnergy upon completing the Project, or upon FirstEnergy’s request; provided that Contractor shall be entitled to
retain an archival copy of such Data subject to confidentiality obligations.

ARTICLE 12 - INSURANCE AND BONDS

12.1 Contractor’s Insurance. The Contractor agrees to secure and maintain in force policies of
insurance of the types listed below and shall furnish to FirstEnergy, prior to starting work and throughout the
duration of the Project, Certificates of Insurance evidencing current coverage listed below. These certificates shall
be endorsed with substantially the following language:

"This policy will not be canceled or allowed to lapse, and no change shall be made in this policy
which alters, restricts or reduces the insurance provided or changes the name of the insured
without first giving at least thirty (30) days' notice in writing to FirstEnergy Corp., Risk Management
Section, at its office in Akron, Ohio, with receipt of notice acknowledged."

(A) Comprehensive General Liability insurance including Contractual Liability and including
coverage of third-party claims arising out of Contractor’s professional liability (Errors and Omissions), and if
any work is to be performed by Subcontractor, Contractors Protective Liability with minimum limits of
$[******] per occurrence, combined single limit, for bodily injury and property damage. Coverage shall be on
an occurrence-based form.

(B) Comprehensive Automobile Liability insurance including non-ownership and hired car
endorsement with minimum limits of $[******] per occurrence, combined single limit, for bodily injury and
property damage. Coverage shall be on an occurrence-based form.

(C) Worker’s Compensation coverage in the statutory amounts under the worker’s
compensation act(s) of the location(s) in which the Project is to be performed, for the current period.

(D) Employer's Liability with a minimum limit of $[******] per occurrence.

(E) Excess liability insurance with a limit of $[******] each occurrence. Coverage shall be on
an occurrence-based form.

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12.2 Additional Insured. FirstEnergy Corp. and its subsidiaries and affiliates shall be included as an

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additional insured to the extent of any liability deriving from the acts or omissions of Contractor, for the policies
provided in Sections 12.1(A), (B), and (E), it being understood that said policies shall provide primary insurance to
FirstEnergy Corp. and its subsidiaries and affiliates, with no special restrictions or reservations that are inconsistent
with this Agreement. A signed copy of the endorsement adding FirstEnergy Corp. and its subsidiaries and its
affiliates as an additional insured shall be attached to the certificate of insurance providing general liability coverage.
It is expressly agreed and understood that the contractual obligations under this Article 12 are for insurance and not
indemnity.

12.3 Lapse of Coverage. In the event of cancellation or lapse of or prohibited change in any policy for
which a certificate is required to be furnished under this Agreement, FirstEnergy shall have the right to suspend the
work of the Contractor until the policy and certificate in evidence thereof are reinstated or arrangements acceptable
to FirstEnergy are made pending issuance of new policies and certificates. If any such insurance shall be about to
lapse or be canceled, the Contractor shall, at least thirty (30) days before coverage thereunder ceases, obtain a
new policy with like coverage, and if Contractor fails to do so, FirstEnergy may obtain insurance protecting it from
the hazards covered by such lapsed or cancelled policy, and the difference between all premiums and expenses of
such insurance and premiums and expenses of the Contractor’s cancelled or lapsed policies shall be charged
against the Contractor and shall be a legitimate deduction from any sum due it from FirstEnergy.

12.4 Waiver of Subrogation. Contractor and any of its Subcontractors shall waive and hereby waives
any rights of subrogation which they or any of their insurers may have against FirstEnergy, its affiliates, and each
non-affiliated company disclosed in this Agreement, their respective agents or employees.

12.5 Project Insurance. At the request of FirstEnergy, Contractor shall procure Construction All Risk
property insurance with limits of $5,000,000 per loss event and deductibles not to exceed either one hundred
thousand dollars ($100,000) or five hundred thousand dollars ($500,000) (which desired deductible level FirstEnergy
will inform Contractor of during the Development Phase), with the following coverages:

(A) For each Subproject, for the period from Notice to Proceed until commencement of the
Warranty Period (1) “All Risks” of physical loss or damage to the Subproject and (2) any physical loss or
damage to existing property of FirstEnergy or its Affiliates arising from or in connection with the work
hereunder ; and

(B) For each Subproject, during the Warranty Period, extended maintenance covering loss or
damage caused by any act or omission of Contractor or its Subcontractors while at the Site during
the construction period and/or Contractor or its Subcontractors while at the Site for the purpose of doing any
work in order to comply with the warranty obligations under this Agreement.

Contractor shall separately invoice FirstEnergy for all policy premiums and FirstEnergy shall pay
such invoice no later than the date of Contractor’s next subsequent payment due date provided under
Section 5.1 above.

Subject to the provisions of Section 18.4(A), payment of all deductibles arising under this policy shall be to
FirstEnergy’s account.

12.6 Payment and Performance Bonds. With respect to each AQC Unit, at the request of FirstEnergy,
Contractor shall provide FirstEnergy with a Bond valued in the aggregate in an amount equal to [*****] thereon
through the date of Final Completion (the “Available Amount”). The value of the Bond shall be reviewed and
amended every three months such that the value of the Bond is updated to reflect the amount of [*****] as set out
herein.

With respect to the Bond for Subproject(s) which will be performed as an FE Vendor Arrangement, upon
achievement of Final Completion, the Available Amount under such Bond shall be reduced to an amount equally
pro-rated between all AQC Units performed under an FE Vendor Arrangement as is required for Contractor to
provide Bonds during the Warranty Period in a cumulative aggregate amount of no greater than $[******] in respect
of all such AQC Units.

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With respect to the Bond for Subproject(s) which will be performed as a Wrap Arrangement, upon the
achievement of Mechanical Completion, Contractor shall increase the Available Amount of such Bond by an amount
equal to the difference between [******] through such date and the Contractor’s maximum liability for Performance
Liquidated Damages for such Subproject. Upon commencement of the Warranty Period, the Available Amount of
such Bond shall be reduced to an amount no greater than the amount of [******] through the date of Mechanical
Completion. Upon achievement of Final Completion, the Available Amount under such Bond shall be reduced to an
amount no greater than $[******]. With respect to each Subproject, the Bond shall expire at the end of the Warranty
Period and FirstEnergy shall return such Bond to Contractor within [******] days of such expiration.

With respect to each Bond, FirstEnergy may draw upon such Bond with respect to any amount due from
Contractor to FirstEnergy in satisfaction of any Contractor obligation under this Agreement that has not been paid
within thirty (30) days of FirstEnergy’s demand therefore. The parties agree that drawdown under a Bond by
FirstEnergy shall be permitted as follows:

(A) to the extent the amount requested is not in excess of the then Available Amount thereunder
as determined in the Bond; and

(B) the Agreement has not been terminated by reason of mutual consent or by FirstEnergy’s
default; and

(C) one of the following has occurred:

(1) a Contractor Event of Default in respect of the subject Subproject has occurred; or

(2) Contractor has not paid FirstEnergy any sums or damages in respect of the subject
Subproject within the time stipulated, or, if none is provided, within a reasonable time, that it is
obliged to pay pursuant to this Agreement in respect of such Subproject, including but not limited to
any undisputed Schedule Liquidated Damages or Performance Liquidated Damages, and any
amounts due pursuant to any indemnity, if applicable; and

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(3) the amount being claimed in respect of any of the above circumstances does not
exceed FirstEnergy’s good faith estimate of the amount that FirstEnergy is entitled to recover from
Contractor under the Agreement.

In the event FirstEnergy draws down on any Bond and it is later determined that such drawdown or
payment was in excess of FirstEnergy’s rights as provided above, FirstEnergy shall return such amount to
Contractor upon such determination within five (5) Business Days, with interest at the rate set forth in Section
5.2(A)(2)(iv) from the date of drawn down until the date such amount is returned.

The premium for these Bonds shall be separately invoiced to FirstEnergy and FirstEnergy shall pay such
invoice no later than the date of Contractor’s next subsequent payment due date provided under Section 5.1
above. Contractor shall deliver the executed originals and two executed copies of each Bond to FirstEnergy prior to
commencing any work. Commencement of the Project or any Subproject by Contractor without having provided the
Bonds shall not be considered a waiver or release by FirstEnergy of the requirement for the Bonds.

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12.7 Security for Vendor Termination Costs. During the Development Phase of any Subproject which
will be performed as a Wrap Arrangement, Contractor will identify to FirstEnergy any contract with an OEM for such
Subproject which will require payment to the vendor of cancellation or termination fees or similar costs (“Vendor
Termination Costs”) in the event such contract is terminated by Contractor prior to completion of performance, and
a description (including the dollar amount and the circumstances of payment) of the Vendor Termination Costs for
such vendor contract. Provided that FirstEnergy has approved such vendor contract and the identified Vendor
Termination Costs associated therewith prior to the Commencement Date for such Subproject, FirstEnergy will
provide to Contractor a Bond, or similar form of security acceptable to Contractor as security for reimbursement of
such Vendor Termination Costs, but only at such time(s) and in such amount(s) as Contractor would then be
exposed to an obligation to pay such Vendor Termination Costs if the vendor agreement were terminated at that
time. For purposes of clarity, Vendor Termination Costs shall not include any amount attributable to a failure of
performance or payment by Contractor (other than at the direction of FirstEnergy or other than to the extent such is
directly due to FirstEnergy’s failure to timely pay any amounts that are due and outstanding under this Agreement),
any amount corresponding to a payment which has been paid by FirstEnergy to Contractor, or any amount not
specifically approved by FirstEnergy as a Vendor Termination Cost prior to the Commencement Date of the
Subproject (or after the Commencement Date pursuant to a Change Order in accordance with Article 8).

ARTICLE 13 - WARRANTY AND CORRECTION OF WORK

13.1 Warranty. With respect to each Subproject, the warranties set forth in this Article 13 are referred
to collectively as the “Warranty”. With respect to each Subproject (or AQC Unit, as applicable), the period ending
two (2) years after the date that the requirements of Final Completion of such Subproject (or AQC Unit, as
applicable) with respect to successful passage of the Performance Tests or liquidation thereof as provided in
Section 6.3(A)(ii) and the Reliability Standard as provided in Section 6.3(A)(iv) have been achieved is referred to as
the “Warranty Period” for that Subproject (or AQC Unit, as applicable), and Contractor’s obligations and liabilities
under this Article 13 (irrespective of whether such claim arises from a patent or latent defect) shall cease upon the
termination of the Warranty Period for such Subproject (or AQC Unit, as applicable).

(A) Warranty of Professional Services. Contractor hereby warrants that the Professional
Services provided by Contractor shall be performed in accordance with Good Practices, the requirements of
this Agreement, the Drawings and Specifications, Applicable Law, and Applicable Codes and Standards.

(B) Warranty of Services Other Than Professional Services. Contractor hereby warrants that
all Craft Labor, and any services other than Professional Services provided by Contractor and its
Subcontractors, shall be performed in accordance with Good Practices, the requirements of this Agreement,
the Drawings and Specifications, Applicable Law, and Applicable Codes and Standards.

(C) Warranty of Materials. Contractor hereby warrants that the Materials, and each
component thereof (other than Materials provided by an FE Vendor) shall be:

(1) new, complete, fit for the purpose specified in this Agreement and of suitable
grade for the intended function and use;

(2) in accordance with Good Practices;

(3) in accordance with this Agreement, including FirstEnergy’s Requirements, the


Drawings and Specifications, Applicable Law, and Applicable Codes and Standards;

(4) free of encumbrances to title; and

(5) free from defects in design, material and workmanship.

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(D) Subcontractor Warranties. Contractor shall obtain warranties from Subcontractors


consistent with Sections 13.1(A), 13.1(B), and 13.1(C), which shall be deemed to run to the benefit of
FirstEnergy, its assignee(s), and Contractor. All warranties provided by any Subcontractor shall be in such
form as to permit direct enforcement by Contractor or FirstEnergy (or its assignees) against any
Subcontractor whose warranty is called for (but only in the event that Contractor has not performed, or no
longer has any warranty obligations with respect to the subject matter of such directly enforced warranties).
This Section 13.1(D) shall not in any way be construed to limit Contractor’s obligations under Sections
13.1(A), 13.1(B), or 13.1(C) of this Agreement.

(E) Exceptions to Warranty. The Warranty excludes remedy for damage or failure to the
extent Contractor can demonstrate that such damage or failure was caused by: (i) improper repairs,
replacements or alterations of the Project by FirstEnergy; (ii) operation, maintenance or use of the Project in

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a manner not in material compliance with the operating parameters to be mutually determined by the
Parties during the Development Phase or (iii) maintenance that may be required as a result of normal wear
and tear.

13.2 Correction of Work.

(A) Correction of Work Prior to Commencement of the Warranty Period. With respect to each
Subproject (or AQC Unit, as applicable), prior to commencement of the Warranty Period, Contractor shall
promptly correct or procure the correction of work rejected by FirstEnergy or that fails to comply with the
requirements of the Agreement, whether or not fabricated, installed or completed. FirstEnergy shall be
responsible for paying in accordance with Exhibit 5.1 all costs of correcting such work, including additional
testing and inspections and compensation for consultants retained by FirstEnergy and expenses made
necessary thereby. For purposes of clarity, commencement of the Warranty Period shall not preclude
Contractor’s right to be paid in accordance with Exhibit 5.1 for any work performed thereafter to fulfill any of
its then remaining obligations, other than with respect to performance of work required to satisfy its Warranty
obligations.

(B) Correction of Work During the Warranty Period.

(1) If, during the Warranty Period, FirstEnergy discovers any nonconformance with
the warranties set forth in Section 13.1 (“Warranty Non-Conformance”), FirstEnergy shall provide
Contractor with written notice detailing such Warranty Non-Conformance as soon as practicable
following such discovery but in no event later than the end of the Warranty Period. Such notice
shall be in accordance with warranty procedures (as will be mutually agreed upon between
FirstEnergy and Contractor during the Development Phase).

(2) In the event of any Warranty Non-Conformance with the warranty provided under
Section 13.1(A), Contractor shall, at its sole expense, reperform such non-conforming Professional
Services.

(3) In addition, but subject to the limitation of remedies set forth in Section 13.3, in
the event of any Warranty Non-Conformance with the warranties provided under Section 13.1(A),
Section 13.1(B) or Section 13.1(C), Contractor and/or its Subcontractors shall provide and perform
(or reperform) any work (including any required assembly or disassembly of any affected work or
other structure, installation, equipment, fixtures, or portion of the Site and or any required
obligations under Section 3.9(B)), whether by repair, replacement or otherwise, as required to
correct any such Warranty Non-Conformance (“Corrective Work”), at Contractor’s expense. If the
alleged nonconformance is established to be due to FirstEnergy act or omission or ordinary wear
and tear or as otherwise excluded from warranty coverage under Section 13.1(E), all reasonable
Contractor costs will be the subject of a Change Order.

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(C) Response Period. During the Warranty Period, Contractor shall initiate Corrective Work
within five (5) days after receiving notification from FirstEnergy of the existence of any Warranty Non-
Conformance, or within such other period as the Parties may agree with due regard for the involvement of
appropriate Subcontractors, and shall diligently and continuously use all reasonable efforts to complete
same within thirty (30) days or such other period which such completion may reasonably require.
Notwithstanding the foregoing, if a Warranty Non-Conformance causes a Generating Unit outage, or
presents an imminent threat to the safety or health of any person or the risk of material damage to property,
then Contractor shall initiate Corrective Work within the lesser of: (a) a reasonable period under the
circumstances, or (b) twelve (12) hours; and shall diligently and continuously use all reasonable efforts to
complete same within fifteen (15) days or such other period which such completion may reasonably require.
The time periods specified in this Section 13.2(C) for initiation and completion of Corrective Work are
referred to herein as the “Response Period.”

(D) FirstEnergy Right to Correct or Complete Work. Subject to the limitations of remedies
provided in Section 13.3, during the Warranty Period, if Contractor fails or refuses to initiate Corrective
Work or to diligently and continuously utilize all reasonable efforts to complete same within the Response
Period, then FirstEnergy, after further notice to Contractor, may perform such Corrective Work with its own
forces or those of another vendor, and (x) if there are outstanding amounts due to Contractor from
FirstEnergy, charge Contractor a backcharge (at reasonable rates) against such outstanding amounts, or (y)
in the event no such outstanding amounts exist, charge Contractor for all reasonable costs and expenses
associated with the performance or reperformance of such Corrective Work.

13.3 Limitation of Remedies. Contractor shall perform Corrective Work for any Warranty Non-
Conformance with the warranties set forth in Sections 13.1(A), 13.1(B), and 13.1(C) at Contractor’s sole expense;
provided, however, that Contractor shall not be required to incur expense in excess of $[******] in the cumulative
aggregate in connection with performing any Corrective Work under this Agreement (provided the foregoing limit
shall exclude amounts expended by Contractor to reperform its Professional Services as provided in Section
13.2(B)(2)). Upon the attainment of the expenditure limit described in the prior sentence, Contractor shall have no
further liability with respect to the warranties provided under Sections 13.1(B) or 13.1(C) and further shall have no
additional obligation to thereafter perform any Corrective Work.

13.4 THE WARRANTIES CONTAINED IN THIS AGREEMENT ARE EXCLUSIVE AND


CONTRACTOR MAKES NO OTHER WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED,
STATUTORY OR OTHERWISE, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
PURPOSE, RELATING TO DESIGN OR OTHER SERVICES, OR TO EQUIPMENT OR MATERIALS TO BE
SUPPLIED BY CONTRACTOR UNDER THIS AGREEMENT.

ARTICLE 14 PAYMENT OF ACCOUNTS; WAIVER OF LIEN RIGHTS

14.1 Contractor shall promptly pay all claims for labor, material, services, and other expenses incurred
by it and its Subcontractors in connection with the Project.

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14.2 Waiver of Lien Rights. To the extent permitted by law, Contractor, for itself and anyone else acting
or claiming through or under it, does hereby expressly waive and relinquish all right to file a mechanics' or
materialmen's lien, or notice of intention to file any lien, and agrees that no mechanics', materialmen’s, or similar lien
shall be filed or maintained against any property where the Project is to be performed, or any interest of FirstEnergy
in such property, by or in the name of Contractor or any Subcontractor, materialman or laborer acting or claiming
through or under Contractor for work performed or materials furnished in connection with this Agreement. Contractor
further agrees that it will defend, indemnify and hold FirstEnergy harmless from and against any and all loss, cost,
expense (including attorneys' fees and costs of defense), liability, claim or demand arising from any mechanics',
materialmen's or similar lien of Contractor or any Subcontractor, sub-subcontractor, materialman, supplier or laborer
acting or claiming through or under Contractor for work performed or materials furnished in connection with this
Agreement. Notwithstanding the foregoing, Contractor shall not be required to so waive its rights or to cause
Subcontractors to so waive their rights to file any mechanics' or materialmen's lien with respect to any Subproject for
which FirstEnergy assigns its rights and obligations under this Agreement to another entity, , and in such event
Contractor’s obligation to defend, indemnify and hold harmless FirstEnergy against any such liens shall apply only to
the extent that Contractor has been timely paid all amounts due under the Agreement.

14.3 No-Lien Agreement. Contractor shall execute a Waiver of Liens Agreement consistent with the
foregoing provisions of this Article 14, and acceptable in form and substance to FirstEnergy, in recordable form,
which FirstEnergy may file in the jurisdiction(s) in which the Project will be performed.

14.4 Right to Withhold. FirstEnergy may require evidence reasonably satisfactory to it from
Contractor that all work in progress, work done or delivered, or service performed, for which FirstEnergy has made
a payment, are free and clear of mechanic's, materialmen’s, and other liens, attachments, claims, demands,
charges or other similar encumbrances. If evidence of mechanic’s, materialmen’s, and other liens, attachments,
claims, demands, charges or other similar encumbrances is discovered, FirstEnergy may withhold payments due
Contractor in amount sufficient to cover any such potential claim. Prior to invoicing final payment, Contractor and its
Subcontractors shall sign a release of liens in a form prepared by FirstEnergy and furnished to Contractor. As
applicable pursuant to Section 14.2, Contractor shall, within thirty (30) days, cause to be discharged and terminate
any mechanics’ or materialmen’s lien filed by any of its Subcontractors, sub-subcontractors, materialman, laborers or
suppliers, or shall bond against the same at its own cost and expense with a bond satisfactory to FirstEnergy.

14.5 Subcontracts. Every subcontract for any portion of the Project shall contain an undertaking by
the Subcontractor similar in effect to this Article 14. It is intended by the Parties that Contractor's agreement to
waive and relinquish lien rights as above provided shall be effective only in those jurisdictions which permit such
agreement to be made. The fact that some jurisdictions in which work will be performed do not permit such waiver
shall not affect the enforceability of this waiver in those jurisdictions that do permit such waivers. The above
obligations of the Contractor and/or Subcontractors are supplementary to and not a substitute for rights of
FirstEnergy, its subsidiaries and affiliates, under the provisions of the Mechanics Lien Laws of the jurisdiction in
which the work is being performed.

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ARTICLE 15 - DEFAULT, TERMINATION AND SUSPENSION

15.1 Default by Contractor.

(A) Termination by FirstEnergy for Default. With respect to each Subproject, if Contractor
shall at any time (i) refuse or materially fail to provide sufficient properly skilled workers, adequate
supervision or materials of the proper quality; (ii) fail in any material respect to prosecute such Subproject
according to the Project Schedule; (iii) materially fail to comply with any provision of this Agreement; (iv)
make a general assignment for the benefit of its creditors; or (v) become insolvent, have a receiver
appointed, or make a general assignment for the benefit of its creditors, in which such case the cure
provisions found below shall not apply, then, after FirstEnergy serving written notice to Contractor specifying
the nature and origin of the alleged default, unless Contractor shall have taken adequate steps to cure such
condition within forty-five (45) days of such notice, or if the default is impossible to correct within such forty-
five (45) day period], then within a reasonable period of time not to exceed sixty (60) days from the date of
such notice (or a longer period, if agreed by FirstEnergy in its sole discretion) provided Contractor has
commenced corrective action within seven (7) days after receiving notice of such condition from FirstEnergy
and has proceeded diligently to cure such condition thereafter, then FirstEnergy, at its option, without
voiding the other provisions of this Agreement and without further notice to any Party, may (a) take such
steps as are necessary to overcome the condition, (b) terminate for default Contractor’s performance of all
or any part of the Subproject by written notice to Contractor, or (c) seek specific performance or
interlocutory mandatory injunctive relief requiring performance of Contractor’s obligations, provided, only to
the extent that such relief may be necessary to avoid irreparable harm to FirstEnergy.

(B) Additional Rights of FirstEnergy Upon Termination. In the event that FirstEnergy
terminates this Agreement in whole or in part for default, then FirstEnergy may, at its sole option, (i) enter
onto the Site and take possession, for the purpose of completing the Project, all of the equipment,
Materials, tools, supplies, documents, and information of Contractor (subject to reasonable arrangement for
costs associated therewith to the extent not already paid), (ii) take assignment of any or all of the
Subcontracts, (iii) either itself or through others complete the Project by the most cost efficient means
reasonably practicable, and/or (iv) recover from Contractor any direct damages suffered by FirstEnergy as a
result of such default. Subject to FirstEnergy’s foregoing recovery rights, Contractor shall be paid according
to the terms of this Agreement for all work performed and materials provided or committed prior to
termination plus the amount of Fee and G&A accrued prior to the date of termination but shall not be
entitled to recover any of its close out costs (except third party demobilization, cancellation and other
termination costs if any). FirstEnergy’s rights under this Section 15.1(B) are in addition to any other rights
provided for under this Agreement. FirstEnergy agrees to act reasonably and use its best efforts to mitigate
any costs it might incur in connection with any termination for default.

(C) Erroneous Termination for Default. If any termination for default by FirstEnergy is found to
be not in accordance with the provisions of this Agreement or is otherwise deemed to be unenforceable,
then such termination for default shall be deemed to be a termination for convenience as provided in
Section 15.2.

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15.2 Termination for Convenience by FirstEnergy. FirstEnergy shall have the right to terminate for
convenience Contractor’s performance of all or any part of the Project or any Subproject by providing Contractor
with a written notice of termination. Upon receipt of notice of termination for convenience, Contractor shall (i)
immediately discontinue the Project (or portion thereof) on the date and to the extent specified in such notice, (ii)
except as agreed by FirstEnergy, place no further orders for Subcontracts, Materials, or services except as may be
necessary for completion of such portion of the Project (or portion thereof) as is not discontinued, (iii) promptly make
every reasonable effort to procure cancellation or assignment upon terms satisfactory to FirstEnergy of all
Subcontracts and rental agreements to the extent they relate to the performance of the Project (or portion thereof)
that is discontinued, (iv) cooperate with FirstEnergy for the efficient transition of the Project, and (v) thereafter
execute only that portion of the Project as may be necessary to preserve and protect work already in progress and
to protect Materials at the Site or in transit thereto, and to comply with all Applicable Laws and Governmental
Authorities. FirstEnergy may, at its sole option, take assignment of any or all of the Subcontracts. Contractor shall
be paid according to the terms of this Agreement for all work performed prior to demobilization and materials and
equipment provided or committed prior to termination plus reasonable direct close-out costs (including reasonable
demobilization, cancellation and other termination costs) plus the amount of [******] prior to demobilization.

15.3 Suspension of Project. FirstEnergy may, for any reason, at any time and from time to time, by
ten (10) days prior written notice to Contractor, suspend the carrying out of the Project or any part thereof,
whereupon Contractor shall suspend the carrying out of the Project or any part thereof for such time or times and in
such manner as FirstEnergy may require. During any such suspension, Contractor shall properly protect and secure
the Project in such manner as FirstEnergy may reasonably require. Unless otherwise instructed by FirstEnergy,
Contractor shall during any such suspension maintain its staff and labor on or near the Site and otherwise ready to
proceed with the Project upon receipt of FirstEnergy’s further instructions. FirstEnergy and Contractor shall negotiate
a Change Order as provided in Section 8.2, and Contractor shall be paid during such suspension period for the
reasonable costs (including actual overhead and reasonable profit) of such suspension, including demobilization and
remobilization costs, if required, along with appropriate supporting documentation to evidence such costs, and the
Changed Criteria shall be equitably adjusted to reflect such suspension. In the event that FirstEnergy does not pay
Contractor any undisputed amounts due under this Agreement within fifteen (15) days after Notice that such
payment has become due, Contractor, may at its option, suspend the performance of the Project, and its obligations
under this Agreement, until such payment is made and such suspension shall be treated as a suspension under this
Section 15.3 If FirstEnergy does not make payment of any undisputed amounts due under this Agreement within
thirty (30) days after Notice that such payment becomes due, then Contractor may terminate this Agreement. In the
event Contractor so terminates this Agreement, such termination shall be treated as a termination pursuant to
Section 15.2.

ARTICLE 16 - INDEMNITIES

16.1 Contractor’s Indemnity. Contractor shall indemnify, defend, and hold harmless the FirstEnergy
Indemnified Parties from and against any and all Losses which any of the FirstEnergy Indemnified Parties may
suffer or incur to the extent arising out of: (A) personal injury or death of any person, damage to the property of a
Third Party, or damage to the property of a FirstEnergy indemnified Party (subject to the limitation set forth in
Section 18.4(A)), in each case to the extent resulting from the negligent acts or omissions of Contractor, its
Affiliates, and/or their respective agents, employees, and subcontractors; or (B) fines and penalties imposed on the
FirstEnergy Indemnified Parties to the extent resulting from Contractor’s failure to comply with Applicable Laws
governing Contractor (except to the extent a portion of such fine or damage is attributable to the acts of any
FirstEnergy Indemnified Parties), subject to Section 18.3.

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16.2 FirstEnergy’s Indemnity. FirstEnergy shall indemnify, defend, and hold harmless the Contractor
Indemnified Parties, from and against any and all Losses which any of the Contractor Indemnified Parties may suffer
or incur to the extent arising out of: (A) personal injury or death of any person, or damage to the property of a third
party, in each case to the extent resulting from the negligent acts or omissions of FirstEnergy, its Affiliates, and/or
their respective agents, employees, and subcontractors (except Contractor and any subcontractor of Contractor); or
(B) fines and penalties imposed on the Contractor Indemnified Parties to the extent resulting from FirstEnergy’s
failure to comply with Applicable Law governing FirstEnergy (except to the extent a portion of such fine or change is
attributable to acts of any Contractor Indemnified Parties).

16.3 Patent and Copyright Indemnification. Contractor shall fully indemnify, save harmless and defend
FirstEnergy Indemnified Parties from any and all Losses arising out of or resulting from or related to actual or
asserted violation, infringement, or misappropriation of any domestic or foreign patent rights, copyrights or other
intellectual property, proprietary or confidentiality rights with respect to materials and information designed or used
by Contractor or any Subcontractor in performing the Project. In the event that any suit, claim, temporary restraining
order or preliminary injunction is granted in connection with Section 16.3, Contractor shall make every reasonable
effort, by giving a satisfactory bond or otherwise, to secure the suspension of the injunction or restraining order. If, in
any such suit or claim, the materials and information designed or used by Contractor or any Subcontractor in
performing the Project, or any part, combination or process thereof, is held to constitute an infringement and its use
is permanently enjoined, Contractor shall promptly make every reasonable effort to secure for FirstEnergy a license,
at no cost to FirstEnergy, authorizing continued use of the infringing work. If Contractor is unable to secure such a
license within a reasonable time, Contractor shall, at its own expense and without impairing performance
requirements, either replace the affected work, in whole or part, with non-infringing components or parts or modify
the same so that they become non-infringing. FirstEnergy shall indemnify Contractor Indemnified Parties in the
same terms as this Section 16.3, mutatis mutandis, with respect to designs, equipment and processes required by
FirstEnergy to be used and/or incorporated in connection with the Project.

16.4 Lien Indemnification of Contractor. Contractor shall promptly indemnify and hold harmless each
FirstEnergy indemnified Party and defend each of them from any and all liens and similar encumbrances (including
claims of Subcontractors) filed in connection with any Subproject brought by or in the name of Contractor or any
Subcontractor, materialman or laborer acting or claiming through or under Contractor or any Subcontractor for work
performed or materials furnished in connection with this Agreement, including all expenses and reasonable
attorneys’ fees incurred in discharging any of same. If Contractor should default in promptly discharging any lien or
similar encumbrances upon the Project, the Site or any portion thereof, or any materials encompassed therein,
Contractor shall, within thirty (30) days of FirstEnergy’s written notice to Contractor demanding the discharge of
such lien or encumbrance, satisfy or discharge the same (provided that Contractor shall have the right to submit a
bond reasonably satisfactory to FirstEnergy, in the amount required by law, if Contractor, despite its reasonable

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efforts, has been unable to obtain discharge thereof) at its own cost and expense. If Contractor either does not
satisfy or discharge such lien or similar encumbrance within the required thirty (30) days (or, where permitted, fails
to provide FirstEnergy with a bond in lieu thereof), then FirstEnergy may, in its sole discretion, remove and
discharge same. If FirstEnergy elects to exercise its right to remove and discharge, then Contractor shall be liable to
FirstEnergy for all Losses incurred by FirstEnergy in discharging or removing same.

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16.5 Notice and Legal Defense. Promptly after receipt by an indemnified Party of any claim or notice
of the commencement of any action, administrative or legal proceeding, or investigation as to which the indemnity
provided for in Sections 16.1, 16.2, 16.3, or 16.4 applies, such Party shall notify the indemnifying Party in writing of
such fact. The indemnifying Party shall, at its own cost and expense, assume on behalf of the indemnified Party and
conduct with due diligence and in good faith the defense thereof with counsel selected by the indemnifying Party
and reasonably satisfactory to the indemnified Party; provided that the indemnified Party shall have the right to be
represented therein by advisory counsel of its own selection and at its own expense; and provided that if the
defendants in any such action include both the indemnifying Party and the indemnified Party and the indemnified
Party shall have reasonably concluded that there may be legal defenses available to it which are different from or
additional to, or inconsistent with, those available to the indemnifying Party, the indemnified Party shall have the
right to select up to one separate counsel to participate in the defense of such action on its own behalf at the
indemnified Party’s expense. The indemnified Party shall provide reasonable support and assistance to the
indemnifying Party in connection with the defense of any claim to which an indemnity provided for herein shall
apply.

16.6 Waiver of Immunities. Each of Contractor and FirstEnergy, for itself, its successors, assigns, and
subcontractors, hereby expressly agrees to waive any provision of any workers’ compensation act or other similar
law whereby such the indemnifying Party could preclude its joinder by an indemnified Party as an additional
defendant, or avoid liability for damages, contribution, or indemnity in any action at law, or otherwise where the
indemnifying Party’s or its subcontractor’s employee or employees, heirs, assigns, or anyone otherwise entitled to
receive damages by reason of injury or death brings an action at law against any indemnified Party. An indemnifying
Party 's obligation to an indemnified Party herein shall not be limited by any limitation on the amount or type of
damages, benefits or compensation payable by or for the indemnifying Party under any worker's compensation acts,
disability benefit acts, or other employee benefit acts on account of claims against the indemnified Party by an
employee of the indemnifying Party or anyone employed directly or indirectly by the indemnifying Party or anyone
for whose acts the indemnifying Party may be liable.

16.7 Comparative Negligence; Enforceability. Each Party’s indemnity obligations shall apply
regardless of whether the indemnified Party was concurrently negligent (whether actively or passively), it being
agreed by the Parties that their respective liability or responsibility for Losses under this Article 16 shall be
determined in accordance with principles of comparative negligence. In the event that any indemnity provisions in
this Agreement are contrary to the law governing this Agreement, then the indemnity obligations applicable
hereunder shall be applied to the maximum extent allowed by Applicable Law.

ARTICLE 17 - CONFIDENTIALITY

17.1 The Parties acknowledge that in the course of this engagement they will have access to and/or
be in possession of Confidential Information of the other. With respect to each disclosure of Confidential Information
under this Agreement, “Disclosing Party” shall mean the Party who discloses Confidential Information to the other
Party, and “Receiving Party” shall mean the Party who receives Confidential Information from the Disclosing Party.
In this Agreement, “Confidential Information” means scientific and technical information, formulas, devices,
concepts, inventions, designs, drawings, methods, techniques, marketing and commercial strategies, information
concerning the Disclosing Party’s or any of its Affiliates’ customers or suppliers, processes, data concepts, and
know-how, and unique combinations of separate items which individually may or may not be confidential, which
information is not generally known to the public and either derives economic value, actual or potential, from not
being generally known or has a character such that the Disclosing Party or any of its Affiliates has an interest in
maintaining its secrecy. Confidential Information disclosed in writing shall be marked at the time of disclosure to
indicate it is confidential, and/or if it is disclosed in any other manner, it shall be identified and described in writing
within thirty (30) days following such disclosure, and be marked "Confidential Information" with its date of disclosure.

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17.2 Each Party shall hold in confidence all Confidential Information of the other to which it may have
access hereunder, and shall use such Confidential Information solely for the performance of its obligations under
this Agreement. The Receiving Party shall take all reasonable and appropriate measures to safeguard the
Confidential Information from theft, loss, and negligent disclosure to others, including any such measures as it takes
with respect to its own Confidential Information of like kind. Access to Confidential Information shall be restricted to
those of the Receiving Party's personnel with a need to know such information in connection with the performance
of its obligations under this Agreement. The obligations set forth in this Article shall expire five (5) years after Final
Completion of the last Subproject; provided, that such expiration shall not affect the rights of either Party under
applicable state trade secrets law.

17.3 The obligations of the Receiving Party under this Agreement shall not apply with respect to
Confidential Information which the Receiving Party can establish by documentary evidence: (a) is or has become
generally known to, or readily ascertainable by, the public without the fault or omission of the Receiving Party or its
employees or agents; (b) was known to the Receiving Party prior to the first disclosure of such information by the
Disclosing Party; (c) was received by the Receiving Party without restrictions as to its use from a third party who is
lawfully in possession and not restricted as to the use thereof; or (d) was independently developed by the Receiving
Party through persons who have not had, either directly or indirectly, access to or knowledge of similar information
provided by the Disclosing Party.

17.4 If the Receiving Party is requested or required (by oral questions, interrogatories, requests for
information or documents, subpoena, Civil Investigative Demand or similar process) to disclose any Confidential
Information supplied to Receiving Party in the course of its dealings with the Disclosing Party, Receiving Party shall
provide the Disclosing Party with prompt notice of such request(s) so that the Disclosing Party may seek an
appropriate protective order and/or waive Receiving Party's compliance with the provisions of this Agreement.

17.5 If a Party breaches or threatens to breach any of the provisions of this Article 17, the Parties

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acknowledge that there may exist no adequate remedy at law, and hereby agree that the non-defaulting Party shall
have the right to seek temporary and permanent injunctive relief to restrain such violation, without the necessity of
posting a bond. The right to injunctive relief shall be cumulative and in addition to the right to seek and obtain other
remedies, including monetary damages.

17.6 Restrictions on Public Announcements. Contractor shall not refer to this Agreement or reference
FirstEnergy, its subsidiaries and affiliates, or the Site, directly or indirectly, in its advertising or promotional materials
or communications, without the prior written consent of FirstEnergy.

17.7 Contractor shall incorporate the above provisions in all agreements with its Subcontractors,
agents and assigns.

ARTICLE 18 - LIMITATION OF LIABILITY

18.1 Consequential Damages. Neither of FirstEnergy or Contractor, nor any of their respective
Affiliates, subcontractors, FE Vendors, employees, officers, directors, shareholders, agents, and representatives,
shall be liable under this Agreement or under any cause of action related to the subject matter of this Agreement,
whether arising out of contract, warranty, tort (including negligence), strict liability, products liability, professional
liability, indemnity, contribution, or any other cause of action for loss of profit, use, revenues, financing, bonding
capacity or business opportunity, damages or losses for principal office expenses including the compensation of
personnel stationed there, cost of replacement power, loss of data, losses resulting from downtime of the Site, cost
of or repayment of capital, claims of customers, or any indirect, incidental, special or consequential damages of any
nature (including claims of such Party’s customers, subcontractors, vendors or suppliers to the extent seeking
recovery of damages described in this paragraph).

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18.2 Liquidated Damages Not Penalty. It is expressly agreed that Liquidated Damages payable under
this Agreement do not constitute a penalty and that the Parties, having negotiated in good faith for such specific
Liquidated Damages and having agreed that the amount of such Liquidated Damages is reasonable in light of the
anticipated harm caused by the breach related thereto and the difficulties of proof of loss and inconvenience or
nonfeasibility of obtaining any adequate remedy, are estopped from contesting the validity or enforceability of such
Liquidated Damages. The Parties acknowledge that the availability of Liquidated Damages was an inducement to
FirstEnergy’s agreement to waive consequential damages, and in the event any Liquidated Damages are held to be
unenforceable, Contractor specifically agrees to mutually and in good faith negotiate an alternative financial
settlement with FirstEnergy designed to compensate FirstEnergy in amounts similar to the amounts that FirstEnergy
would have been entitled to receive had such Liquidated Damages not been held to be unenforceable.

18.3 Liquidated Damages as Exclusive Remedy. Payment of any Liquidated Damages with respect to
any Subproject shall be in addition to, and not in lieu of, Contractor’s other obligations under this Agreement and
shall, except to the extent provided herein, in no way affect FirstEnergy’s right to terminate this Agreement under
Article 15 or receive other Liquidated Damages or remedies contemplated in this Agreement for any other aspect of
Contractor’s obligations hereunder. Notwithstanding the foregoing, but otherwise without limitation of FirstEnergy’s
right to terminate under Section 15.1, Liquidated Damages shall be FirstEnergy’s sole and exclusive remedy, and
the payment of such Liquidated Damages or satisfaction of the Schedule or Performance Guarantees in accordance
with this Agreement shall be the sole and exclusive liability of Contractor, for:

(A) Delay as set forth in Section 6.5 (including any fines and penalties imposed on the
FirstEnergy Indemnified Parties as a result of a failure of the Project to be completed within the time
required under the NSR Consent Decree); and

(B) failure of the Project to achieve Performance Guarantees as set forth in Section 7.2
(including any fines and penalties imposed on the FirstEnergy Indemnified Parties as a result of a failure of
the Project to meet the emission limits required under the NSR Consent Decree).

18.4 Liability Cap Contractor's total liability to FirstEnergy Indemnified Parties arising out of or in
connection with this Agreement shall be subject to the following limitations and conditions:

(A) Contractor’s cumulative liability to FirstEnergy and its Affiliates for physical loss or
damage to any property of such parties (including any Materials) shall not exceed the sum of: (i) the
proceeds of the insurance coverage provided in Section 12.5, and (ii) $[******] per loss/event caused in
whole or in part by Contractor or its Subcontractors fault or negligence prior to the end of the Warranty
Period. No FirstEnergy Indemnified Party may make a claim under this Agreement for Losses arising out of
damage to such Person’s property to the extent that such claim exceeds the foregoing limitation.

(B) With respect to each Subproject, Contractor’s cumulative liability to FirstEnergy with
respect to the following matters shall not in the aggregate exceed the [******] by Contractor on such
Subproject and FirstEnergy may not claim an amount in excess thereof:

(1) any and all warranty obligations provided in Section 3.9(B) and Article 13;

(2) any and all Schedule Liquidated Damages owed by Contractor, as provided in
Section 6.5;

(3) any and all Performance Liquidated Damages (where the Subproject is an FE
Vendor Arrangement) owed by Contractor, as provided in Section 7.2; and

(4) any and all amounts owed by Contractor pursuant to Section 15.1(B)(iv).

(C) FirstEnergy may not claim an amount in excess of the amount set forth in Exhibit 7.2
with respect to Performance Liquidated Damages (where the Subproject is a Wrap Arrangement) owed by
Contractor as provided in Section 7.2.

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(D) With respect to each Subproject, subject to the foregoing sublimits and releases,
Contractor’s cumulative total liability to the FirstEnergy Indemnified Parties arising out of or in connection
with this Agreement and the work to be performed under this Agreement shall in no event exceed a
cumulative aggregate amount equivalent to [******]% of the Contract Price paid to Contractor with respect to
such Subproject (and provided further, with respect to the Subproject to be performed under a Wrap
Arrangement, that the foregoing limitation shall in no event exceed the lesser of [******]% of the Contract
Price paid to Contractor or $[******]) and FirstEnergy and the FirstEnergy Indemnified Parties may not claim
an amount in excess of the foregoing.

(E) Notwithstanding the foregoing, the limitations of liability set forth in this Section 18.4 shall
not apply to Losses arising out of: (i) Third-Party property damage and personal injury claims and (ii)
infringement or misappropriation of patents, trade secrets or other intellectual property rights.

18.5 FirstEnergy's remedies specified in this Agreement are FirstEnergy's exclusive remedies for
liabilities of Contractor arising under this Agreement. Contractor disclaims and FirstEnergy agrees to waive any
standards of performance or warranties, including implied or statutory warranties, other than those expressed in this
Agreement.

18.6 FirstEnergy represents that it and its Affiliates possess all ownership rights as to the Project and
the existing facilities at the Site. FirstEnergy’s successors, assigns, and any future recipient of any equity ownership
or other property interest in the Project and any of the existing facilities shall be bound by the releases, limitations
on liability, and other protections of Contractor set forth hereunder.

18.7 Except to the extent prohibited by law, the waivers and disclaimers of liability, releases from
liability, limitations of liability, indemnities, and exclusive remedy provisions set forth in this Agreement shall apply
even in the event of the fault, negligence (in whole or in part), strict liability, or other basis of liability of the Party to
whose benefit such provisions operate and shall extend to the benefit of such Party’s Affiliates, Subcontractors and
its and their shareholders, directors, officers, employees, and agents.

ARTICLE 19 - MISCELLANEOUS PROVISIONS

19.1 Waiver. None of the terms or provisions of this Agreement shall be deemed waived except by a
writing signed by the Party which is entitled to the benefits thereof. The failure of any Party to require performance
of any provision hereof shall in no manner affect such Party's right at a later time to enforce the same. The waiver
by a Party of any provision hereof shall not be deemed to be a continuing waiver of any such provision or a waiver
of any other provision hereof.

19.2 Parties in Interest. Nothing in this Agreement is intended to confer any rights or remedies under
or by reason of this Agreement on any Persons other than the Parties hereto, nor is anything in this Agreement
intended to relieve or discharge the obligations or liabilities of any third Person or give any third Person any right of
subrogation or action over or against any Party hereto. This Agreement is binding upon and shall inure to the benefit
of the Parties and their permitted successors and assigns.

19.3 Assignment.

(A) This Agreement is not assignable by Contractor, directly or indirectly, in whole or in part,
without the prior written consent of FirstEnergy.

(B) FirstEnergy shall have the right to assign its rights and obligations under this Agreement
with respect to any or all Subprojects at any time to: (a) any Affiliate of FirstEnergy, (b) any Person
succeeding to all or substantially all of the assets or business of FirstEnergy, or (c) any Person acquiring
any property interest in or rights to develop and operate the Project Site, the Project, or any Subproject, by
purchase, lease, or contractual arrangement, in any such case without the necessity of obtaining
Contractor’s consent, provided FirstEnergy and/or such assignee has demonstrated the existence of
reasonable financial and technical resources or other assurances to fulfill such assignee’s payment and
other obligations hereunder. No assignment permitted hereunder shall release FirstEnergy from any of the
limitations and releases from liability and other protections enjoyed by Contractor under this Agreement or
from any obligations or liabilities of FirstEnergy arising or relating to events occurring prior to the date of
such assignment.

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(C) Assignment to Financing Assignee; Assumption by Financing Assignee. With respect to


any one or more Subproject(s) for which FirstEnergy pursues project financing, prior to the Commencement
Date of such Subproject(s), FirstEnergy may assign its rights under this Agreement with respect to each
such Subproject to a project company in connection with effecting such financing (such project company,
hereinafter a “Financing Assignee”). Prior to such assignment, FirstEnergy shall on a timely basis keep
Contractor informed as to the progress of any efforts to obtain such financing and shall similarly provide
Contractor with copies of Financing Documents or portions thereof relevant to Contractor’s interest (and
allow Contractor an opportunity to review and comment thereon). An assignment in connection with such a
financing shall only be effective if prior to such assignment, the Financing Assignee shall have entered into
either: (i) binding financing arrangements to provide sufficient funds for the construction of the assigned
Subproject and fulfillment of its payment obligations to Contractor with respect to such Subproject which
Financing Assignee is entitled to make the first drawdown; or (ii) if the Financing Assignee has obtained
financing commitments of less than the total cost of the assigned Subproject and amounts necessary to
fulfill its payment obligations to Contractor with respect to such Subproject, mutually acceptable agreements
with Contractor concerning appropriate security for payment for the assigned Subproject and release of
FirstEnergy’s obligations hereunder with respect to such Subproject (except as noted below). In addition,
the Financing Assignee shall also be required to have arranged to provide any Bond required under Section
12.6. Upon Contractor being specifically notified in writing that FirstEnergy has so assigned any such
Subproject and that such Financing Assignee has succeeded to FirstEnergy’s interests and assumed the
obligations of FirstEnergy thereunder, Contractor shall accept the Financing Assignee in place of
FirstEnergy for all purposes under or in connection with this Agreement in respect of such assigned
Subproject for the remainder of its term, provided the foregoing conditions precedent to such assignment
have been satisfied. In connection with such assignment, Contractor shall provide assignments and

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consents, acknowledgments, estoppel certificates, legal opinions and such other closing documents as are
customary in such transactions and in form reasonably acceptable to Contractor. Except with respect to the
assigned Subproject, no Financing Assignee shall otherwise be liable for payment, performance, or
observation of any of the obligations or duties of FirstEnergy. No assignment permitted hereunder shall
release FirstEnergy from any of the limitations and releases from liability and other protections enjoyed by
Contractor under this Agreement. Once such assignment if effected, there shall be no modification to the
Financing Documents that operates to reduce the funds available to pay amounts due to Contractor from the
Financing Assignee or to increase Contractor’s obligation(s) under this Agreement without the prior consent
of Contractor.

(D) Information for Financing Parties. Contractor shall provide such documents and other
technical assistance in its possession, or which can reasonably be prepared, as FirstEnergy may reasonably
request in connection with obtaining financing for the Project (or any Subproject(s)). During the performance
of the work, Contractor shall make available to FirstEnergy, any Financing Assignee, and its financing
parties (provided, such parties have executed non-disclosure agreements similar in substance to the
provisions of Article 17 of the Agreement) information relating to the status of the work including information
relating to the design, engineering, construction and testing of the Project and such other matters as
FirstEnergy, the Financing Assignee, or its financing parties may reasonably request.

(E) Right to Inspect. The financing parties and their engineers and consultants shall have the
right to participate in all inspections conducted by the Financing Assignee under the assigned Subproject(s)
and to attend all Performance Tests of the assigned Subproject(s). FirstEnergy and/or the Financing
Assignee shall cause all such persons to observe Contractor’s security and safety regulations at all
applicable locations and to refrain from interfering with Contractor’s performance of the work.

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(F) Contractor’s Cooperation. Contractor agrees to cooperate with FirstEnergy in FirstEnergy’s


negotiation and execution of the Financing Documents, including appropriate assignments of FirstEnergy’s
rights under this Agreement to financing parties and reasonable consents or similar agreements related to
this Agreement requested by financing parties. For purposes of this cooperation, any assignment, consent
or similar agreement that would in any material respect increase Contractor's costs or risks under this
Agreement without appropriate additional compensation to Contractor under this Agreement will not be
considered to be reasonable or appropriate.

19.4 Governing Law; Dispute Resolution. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Ohio. The Parties expressly exclude the applicability of the United Nations
Convention on Contracts for the International Sale of Goods, if the same would otherwise apply here. All claims,
disputes and other matters in question between Contractor and FirstEnergy, arising out of or relating to this
Agreement or the breach thereof, shall be settled, if possible, by negotiation and mutual agreement of the parties
thereto. Each Party shall give notice promptly (or in the case of a disputed Change Order, within 15 Business Days
after rejection of such Change Order) to the other of the claim, dispute or other matter in question arising out of or
relating to this Agreement or that breach thereof (“Notice of Dispute”). Within ten (10) calendar days following such
notice, the Parties’ project management oversight team or other senior representatives shall conduct good faith
negotiations with the object of reaching mutual agreement. If the senior representatives of the Parties are unable to
agree within twenty days after delivery of a Notice of Dispute, then any legal suit, action, or proceeding arising out
of or relating to this Agreement, shall be instituted in any Ohio Federal court to the extent such federal court has
jurisdiction over the dispute. Notwithstanding the foregoing, either Party may seek from a court any interim or
provisional injunctive or other equitable relief that is necessary to protect the rights or property of that party, pending
the commencement of discussions between the Parties’ senior representatives (or pending the conclusion of such
discussions). The Parties recognize and agree that each are citizens of different States within the meaning of 28
U.S.C. 1332(a)(1) and as such a federal court in the State of Ohio would have jurisdiction over any dispute arising
out of or relating to this Agreement, to the extent the amount in controversy exceeds the federal amount in
controversy requirement pursuant to 28 U.S.C. 1332(a). The Parties agree that each will refrain from joining any
other parties to any litigation for the sole purpose of destroying such federal jurisdiction. In the event federal
jurisdiction is lacking for any dispute between the Parties, the Parties agree that venue for any such dispute shall be
in any State court in the State of Ohio having jurisdiction over such dispute. To the extent permitted by law, each of
Contractor and FirstEnergy agree not to demand a jury trial in any proceeding arising out of or related to this
Agreement. Subject to satisfaction of the foregoing undertakings, each of Contractor and FirstEnergy waives any
objection which it may have now or hereafter to the laying of the venue of any such suit, action or proceeding and
hereby irrevocably submits to the jurisdiction of any such Ohio state or federal court in any such suit, action or
proceeding. The Parties agree to discuss in good faith settlement of disputes through alternative dispute resolution
(ADR) proceedings such as mediation or arbitration.

19.5 Notices. Any notice, demand, request, or other communication or document to be provided under
this Agreement to a Party to this Agreement (“Notice”) shall be in writing, and shall be given to the Party at its
address or telecopy number set forth below, or to such other address or telecopy number as the Party may later
specify for that purpose by notice to the other Party. Each Notice shall be deemed given and received: (i) if given by
telecopy, when the telecopy is transmitted and confirmation of complete receipt is received by that transmitting
Party during normal business hours or on the next business day if not confirmed during normal business hours; (ii)
if hand delivered or given by overnight delivery service, the day on which the notice is actually delivered to the
address listed herein (whether or not delivered to the Party); or (iii) if given by normal or certified U.S. mail, two (2)
business days after it is posted with the U.S. Postal Service.

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If to FirstEnergy: FirstEnergy Generation


Corp.
76 South Main Street
Akron, Ohio 44308
attn: Director of Air Quality
Compliance
Fax: to be Separately
Provided in Writing

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with a copy to: FirstEnergy Corp.


76 South Main Street
Akron, Ohio 44308
attn: General Counsel
Fax: (330) 384-3875

If to the Company: Bechtel Power Corporation


5275 Westview Drive
Frederick, Maryland 21703-
8306
attn: Project Manager,
FirstEnergy Sammis Retrofit
Project
Fax: to be Separately
Provided in Writing

with copies to: Bechtel Power Corporation


5272 Westview Drive
Frederick, Maryland 21703-
8306
attn: President, Fossil
Power
Fax: (301) 698-4776

Bechtel Power Corporation


5275 Westview Drive
Frederick, Maryland 21703-
8306
Attn: Principal Counsel,
Power
Fax: (301) 696-8526

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19.6 Interpretation of Agreement. For purposes of this Agreement:

(A) The section and other headings in this Agreement are inserted solely as a matter of
convenience and for reference, and shall be given no effect in the construction or interpretation of this
Agreement;

(B) Unless the context of this Agreement otherwise clearly requires, references in the plural
form include the singular and vice versa;

(C) This Agreement has been freely negotiated by all Parties and in the event there is any
controversy, dispute, or claim involving the meaning, interpretation, validity, or enforceability of this
Agreement or any of its terms or conditions, there shall be no inference, presumption, or conclusion drawn
against a Party by virtue of such Party having drafted this Agreement or any portion hereof;

(D) The words “hereof,”“herein,”“hereunder,” and words of similar import shall refer to this
Agreement as a whole and not to any particular provision thereof;

(E) When used herein, the words “include” and “including” shall be construed as “include,
without limitation” and “including, without limitation”;

(F) When used herein, the word “day” means a calendar day, “month” means a calendar
month, and “year” means 365 days;

(G) Provisions including the word “agree,”“agreed,” or “agreement” require the agreement to
be recorded in writing; and

(H) “Written” or “in writing” means hand-written, type-written, printed, or electronically made or
transmitted, and resulting in a permanent record.

19.7 Severability. Any provision hereof that is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction and
the provision that is prohibited or unenforceable shall be reformed or modified to reflect the Parties' intent to the
maximum extent permitted by applicable legal requirements.

19.8 Survival. The terms, covenants, conditions and obligations provided in the following Sections and
Articles shall survive the termination of this Agreement: Sections 3.7, 3.8, 3.9, and 3.11, and Articles 10, 11, 12, 13,
14, 15, 16, 17, 18, and 19, and any claims, demands, losses, liens, or causes of action arising out of the Project
prior to the date of termination.

19.9 Further Assurances. Contractor and FirstEnergy agree to provide such information, execute and
deliver any such instruments and documents and to take such other actions as may be necessary or reasonably
requested by the other Party that are not inconsistent with the provisions of this Agreement and that do not involve
the assumption of obligations other than those provided for in this Agreement, in order to give full effect to this
Agreement and to carry out the intent of this Agreement.

19.10 Execution and Counterparts. This Agreement may be executed in multiple counterparts, which

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taken together shall constitute an original without the necessity of all parties signing the same page or the same
documents, and may be executed by signatures to electronically or telephonically transmitted counterparts in lieu of
original printed or photocopied documents. Signatures transmitted by facsimile shall be considered original
signatures.

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FIRSTENERGY GENERATION CORP.

By:

Title

BECHTEL POWER CORPORATION

By: /s/

Title

8/17/2005 4:18 PM

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ATTACHMENT A - WORK SCOPE

1.0 PLANT/UNIT DESCRIPTIONS

1.1 The 2,220 MW Sammis Plant is located in Stratton, OH and is made up of 7 generating units that draw
cooling water from the Ohio River.

1.1.1 Units 1-4 are 180 MW single reheat, sub-critical drum units placed in service in the years 1959
though 1962 respectively. The Foster Wheeler P.C. boilers generate 1,250,000 lbs./hr. of 2450 psig,
1050°F main steam (1000°F reheat).

1.1.2 Unit 5 is a 300 MW sub-critical, once-through unit placed in service in 1967. The Babcock and
Wilcox coal fired, single reheat boiler generates 2,355,000 lbs./hr. of 2625 psig, 1005°F main steam
(1005°F reheat).

1.1.3 Units 6 and 7 are 600 MW super-critical, once-through units placed in service in 1969 and 1971
respectively. The Babcock and Wilcox
coal fired, single reheat boilers generate 4,628,000 lbs./hr. of 3785 psig, 1005°F main steam and
3,900,000 lbs/hr. of 654 psig, 1005°F
reheat steam.

2.0 PROJECT (SUBPROJECT) DESCRIPTION

2.1 The Project will be made up of two Subprojects.

2.2 In Subproject 1, each of the Sammis units 1 through 4 will be retrofit with dry scrubber technology that
would provide a 60% SO2 reduction.

2.2.1 An initial review of the site seems to indicate the best approach may be to install the first system
on Unit 4 and continue building north
finishing with Unit 1.

2.2.2 Due to operational and performance concerns with the dry technology, FirstEnergy would like to
operate the first system for approximately
6 to 9 months prior to beginning construction on the second unit, thereby providing an opportunity
to make changes based on the operating
experience gained during that period.

2.2.3 Present outage plans for the Sammis Plant call for Unit 4 to be off line in early 2007 with the other
units following over the subsequent two years.

2.2.4 The reagent handling facilities for the Units 1-4 dry scrubbing technology will be common.

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However, those facilities do not necessarily have to be ready for use at the time the initial dry
system is placed in service on Unit 4. Since the initial purpose of the Unit 4 system will be to
provide some operational experience with dry scrubbing at the Sammis Plant, it may be decided to
operate the dry system for short test periods using stored reagent brought in by truck

2.3 In Subproject 2, each of the Sammis units 5 through 7 will be retrofit with wet scrubber technology.

2.3.1 The projected schedule requires the AE-Constructor to support the development of the project
design basis, work scope, and detailed cost estimate during 2005. The intent is to be prepared to
bid FGD OEM services, if required, by the fourth quarter of 2005. Final Target Construction Cost
estimates will follow pending availability of OEM information. Specific targets for finalizing cost and
schedule commitments for each subproject will be established during the development period.

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ATTACHMENT A - WORK SCOPE

2.4 (Intentionally Omitted)

2.5 AE-Constructor Work Scope

2.5.1 During the Development Phase, the Parties will work to develop a detailed Project work scope that
will include, but not necessarily be limited to, the following:

· Project Management
· Prepare Project Execution Plan document
· Support technology application decisions
· Support FGD OEM selection
· Establish Project performance parameters
· Complete site evaluations and layouts
· Constructability reviews
· Complete Project design basis
· Prepare estimating documents
· Prepare cost estimate
· Support permitting process
· Support reagent supply discussions
· Detailed engineering
· Procurement
· Construction
· Checkout, Startup & Commissioning
· Training
· Documentation
· Performance testing
· Security

3.0 EXECUTION OF THE WORKSCOPE

The selected AE-Constructor will be expected to execute the Project (engineering, design, fabrication, procurement,
construction, startup and commissioning) in an open, collaborative and safe manner resulting in the most
competitive overall cost (construction and future O&M) and optimal performance of the air quality control systems.
This objective will be accomplished by meeting the following goals:

· Mutually developing Project designs to minimize construction costs and future O&M costs while
ensuring the highest overall operational reliability.

· Each stakeholder being responsive to the needs of the other parties to insure actions and decisions are
made in a manner consistent with all Project goals.

· The selected AE-Constructor will be expected to develop, evaluate and report Project information as
close to real time as practical, insuring actions necessary to address safety, design, cost and
scheduling issues are implemented promptly upon recognition.

3.1 Project Management

3.1.1 The AE-Constructor will be responsible for all Project Management related to the Project including
management of all Subcontractors and the OEM’s.

3.2 Prepare Project Execution Plan

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3.2.1 The AE-Constructor will work with the FirstEnergy Project team to develop an overall Project
Execution Plan. The plan will establish a Project Team and organization chart as well as project
controls including:

3.2.1.1 Owner releases - FirstEnergy will be integrally involved in all areas and Phases of the
Project and therefore will require a review process be established that gives adequate time
for that review without unduly affecting the Project schedule.
3.2.1.2 Status reporting requirements - FirstEnergy will require access to Project progress information including
schedule, budget, significant issues and work completed on a continuous basis through a web based
electronic platform. FirstEnergy's requires the Contractor establish a system that allows as close to real time
updates as possible.
3.2.1.3 Invoicing - Invoicing and payment will be by electronic means (including submittal of

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timesheets).
3.2.1.4 Payment procedures - payment will be made based on FirstEnergy verification of AE-Constructor expenses
and supporting documentation.
3.2.1.5 Changes to scope - FirstEnergy will require access to estimates, including schedule
impacts, and scope change descriptions as part of an approval process for changes to
scope for both the AE-Constructor & it's Subcontractors as well as the OEM.
3.2.1.6 Design review - FirstEnergy will perform a detailed, ongoing design review during all Phases of the Project.
The AE-Constructor should be prepared to support FirstEnergy technical and support staff in the AE-
Constructor's offices during the design portion of each Subproject. Such review will include Subcontractor
design efforts, where applicable.
3.2.1.7 Design practices - the AE-Constructor will be required to submit the Engineering
Procedures Manual and Project specific criteria documents for FE review. In addition,
Contractor shall provide, as requested by FirstEnergy, access to their design practices on
Contractor’s premises. Final drawings must be provided per the requirements listed in this
specification.
3.2.1.8 Communications - FirstEnergy prefers the implementation of a centralized, web based document control
system. The system will provide real-time access to the Project Team (AE-Constructor, OEM and
FirstEnergy) to key Project documents.
3.2.1.9 Document control - FirstEnergy utilizes FileNet P8 3.0 as a document storage system. The
AE-Constructor will be required to maintain a complete set of all permits, design
documents, O&M manuals, drawings, bid documents, correspondence and reports as part
of the official Project file. Once the Project is complete, the documents are to be provided
to FirstEnergy in native format if electronic. If they are non-CAD drawings they shall be
provided as .tif images and if they are scanned documents, they shall be provided as .pdf
documents format.
3.2.1.10 Procurement and Subcontracting procedures - FirstEnergy will require a competitive process which may
include electronic reverse auctions, for selecting Subcontractors, equipment suppliers, tools, rentals and
service suppliers to obtain the lowest life cycle cost for the Project. The procedure must include
FirstEnergy review and release steps. The Procurement and Subcontracting procedures should allow for
exceptions when bidders are limited.
3.2.1.11 Safety programs - The AE-Constructor is expected to utilize "world class" site/Project
specific safety programs, practices and procedures and enforce them across the site.
While zero (0) safety incidents is the goal for this Project, the Safety Program should
result in an OSHA recordable IR rate <[*****] for non-manual and field labor. The program
should address site housekeeping as a method of improving safety. FirstEnergy will
review and release the AE-Constructor's safety program which must be consistent with
Exhibit 3.5 (E)-1 , Contractor Safety Guide, Air Quality Compliance.

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In addition, the AE-Constructor must administer and enforce a Drug and Alcohol Testing
Program consistent with the attached FirstEnergy generation Corp. Substance Abuse
Testing Program (See Exhibit 3.4 (D)) and meet the requirements of Exhibits 3.8 (E)-1,
3.8 (E)-2, 3.8 (E)-3 & 3.5 (E)-2 dealing with Asbestos, Inorganic Arsenic, Lead and
OSHA Compliance.
3.2.1.12 Quality assurance - FirstEnergy expects the Project to be completed with a high degree of
quality. The AE-Constructor will have FirstEnergy reviewed and approved quality
assurance programs in place for both field and shop work. In addition, the AE-Constructor
will be expected to monitor and track the quality of major equipment as it is fabricated in
the various Vendors' shops. FirstEnergy is to be notified of all significant inspections and
may participate, as FirstEnergy deems necessary. In any case, all quality program reports
will be provided to FirstEnergy.
3.2.1.13 Scheduling - Scheduling is to be done in an electronic format (Primavera) and is to be made available to
FirstEnergy electronically in native format. FirstEnergy requires all schedules, including those provided by
Subcontractors, be in Primavera. In any case, the Primavera integrated master schedule shall be kept by
the AE-Constructor and will include all activities required to complete the Project regardless of the
responsible party (AE-Constructor, FirstEnergy, OEM, Subcontractor, equipment supplier, etc.) or the form
in which the individual schedules are provided.
3.2.1.14 Estimating - All estimates will be completed using accepted estimating practices common
to the industry. The basis for all labor rates, equipment prices, indices, adjustments,
contingencies, labor-hour quantities, ratios etc. will be provided and stated clearly in the
estimate. FirstEnergy will be provided access to the method of calculation and the Project
specific data used in the creation of any such estimates. FirstEnergy will review and
release all estimates.

3.3 Support technology application decisions

3.3.1 The AE-Constructor will support FirstEnergy in it's effort to establish and evaluate the capital cost,
operating cost, performance, risks and total life cycle costs associated with each subproject to
make a determination which of the technologies to pursue.

3.4 Support FGD OEM selection

3.4.1 FirstEnergy has not selected any FGD technology suppliers. The AE-Constructor will support the
solicitation of proposals from various technology providers.
The AE-Constructor will write a specification for the various technology suppliers to bid to, review
the proposals, interface with the various bidders to ensure
they are properly interpreting the bid documents, prepare a bid tabulation and generally support
FirstEnergy's selection process.

3.5 Assist in establishing Project performance parameters not already established within this Agreement.

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3.5.1 The AE-Constructor will be required to provide support to FirstEnergy in establishing the
performance requirements, performance guarantees and warranties associated with the technology

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provider.

3.6 Complete site evaluations and layouts

3.6.1 The AE-Constructor will be required to review the Sammis site for interferences, construction
issues and existing undergrounds. From that review, the AE-Constructor will work with FirstEnergy
to develop layout options, taking into account the potential configurations and the timing for their
application. The various options will then be evaluated jointly by the AE-Constructor and
FirstEnergy.

3.7 Complete Project design basis

3.7.1 The AE-Constructor will work with the FirstEnergy Project team and Sammis Plant operations
personnel to develop a Project design basis.

3.7.2 The AE-Constructor will perform optimization studies, as directed by FirstEnergy.

3.8 Prepare estimating documents

3.8.1 The estimating documents will include site layouts, design basis documents, mass & energy
balances, process flow diagrams, piping and instrumentation diagrams, Vendor quotes for major
equipment, material estimates, detailed local labor surveys and Subcontractor estimates.

3.8.2 The level and detail of estimating documents that will be prepared in advance will be based upon
FirstEnergy’s desired estimate accuracy for a given Subproject and may be different for the two
Subprojects within the Project.

3.9 Prepare cost estimate

3.9.1 The Project estimate will be a collaborative effort between FirstEnergy, the AE-Constructor and the
OEM and will be prepared in an "open book" manner. All of the estimating documents will be
available to each of the parties for review and for their use in preparing their own portion of the
estimate as well as to come to their own conclusions as to the accuracy of the overall estimate.

3.9.2 FirstEnergy reserves the right to retain the services of a mutually acceptable third party to review
the estimates. All of the materials provided to FirstEnergy will be provided to the third party.

3.9.3 It is FirstEnergy’s expectation that there will be “continuous improvement” in the design/engineering
and construction of the series of AQC Systems to be installed. This “continuous improvement”
should be reflected in all aspects of the Subprojects including pricing, schedule, final quality and
safety.

3.9.4 The Target Construction Cost for an individual Subproject will be based on the Subproject estimate
for that Subproject.

3.10 Support Permitting Process

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3.10.1 The AE-Constructor will establish a Permit list. This list will include all permits required to
construct and operate the proposed facilities, the responsible party, permitting duration, applicable
permitting agency as well as what activities are dependent on the permit.

3.10.2 The AE-Constructor is to include all the necessary permitting activities in the project schedule.

3.10.3 The AE-Constructor will be responsible for obtaining all of the construction permits.

3.10.4 The AE-Constructor will work with FirstEnergy to develop an environmental permitting strategy
and will be responsible for managing the environmental permitting process, the creation and
submission of all permit applications and providing responses to information requests from the
agencies as required. The permits will be obtained in the name of FirstEnergy and FirstEnergy will
be the official interface for the project with the permitting agencies.

3.11 Support reagent supply discussions

3.11.1 The AE-Constructor will be required to provide input and be present at times for reagent supply
discussions that pertain to the quality, quantity, form and delivery of reagent.

3.11.2 The AE-Constructor will provide input on the effect of various reagents on the process
performance and its cost effectiveness as well as its impact on design and operating parameters.

3.12 Detailed engineering

3.12.1 The AE-Constructor will prepare working drawings and specifications setting forth in detail the
requirements for the construction of the Project. The design and engineering documents shall
include all drawings, specifications schedules, diagrams and plans and such content and detail as
is necessary to obtain required permits and governmental approvals and to properly complete the
construction of the Project. The working drawings and specifications shall include information
customarily necessary for the use of such documents by those in the building trades. Design
drawings in the following categories are typically provided for Owner review:

· Site Grading/Roadway Drawings


· Logic Diagrams, Instrument Control Diagrams, Panel Layout Drawings
· Single Line Diagrams, Control Schematic Diagrams
· Piping and Instrument Diagrams, System Descriptions, Piping Class Sheets
· General Arrangement Drawings

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· Major Equipment Specifications, Design Criteria Documents

A specific list of the design and engineering documents to be reviewed and released by
FirstEnergy will be created during the Project Development Phase.
3.12.2 The Design and engineering documents must meet the requirements of applicable laws including
Professional Certifications (e.g. Engineer stamps, etc.) as required.

3.13 Procurement

3.13.1 FirstEnergy reserves the right to purchase equipment and materials for the Project directly.

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3.13.2 The AE-Constructor will be responsible for issuing purchase orders for all equipment and
material in the AE-Constructor's scope of procurement. The AE-Constructor will be responsible
for material control and handling of all equipment and materials purchased including any directly
purchased by FirstEnergy. FirstEnergy will have direct input on the review and final selection of
Vendors and equipment suppliers and on the type and quality of the equipment to be purchased
for this Project.

3.13.3 FirstEnergy and the AE-Constructor will mutually agree upon the best method of contracting for
labor services. Subject to section 2.3(A) of the Agreement, FirstEnergy will approve all
Subcontractors and will be involved in the final bid evaluations. The AE-Constructor will develop
the bidders list with FirstEnergy's approval, solicit bids, and present final bid evaluations to
FirstEnergy for final review. FirstEnergy and the AE-Constructor will mutually agree to the final
selection of the bidders.

3.13.4 FirstEnergy, with the AE-Constructor, will mutually determine the "best fit" technology and
OEM, where applicable, for each of the two Subprojects.

3.14 Construction

3.14.1 FirstEnergy will provide oversight of the construction work performed at the applicable site.

3.14.2 FirstEnergy site construction personnel will have the option to attend AE-Constructor site
meetings, that must be held daily, relating to Project planning and/or progress.

3.14.3 AE-Constructor will hold weekly status update meetings with FirstEnergy site construction
personnel to review Project safety statistics, schedule, cost, productivity, and any other relevant
Project topics. AE-Constructor to provide Gantt charts, cost and productivity reports, “S” curves,
etc. as needed to clearly communicate current Project status and trends.

3.14.4 AE-Constructor will be required to utilize the National Maintenance Agreement. Discussions on
specific Labor Requirements for this work are in progress. FirstEnergy's current standard Labor
Requirements are listed in Exhibit 3.4 (E), Labor Requirements.

3.14.5 The AE-Constructor will be required to supply all temporary facilities, construction tools and
equipment for each of the two Subprojects.

3.14.6 The AE-Constructor will be responsible for all demolition required for this Project. The AE-
Constructor will identify the facilities to be demolished, engineer the demolition, schedule the
demolition taking into account operating plant requirements and develop any safety procedures
that may be required.

3.15 Checkout, Start-Up, Commissioning

3.15.1 AE-Constructor shall have responsibility for checkout, start-up, and commissioning of all
systems within their work scope. Site specific procedures shall be developed by the AE-
Constructor and submitted to FirstEnergy for review and approval.

3.15.2 FirstEnergy shall assign a Start-up Coordinator to interface with AE-Constructor and
FirstEnergy plant personnel relating to the start-up process. At FirstEnergy’s option, FirstEnergy
personnel may be integrated into the Start-up and Commissioning Team (participation to be
under the management of and in support of AE-Constructor personnel).

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3.16 Training

3.16.1 The AE-Constructor will be required to provide training for FirstEnergy operations and
maintenance personnel for all portions of the new AQC Systems. The training program will be
developed in conjunction with FirstEnergy operations and maintenance personnel in accordance
with FirstEnergy standard practices and will include training material development, classroom
training development and execution along with hands on training in the field.

3.16.1.1 Training programs and materials for plant non-operational support personnel will also be
required.

3.16.1.2 The AE-Constructor will be responsible for working with FirstEnergy operations
personnel to create Operating Procedures for each of the two Subprojects. The AE-
Constructor will take the lead in the development of the Operating Procedures.

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3.17 Documentation

3.17.1 All Project related documentation including; reports, correspondence, drawings, specifications,
purchasing documents, O&M manuals, calculations, permits, etc. will be controlled by the AE-
Constructor throughout the Project. At Project completion, all documentation controlled by the AE-
Constructor will be provided to FirstEnergy in electronic format as follows:

3.17.1.1 All documents are to be provided in native format. In the case of drawings, native format
is .dwg. Scanned non-drawing documents are to be provided in .pdf while scanned
drawings (for which the .dwg format is unavailable) shall be provided in .tif format.

3.17.1.2 Two separate formatted excel spreadsheets will be provided by FirstEnergy that the AE-
Constructor will use to create an index of all drawings (.dwg and .tif) and a separate
index of all other documents. Those indexes will allow FirstEnergy to electronically
populate its internal document management system.

3.17.1.3 FirstEnergy drawings that interface with the existing facilities will be provided to the AE-
Constructor when required. The AE-Constructor will modify non-CAD drawings
(provided as .tif files by FirstEnergy) with Autodesk CAD Overlay software to create
hybrid revisions.

3.17.1.4 The AE-Constructor will be responsible for providing final "as-built" drawings for the
Project including assuring that all drawings provided by subcontractors, in the field or
shop, and all equipment drawings are as-built. The specific as-built drawing
requirements will be established during the Project Development Phase.

3.18 Performance testing

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3.18.1 The AE-Constructor will be responsible for coordinating all AQC system performance test
scheduling, procedure development and testing including tests to be provided by the OEM.

3.18.1.1 Performance testing, although coordinated by the AE-Constructor will be performed by


an independent, third party as selected by FirstEnergy.

3.18.1.2 FirstEnergy will review all test procedures, witness all tests and review and release all
test reports.

4.0 SCHEDULE

4.1 The AE-Constructor will support overall Project scheduling including the scheduling of various technology
and design/construction options for each of the two Subprojects as required to determine the optimum
Project schedule.

5.0 GENERAL REQUIREMENTS

5.1 Professional Standards & Sufficient Personnel

5.1.1 The AE-Constructor will be responsible to provide adequate and qualified resources in all
disciplines required to define the tasks, gather all facts relating to the tasks and coordinate all
permitting, engineering, procurement, construction, commissioning, startup and testing of each of
the two Subprojects.

5.1.2 The AE-Constructor shall, at all times, keep sufficient personnel employed and dedicated to the
Project so that the services to be performed by the AE-Constructor herein are completed on
schedule and in an efficient, safe, economical and professional manner.

5.1.3 The AE-Constructor will provide adequate opportunity for FirstEnergy to examine all studies,
reports, sketches, drawings, specifications, proposals and other documents presented by the AE-
Constructor and submit written responses, as required within a reasonable time so as not to delay
the services of the AE-Constructor.

5.1.4 The AE-Constructor will keep FirstEnergy's Project Team apprised of all work efforts, including third
party meetings, status meetings, hiring of Subcontractors, etc.

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LIST OF EXHIBITS

Exhibit No.

3.4 (A) Key Project Personnel


3.4 (D) FirstEnergy Generation Corp. Substance Abuse Testing Program
FirstEnergy Generation Corp. Employee Sign-Up & Substance Abuse
Screening Process
3.4 (E) Labor Requirements
3.5 (E)-1 FirstEnergy Contractor Safety Program for Fossil Generation
3.5 (E)-2 OSHA Compliance and Safety
3.8 (E)-1 Asbestos Handling and Removal

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3.8 (E)-2 Inorganic Arsenic


3.8 (E)-3 Lead Abatement Terms of Reimbursement
5.1 AQC Systems, Pricing Methodology and Definitions
5.1 -
1(A) Fee
Adjustment
5.1 -1(B) Payment Methodology Example
5.1 -2 Sample Scorecards
5.1 -3 Fee Table
5.1 -4 Sample Invoices
5.1 -5 U.S. National Temporary/Short Term Assignment Conditions to a Project
Location
U.S. National Long Term Assignment Conditions to a Project Location
5.1 -6 Constituents of G & A (Overhead) Costs
5.1 -7 Constituents of Engineering Technology Charge
5.1 -8 Tool and Equipment Rates
5.1 -9 Job Supplies
5.1-10 2005 Rate Sheet for Engineering/Graphics Labor & Other Professional Labor
(US Offices)
5.1-11 2005 Rate Sheet for Professional Construction Labor (US Offices)
5.1-12 AQC Systems Cost Reimbursable Work, Craft Labor
5.2 (C) Contractor’s Interim Waiver and Release of Liens and Claims Upon Progress
Payment
Subcontractor’s Interim Waiver and Release of Liens and Claims Upon
Progress
Payment
6.3 (A) Contractor’s Final Lien Waiver
Subcontractor’s Final Lien Waiver
6.3 (C) Final Completion Certificate
6.5 Schedule Liquidated Damages
7.2 Reliability Standard, Performance Guarantees and Performance Liquidated
Damages
7.2 -1 Design Fuel
8.2 W.A. Sammis Plant AQC Projects Contracted Services Change Order and
Pricing Sheet

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 3.4(A)

KEY PROJECT PERSONNEL

Program Manager ******


Project Manager ******
Project Engineering Manager ******
Site Manager ******
Field Superintendent ******
Project Engineer ******
Mechanical EGS ******
Control System EGS ******
Electrical EGS ******
Civil EGS ******
Plant Design EGS ******
Project Controls Supervisor ******
Startup Manager
Project Field Engineer

Specialists - available as needed:

FGD Technology Specialists ******


FGD Technology Specialist ******
FGD Technology Specialist ******

Page 1 of 1

CONFIDENTIAL TREATMENT REQUESTED


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EXHIBIT 3.4(D)

FIRSTENERGY GENERATION CORP.


SUBSTANCE ABUSE TESTING PROGRAM

In order to provide a drug and alcohol free workplace, FIRSTENERGY GENERATION CORP. (FirstEnergy) on
behalf of its subsidiaries and affiliates, will require any Contractor or subcontractor working on FirstEnergy's property
to have a substance abuse testing program in place.

MINIMAL REQUIREMENTS OF CONTRACTORS PROGRAM

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The substance abuse testing program shall be the obligation and responsibility of the Contractor. The Contractor is
expected to establish, administer and enforce its own program. The Contractor’s program for those locations listed
under Article 16.b. herein shall conform with the requirements of the Northwest Ohio Great Lakes Construction
Alliance Substance Abuse Policy. Prior to work commencement, at those locations listed under Article 16.a. herein
Contractor must provide a copy of its policy to FirstEnergy or FirstEnergy’s THIRD PARTY ADMINISTRATOR (TPA).
The Contractor’s program for those locations listed under Article 16.a. herein, must include the following minimum
requirements:

1. a. the Contractor shall be reimbursed all actual costs by FirstEnergy under the FirstEnergy Generation Corp.
Substance Abuse Testing Program as administered by United, Inc. for those locations listed under Article
16.a. on the estimated basis of [$*****] maximum per test. This allowance shall include, if applicable, the
cost of the employee's time to take the test.

b. The Contractor shall be reimbursed all actual costs by FirstEnergy under the Northwest Ohio Great Lakes
Construction Alliance Substance abuse Testing Policy for those locations listed under Article 16.b. on a
basis of [$*****] maximum per test. This allowance shall include, if applicable, the cost of the employee’s
time to take the test.

c It is the Contractors responsibility to ensure prompt payment to the appropriate program administrator for
drug testing services under either a. or b. above. Failure to do so shall be considered as a material breach
of the contract terms that could result in actions by FirstEnergy for enforcement of the Contract terms, up to
and including termination (for cause) of the contract.

2. The substance abuse program will be conducted in keeping with the established testing procedures
developed by the Department of Health and Human Services Scientific and Technical Guidelines dated April
11, 1988 and any subsequent amendments thereto. The testing laboratory shall be licensed or certified, by
either The Substance Abuse And Mental Health Services Administration or The College Of American
Pathologists.

3. The drug testing shall consist of screening of the ten substances listed below, plus alcohol. The table below
lists the screening and conformation limits for Gas Chromatography/Mass Spectrometry (GC/MS) analysis
for drugs and the breathalyzer limit for alcohol.

Screening Confirmation
Drug Class Cut-Off Limit Cut-Off Limit

Amphetamines 1000 ng/ml* 500 ng/ml*


Barbiturates 300 ng/ml 200 ng/ml
Benzoylecgonine 300 ng/ml* 150 ng/ml*
(Cocaine Metabolite)
Cannabinoids (THC) 50 ng/ml* 15 ng/ml*
Methaqualone 300 ng/ml 100 ng/ml
Opiates 2000 ng/ml 2000 ng/ml*
Phencyclidine 25 ng/ml* 25 ng/ml*
Benzodiazepines 300 ng/ml 300 ng/ml
Methadone 300 ng/ml 300 ng/ml
Propoxyphene 300 ng/ml 300 ng/ml
Alcohol, Ethyl** 0.001% 0.001%

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EXHIBIT 3.4(D)

* Cut-off limits are established by the Department of Health and Human Services in their mandatory guidelines
for Federal Workplace Drug Testing Programs.

** Blood alcohol or equivalent, as indicated, saliva, breathalyzer or similar test. In the event of a positive
screening result, the donor may request a confirmation blood test. The MRO (Medical Review Officer) will not
normally participate in the alcohol testing process. FirstEnergy considers a 0% blood alcohol to be consistent
with their no alcohol policy.

4. CONDITIONS OF EMPLOYMENT TESTING:

a. The Contractor's employees may begin work pending the results of the testing. Specimen collection
must be completed within forty-eight (48) hours of permitting the employee onto the jobsite. Once
specimen collection is performed, the test results shall be available within five days following the
specimen collection. A chain of custody receipt shall be issued to each employee tested and shall
be required for access to the work site and shall be valid for those five days.
b. Specimen collection may be completed prior to and as a pre-condition of employment. The
Contractor shall certify that each of their employees have provided a negative test result or valid
chain of custody receipt prior to being permitted access on the work site.

c. In lieu of the above, The Contractor must certify the required negative test results as a condition of
employment for each employee by providing proof that the employee has tested negatively through
an annual screening program approved by FirstEnergy within the last twelve (12) months.

5. RANDOM TESTING

Random testing will be conducted on a predetermined percentage by FirstEnergy, based on the total number of
contract employees on site. FirstEnergy’s Third Party Administrator will make the random selections. The selection
process will involve a computer program using the workers' Social Security Numbers. The Random Testing will be
conducted without prior notice and shall be scheduled at the conclusion of the mid-shift meal break.

6. TESTING FOR CAUSE

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An employee shall be subject to drug or alcohol testing, for cause, for any of the following reasons:

a. Involvement in, or cause of, an incident or an accident while on FirstEnergy’s premises, which
causes or could have caused injury to the employee or another individual, or which causes or could
have caused destruction or damage to FirstEnergy’s property.

b. Based on observed behavior which is unusual to the circumstances, or the individual's normal
behavior, which indicates or could indicate impairment or substance abuse.

c. If any contractor employee must be transported to an emergency care facility or hospital due to an
accident, a specimen collection container and chain of custody form shall accompany the employee.
Each plant will maintain a supply of forms and containers for such an emergency. The attending
physician shall be instructed to obtain a urine specimen and forward it and the chain of custody
form to the testing laboratory. A blood alcohol or breath alcohol test shall also be administered.

d. If the contractor employee does not require emergency off-site care, the THIRD PARTY
ADMINISTRATOR will be dispatched to the site for sample collection and breath alcohol testing.

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EXHIBIT 3.4(D)

7. PROCEDURES FOR SUBSTANCE ABUSE TESTING ARE AS FOLLOWS:

a. A qualified health professional at the collection facility will require picture identification by all
participants.

b. The qualified health professional will provide the participant the proper chain of custody form and
specimen collection container.

c. The participant will provide the required urine specimen and sign the chain of custody form.

d. The qualified health professional will furnish the participant affirmation that specimen has been
collected and forward the specimen and the chain of custody form to the testing laboratory.

e. The testing laboratory will forward the results of the analysis to a Medical Review Officer (MRO).

8. THE MEDICAL REVIEW OFFICER SHALL BE RESPONSIBLE FOR:

a. Notifying the tested individual of a positive result.

b. Reviewing and verifying a confirmed positive test result.

c. The participant will provide the required urine specimen and sign the chain of custody form.

d. Reviewing the individual's medical record as provided by or at the arrangement of the tested
individual as appropriate.

e. Notifying the Contractor's contact person of all test results, positive and negative.

f. Notifying FirstEnergy of any positive test result.

g. Processing re-test requests.

h. Participating in return to duty decisions as required.

i. Referring individuals testing positive to the appropriate medical evaluation. The cost of the
evaluation or services shall be the responsibility of the individual.

9. IN THE CASE OF "POSITIVE" RESULTS OF ANY TEST, THE PARTICIPANT:

a. Shall have the right to have the original sample independently re-tested by a qualified laboratory. If
the re-test is "negative", the participant shall be allowed to resume work immediately and be
reimbursed for the cost of the independent test.

b. Shall have the right to secure a copy of all data relating to the test procedures and results,
providing the costs of same are paid in advance to the initial testing laboratory by the participant.

10. CONFIDENTIALITY

All test results shall be treated in a confidential manner. Accordingly, the testing facility will disclose the results only
to the employee via the MRO (Medical Review Officer) and the designated Contractor representative(s). The MRO
shall then inform FirstEnergy that the employee has tested positive for drugs or alcohol (no specifics as to type of
drug will be given).

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EXHIBIT 3.4(D)

11. DISCIPLINARY ACTIONS:

a. Any applicant or employee who tests positive for drugs or for alcohol, equal to or in excess of

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

0.04% will be rejected or discharged.

b. Any applicant or employee who refuses to submit to testing will be rejected or discharged. The
inability or refusal to provide an appropriate specimen within THREE HOURS of request; shall be
considered the same as a refusal to submit to testing.

c. Each applicant or employee shall certify that the specimen provided is theirs. Any applicant or
employee involved in sample switching, altering, or tainting will be rejected or discharged.

d. Any applicant or employee who tests positive for alcohol at a level less than 0.04% shall be
prohibited from working on any of FirstEnergy’s locations for 30 calendar days. Prior to returning to
work the applicant or employee must provide FirstEnergy’s MRO proof of testing negative for
alcohol and drugs.

e. If the applicant or employee has tested positive, it is the responsibility of the Contractor to escort
that employee SAFELY from FirstEnergy’s property.

12. SUSPENSION PERIODS AND RE-EMPLOYMENT ELIGIBILITY

Individuals become rejected or discharged as described in items 11 a, b, or c may become eligible for re-
employment by the following means:

a. The individual presents written certification of the successful completion of an MRO


approved rehabilitation program and proof of testing negatively for alcohol and drugs.

b. The individual serves a one year suspension from working at FirstEnergy’s locations and
provides proof of testing negatively for alcohol and drugs to FirstEnergy’s MRO.

c. A certified testing laboratory shall perform all re-tests. All costs associated with the any re-
testing or rehabilitation program shall be the responsibility of that individual.

d. An employee who is employed after meeting the conditions specified in 12 a. and b. above
will be subject to a follow-up random testing for drugs and alcohol, for a period of three
years. This three-year period shall commence with the date of their actual return to work or
the date of the acceptance of a negative test by FirstEnergy’s MRO. Such an employee
shall be subjected to a drug and alcohol test at any time, without notice.

e. During this three-year period, a positive drug and / or alcohol test will permanently
eliminate this employee from working at any of FirstEnergy’s locations.

13. THIRD PARTY ADMINISTRATOR

An independent THIRD PARTY ADMINISTRATOR (TPA) has been selected to coordinate administration of
the program between the Contractors and FirstEnergy.

a. All Contractors, prior to mobilizing on an FirstEnergy’s plant site, for FirstEnergy locations listed
under Article 16.a. below must contact the TPA to verify valid pre-employment tests in accordance
with this procedure. The TPA shall also verify the applicability of the Contractors’ SUBSTANCE
ABUSE AND TESTING PROGRAM. For FirstEnergy locations listed under Article 16. b. below,
Contractor shall follow the guidelines and instructions to verify pre-employment tests contained in
The Northwest Ohio Great Lakes Construction Alliance Substance Abuse Policy.

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EXHIBIT 3.4(D)

b. As a service to the Contractor, the TPA will provide for specimen collections and testing. The
Contractor is not obligated to use this service for conducting its SUBSTANCE ABUSE TESTING
PROGRAM. The use of the TPA’s services for off-site specimen collection should be coordinated
between the TPA and the Contractor.

c. The TPA will coordinate with FirstEnergy for specimen collections at FirstEnergy’s locations as
required.

d. Administer random selections and testing.

e. Collect and document results from the independent laboratory.

f. Consolidate results and provide statistics to FirstEnergy as requested.

g. Provide for the MRO services as described.

h. Issuing Drug Cards as needed. FirstEnergy shall bear the cost of any cards issued.

14. a. FirstEnergy’s independent Third Party Administrator for those locations listed under
Article 16.a. below is:

United Labs, Inc.


547 Keystone Dr
Suite 100
Warrendale, PA 15086-6502

Phone: (800) 437-8483

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Fax: (724) 772-0811


ATTN: Cindy Matykavisch

b. FirstEnergy’s independent Third Party Administrator for those locations listed under Article 16.b. below
is:

M.O.S.T./NW Ohio GLCA


Attn: Becky Pietz
753 State Ave., Suite 800
Kansas City, KS 66101

Phone: (877) 522-6869


Fax: (913) 281-2505
Email: rpietz@mostprograms.com
The contact person is Becky Pietz

15. FIRSTENERGY RESERVES THE RIGHT TO AMEND OR CHANGE THESE PROCEDURES


ESTABLISHED HEREWITH AT ANY TIME WITHOUT PRIOR NOTICE. CONTRACTOR SHALL BE
PROVIDED NOTICE OF ANY SUCH CHANGE.

16. FIRSTENERGY GENERATION CORP. GENERATING PLANTS AND LOCATIONS

The following locations are covered under FirstEnergy’s SUBSTANCE ABUSE AND TESTING PROGRAM:

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EXHIBIT 3.4(D)

Bruce Mansfield Plant Shippingport, PA


W. H. Sammis Plant Stratton, OH
R. E. Burger Plant Shadyside, OH
Edgewater Plant Lorain, OH
Mad River Plant Springfield, OH
Ashtabula Plant Ashtabula, OH
Eastlake Plant Eastlake, OH
Lake Shore Plant Cleveland, OH
Toronto Plant Toronto, OH
Gorge Plant Akron, OH
West Lorain Plant Lorain, OH
Seneca Pumped Hydro Plant Near Warren, Pa
Sumpter Belleville, MI

b. The following locations are covered under the Northwest Ohio Great Lakes Construction Alliance Substance
Abuse Testing Policy:

Bay Shore Station Oregon, OH


Richland Defiance, OH
Stryker Stryker, OH

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EXHIBIT 3.4(D)

FIRSTENERGY GENERATION CORP. EMPLOYMENT SIGN-UP &


SUBSTANCE ABUSE SCREENING PROCESS

Instruction for Contractor Employment Eligibility Verification


(Excluding Bayshore, Richland, and Stryker Locations)

1. Employees are to be screened prior to the start of any a project/job on a plant site. The contractor shall
complete the Eligibility Sign-Up form prior to the start of any work on FirstEnergy’s property. It is the
responsibility of the Contractor to update the list as new employees are hired. For the Bayshore, Richland and
Stryker, locations, see Item 10 below.

2. The Eligibility Sign-Up form must contain each employee’s name, social security number, and valid drug card
information. Each employee must be able to produce two (2) valid forms of identification for verification.

3. The completed form(s) shall be faxed to FirstEnergy’s Third Party Administrator. For the Bayshore, Richland and
Stryker locations, see Item 10. below prior to the start of the project and as new employees are hired. Please
FAX to:

United Labs, Inc.


547 Keystone Dr
Suite 100
Warrendale, PA 15086-6502

Phone: (800) 437-8483

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ATTN: Cindy Matykavisch

4. A copy of the Eligibility Sign-Up form should be forwarded to FirstEnergy’s designated representative.

5. The Contractor shall provide to FirstEnergy’s designated representative a list of all employees on site at the
beginning of each shift. This list will contain the employee’s name and social security number.

6. The Third Party Administrator shall notify the contractor as soon as possible if any of the employees, listed on
the Eligibility Sign-up Form are ineligible for employment on FirstEnergy’s property.

7. When the Contractor is notified that an employee is ineligible for employment, the Contractor shall immediately
disqualify that employee from performing any work on FirstEnergy’s property; and shall require the employee to
leave FirstEnergy’s property. FirstEnergy’s on-site security forces (if available), may assist in escorting the
employee from FirstEnergy’s property.

8. FirstEnergy’s plant site coordinator shall be notified that an ineligible employee has been escorted from
FirstEnergy’s property.
9. The Contractor is responsible for employee’s SAFE removal from FirstEnergy’s property.

10. For the Bayshore, Richland and Stryker locations, Contractor shall follow the guidelines and instructions
contained in The Northwest Ohio Great Lakes Construction Alliance Substance Abuse Policy.

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EXHIBIT 3.4(D)

FirstEnergy Generation Corp.

CONTRACTOR NAME:__________________________________________________________
ADDRESS:__________________________________________________________________
___________________________________________________________________________
CITY:______________________________ STATE:_________ ZIP:______________________
CONTACTS: ___________________________________________________________________
PHONE:_________________________ EXT:_________
FAX:__________________________

FOR FirstEnergy LOCATION: _____________________

CONTRACTOR’S
SITE START
CONTACT: _______________________ P.O.#: ____________ DATE: _________________

PHONE: ________________________________ FAX:


______________________________ ____________________________________

UNITED, INC.
EMPLOYEE NAME VALID CARD USE ONLY
NO. (PRINT: Last, First, Initial) SOC. SEC. # TYPE DATE LU A/N

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CONFIDENTIAL TREATMENT REQUESTED


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EXHIBIT 3.4(E)

LABOR REQUIREMENTS

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1. The Contractor is responsible for providing all labor personnel, both craft and non-craft, as required. The
Contractor shall employ AFL-CIO skilled craftsmen who are members of local unions affiliated with the AFL-
CIO building and construction trades unions for the performance of the Work that is normally and
historically the jurisdiction of those trade unions for the location at which the Work is to be performed.

2. Craft labor Work shall be performed under the terms of the National Erectors Association National
Maintenance Agreement and/or their equal under similar national maintenance agreements. For plants as
designated below, the agreement shall include the wage rate modification granted by the National
Maintenance Agreements Policy Committee. The Contract price shall be based on performing the Work
under such agreement, and modifications as applicable. For other plants designated below also, there shall
be no wage rate modification.

3. Contractors who are awarded Work are to conduct Pre-Job Conferences as stipulated in Article1 -
Recognition, and assign work to the appropriate crafts according to the recognized and traditional
jurisdiction.

4. Contractors are required to furnish a copy of the first and signature pages of such agreements with each
craft prior to commencing the work.

5. FirstEnergy Generation Corp. shall pursue and anticipates receiving approval from the National Maintenance
Agreements Policy Committee (NMAPC) for a wage rate site modification at the locations indicated below.
The modification allows for the Work to be performed [*****%] of the wage rates contained in the local
collective bargaining agreements and [*****%] of the fringe benefits listed in those agreements. The
Contractor is responsible for applying for said agreements and must be in possession of them with
permission from the appropriate international unions for requesting extension of the FirstEnergy National
Maintenance Agreement to cover Work to be performed at these specific FirstEnergy Generation Corp.
Plants: R. E. Burger, Edgewater, D. B. Mansfield, W. H. Sammis, and Seneca.

6. Plants which have not been granted a wage rate modification, but which require use of the National
Maintenance Agreement with no modification (100%) to rates are: Ashtabula, Bayshore, Eastlake,
Lakeshore, Mad River, Richland, Sumpter and West Lorain.

7. Failure to comply with the foregoing requirements shall be considered as a material breach of the terms of
the contract, subject to termination for cause if such action is deemed necessary by FirstEnergy Generation
Corp.

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EXHIBIT 3.5(E)-1

FIRSTENERGY CONTRACTOR SAFETY PROGRAM FOR FOSSIL GENERATION

CONTRACTOR SUPERVISION 1

SAFETY AND HEALTH OBLIGATIONS 1

1. DESIGNATION OF SAFETY SUPERVISOR 1


2. GENERAL SITE RULES AND HOUSEKEEPING 2
3. PERSONAL PROTECTIVE EQUIPMENT 2
4. EMERGENCIES 3
5. FIRST AID 3
6. FIRSTENERGY GENERATION CORP. EQUIPMENT AND UTILITIES 3
7. LOCKOUT/TAGOUT AND CONTROL OF HAZARDOUS ENERGY 3
8. EXCAVATION AND TRENCHING 3
9. SCAFFOLDING AND FALL PROTECTION 4
10. ASBESTOS 4
11. INORGANIC ARSENIC 4
12. LEAD 4
13. HOT WORK 4
14. POWERED INDUSTRIAL TRUCKS, OTHER VEHICLES AND CRANES -
DRIVERS AND OPERATORS 5
15. WRITTEN SAFE WORK PROCEDURES 5
16. EMPLOYEE TRAINING AND QUALIFICATIONS 5
17. INCIDENT REPORTING 5
18. CONFINED SPACES 6
19. PERMITS, LICENSES AND INSPECTIONS 6
20. GENERAL RULES FOR HAZARDOUS MATERIALS AND EQUIPMENT 6
21. FIRE EXTINGUISHERS AND FIRE WATCH 7
22. COMPLIANCE AUDITS 7

PROHIBIED ACTS 7

SECURITY AND FACILITY ACCESS 7

CONTRACTOR SUPERVISION

Unless specified in this safety guide, the Contractor will at all times be solely responsible for all means, methods,
techniques, and procedures for the work specified in the contract. The Contractor is responsible for all acts and
omissions, of all their employees, subcontractors and agents, performing any of the contracted work. The Contractor
will at all times maintain appropriate discipline among its employees, and will not employ any person unfit or
unqualified in that portion of the contracted work assigned to them.

The Contractor has the authority and responsibility to control, and/or correct all safety and health hazards
associated with the contracted work. If the Contractor becomes aware of a hazard which the Contractor contends
was created or caused by FirstEnergy, the Contractor must notify the designated FirstEnergy contact person
immediately in the case of an imminent hazard, or as soon as possible in all other cases.

SAFETY AND HEALTH OBLIGATIONS

1. Designation of Safety Supervisor

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The Contractor must designate a responsible member of its organization at the job site, whose duty would include
safety and health compliance, and the prevention of accidents. The name and position of any person designated
must be reported in writing to FirstEnergy Site Safety Representative or other designated FirstEnergy
representative.

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EXHIBIT 3.5(E)-1

2. General Site Rules and Housekeeping

A. Portable ladders are to be tied or lashed to prevent the ladder from slipping and must have non-slip bases.
Metal and any conductive ladders will not be permitted.

B. Hoses, welding leads and electrical cords generally will be run overhead to eliminate tripping hazards or
damage by heavy equipment.

C. Temporary floor openings are to be barricaded and flagged as required by OSHA regulations.

D. Compressed or Plant air must not be used for cleaning clothing or shoes.

E. All equipment used in proximity to overhead lines must be properly grounded. Work near overhead lines must
be communicated to FirstEnergy Site Safety Representative’s attention.

F. Extreme caution must be used when walking or driving near railroad tracks on plant property. Most locomotives
are operated by remote control, and unmanned. Crossing a railroad track by crawling under or between railroad
cars is forbidden.

G. Rigging and hoisting of material or equipment must be done in a manner to ensure safety to personnel and
existing equipment in the hoisting area.

H. All posted signs must be observed.

I. Fire extinguisher, fire hoses, and other fire fighting equipment must not be moved from their designated
locations, except in the event of a fire.

J. If a plant fire extinguisher is used, contact FirstEnergy Generation Corp. Site Safety Representative.

K. The contractor must also be aware of various hazards existing in and around an operating power plant and take
appropriate steps to protect their employees. Hazards include, but are not limited to:

· Rotating equipment such as motors, fans, and air compressors


· High voltage switches, cables, and overhead lines
· High temperature/ high pressure steam piping and vessels
· Sensitive control equipment with associated tubing, piping and wiring
· Automatic safety valves and other power actuated valves
· High noise level areas
· Potential exposure to arsenic, asbestos and/or lead

3. Personal Protective Equipment

The Contractor must ensure that all its employees utilize all Personal Protective Equipment (PPE) required by
applicable Occupational Safety and Health Administration (OSHA) laws and regulations. FirstEnergy will not provide
safety equipment for the Contractor's work activities.

Hard hats, safety glasses, and hearing protection where appropriate must be worn at all times when on FirstEnergy
power plant property. Proper sturdy footwear must be worn at all times.

Compliance will include, but not be limited to, the following:

A. Conducting a hazard assessment prior to job initiation, to determine what if any PPE is needed
for their employees.

B. Conducting personal sampling if required by OSHA regulations.

1) If personal sampling is required, the Contractor will inform FirstEnergy Site Safety
Representative, in writing, of the personnel and/or Subcontractor that will be performing the
sample collection and/or analysis.

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EXHIBIT 3.5(E)-1

2) FirstEnergy reserves the right to reject any/or all parties involved with the sample collection and/or
analysis.
3) The Contractor will supply FirstEnergy with the results of all personal monitoring samples collected
on FirstEnergy property.

FirstEnergy has determined that in any enclosed area that transports circulating water, there is a potential for the
existence of common pathogenic organisms. The Contractor will be responsible for the proper protection of its
employees and others in relation to the contracted work performed in these areas.

Unless told otherwise by FirstEnergy Representative, or determined by test results, contractors must assume that all

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insulating materials including Thermal System Insulation, surfacing materials, and other building materials such as
floor tile, gaskets, old wire insulation, and transite board contain asbestos. Contract workers must be properly
trained and wear the proper PPE while working with these materials.

4. Emergencies

The Contractor must be aware of and comply with any emergency action plans for the facility where contracted
work is performed. The Contractor must develop a Site Specific Emergency Evacuation Plan that complements the
Facility Emergency Evacuation Plan and inform their workers of the plan. The Site Specific Emergency Evacuation
Plan shall be submitted to FirstEnergy for review and approval prior to the commencement of work.

In an emergency potentially threatening the safety of an employee’s life, the safety of the job site, or of adjoining
property, the Contractor is permitted to act at its discretion to prevent property loss or personnel injury.

5. First Aid

First Aid services and provision for medical care are the responsibility of the Contractor. The Contractor must
provide its own first aid supplies, emergency response equipment, and prompt medical attention in case of injury to
its employees. Provisions must be made and in place prior to the commencement of the work. The Contractor is
responsible for ensuring that personnel trained in first aid are available on site while work is occurring.

6. FirstEnergy Generation Corp. Equipment and Utilities

The Contractor is prohibited from starting, stopping, or otherwise operating FirstEnergy Generation Corp. owned or
leased equipment and utilities, unless specifically authorized to do so in writing. The Contractor can not open or
close any valves, breakers, or switches, enter into any equipment, or cut into any piping or structure, without first
obtaining permission from the proper FirstEnergy contact designated by the facility’s management. (See section on
Lockout/Tagout)

7. Lockout/Tagout and Control of Hazardous Energy

The Contractor shall develop a Site Specific Lockout/Tagout program. The Contractor’s Site Specific Lockout/Tagout
program will be required to comply with FirstEnergy Generation Corp.’s Lockout/Tagout program. A copy of
FirstEnergy Generation Corp.’s Lockout/Tagout program will be provided to the Contractor. The Contractor will be
required to train their employees to comply with the Site Specific Lockout/Tagout program, with all training
completed prior to commencement of the related work.

8. Excavation and Trenching

Any excavation and trenching activities and building demolition operations must comply with applicable state or
federal standards pertaining to those activities. This includes trenches dug for access to utility piping and plumbing.
The Contractor will obtain all appropriate permits prior to beginning work on-site. The Contractor will agree to
comply with OSHA regulations that include but are not limited to:

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EXHIBIT 3.5(E)-1

A. Using shoring or sloping for evacuations five (5) feet or deeper

B. Having shoring inspected by trained “competent” person

C. Hazardous atmospheric testing where needed

D. Providing appropriate means of egress.

9. Scaffolding and Fall Protection

All scaffolding must be erected, inspected and maintained in accordance with the applicable state and/or federal
standards pertaining to those activities. The Contractor must obtain all appropriate permits prior to beginning work
on-site. The Contractor will be responsible to ensure that all employees working on scaffolding are properly trained
to qualify them as either a competent person, erector/dismantler, or user. Scaffolding will be inspected and tagged
by a “competent person”. All scaffolding will utilize a guardrail system and toeboards. The Contractor will supply an
informational copy of all scaffold inspection documents to the appropriate FirstEnergy Representative.

Scaffolding design drawings are required for each major installation of scaffolding. A Registered Professional
Engineer (PE), for the state jurisdiction in which the work shall be performed, must approve the scaffold design and
indicate approval by the appropriate PE Stamp affixed to the design drawings.

100% Fall Protection must be utilized where personnel are exposed to a fall of six feet or more.

10. Asbestos

Unless communicated otherwise, all existing facility insulating materials including Thermal System Insulation,
surfacing materials, and other building materials such as floor tile, gaskets, old wire insulation, and transite board
must be considered by the contractor to contain asbestos.

The Contractor will be notified of the presence of any known or suspected asbestos-containing materials in its
proposed work areas. Only a contractor with the required OSHA training, certification and permits for asbestos
abatement and removal may handle these materials. All other Contractors are prohibited from working on or
removing asbestos-containing materials.

11. Inorganic Arsenic

If the Contractor will be working in a regulated work area for inorganic arsenic, FirstEnergy Site Safety
Representative or appropriate plant management will notify the Contractor of such. The Contractor is responsible for
ensuring that only employees with the required OSHA training enter and perform work in this area. Contractors
working in regulated work areas for inorganic arsenic will be responsible for providing and maintaining step off exit
areas from these regulated areas. Disposal of all protective coveralls, PPE, or any other items that become

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contaminated, is the responsibility of FirstEnergy. Use of the facility’s change area and shower is prohibited.

12. Lead

All materials that have the potential to contain lead must be tested prior to the Contractor performing any work that
could create dust or fumes. If possible, all lead should be removed prior to the start of work. FirstEnergy shall
remove all identified pre-existing lead materials as required to support the work. If the work to be performed will
cause lead particles or fumes to become airborne, then proper containment and control, techniques and equipment,
must be in place. The Contractor is responsible for ensuring that only properly trained employees will perform such
work and that all workers will wear the proper PPE. Air monitoring must be conducted for work activities that create
dusts or fumes with lead. (See section 3)

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EXHIBIT 3.5(E)-1

13. Hot Work

The Contractor is prohibited from welding, burning, cutting, brazing or performing other "hot work" without prior
authorization from FirstEnergy management or designated representative. All hot work must comply with state and
federal standards for these work activities, including those standards pertaining to hot work permits and safe
handling of compressed gases.

A. Due to the increased risk of fire resulting from the performance of Hot Work operations in the plant, all
Contractors are responsible for the implementation of a Hot Work permit procedure. This Hot Work permit
procedure must identify the necessary precautions taken to prevent fires resulting from open flame operations
(i.e. welding, cutting, grinding, brazing).

B. The Contractor will ensure that there are sufficient numbers of fire extinguishers, of the proper type, in the work
area.

C. The Contractor must focus on the fire hazards associated with their work. It may be necessary to post a “fire
watch”, depending on the nature and location of work.

D. The Contractor will provide protection to prevent welding and burning sparks from falling below the work level.
Fire retardant material must be used for this purpose.

E. The Contractor will screen or shield welding activities to prevent welding flash injuries to other personnel.

F. Storage area for oxygen and acetylene tanks must be separated by 20 feet or by a non-combustible barrier at
least 5 feet in height. Cylinder must be secured at all times and capped when not in use.

G. Empty cylinders must be removed from the work area to the designated storage facility at the site.

14. Powered Industrial Trucks, Other Vehicles and Cranes - Drivers and Operators

The Contractor's employees who drive vehicles or forklifts, or who operate heavy equipment on FirstEnergy project
sites, must have a current driver's license. Prior to employment on FirstEnergy project sites, it is recommended that
all Contractor Crane Operators be Certified through the National Commission For The Certification Of Crane
Operators (NCCCO). The Contractor must retain documentation of appropriate training in accordance with state and
federal OSHA standards, Department of Transportation, and Department of Motor Vehicles codes and standards.
The Contractor is responsible to meet all OSHA regulation pertaining to powered industrial trucks, mechanized
equipment, motor vehicles, cranes derricks and hoists.

Contractor shall have a written Critical Lift policy and procedure. The Contractor’s Critical Lift policy and procedure
shall be submitted to FirstEnergy for review and approval prior to the commencement of work.

15. Written Safe Work Procedures

The Contractor must have a written Site Specific Safety Program, including safe work practices, procedures, and
programs. FirstEnergy or designated representative is to be provided a copy of the written Site Specific Safety
Program that will be used at FirstEnergy facility. If upon review, FirstEnergy or designated representative deems the
Site Specific Safety Program not to be in compliance with appropriate FirstEnergy policy and/or OSHA regulations,
the parties involved must resolve issues prior to the commencement of work.

16. Employee Training and Qualifications

Contractor will provide only properly trained and qualified personnel to perform work under the Contractor
Agreement. The Contractor will provide only employees who are trained in both general safe work practices and all
applicable specific hazards of the contracted work. The Contractor has the authority and responsibility to train its
employees with regard to general and work-specific hazards and safe practices. The Contractor must certify that all
of its employees, subcontractors and Vendors, have been fully informed of tasks and specific hazards and safety
requirements before beginning work on-site.

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17. Incident Reporting

The Contractor will immediately notify FirstEnergy management or designated representative of any site
occupational injury or illness, employee exposure to hazardous substances, vehicle accidents, property damage,
fires, environmental spills or releases, and/or "near misses". The Contractor will provide a written incident notice to

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FirstEnergy management or designated representative within 24 hours of any such occurrence and a written report
to follow. FirstEnergy reserves the right to review the Contractor's incident investigations and/or perform
FirstEnergy’s own investigations, for the sole purpose of verifying facts, protecting FirstEnergy personnel and
property, and limiting FirstEnergy liability.

18. Confined Spaces

The Contractor must have in place a permit required confined space program for the protection of its employees
from the hazards associated with the entry into confined spaces. Contractors are required to perform the following
activities:

A. Obtain any available information regarding permit space hazards and entry operations from the host
employer, (FirstEnergy Generation Corp., or designated representative).

B. Coordinate entry operations with the host employer, when both host employer personnel and Contractor
personnel will be working in or near permit spaces.

C. Inform the host employer of the permit space program that the Contractor will follow and of any hazards
confronted or created in permit spaces, either through a debriefing or during the entry operation.

FirstEnergy reserves the right to require the Contractor to follow FirstEnergy’s Confined Space Program. If
FirstEnergy decides to require the Contractor to follow FirstEnergy’s Confined Space Program, a copy of FirstEnergy
Generation Corp.’s confined space program will be given to the Contractor. An agreement to train contractor
employees to FirstEnergy Generation Corp.’s confined space program must be in place, with training completed,
prior to the commencement of work.

19. Permits, Licenses and Inspections

As defined in Section 3.6 of the Contract, the Contractor will secure and pay for all required licenses, permits and
inspections necessary for performance and completion of the work. Within 5 working days of receiving such
documents, the Contractor will deliver to FirstEnergy or designated representative copies of all permits, written
approvals, licenses and inspections.

20. General Rules for Hazardous Materials and Equipment

When the use of hazardous materials (as defined by 29CFR 1910.1200) or equipment is necessary for the work
being performed, the Contractor must exercise the highest care and must perform such activities under the
supervision of properly qualified personnel. All applicable laws, rules, regulations and ordinances must be followed.
The Contractor is responsible to comply with the OSHA Hazard Communication Standard. It is the Contractors
responsibility to maintain an MSDS file of all hazardous substances and chemicals that the contractor has brought
onto the site. Where and when a hazardous material will be used must be communicated to FirstEnergy site
representative or designated representative, prior to commencing work.

The Contractor will be responsible for removing and properly disposing of all empty, partially full, or full containers of
chemicals or chemical substances that were brought on site by the Contractor or its Subcontractors as part of its
demobilization. All products and materials brought on site by a Contractor must be removed by that Contractor upon
its departure. Do not put chemical containers into company trash containers. Failure to adhere to this provision will
result in FirstEnergy disposing of the same and recovering the costs from the contractor. Also, all appropriate
regulatory agencies will be notified of any non-compliance with any applicable regulations.

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EXHIBIT 3.5(E)-1

Explosives of any description are not permitted to be stored on the Project Site. If the Contractor wishes to use
explosives of any description, the Contractor must first provide written notice to, and receive written approval from
FirstEnergy Representative and obtain the approval of all appropriate authorities having jurisdiction over the use of
such explosives.

21. Fire Extinguishers and Fire Watch

The Contractor will work with FirstEnergy safety representative to ensure that there are sufficient numbers of fire
extinguishers, of the proper type, in the work area. The Contractor will be responsible for providing a fire watch for
periods during which its personnel may be engaged in activities constituting a fire hazard, or as otherwise required
by law. Prior to engaging in any activities that could ignite a fire, the Contractor must ensure that all flammable
material has been cleared from the affected area. See section on Hot Work.

22. Compliance Audits

Any contractor performing work at a FirstEnergy facility may be subject to compliance audits, which includes Safety
as well as all other compliance documentation mentioned in this document, whether announced or unannounced, at
FirstEnergy’s discretion.

PROHIBITED ACTS

The Contractor's and Subcontractor’s employees are prohibited from bringing firearms, knives, and weapons of any
kind onto a FirstEnergy site or FirstEnergy facility, unless specifically authorized to do so in written contractual
documents.

No one under the influence of any narcotics, drugs, controlled substances or alcoholic beverages is permitted on
FirstEnergy property.

The illegal use, sale, or possession of narcotics, drugs, controlled substances or alcoholic beverages while on the
job is strictly prohibited.

Contractor's employees and Subcontractors are permitted to smoking in designated areas only.

SECURITY AND FACILITY ACCESS

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The Contractor will comply with FirstEnergy Generation Corp. security and access procedures for entry onto a
FirstEnergy Generation Corp. controlled property, worksite, or facility. The Contractor's employees are authorized to
enter only those work areas and structures specific to its contractual scope of the contracted work. Site specific
security requirements will be distributed and reviewed with the contractor prior to mobilization.

The Contractor will maintain a daily log of all employees present on-site. This log is to be used in an emergency to
identify missing personnel. The Contractor's employees must be logged in and out of the site each day in
accordance with FirstEnergy Generation Corp. security procedures.

A visitor is defined, as any person not covered by contractual agreements with FirstEnergy Generation Corp. Visitors
may include Vendors, tour groups or guests of the Contractor’s management. All visitors to FirstEnergy project sites
or facilities must have prior authorization from FirstEnergy. Visitors shall wear all required PPE and must be
escorted by the Contractor's supervisor or manager, or by its designated personnel, at all times while on-site.
Visitors are prohibited from areas where contact with hazardous substances or materials is possible and are also
prohibited from entering any area of the work site that requires respirators, or specialized medical monitoring or
safety training.

The Contractor will immediately notify FirstEnergy management or designated representative of any regulatory
agency inspectors or compliance personnel who request information about on-site activities or who request entry to
the work site. This includes personnel from city, county, state or federal government agencies. Regulatory and
government personnel must provide appropriate identification prior to entering the work site.

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EXHIBIT 3.5(E)-2

OSHA COMPLIANCE AND SAFETY

The Contractor represents and warrants that all articles, including but not limited to materials, equipment, protective
clothing, scaffolding, walkways, ladders, etc. furnished, meet or exceed all specifications promulgate for safety and
health standards under the Occupational Safety and Health Act of 1970 (29 U.S.C. 691 et. seq. 1970) and all
regulations in effect as of the date of this Contract. The Contractor agrees that all labor furnished as part of this
Contract is performed in accordance with all applicable OSHA requirements and all other applicable local, state, and
federal regulations.

1. FirstEnergy has established designated areas for contaminants that may include, depending on the location
at which work is to be performed, but are not limited to inorganic arsenic, lead, asbestos, hydrogen sulfide
and sulfur dioxide. Exposure to any of these contaminants may be above certain OSHA limits when working
in any of these designated areas.

2. The Contractor shall be responsible for the interpretation and compliance with all applicable OSHA
regulations including, but not limited to the regulations related to the contaminants.

3. OSHA compliance shall include, but not be limited to, the following:

A. Conducting personal sampling if required by OSHA regulations.

1. If personal sampling is required, the Contractor shall inform FirstEnergy, in writing, of the
personnel and/or Subcontractor that will be performing the sample collection and/or
analysis.

2. FirstEnergy reserves the right to reject all parties involved with the sample collection and/or
analysis.

3. The Contractor shall supply FirstEnergy with the results of all personal monitoring samples
collected on FirstEnergy's property.

B. Supplying personal protective equipment and other related equipment if required by OSHA
regulations.

4. The Contractor shall comply with all requirements of OSHA CFR 1910.1200, and any applicable state Right
To Know Acts, including but not limited to the labeling of containers, proper handling of applicable materials,
proper training and protection of employees and others, and the securing and implementing of Material
Safety Data Sheets.

5. FirstEnergy has determined that in any enclosed area that transports circulating water, there is a potential
for the existence of common pathogenic organisms. The Contractor shall be responsible for the proper
protection of its employees and others in relation to Work performed in these areas.

6. For Work performed at FirstEnergy’s D. Bruce Mansfield Plant in the event of any emergency situation,
specifically an emergency condition at FirstEnergy Beaver Valley Power Station, it may become necessary
to notify and/or possibly shelter or evacuate all onsite personnel. FirstEnergy has developed The Bruce
Mansfield Plant Emergency Preparedness Plan for emergency situations. The Contractor shall adhere to
and participate in the plan if an emergency situation should occur.

The Work shall comply with the State(s) of Ohio, Michigan and/or Commonwealth of Pennsylvania,
depending on the locations at with Work is performed, local codes and standards.

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EXHIBIT 3.8(E)-1

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ASBESTOS HANDLING AND REMOVAL

The parties agree that asbestos handling and removal is not anticipated or intended to be part of the scope of this
Contract. Contractor shall not in any way handle or remove asbestos without FirstEnergy’s permission. Contractor
shall promptly advise FirstEnergy’s Superintendent in the event he discovers any material which may be composed
of asbestos. FirstEnergy will make arrangements to test the material and should it be confirmed to be asbestos,
take appropriate action to have the asbestos removed and disposed of in compliance with applicable rules and
regulations.

However, should the Contractor handle or remove asbestos knowingly, in addition to fully indemnifying FirstEnergy
pursuant to the Article entitled "INDEMNITY" of this Contract, the following requirements shall be applicable:

Contractor shall be responsible for compliance with 29 CFR 1910.1001 and 1926.1101, 40 CFR Part 61 Subparts A
and M, and 49 CFR Part 173 Subparts A and M, and any other applicable rules and regulations and amendments
thereto promulgated by OSHA, EPA or state and local governmental authorities. Contractor's requirements include
but are not limited to:

1. Assignment to the plant site of a "competent person" as defined by applicable rules and regulations listed
above.

2. Establishment of regulated areas pursuant to 29 CFR 1926.1101.

3. Supplying for all of it's employees and agents all respirators, protective clothing or other protective
equipment utilized to comply with 29 CFR 1926.1101.

4. Contractor's employees and agents are to be properly trained in asbestos handling procedures, consistent
with the aforementioned regulations, and licensed or certified by the Ohio Department of Health.

5. The Contractor, where necessary, is to build an enclosure to meet all applicable standards listed above. In
addition, Industrial Hygiene Monitoring will be performed in accordance with the above regulations.

6. Supervision of on-site storage and handling of asbestos containing waste.

7. All shipments of asbestos shall be manifested, utilizing Purchaser's forms, initiated on Contractor's request
by Purchaser's Authorized Representative. Purchaser's copies of completed manifest shall be returned to
Purchaser's Authorized Representative.

8. All asbestos hazard abatement project clearance levels shall be in accordance with the following:
a. All clearance air-sampling to be analyzed by phase contrast microscopy (PCM) shall be conducted in
accordance with the National Institute of Occupational Safety and Health (NIOSH) method 7400
entitled “Fibers” published in the NIOSH manual of analytical methods, 3 rd edition, second
supplement, August 1987. A minimum of three samples shall be taken and show that the
concentration of fibers for each sample is less than or equal to a limit of quantitation for pcm (0.01
fibers per cubic centimeter of air); and

b. All clearance air-sampling to be analyzed by Transmission Electron Microscopy (TEM) shall be


conducted in accordance with the regulations established by the United States Environmental
Protection Agency, 40 C.F.R. Part 763, Subpart E, Appendix A.

9. All clearance air sampling shall be conducted by an asbestos hazard abatement air-monitoring technician,
or asbestos hazard evaluation specialist certified by the department, or a certified industrial hygienist or
industrial hygienist in training as certified by the American Board of Industrial Hygiene.

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10. Contractor shall provide regulatory permits, licenses, certificates and notices.

All requirements outlined above are to protect the health of Purchaser's employees outside the regulated
area. Contractor is solely responsible for protecting the health of the Contractor's employees, agents, or
subcontractors working with asbestos, recognizing that Purchaser is not responsible for supervising
Contractor's personnel.

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EXHIBIT 3.8(E)-2

INORGANIC ARSENIC

Contractor shall satisfy itself in accordance with 29 CFR 1910.1018, that none of its employees are exposed to
inorganic arsenic in concentrations greater than the permissible exposure limit contained therein. It shall be
Contractor's responsibility and obligation to properly inspect the facilities of FirstEnergy where Contractor's
employees will be performing the work, in particular but not limited to work in, about or around boilers and their
associated ducts, tubing, and appurtenances. Contractor shall comply with all of the requirements of 1910.1018
CFR, including but not limited to initial and any additional exposure monitoring, establishment of regulated areas,
and the provision of respirators to Contractor's employees if needed. Contractor shall immediately notify FirstEnergy
if the presence of inorganic arsenic is detected at the permissible exposure limit set forth in 1910.1018.

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LEAD ABATEMENT TERMS OF REIMBURSEMENT

Contractor is advised that the handling, removal and disposal (other than the potential for labor force exposure) of
lead or lead containing materials or materials coated with lead containing material, including but not necessarily
limited to lead containing paint, is not included as part of Contractor's scope of Work. However, the cost for labor
force exposure for lead or lead containing materials or materials coated with lead containing materials shall be
limited to monitoring results under OSHA requirements. In the event that monitoring results indicate a lead problem,
the Contractor shall immediately notify FirstEnergy. At that point, documentation of any lead impacted activities shall
be identified to FirstEnergy and all lead related Work timesheet information shall be provided. In addition,
FirstEnergy shall perform intensive surveillance on the affected Work. Contractor shall support all administrative
activities under FirstEnergy's direction. FirstEnergy shall reimburse Contractor for costs associated with lead
abatement activities/affected Work as follows:
1. Fixed costs shall be reimbursed at actual cost and shall include:
a. All equipment and consumables used solely for lead abatement shall be billable to FirstEnergy.
Equipment includes respirators, negative air machines, HEPA filters, pre-filters, secondary filters
and flex hose. Consumables include respirator filters, suits/gloves, respirator wipes, towels and
soap.
b. Labor hours incurred by craft employees for blood testing, respirator fit tests, pulmonary function
tests, lead abatement training and maintenance for negative air machines.
2. Inefficiency of labor costs shall be provided for as follows:
a. Contractor shall notify FirstEnergy daily of all Work activities involving lead abatement and shall
submit timesheets for this Work to FirstEnergy for approval.
b. FirstEnergy shall perform surveillance on those activities and utilize the results to approve
Contractor's lead abatement related Work timesheets. FirstEnergy agrees to provide Contractor with
copies of its daily surveillance reports for its use in preparing lead abatement related Work
timesheets.
c. Contractor shall invoice FirstEnergy for approved lead abatement related Work timesheets.

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EXHIBIT 5.1

AQC SYSTEMS, PRICING METHODOLOGY AND DEFINITIONS

The Project, AQC Systems, will be composed of various Subprojects. Phases of the Project will include
development, engineering, design, fabrication, procurement, construction, startup and commissioning.

The Professional Costs portion for this Project will include the Engineering and Graphics Labor (including Specialist
Labor), Other Professional Labor, Professional Construction Labor, the Engineering Technology Charge, G&A,
Engineering Subcontracts and Travel and Living Expenses as defined herein. For clarity, Engineering and Graphics
Labor and Other Professional Labor performed by BAPC Ohio shall be compensated in the same manner as the
Contractor, including rates, Engineering Technology Charge, G&A, and Fee.

All Engineering/Graphics Labor and Other Professional Labor will be performed by resources located in the Unites
States and billed per Exhibit 5.1-10 ("Rate Sheet for Engineering/Graphics Labor and Other Professional Labor")
unless otherwise agreed between FirstEnergy and Contractor. If requested by FirstEnergy, the Contractor will fully
cooperate with FirstEnergy to utilize Contractor’s offshore or overseas Engineering/Graphics Labor and Other
Professional Labor and FirstEnergy will be billed by Contractor at rates appropriate for that country of origin.

Two commercial options exist for this work. Commercial option number 1 is the “FE Vendor Arrangement”.
Commercial option number 2 is the “Wrap Arrangement”.

The following is to be applied to the commercial options number 1 and number 2 as described herein, for
conventional wet or dry FGD technology, including in duct application of dry FGD technology.

The "Target Construction Cost" of each Subproject, as defined during the Development Phase, will include the
Professional Construction Labor (and associated G&A and Engineering Technology Charge), Purchased Equipment
and Materials, Fabricated Items, Freight, Craft Labor, Consumables, Major Equipment & Tool Rental, Temporary
Facilities, Subcontractors, builder risk insurance, bonds, taxes and any other expenditures deemed to be appropriate
by FirstEnergy (as mutually agreed during the Development Phase of the Subproject). The “Target Construction
Cost” excludes Professional Engineering and Graphics labor and Other Professional labor (with the associated
Engineering Technology Charge and G&A), travel and living expenses, and Engineering Subcontracts. Each
Subproject or combination thereof, will have a “Target Construction Cost” established once sufficient engineering
and procurement is completed. The "Target Construction Cost" will include all estimated costs for the Subproject as
well as all costs mutually agreed upon between the Contractor and FirstEnergy, and authorized by FirstEnergy
using partial Notices To Proceed, up to the time the “Target Construction Cost” is established. The “Target
Construction Cost” shall be exclusive of any Fee.

For Powerspan ECO ®, the “Target Construction Cost” will be established after sufficient design to establish
quantities and construction plans, selection of sub-suppliers and resolution of any issues relating to the technology
are made available by Powerspan.

Each Subproject will be performed on a cost reimbursable basis plus a Fee, with Contractor to be paid for all work
performed by Contractor to meet its obligations under the Agreement, except as provided therein [e.g. warranty].
The Fee will be adjusted based upon the Incentive Scorecard results as described below, and further adjustments
to the Fee payment will be made based upon the Subproject(s) over and underruns of the “Target Construction
Costs” outside of the agreed to Deadband. Fee payments for the “Target Construction Cost” will be based on
construction progress as compared to the construction schedule (see Exhibit 5.1. -1 (A), “Fee Adjustment”).

The verification of the “Target Construction Cost” will be based upon an “open book” review and audit of the
estimated costs and any expenditures to date. At FirstEnergy’s option, a mutually agreed to third party may be used
to review and evaluate the “Target Construction Cost” as provided by the Contractor.

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EXHIBIT 5.1

The Contractor’s Fee is profit only and does not contain any General & Administrative overheads. The
Contractor will place [*****%] of the ******at risk as further described herein. ****** Rates will be applied as stated
herein (See “Pricing Rates and Summary Sheets”). A [******] Rate will be applied as stated herein to the
Engineering and Graphics Labor, Other Professional Labor and Specialist rates, and a separate [******] Rate will be
applied to Professional Construction Labor rates.

AQC SYSTEMS, PROJECT FEE AND FEE ADJUSTMENT

Except for Change Orders that increase or decrease the Target Construction Cost, once a Subproject’s “Target
Construction Cost” is established during the Development Phase, that portion of the Fee will be fixed and will only
be adjusted by two (2) mechanisms as follows:

1. INCENTIVE SCORECARDS

An outline of the Contractor Sample Scorecards, which are used to adjust the Contractor's ******, are as shown in
Exhibit 5.1-2 “Sample Scorecards”.

Two Scorecards exist. A Scorecard exists for Engineering & Planning, and a separate Scorecard exists for
Professional Construction Labor.

The Engineering & Planning Scorecard is used to adjust the ****** associated with the Engineering/Graphics Labor
and Other Professional Labor. The Incentive Scorecard includes the following categories:

· Schedule
· Project Administration
· Quality
· Innovation

The Professional Construction Scorecard is used to adjust the ****** associated with the Professional Construction
Labor. The Incentive Scorecard includes the following categories:

· Schedule
· Safety
· Quality
· Project Administration
· Cashflow

Each individual category shall have an associated weighted value, which total 100% for each Scorecard. On a
periodic basis, but not longer than every six (6) months, and, as agreed to by both parties, a rating will be
established for each category on the Scorecards using a combination of subjective and objective criteria as defined
on the Scorecards. Those scores will be compared to the “Threshold”, “Target” and “Maximum” values. A
percentage multiplier corresponding to the weighted average score will be applied to the ****** paid or due to the
Contractor for the period being rated. Reconciliation for any over payment or underpayment will be made at that
point in time for the rating period.

Some portions of the Sample Scorecards shown in Exhibit 5.1-2 are not currently defined. Scorecards will be
finalized and agreed to by both parties during the Project Development Phase.

2. TARGET CONSTRUCTION COST

A “Target Construction Cost” will be established for each Subproject. A Deadband above and below the “Target
Construction Cost” has been established within which no adjustment will be made to the AE Constructor’s Fee. The
****** will be adjusted for Final Construction Cost above or below [*****%] deadband in accordance with Exhibit 5.1-
3, “Fee Table”. If the Final Construction Cost exceeds the “Target Construction Cost”, the Contractor's ****** will be
reduced on a preset percentage of every dollar above the Deadband upper limit ("Contractor Fee Reduction
Percentage"). Likewise, if the Final Construction Cost is less than the “Target Construction Cost”, the Contractor's
****** will be increased according to a preset percentage of every dollar below the Deadband lower limit ("Contractor
Fee Increase Percentage") as shown in Exhibit 5.1-3, “****** Table”.

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EXHIBIT 5.1

Examples:

The examples shown below are for both the “Wrap Arrangement” and “FE Vendor Arrangement” where the Fee
percent would be changed to be in agreement with the set value described herein.

If the Final Construction Cost exceeds the “Target Construction Cost”, but the Final Construction Cost is within the
upper limit of the Deadband (within [*****%] of the Target Construction Cost, or less than [*****%] of the Target
Construction Cost), then the Fee will not be adjusted based upon this adjustment mechanism.

If the Final Construction Cost exceeds the “Target Construction Cost”, and the Final Construction Cost is above the
upper limit of the Deadband and greater than [*****%] of the “Target Construction Cost” then the Fee will be
adjusted based on the Final Construction Cost. Therefore, if the Final Construction Cost is [*****%] higher than the
“Target Construction Cost,” or [*****%] of the “Target Construction Cost”, then the final Fee in this example would be
reduced by [*****%] of the Target Construction Cost in the “FE Vendor Arrangement” (or for the “Wrap
Arrangement”, the Fee would be reduced by [*****%]).

If the Final Construction Cost is below the “Target Construction Cost”, but the Final Construction Cost is within the
lower limit of the Deadband (within [*****%] of the Target Construction Cost, or greater than [*****%] of the “Target
Construction Cost”), then the Fee will not be adjusted based on this adjustment mechanism.

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If the Final Construction Cost is below the “Target Construction Cost”, and the Final Construction Cost is below the
lower limit of the Deadband (less than [*****%] of the “Target Construction Cost”), then the Fee will be adjusted
based on the Final Construction Cost. Therefore, if the Final Construction Cost is [*****%] lower than the Target
Construction Cost or [*****%] of the Target Construction Cost, then the final Fee in this example would be increased
by [*****%] of the Target Construction Cost in the “FE Vendor Arrangement” (or for the “Wrap Arrangement,” the
Fee would be increased by [*****%]).

Approved Changes to the Work Scope (Attachment “A”) may occur during the duration of the Subprojects. Any
changes to the Work Scope must be by Change Order, as provided in the Agreement. When the Subproject Work
Scope is modified, FirstEnergy will work with the Contractor to determine the cost increase or decrease associated
with the Work Scope change and include the cost increase or decrease in the "Target Construction Costs" by
modifying the "Target Construction Cost" by the estimated amount. Fees of the same percentages used to establish
the original "Target Construction Cost" Fee will be applied to the Work Scope change.

While the Contractor is executing the Work Scope at a FirstEnergy plant, FirstEnergy also may request the
Contractor perform additional work outside of the Work Scope at the respective FirstEnergy plant. In such case,
FirstEnergy and the Contractor shall mutually agree to the scope of the additional work to be performed. FirstEnergy
shall pay for the additional work in the same manner as provided in this Contract. However, such additional work
shall be its own Subproject and the Fee (equal to the percentage value for the “Target Construction Cost” in
accordance with the “FE Vendor Arrangement”) associated with those costs will not be subject to either the
Scorecard or "Target Construction Cost" adjustments provided herein.

I. PRICING FOR ENGINEERING, PROFESSONAL SERVICES, MATERIALS, FABRICATED ITEMS, AND OTHER
PRICING INFORMATION

PROFESSIONAL COSTS (excluding G&A and Fee) shall be reimbursed as follows:

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EXHIBIT 5.1

1.Engineering and Graphics Labor


Engineering and Graphics Labor includes Project Management, Project Engineering (mechanical, electrical,
civil, controls, I&C, performance, and other engineering disciplines), Drafting Specialists, and other
engineering and design personnel required for the Subproject. The labor costs shall be determined by
multiplying the direct time charging personnel hours assignable to the Subproject by the current applicable
billing rate as stated herein (Exhibit 5.1-10, “Rate Sheet for Engineering/Graphics Labor, Other Professional
Labor and Specialists”). The initial billing rates shall be in effect for the period January 1, 2005 through
December 31, 2005. Commencing January 1, 2006, the billing rates will increase [*****%] per year on
[*****%] of the billing rate, and be adjusted per the annual Consumer Price Index - Urban Wage Earners
and Clerical Workers, Washington - Baltimore, DC-MD-VA-WV (Nov. 96 =100), as defined herein as the
“Professional Labor Index”, for [*****%] of the billing rate. The Professional Labor Index for the average of
the twelve months preceding each October will be used as part of next year’s escalation. For example, the
rate for a Supervising Designer, Pay Grade [*****] is $[*****]/Hr. in 2005. The escalation on this rate would
be ($[*****] x [*****%] x [*****] = $[*****]) + ($[*****] x [*****%] x [*****] [if the average Index for the 12
months proceeding October 2005 were [*****%]] =$[*****]) = a revised rate of $[*****]/Hr. effective January 1
- December 31, 2006. Chargeable hours shall be identified in the Project estimating process and approved
by FirstEnergy. Hours documented by timesheets or acceptable electronic representations shall be
submitted with a summary invoice for FirstEnergy approval and payment. A Professional Cost Fee will be
applied to Engineering and Graphics Labor and to its associated G&A. The Rates provided do not include
[******].

2.Other Professional Labor


Other Professional Labor includes Procurement Specialists, Cost Estimating Specialists, Office Managers,
Scheduling Specialists, Constructability Specialists, Accounting/Cost Specialist, Timekeepers and other non-
Engineering, non-Field Project support personnel. The labor costs shall be determined by multiplying the
direct time charging personnel hours assignable to the Subproject by the current applicable billing rate as
stated herein (Exhibit 5.1-10, “Rate Sheet for Engineering/Graphics Labor Other Professional Labor and
Specialists”). The initial billing rates shall be in effect for the period January 1, 2005 through December 31,
2005. Commencing January 1, 2006, the billing rates will increase [*****%] per year on [*****%] of the billing
rate, and be adjusted per the Professional Labor Index, as defined above, for [*****%] of the billing rate. For
example, the rate for a Senior Project Controls Engineer, Pay Grade 25 is $[******]/Hr. in 2005. The
escalation on this rate would be ($[******] x [******]% x [******] = $[******]) + ($[******] x [******]% x [******] [if
the average Index for the 12 months preceding October 2005 were [******]%] = $[******] = a revised rate of
[$*****]/Hr. effective January 1 - December 31, 2006. Chargeable hours shall be identified in the Project
estimating process and approved by FirstEnergy. Hours documented by timesheets or acceptable electronic
representations shall be submitted with a summary invoice for FirstEnergy’s approval and payment. A
Professional Cost Fee will be applied to Other Professional Labor and to its associated G&A. The Rates
provided do not include [******].

3.Professional Construction Labor


Professional Construction Labor includes Field Procurement Specialists, Project Superintendents, Project
Field Engineer, Construction Management personnel, Startup and Testing Specialists, Safety Managers,
QA/QC Specialists, Field Scheduling Specialists, Materials Handling Specialists, Rigging Specialists, Field
Constructability Specialists, Timekeepers and other non-engineering Project field support personnel. The
labor costs shall be determined by multiplying the direct time charging personnel hours chargeable to the
Subproject by the current applicable billing rate as stated herein (Exhibit 5.1-11 “Rate Sheet for
Professional Construction Labor”). The initial billing rates shall be in effect for the period January 1, 2005
through December 31, 2005. Commencing January 1, 2006, the billing rates will increase [*****%] per year
on [*****%] of the billing rate, and be adjusted per the Professional Labor Index, as defined above, for
[*****%] of the billing rate. For example, the rate for a Safety Person, Pay Grade 25 is $[*****]/Hr in 2005.
The escalation on this rate would be ($[******] x [******]% x [******] = $[******]) + ($[******] x [******]% x
[******] [if the average Index for the 12 months preceding October 2005 were [******]%] = $[******] = a
revised rate of [$*****]/Hr. effective January 1 - December 31, 2006. Chargeable hours shall be identified in
the Project estimating process and approved by FirstEnergy. Hours documented by timesheets or
acceptable electronic representations shall be submitted with a summary invoice for FirstEnergy’s approval
and payment. A Professional Construction Cost Fee will be applied to Professional Construction Labor and

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

to its associated G&A. The Rates provided do not include [******].

Page 4 of 10

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1

4.Engineering Technology Charge:


The Engineering Technology Charge includes reproduction costs, telecommunication costs, computer costs,
postage, office supplies, etc. as listed in Exhibit 5.1-7 “Constituents of Technology Charge” and see “Pricing
Rates and Summary Sheets”. The Engineering Technology Charges shall be determined by multiplying the
direct time charging personnel hours assignable to the Subproject by the current applicable charge rate,
[$*****] per billable hour for Engineering/Graphics Labor & Other Professional Labor, and [$*****] per billable
hour for Professional Construction Labor, as stated herein The Engineering Technology Charge Rates are
applied to the straight time hours, and applied to overtime hours up to and including [*****%] of straight time
hours on an annual basis; and at a reduced rate of [*****%] of the respective Engineering Technology
Charge ([$*****] per billable hour for Engineering/Graphics Labor & Other Professional Labor and
Specialists; and [$*****] per billable hour for Professional Construction Labor) for overtime in excess of
[*****%] of straight time hours, on an annual basis. An annual reconciliation of any over or under charges
for the overtime Technology Charge is required. The initial Charge Rates shall be in effect for the period
January 1, 2005 through December 31, 2005. Commencing January 1, 2006, the initial Charge Rates will
be adjusted annually per the annual Consumer Price Index - Urban Wage Earners and Clerical Workers,
Washington - Baltimore, DC-MD-VA-WV (Nov. 96 =100). For example, if the average Index for the 12
months preceding October 2005 were [*****%], the 2006 rates effective for January 1, 2006 through
December 31, 2006, would be [$*****] and [$*****]/Hr., respectively. The reduced rate for overtime in excess
of [*****%] of straight time hours would be [$*****] per billable hour and [$*****] per billable hour,
respectively. Chargeable hours shall be identified during the Development Phase of the Subproject and
approved by FirstEnergy. Hours documented by timesheets or acceptable electronic representations shall be
submitted with a summary invoice for FirstEnergy approval and payment. [******] and [******] are not applied
to the Engineering Technology Charges (See Exhibit 5.1-4, “Sample Invoices”).

5.Engineering Subcontracts:
Engineering Subcontracts (excluding Contractor affiliates) include any Engineering and Graphics costs
which are billed directly to the Contractor associated with the Project. Engineering Subcontracts (excluding
Contractor affiliates) will not have any A-E Constructor Fee, G&A, Engineering Technology Charge or
markup applied.

6.Travel & Living Expenses:


Costs associated with relocation, travel and living expenses for the purpose of jobsite, Vendor visits or any
visits or travel required for the performance of this Contract shall be billed at actual costs (see Exhibit 5.1-5,
“U.S. National Temporary/Short Term Assignment Conditions to a Project Location” and “U.S. National Long
Term Assignment Conditions to a Project Location”). Said costs shall be applicable to Contractor’s home
office personnel as well as site personnel who are on temporary assignment away from their regular work
site. Travel and living costs shall be documented on expense account forms accompanied by receipts or
other documentation as required by FirstEnergy. Fee and or any markups shall not be applied to the travel
& living expenses, and the travel & living expense shall not be included in the “Target Construction Cost”.

MATERIALS, EQUIPMENT, AND FABRICATED ITEMS SHALL BE REIMBURSED AS FOLLOWS:

7.Purchased Equipment and Materials


Contractor shall purchase certain equipment and materials for the Project. Procurement of goods shall occur
by either competitive bidding including electronic reverse auctions, sole source commodity purchases, or
sole source negotiated contracts. In the event of commodity purchases, the use of historical pricing trends
shall be used for justification of the purchase. The costs for all purchased goods shall be identified by
Vendor invoice as well as appropriate supporting information. Equipment and materials specified by the
Contractor and purchased on the Contractor’s purchase order will be part of the "Target Construction
Costs". Purchased equipment and materials shall be billed at the actual amount as identified by invoice.
Equipment and materials supplied by an FE Vendor shall not be billed by the Contractor and will not be part
of the "Target Construction Costs". However, the price of such equipment supplied by an OEM specified by
FirstEnergy and purchased on FirstEnergy’s purchase order shall be included in the total amount used to
establish the “Target Construction Cost” Fee, described below.

Page 5 of 10

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1

8.Fabricated (Non Contractor):


Costs for fabricated material by a subcontractor shall be procured by either competitive bidding including
electronic reverse auctions, sole source commodity purchases, or sole source negotiated contracts. The
costs for all fabricated materials shall be identified by Vendor invoice as well as appropriate supporting
information, if any, bill of materials or invoices. Fabricated materials shall be billed at the actual amount as
identified by invoice and shall be included in the “Target Construction Cost”.

9.Fabricated (at Contractor’s Shop if applicable):


In the event the Contractor acquires fabrication facilities, competitive pricing for fabricated items shall occur
and comparison pricing shall be performed with the Contractor’s shop. FirstEnergy will have final approval
of materials fabricated by the Contractor’s shop and the cost of such material. Costs for the Contractor’s
fabricated material shall be determined by multiplying the applicable fabrication charge rate times the direct
labor hours chargeable to the Project. Fabrication charge rates shall be as defined and based on the actual
Contractor’s shop utilized in the fabrication process. Material costs shall be determined by use of material
invoices or appropriate inventory charge-out cost if material is sourced from Contractor’s inventory. Weld
consumables and standard shop tasks (such as Radiographic Testing) shall be billed as defined and based
on the actual Supplier’s shop utilized in effect at the time the invoice is issued. The costs associated with
the fabricated materials shall be included in the “Target Construction Cost”. [******] shall not be applied to

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

these costs.

10.Freight:
The costs for all freight shall be identified by Vendor invoice. Freight shall be billed at the actual amount as
identified by invoice. Prior to expediting, FirstEnergy shall approve any expediting costs. At FirstEnergy’s
option and in agreement with the Contractor, the Contractor may be directed to use FirstEnergy’s Freight
Program. All Freight costs shall be included in the “Target Construction Cost” and shall be billed at direct
cost. [******] is not applied to the Freight costs. Freight shall be invoiced separately from the equipment and
materials purchased.

FIELD CONSTRUCTION (excluding G&A and Fee) shall be reimbursed as follows:

11.Craft Labor, Consumables, Tools, and Temporary Facilities as part of the Project Costs (See Exhibit 5.1-12):
All Field Construction Costs shall be paid for by FirstEnergy in accordance herein “Cost Reimbursable
Work, Craft Labor”, using the actual craft-hours, defined as those hours that craft are paid in accordance
with the National Maintenance Agreement as applied at the Site. The data provided in the example of Labor
Costs attached as Exhibit 5.1-12 for specific craft (i.e., Boilermakers, Pipefitters and Electricians) is
representative of those craft only and included for purposes of establishing examples of the methodology of
costs for cost reimbursable work for craft labor. Before work commences at the Sammis Plant, the
Contractor shall provide the same information for all craft to be employed by the Contractor in execution of
the Project or any Subproject.

Field Construction Costs shall include, but shall not be limited to:

A. Wages and benefits of all Craft Labor engaged in the Work, including operating, unloading and loading
of construction equipment.

B. Other labor costs when required by union contract or approved by FirstEnergy Owner.

C. Payments for all taxes and insurance related to the Craft Labor required to perform the work, including,
but not limited to, public liability, workmen’s compensation, FICA, state and federal unemployment
insurance.

D. Major Equipment and Tools (>[$*****]).

E. Small tools (<[$*****]) provided for Project use and expendables/consumables/job supplies.

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CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1

F. Facilities: Supplier’s charges for rented or leased field facilities, such as but not limited to offices,
change shacks, portable toilets, etc, shall be billed at actual rental/lease invoice.

G. Field Purchased Materials shall be reimbursed as defined herein.

12.Subcontractors:
Contractor may subcontract certain field construction as provided in the General Terms and Conditions.
Procurement of subcontracted services shall occur by either competitive bidding including electronic reverse
auctions, sole source contracting, or sole source negotiated contracts. All Subcontractors costs shall be
supported by invoices, as well as appropriate supporting information. Subcontractors shall be billed at the
actual amount as identified by invoice. The Subcontractor costs are to be included in the "Target
Construction Cost" of each Subproject.

In the event that FirstEnergy direct hires and manages subcontractors, the Contractor will not receive any
[******] on these subcontracts.

II.FEE AND G&A

FEE

1.Professional Cost Fee


The Contractor will be paid a Fee on Engineering and Graphics Labor and Other Professional Labor as stated
herein (see Exhibit 5.1 -10, ("Rate Sheet for Engineering/Graphics Labor and Other Professional Labor"). The
Fee represents [******]% profit and includes no G&A or other costs or overheads. The Fee will be applied to
both the Engineering and Graphics Labor, and Other Professional Labor, as listed herein, and to the
appropriate G&A. Fee is not applied to the Engineering Technology Charge (see Exhibit 5.1-4, “Sample
Invoices”). The Fee is subject to periodic Scorecard Adjustments. The timing of the periodic adjustments shall
be agreed by both parties, but at least every six (6) months. All of the Professional Cost Fee will be paid as
part of the Professional Costs invoices. The amount of Professional Cost Fee will be adjusted by the
Scorecard.

The Contractor will be paid a Fee on Professional Construction Labor as stated herein (see Exhibit 5.1 -11,
“Rate Sheet for Professional Construction Labor”). The Fee represents [******]% profit and includes no G&A or
other costs or overheads. The Fee will be applied to both the Professional Construction Labor and the
appropriate G&A. Fee is not applied to the Engineering Technology Charge (see Exhibit 5.1-4, “Sample
Invoices”). The Fee is subject to periodic Scorecard Adjustments. The timing of the periodic adjustments shall
be agreed by both parties, but at least every six (6) months. The amount of Professional Construction Labor
Cost Fee will be adjusted by the Scorecard, variance from the "Target Construction Cost" and Change
Orders. The Fee for the Professional Construction Labor Cost will be fixed and will be subject to a payment
schedule based on construction progress as compared to the construction schedule (see Exhibit 5.1-1 (A),
”Fee Adjustment”).

2.“Target Construction Cost” Fee


The Contractor’s [******] is the Fee, and Fee is a percentage of "Target Construction Costs" as stated herein
(see “Pricing Rates and Summary Sheets”, below). Although shown as a percentage of "Target Construction
Costs", the Fee will be fixed as a dollar value for a Subproject at the time the "Target Construction Cost" for
that Subproject is established. The “Target Construction Cost” excludes Professional Engineering and
Graphics labor and other Professional labor (and the associated Engineering Technology Charge and G&A),

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

travel and living expenses, and Engineering Subcontracts. The amount of Fee will be adjusted by the
Scorecard, variance from the "Target Construction Cost" and Change Orders. Payment of the Fees
associated with the construction will be based on construction progress as compared to the construction
schedule (see Exhibit 5.1-1 (A), “Fee Adjustment”).

Page 7 of 10

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1

GENERAL AND ADMINISTRATIVE COSTS

3.G&A
G&A consists of overhead costs of the Contractor (see Exhibit 5.1-6,”Constituents of G&A (Overhead)
Costs”). These costs do not include any direct-billed personnel or overheads directly associated with direct-
billed personnel that are included in the rates provided for those individuals. The Contractor’s G&A rate is a
percentage of the Professional Labor costs. G&A is charged to all straight time hours and to overtime hours
up to and including [*****%] of straight time hours on an annual basis. G&A is not applied to overtime hours
exceeding [*****%] of the straight time hours on an annual basis. Two separate G&A rates exist (see
“Pricing Summary Sheet”). The G&A rate for Engineering/Graphics Labor and Other Professional Labor is
[*****%] of the Engineering/Graphics Labor and Other Professional Labor rate. The G&A rate for
Professional Construction Labor is [*****%] of the Professional Construction Labor Rate. These percentages
are fixed for the duration of the contract.

VARIOUS COMMERCIAL OPTIONS EXIST WITH THE CONTRACTOR FOR THE AQC SYSTEMS. These options
are delineated herein.

Commercial Option #1: “FE Vendor” Arrangement

Fee rates are the following:

The Engineering/Graphics & Other Professional & Specialists Labor Cost Fee rate is [*****%];

The Professional Construction (Field Non Manual) Labor Fee rate is [*****%];

The Target Construction Cost Fee rate is [*****%].

Commercial Option #2: “Wrap” Arrangement (Applicable to Sammis 5, 6, & 7 or Sammis 6 and 7)

The Fee rates are the following:

The Engineering/Graphics & Other Professional & Specialists Labor Cost Fee rate is [*****%];

The Professional Construction (Field Non Manual) Labor Fee rate is [*****%];

The Target Construction Cost Fee rate is [*****%].

Page 8 of 10

CONFIDENTIAL TREATMENT REQUEST.ED


EXECUTION COPY
EXHIBIT 5.1

PRICING RATES AND SUMMARY SHEETS

I. SUMMARY OF PRICING FOR ENGINEERING, PROFESSINAL SERVICES, MATERIALS,


FABRICATED ITEMS, AND OTHER PRICING INFORMATION

A. Professional Costs (Excluding G&A


and Fee)
Fee Included
Applied? in Target?
1. Engineering/Graphics Labor {*****] [*****] Rate Sheet
(Exhibit 5.1-10),
2. Other Professional Labor {*****] [*****] Rate Sheet
(Exhibit 5.1-10),

3. Professional Construction Labor {*****] [*****] Rate Sheet


(Exhibit 5.1-11),

4. Engineering Technology Charge ($Below)/


Professional MH
a. Engineering/Graphics/Other Professional {*****] [*****] As defined in
Exhibit 5.1-7
b. Professional Construction Labor {*****] [*****] $[*****]/ Home
Office MH

[$*****]/Professional Construction MH

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5. Engineering Subcontracts
a. BAPC Ohio, and Nexant {*****] [*****] Rate Sheet
(Exhibit 5.1-10),
b. All other Engineering Subcontracts {*****] [*****] At Direct Cost
6. Travel & Living Expenses {*****] [*****] At Direct Cost,
as per Exhibit 5.1-5

B. Materials, Equipment and Fabricated Items


Fee Included
Applied?1 in Target?2
1. Purchased Equipment and Materials {*****] [*****] At Direct Cost
2. Fabrication (Non-AE-Constructor Shop) {*****] [*****] At Direct Cost
3. Fabrication (at AE-Constructor Shop) {*****] [*****] Shop Rates,
where appropriate
4. Freight {*****] [*****] At Direct Cost

C. Field Construction
Fee Included
Applied?1 in Target?2

1. Craft Labor, Consumables, {*****] [*****] Exhibit 5.1-


12, 5.1-8, 5.1-9,
Major Eq. & Tools and Temporary Facilities
2. Subcontractors {*****] [*****] At Direct Cost

II. FEE AND G&A

A. Fee
1a. Engineering/Graphics Labor & Other Professional Cost Fee [*****%] of Home Office
Professional
Billing Rate (Items IA
1, & 2, &
IA 5(a) above, and
G&A, IIB 1, below)
1b. Professional Construction Labor Cost Fee [*****%] of Professional
Construction
Billing Rate (Item IA 3
above, and
G&A, IIB 2, below)
2. Target Construction Cost Fee - “FE Vendor Arrangement” [*****%] of Construction
Cost
(Items IB 1 & 2 & IC 1 & 2 above)
3. Target Construction Cost Fee - “Wrap Arrangement” [*****%] of Construction
Cost
(Items IB 1 & 2 & IC 1 & 2 above)

_____________________
1 This indicates which items will have [*****] assocated with them.
2 This indicates wehich items will be included in the "Target Construction Cost" and are therefore subject to
adjustment based on actual cost verses the "Target Construction Cost".

Page 9 of 10

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1

PRICING RATES AND SUMMARY SHEETS

B. G & A
1. G&A (Engineering/Graphics and Other Professional Labor) [*****] % of Labor Eng./Graphics &
Other Prof. Labor Rates
2. G&A (Professional Construction Labor) [*****] % of Professional Construction
Construction Labor Rates

Page 10 of 10

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-1(A)

FEE ADJUSTMENT (On a


Subproject basis)
Target Construction Cost Target Construction Fixed Fee
Estimate Cost

Target Construction Cost (A) = Estimated (F) = A x [*****#] (for the FE Vendor Approach) or; (F) = A x [*****#] (for
excluding Prof. Const. Construction Cost the Wrap Approach)
Labor, Freight & excluding Prof.
Fabrication (at Contractor Const. Labor, Freight
Shop) & Fabrication (at

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Contractor Shop)
Fabrication (at Contractor (B) = Estimated (G) = $0
Shop) Subproject Cost for
Fabrication (at
Contractor Shop)
Freight (C) = Estimated (H) = $0
Subproject Cost for
Freight
Professional Construction (D) = Estimated (I) = D x [*****#]
Labor Target (includes Subproject Cost for
G&A) Professional
Construction Labor
Target (includes
G&A)
Total Target Construction (E) = A + B + C + D (J) = F + G + H + I
Cost/Fee

Project Month ($000)


Cost Category 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Subproject
Total

I. Engineering,
Professional Services,
Materials, Fabricated
Items, and Other

A. Professional Costs
(Excluding G & A
and Fee)

1. (K) = Actual K K K K K K K K K K K K K K K K K
Sum of all
Engineering/Graphics Engineering/Graphics Monthly K
Labor Labor Cost for the for the
Month Subproject
2. Other Professional (L) = Actual Other L L L L L L L L L L L L L L L L LSum of all
Labor Professional Labor Monthly L
Cost for the Month for the
Subproject
3. Professional (M) = Actual M M M M M M M M M M M M M M M M M Sum of all
Construction Labor Professional Monthly M
Construction Labor for the
Cost for the Month Subproject
4. Engineering (N) = (Actual N N N N N N N N N N N N N N N N N Sum of all
Technology Charge Engineering/Graphics Monthly N
(Home Office) Labor Hours + Other for the
Professional Labor Subproject
Hours for the Month)
x 12.40
4a. Engineering (O) = Actual O O O O O O O O O O O O O O O O O Sum of all
Technology Charge Professional Monthly O
(Prof. Const.) Construction Labor for the
Hours for the Month Subproject
x 10.90
5. Engineering (P) = Actual P P P P P P P P P P P P P P P P P Sum of all
Subcontracts Engineering Monthly P
Subcontracts Cost for the
for the Month Subproject
6. Travel & Living (Q) = Actual Travel &Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Sum of all
Expenses Living Expenses Monthly Q
Cost for the Month for the
Subproject

B. Materials, Equipment
and Fabricated Items

1. Purchased (R) = Actual R R R R R R R R R R R R R R R R R Sum of all


Equipment and Purchased Monthly R
Materials Equipment and for the
Materials Cost for Subproject
the Month
2. Fabrication (Non- (S) = Actual S S S S S S S S S S S S S S S S S Sum of all
AE/Constructor Fabrication (Non- Monthly S
Shop) AE/Constructor for the
Shop) Cost for the Subproject
Month
3. Fabrication (at (T) = T T T T T T T T T T T T T T T T T Sum of all
AE/Constructor ActualFabrication (at Monthly T
Shop) AE/Constructor for the
Shop) Cost for the Subproject
Month
4. Freight (U) = Actual Freight U U U U U U U U U U U U U U U U U Sum of all
Cost for the Month Monthly U
for the
Subproject

C. Field Construction

1. Craft Labor, (V) = Actual Craft U U U U U U U U U U U U U U U U U Sum of all


Consumables, Labor, Consumables, Monthly V
Major Equ. & Tools Major Equ. & Tools for the
and Temporary and Temporary Subproject
Facilities Facilities Cost for the
Month
2. Subcontractors (W) = Actual W W W W W W W W W W W W W W W W W Sum of all
Subcontractors Cost Monthly W

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for the Month for the


Subproject

Project Status
Construction Progress (X) = Percent Project X X X X X X X X X X X X X X X X X
(Cumulative Percent Complete shown in
Complete) Bechtel 's Monthly
Progress Report
Actual Construction Cost (Y) = M + O + R + S Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Sum of all
+T+U+V+W+ Monthly Y
DD for the
Subproject

II. Fee and G&A

A. Fee

1. Unadjusted (Z) = [*****#] x (K + Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z


Sum of all Z
Professional Cost L + CC) Monthly Z
Fee for the
Subproject
1a. Unadjusted (AA) = I x X AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA AA Sum of all
Professional Monthly
Construction Labor AA for the
Fee Subproject
2. Unadjusted Target (BB) = F x X BB BB BB BB BB BB BB BB BB BB BB BB BB BB BB BB BB Sum of all
Construction Cost Monthly
Fee BB for the
Subproject

B. G & A

1. G & A (CC) = [*****#] x (K + CC CC CC CC CC CC CC CC CC CC CC CC CC CC CC CC CC Sum of all


(Engineering/Graphics L) Monthly
and Other Professional CC for the
Labor) Subproject
2. G & A (Professional (DD) = [*****#] x M DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD Sum of all
Construction Labor) Monthly
DD for the
Subproject

C. Incentive

Engineering/Graphics (EE) = Engineering & EE EE EE EE EE EE EE EE EE EE EE EE EE EE EE EE EE


Labor and Other Planning Scorecard
Professional Labor Fee Results (Completed
Scorecard periodically and
applied to the
months since the last
Scorecard results)
Professional Construction (FF) = Professional FF FF FF FF FF FF FF FF FF FF FF FF FF FF FF FF FF
Labor Fee Scorecard Construction Labor
Scorecard Results
(Completed
periodically and
applied to the
months since the last
Scorecard results)

1. Professional Cost (GG) = (EE-1) x Z GGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGGSum of all


Fee Adjustment for each month to Monthly
which the scorecard GG for the
applies Subproject
1a. Adjusted (HH) = Z + GG HH HH HH HH HH HH HH HH HH HH HH HH HH HH HH HH HH Sum of all
Professional Cost Monthly
Fee (Paid Fee) HH for the
Subproject
2. Professional (II) = (FF-1) x AA for II II II II II II II II II II II II II II II II II Sum of all
Construction Labor each month to which Monthly II
Fee Adjustment the scorecard for the
applies Subproject
2a. Adjusted (JJ) = AA + II JJ JJ JJ JJ JJ JJ JJ JJ JJ JJ JJ JJ JJ JJ JJ JJ JJ Sum of all
Professional Monthly JJ
Construction Labor for the
Fee (Paid Fee) Subproject

Actual Construction Cost (KK) = (Sum of all


%under(-)/%over(+) Target monthly Y for the
Construction Cost Subproject - E) / E
Construction Cost Fee (LL) = Adjustment
Adjustment from Applicable
Column on Exhibit
5.1 (D), FEE TABLE
based on KK
Adjusted Construction Cost (MM) = Sum of all
Fee monthly BB for the
Subproject + LL

Earned Fee
Professional Cost Fee (NN) = Sum of all
monthly HH for the
Subproject
Professional Construction (OO) = Sum of all
Labor Fee monthly JJ for the

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Subproject
Target Construction Cost (PP) = MM
Fee
Total Earned Fee (QQ) = NN + OO +
PP

NOTE: See Exhibit 5.1 - (B) for a detailed example of Payment Methodology based on this Exhibit 5.1 - 1 (A)

Page 1 of 1

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-1(B)

PAYMENT METHODOLOGY EXAMPLE (On a Subproject basis)

Target
Construction Fixed
Cost Estimate TCC Fee

Target
Construction
Cost (excluding
Prof. Const.
Labor) [$*****][$*****]
Fabrication (at
AE/Constructor
Shop) [$*****][$*****]
Freight [$*****][$*****]
Professional
Construction
Labor Target
(includes
G&A) [$*****][$*****]
Total Target
Construction
Cost/Fee [$*****][$*****]

Project Month ($000)


Subproj
Cost Category 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Total

I. Engineering, Professional
Services, Materials,
Fabricated Items, and Other

A. Professional Costs
(Excluding G & A and
Fee)

1. Engineering/Graphics
Labor [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
2. Other Professional
Labor [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
3. Professional
Construction Labor [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
4. Engineering
Technology Charge
(Home Office) [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
4a. Engineering
Technology Charge
(Prof. Const.) [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
5. Engineering
Subcontracts [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
6. Travel & Living
Expenses [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***

B. Materials, Equipment
and Fabricated Items

1. Purchased Equipment
and Materials [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
2. Fabrication (Non-
AE/Constructor Shop) [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
3. Fabrication (at
AE/Constructor Shop) [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
4. Freight [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***

C. Field Construction

1. Craft Labor,
Consumables, Major
Equ. & Tools and
Temporary Facilities [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***

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2. Subcontractors [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***

Project Status
Construction Progress
(Cumulative Percent
Complete) [*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%]
Actual Construction Cost [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***

II. Fee and G&A

A. Fee

1. Unadjusted
Professional Cost Fee [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
1a. Unadjusted
Professional
Construction Labor
Fee [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
2. Unadjusted Target
Construction Cost Fee [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***

B. G & A

1. G&A
(Engineering/Graphics
and Other
Professional Labor) [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
2. G & A (Professional
Construction Labor) [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***

C. Incentive

Engineering/Graphics
Labor and Other
Professional Labor Fee
Scorecard [*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%]
Professional Construction
Labor Fee Scorecard [*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%][*****%]

1. Professional Cost Fee


Adjustment [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
1a. Adjusted Professional
Cost Fee (Paid Fee) [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
2. Professional
Construction Labor
Fee Adjustment [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***
2a. Adjusted Professional
Construction Labor
Fee (Paid Fee) [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$*****] [$***

Actual Construction Cost


%under(-)/%over(+) Target
Construction Cost [*****%]
Construction Cost Fee
Adjustment [$*****]
Adjusted Construction Cost Fee [$*****]

Earned Fee
Professional Cost Fee [$*****]
Professional Construction
Labor Fee [$*****]
Target Construction Cost Fee [$*****]
Total Earned Fee [$*****]

Page 1 of 1

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-2

SAMPLE SCORECARDS

Scorecard - Assessed on a Subproject by Subproject Basis

Engineering & Planning - PHASE 1


POSSIBLE
FEE: $****** 1

Value
All Relationship
******% Schedule Curves TBD

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Major Milestones and Key ******% Fee Fee Fee


$****** ******% Activities (Phase 1) 2 Criteria Actual Earned % Earned $
Subproject 1 and
Common
Unit 1 - 4 Conceptual
Design Drawings Issued for
FE Review 15-Jul-05 3 2 days late
Issue Units 1 - 4
Performance Specifcation 3 days
for Quote 15-Jul-05 early
Unit 1 - 4 Technical Bid
Evaluation Issued 15-Jul-05 on time
Unit 5 Conceptual Design
Drawings Issued for FE
Review 15-Jul-05 on time
Issue Unit 5 Performance 2 days
Specification for Quote 15-Jul-05 early
Unit 5 Technical Bid
Evaluation Issued 15-Jul-05 6 days late

Target is
on time 3 days late ******% 4 $****** 5

1 For illustrative purposes only, we will use a potential fee for the reporting period of $******, to show how the
actual fee is calculated.
2 These are representative milestones, as an example of Phase 1 deliverables. Actual critical milestones to
be selected based on Engineering Phase 1 schedule.
3 Actual dates established based upon Engineering Phase 1 schedule
4 Fee earned to be calculated on a subproject basis, based on the cumultive performance of milestones
within the subproject
5 $******x ******% x ******% = $******

Graph (redacted plot lines)


- Schedule Fee Earned
- Percent Fee Earned
Calendar Days Late/Early

******%
Schedule Performance Fee Fee Fee
******% Index (SPI) 1 Criteria Actual Earned % Earned $
Subproject 1 and Target is
Common ****** .****** ******%

Target is
Overall ****** .****** ******% 2 $******

Total
Schedule: $****** 3

1 SPI is calculated using the following formula: "Hours Scheduled to be Earned" divided by "Budget Hours
Earned". A result less than 1 reflects performance ahead of schedule. That is, you have earned more
schedule hours than planned at the data date.
2 Fee assessed at subproject level for SPI. Another alternative would be to assess fee on a total project SPI.
3 $******+ $******= $****** which would be the total fee for schedule performance

Graph (redacted plot lines)


- SPI Fee Earned
- Fee Earned
- SPI

******% Fee Fee Earned Fee Earned


******% Project Administration Criteria Actual % $
Communications
$****** ******% Responsiveness ****** ******
******% Project Status Reporting ****** ******
******% Problem Resolution ****** ******
Proper Communication with
******% Plant Personnel ****** ******
Target is
Overall ****** ****** 1
Information provided by
FirstEnergy via customer
survey
Responsiveness (Customer
Survey)
Based on a scale of:
1: Unsatisfactory (does not
meet requirements)

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

2: Minimal (meets some of the


requirements)
3: Adequate (meets most of
the requirements)
4: Satisfactory (meets the
requirements)
5: Outstanding (exceeds
requirements)

1 Scale is based on the scoring suggested to the left of this comment. Actual questions to be established
during team building, based on sample to be provided by FirstEnergy.

Graph - (redacted plot lines)


- Responsiveness Fee Earned
- Percent Fee
- Responsiveness Rating

******% OEM Oversight


(Details to be finalized
during the Development 100% Fee Fee Earned Fee Earned
$****** Phase) Criteria Actual % $

Note: Scorecards to be finalized during the Development Phase of the Project.

PAGE 1 OF 6

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-2

SAMPLE SCORECARDS

Scorecard - Assessed on a Subproject by Subproject Basis

Phase 1 Quality *****% Fee Fee Fee


Program Established Criteria Actual Earned % Earned $
Phase 1 Project
Execution Plan Issued 15-Jul-05 1 days late
Project Quality Plan 3 days
_________ _________ Issued 15-Jul-05 early
Project Procedures
Manual Issued 15-Jul-05 on time
Project Engineering
Prccedures Manual
******% Quality Issued 1 15-Jul-05 on time
Site Interface Procedures 2 days
$****** Manual Issued 15-Jul-05 early
Communication Plan
Issued 15-Jul-05 6 days late
Lessons Learned Plan
Issued 15-Jul-05 on time
Project Automation Plan 16-Jul-05 on time
Target is 2 days
on time late ******% 2 $******

1 For phase 1, the quality portion of the fee to be established based on the succesful setup of the project's
quality program. This involves creating all of the necessary procedures and plans that integrate with
FirstEnergy and Sammis plant requirements and protocols, including establishment of the management
information system plan.
2 Fee earned to be calculated based on same basis as schedule milestones above.

Graph - (redacted plot lines)


- Quality Program Deliverables Fee Earned
- Percent Fee
- Calendar

****% Fee
Phase 2 Quality Fee Earned Fee
Items Criteria 1 Actual % Earned $
Major Technical
Specifications ******%
Single Line Diagrams ******%
Piping &

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Instrumentation
Diagrams ******%
Piping Isometric
Drawings ******%
Electrical Raceway
Drawings ******%
Foundation Drawings ******%
Duct Support Steel
Drawings ******%
******%
Overall for Revs ******% 2 $****** 3
Information provided
by A - E Constructor

1 An example of what could be used during the detailed engineering design phase. Final list of deliverables
TBD.
2 Yield calculation is: (number of rev 1 or higher issued - number issued due to Engineering Error) / (number
of rev 1 or higher issued). This can be calculated on a drawing type basis (e.g. the yield for single line
drawings), or overall for drawings within the fee criterial. It is proposed it be calculated for fee purposes on
an overall basis.
3 $******x ******% x ******% = $******

Graph - (redacted plot lines)


- Quality Fee Earned
- % Fee Earned
- Percent of Revised Drawings Engineering Error Free

The following reason codes would be used to categorize reasons


for drawing revisions of Revision 1 and higher. Only the first would
impact
the yield calculation ("Significant Design Error or Deficiency")
> Significant Design Error or Deficiency (impacts design adequacy
or contruction effort)
> Design Development/Planned Revision
> Construction Request / Contruction Preference
> Supplier Fabrication Error
> Supplier Request
> Client Request
> Approved Scope Change
> Other (Explain)

Phase 1 Innovation Items 100% Fee Fee Fee


******% Innovation (Development Phase) 1 Criteria Actual Earned % Earned $

Score Based on Survey


$****** Results

1 For Phase 1, it was agreed to include Innovation as one of the subjective assessment questions within the
customer survey in lieu of specific items.

Note: Scorecards to be finalized during the Development Phase of the Project.

PAGE 2 OF 6

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-2

SAMPLE SCORECARDS

Scorecard - Assessed on a Subproject by Subproject Basis

Phase 2 Innovation 100% Fee Fee Fee


Items (Post NTP) 1 2 Criteria Actual Earned % Earned $
******% Schedule
Reducd Enginering
Critical Path Activity
durations

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

******% Modularization
Optimize Shipping
Configurations

******% Constructability
Underground Interference
Targets (of zero)

******% Six Sigma


Improvement in Supplier
Drawing Review Rate
Reduction in Engineering
JobHours
Optimize Material
Handling Interfaces with
multiple users
Reduction in SubProject
Cost from Estimate

Overall

1 To be established during Phase 1 based on stretch targets that impact TCC and schedule. Typical
examples are provided.
2 The specific categories are less important than the actual fee item. For instance, Sigma can be used to
help improve schedule, modularizatio, or constructability, as well as individual or overall cost components.
Specific items should be established based on stretch targets set during development of TCC and schedule.

Graph (redacted plot lines)


- Innovation Fee Earned
- Percent of Fee Earned
- Percent of Target Dollars Saved

Interpolate Between Values Where Appropriate

Note: Scorecards to be finalized during the Development Phase of the Project.

PAGE 3 OF 6

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1 -2

SAMPLE SCORECARDS

Scorecard - Assessed on a Subproject by Subproject Basis

The comments below were made to address the need for better schedule definitions. Also the value of each
schedule item should be weighted differently as it relate to the severity of it impact to subproject completion.
There should be a process to adjust the schedule as the work progresses. These adjustment would have to be
jointly agreed to before the start of the activity.

Professional Construction Labor


POSSIBLE
FEE: $****** 1

Activities
on
Value Schedule
Major Milestones and Key 100% Fee Fee Fee
******% Schedule Activities 2 Criteria Actual Earned % Earned $
Subproject 1 and
$****** ******% Common
Place Srubber Foundation 15-Jul-05 3 2 days late
Start Structural Steel 3 days
Erection 15-Jul-05 early
Complete Vessel Erection 15-Jul-05 on time
Start Raceway Installation 15-Jul-05 on time
2 days
Complete Gas Path 15-Jul-05 early
Complete Fan Modifications 15-Jul-05 6 days late

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Complete Underground
Ductbanks 15-Jul-05 on time
Set Up Off Site
Fabruication Yard 15-Jul-05 4 days late
Start Vessel Ring
Installation 15-Jul-05 2 days late
3 days
Install DCS 15-Jul-05 early
Complete Stack 15-Jul-05 on time
Energize 5 KV System 15-Jul-05 on time
Complete Fan Mechanical
Installation 15-Jul-05 1 day early
Target is
on time 5 days late ******% $****** 4

1 For illustrative purposes only, we will use a potential fee for the reporting period of $******, to show how the
actual fee is calculated.
2 These are representative milestones, as an example of Phase 1 deliverables. Actual critical milestones to
be selected based on Engineering Phase 1 schedule.
3 Actual dates established based upon Engineering Phase 1 schedule
4 $******x ******% x ******% = $******

Graph - (redacted plot lines)


- Schedule Fee Earned
- Percent Fee Earned
- Calendar Days Late/Early

System Turnover 100% Fee Fee Earned Fee Earned


$****** ******% Performance Criteria 1 Actual % $2
100% Fee
equals Zero
days
variance.
150% Fee
equals 20
days earlier
variance.
50% Fee
equals 20
days later 5 Days
Subproject 1 variance. Ahead ******% $******
Total

1 Fee is based on turning over subproject systems on time based on a cumulative count of days ahead or
behind the scheduled turn over date.
2 $******x ******% x ******% = $******

Graph (redacted plot lines)


- Construction System Turnover Performance
- Percent of Fee Earned
- System Turnover Work Days

100% Fee Fee Earned Fee Earned


$****** ******% Outage Performance Criteria 1 Actual % $2
Fee equals
Zero days
variance.
150% Fee
equals 10
days earlier
variance.
50% Fee
equals 10
days later 5 Days
Subproject 1 variance. Ahead ******% $******

1 Fee is based on outage durations in subprojects based on a cumulative count of days ahead or behind the
scheduled outage duration.
2 $******x ******% x ******% = $******

Graph (redacted plot lines)


- Outage Fee Earned
- Outage Fee
- Outage Days

Note: Scorecards to be finalized during the Development Phase of the Project.

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

PAGE 4 OF 6

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-2

SAMPLE SCORECARDS

Scorecard - Assessed on a Subproject by Subproject Basis

Any Fatality during any period will result in zero ($******) FEE payment for
******%Safety Safety for that Subproject.

(******% of (******% of (******% of


FEE) FEE) FEE)
OSHA Recordable Incident Actual
$****** ******% Rate ****** ****** ****** Recordable
Calculated using OSHA
formula. This is on an
annual basis for the
duration of the project. Any
lost Fee for an evaluation
period can be recovered if
the rate is reduced below
the fee threshold during a
later evaluation period. Fee
is calculated on a sliding
linear scale.

$****** ******% Lost Work Day Case Rate ****** ****** ****** Actual LWD
Calculated using OSHA
formula. This is on an
annual basis for the
duration of the project. Any
lost Fee for an evaluation
period can be recovered if
the rate is reduced below
the fee threshold during a
later evaluation period. Fee
is calculated on a sliding
linear scale.

Up Stream Process Actual


$****** ******% Control ****** ****** ****** Score
Calculated using the
percentage score of
implementation of the
attributes of the ES&H Core
Processes from the Core
Process CP-111 - Site
Assessment Scorecard for
the period. A site
assessment will be
performed on an annual
basis or as agreed to by
First Energy and Bechtel.

******% OEM Oversight


(Details to be finalized
during the Development 100% Fee Fee Earned Fee Earned
$****** Phase) Criteria Actual % $

Note: Scorecards to be finalized during the Development Phase of the Project.

PAGE 5 OF 6

CONFIDENTIAL TREATMENT REQUIRED


EXECUTION COPY
EXHIBIT 5.1-2

SAMPLE SCORECARDS

Scorecard - Assessed on a Subproject by Subproject Basis

******% Quality

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

$****** ******%
(******% (******% (******% Actual Fee
_________ of FEE) of FEE) of FEE) Rate Earned
Concrete
Cylinders Passing
28 Day
******% Compression Test
Passing Cylinders
versus total 28 ******% ******% ******%
Day Cylinders Passing Passing Passing
Structural Steel
Bolt Torque -
Percentage of
Bolts Torqued
Correctly
******% Number of ******% ******% ******%
structural steel
bolts required to
be re-torqued
versus total
installed
Anchor Bolt
Locations -
Number of Bolts
on Location based
******% ******% ******% ******%
on as-built surveys
Number of bolts
reworked versus
total bolts installed
_________ ******% TBD TBD TBD TBD
Correct Electrical
Terminations
Number
Terminations Re-
Terminated during
******% ******% ******% ******%
Loop Check
versus Total
Electrical
Terminations
Installed

Information provided
by A - E Constructor

(******% (******% (******% Actual Fee


of FEE) of FEE) of FEE) Rate Earned
>****%
and
_________ > ******% <****% <******%
Percent of
Rework based
on the number of
hours charged to
rework cost
codes to correct
a completed
installation. The
measurement is
the manual
rework hours
charged versus
total manual
hours charged to
******%
the project. This
is a cumulative
number for the
duration of the
Subproject. Any
lost fee for an
evaluation period
can be recovered
if the number is
reduced below
the fee threshold
during a later
evaluation
period.

Interpolate between values where appropriate.

100% Fee Fee Earned Fee Earned


******% Project Administration Criteria Actual % $
Responsiveness /
$****** ******% Communications ****** ******
******% Project Reporting ****** ******
Subcontract Coordination;
Need to discuss Plant
******% Commun. ****** ******
******% Work Sampling ****** ******

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

******% Problem Resolution ****** ******


Target is
Overall ****** ****** 1 $******
Information provided by
FirstEnergy via customer
survey
Project Administration
(Customer Survey)
Based on a scale of:
1: Unsatisfactory (does not
meet requirements)
2: Minimal (meets some of the
requirements)
3: Adequate (meets most of
the requirements)
4:Satisfactory (meets
requirements)
5: Outstanding (exceeds
requirements)
Information provided by A - E
Constructor

1 Scale is based on the scoring suggested to the left of this comment. Actual questions to be established
during team building, based on sample to be provided by FirstEnergy.

Graph - (redacted plot lines)


- Responsiveness Fee Earned
- Percent Fee
- Responsiveness Rating

Projected semi-
annually, based
on Target (******% of (******% of (******% of Actual Fee
******% Cashflow Construction Cost FEE) FEE) FEE) Rate Earned
Price
establishment, on
$****** subproject basis.

Accuracy of
Cashflow
Projection, based
on all Subproject
Costs +/- ******% +/- ******% +/- ******%
The above
accuracy
calculations are
with respect to the
previous year's one
year forecast of
cash flow.

Note: Scorecards to be finalized during the Development Phase of the Project.

PAGE 6 OF 6

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-3

FEE TABLE

The Fee associated with the Target Construction Cost will be adjusted according to the table below:

Actual
Cost
Arrangement Fee
Adjustment FE
Vendor Arrangement Fee Adjustment
(% of Target Construction
Cost)
(% of Target Construction
Cost) (%
of Target Construction Cost)
[*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%]
[*****%] [*****%]

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

[*****%]
[*****%] [*****%]
[*****%]
[*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
Dead Band [*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]

[*****%] [*****%] [*****%]


[*****%]
[*****%] [*****%]
[*****%]
[*****%] [*****%]

[*****%] [*****%] [*****%]

[*****%] [*****%] [*****%]

The maximum [*****] adjustment is equal to the original Target Construction Cost Fee.
Values on the table shall be interpolated for actual costs between those shown on the table.

Page 1 of 1

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-4

SAMPLE INVOICES

FIRSTENERGY SAMPLE INVOICES SCHEDULES

PAGE
# Explanation of Schedules:

0 Made up a "Statement of Cost 0" for example purposes, so there would be a (over)/under to reflect on
AFR604xxxA.

1 Invoices ending with the letter "A" are reconciled to the prior month. Any over/under is adjusted on this
invoice PLUS any bills received in the current month. This invoice requests *******% of the forecast funds
for the following month . "A" invoices request funds by the ******th of the same month. In this "sample"
invoice 25XXX-AFR604xxxA is a cumulative invoice for the first 9 invoices. The (Over)/Under recovery is
from STMT of Cost 0, added this issue, for example purposes. FEE has been separated for forecast.
2 Invoices ending with the letter "B" are the balance of the forecast ******% of future cost. "B" invoices
request funds by the ******th of the following month. FEE has been separated for forecast.

3A This is a Statement of Cost & is not a request for funds. This invoice trues up actual cost with funds
received on Invoices "A" and "B" of $******, reflecting the under-recovery of $****** on the A invoice. This
is an invoice summarization of pages 3B, 3C, 3D, 3E, 3F & 3G.
3B

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3B Summary of Direct & Indirect Expenses by category, and ties back to 3A.
3C Summary (Sample) of Professional Labor Abstract, support to 3B
3D Summary (Sample) of Professional Construction Labor Abstract, support to 3B
3E Summary (Sample) of Specialist Labor Abstract, support to 3B
3F Summary (Sample) of Craft Labor Abstract, support to 3B
3G Summary (Sample) of Other Direct Cost Abstract, support to 3B

4 Invoices ending with the letter "A" are reconciled to the prior month. Any over/under is adjusted on this
invoice. This invoice requests ******% of the forecast funds for the following month . "A" invoices request
funds by the ******th of the same month. In this "sample" invoice 25XXX-AFR605xxxA is a cumulative
invoice for the first 10 invoices. The (Over)/Under recovery of $******is on the A invoice.

5 Invoices ending with the letter "B" are the balance of the forecast ******% of future cost. "B" invoices
request funds by the ******th of the following month. This requests the remaining balance of forecast cost
for month 11 of $******.

Example shown on all sheets is for "FE Vendor Arrangement"

PAGE 1

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1 -4

BECHTEL POWER CORPORATION


5275 WESTVIEW DRIVE
FREDERICK, MD 21703

NEW THIS ISSUE TO REFLECT "PREVIOUS MONTH" STMT OF COST (OVER)/UNDER RECOVERY

TO: FIRSTENERGY GENERATION CORP.


ATTN: RAYMOND REINHART
76 SOUTH MAIN STREET
AKRON, OH 44308

INVOICE NUMBER DATE JOB NUMBER CONTRACT ACCOUNT


25XXX-XXXxxx 4/10/2006 25XXX X

STATEMENT OF COST through MARCH 2006 for the Sammis Project.

COST DESCRIPTION
UNIT RATE LABOR, Engineering/Graphics Labor & other Professional Labor $ ******
UNIT RATE LABOR, Professional Construction Labor ******
UNIT RATE LABOR, Specialist ******
CRAFT LABOR ******
MATERIALS & OTHER COST ******

SUB-TOTAL STATEMENT OF COST THROUGH MARCH 2006: $ ******


FEE: ******
TOTAL STATEMENT OF COST & FEE: $ ******
FUNDING PREVIOUSLY RECEIVED, INVOICE AFR603XXXA&B: ******

(OVER)/UNDER RECOVERY: $ ******

THIS IS A STATEMENT OF COST. DO NOT PAY.

PAGE 0

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-4

BECHTEL POWER CORPORATION


5275 WESTVIEW DRIVE
FREDERICK, MD 21703

TO: FIRSTENERGY GENERATION CORP. Please wire transfer to:


ATTN: RAYMOND REINHART The Bank of New York
76 SOUTH MAIN STREET New York, NY
AKRON, OH 44308 Account # ******
ABA # ******
Credit: BECHTEL POWER CORPORATION
Job Number: ******
INVOICE # 25XXX-AFR604xxxA

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

INVOICE NUMBER DATE JOB NUMBER CONTRACT ACCOUNT


25XXX-AFR604xxxA 4/10/2006 25XXX X ******

Funds request for the Sammis Project.


Payment due by APRIL 25, 2006.

Current
Month
FORECAST FOR ******% of MONTH #10 EXPENSES: $ ******
FEE FORECAST ON HOME OFFICE: ******

TOTAL AMOUNT DUE $ ******

(OVER)/UNDER RECOVERY FROM MARCH STMT OF COST: ******

TOTAL AMOUNT DUE $ ******

Inception to
Date
BALANCE FORWARD INVOICES (MONTH 1 - 9) $ XXX
BILLED THIS INVOICE ******

CUMULATIVE INVOICED TO DATE: $ XXX

(***) Value is prior month's one through 9 activity, billed and reconciled on prior month's
statement of cost.

PAGE 1

CONFIDENTIAL TREATMENT REQUESTED

EXECUTION COPY
EXHIBIT 5.1-4

BECHTEL POWER CORPORATION


5275 WESTVIEW DRIVE
FREDERICK, MD 21703

TO: FIRSTENERGY GENERATION CORP. Please wire transfer to:


ATTN: RAYMOND REINHART The Bank of New York
76 SOUTH MAIN STREET New York, NY
AKRON, OH 44308 Account # ******
ABA # ******
Credit: BECHTEL POWER CORPORATION
Job Number: ******
INVOICE # 25XXX-AFR604xxxB

INVOICE NUMBER DATE JOB NUMBER CONTRACT ACCOUNT


25XXX-AFR604xxxB 4/10/2006 25XXX X ******

Funds request for the Sammis Project.


Payment due by MAY 25, 2006.

FORECAST FOR ******% of MONTH #10 EXPENSES: $ ******


FEE FORECAST ON HOME OFFICE: ******

TOTAL AMOUNT DUE $ ******

Inception to
Date
BALANCE FORWARD INVOICES (MONTH 1 - 9) $ XXX
BILLED THIS INVOICE ******

CUMULATIVE INVOICED TO DATE: $ XXX

PAGE 2

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-4

BECHTEL POWER CORPORATION


5275 WESTVIEW DRIVE
FREDERICK, MD 21703

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

TO: FIRSTENERGY GENERATION CORP.


ATTN: RAYMOND REINHART
76 SOUTH MAIN STREET
AKRON, OH 44308

INVOICE NUMBER DATE JOB NUMBER CONTRACT ACCOUNT


25XXX-XXXxxx 5/10/2006 25XXX X

STATEMENT OF COST through APRIL 2006 for the Sammis Project.

COST DESCRIPTION
UNIT RATE LABOR, Engineering/Graphics Labor & other Professional Labor $ ******
UNIT RATE LABOR, Specialist ******
UNIT RATE LABOR, Professional Construction Labor ******
CRAFT LABOR ******
MATERIALS & OTHER COST ******

SUB-TOTAL STATEMENT OF COST THROUGH APRIL 2006: $ ******


FEE: ******
TOTAL STATEMENT OF COST & FEE: $ ******
FUNDING PREVIOUSLY RECEIVED, INVOICE AFR604XXXA&B: ******

(OVER)/UNDER RECOVERY: $ ******

THIS IS A STATEMENT OF COST. DO NOT PAY.

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EXHIBIT 5.1-4

SCHEDULE OF DIRECT & INDIRECT EXPENSES

OFFICE: 1A SAMMIS PROJECT


COMPANY: E8 BECHTEL POWER CORP
25XXX-
SECTION: 0B INV NO: XXXXXX

April, 2006
DESCRIPTION HOURS AMOUNT FEE TOTAL

ENGINEERING, GRAPHICS, OTHER PROFESSIONAL AND


SPECIALIST LABOR

UNIT RATE LABOR, Engineering/Graphics Labor & other


Professional Labor ****** $ ****** $ ******
G&A @ ******% for Home office cost: ****** ******
Fee on Engineering Labor and G&A @ ******%: ****** ******
****** ******
$ ****** $ ****** $ ******

UNIT RATE LABOR, Specialist ****** $ ****** $ ******


G&A @ ******% for Home office cost ****** ******
Fee on Specialist Labor and G&A @ ******%: ****** ******
Engineering Technology Charge @ $******/ hr. ****** ******
$ ****** $ ****** $ ******

SUB-TOTAL PROFESSIONAL COST LABOR AND FEE ****** $ ****** $ ****** $ ******

PERCENT
COMPLETE HOURS AMOUNT FEE
TARGET CONSTRUCTION COST

UNIT RATE LABOR, Professional


Construction Labor ****** $ ******
G&A @ ******% for Field
NonManual cost: ******
Engineering Technology
Charge @ $******/ hr. ******
$ ******

CRAFT LABOR ****** $ ******

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TRAVEL ORDINARY BUSINESS $ ******


SUBCONTRACTS ******
MATERIALS ******
FREIGHT ******
ENGINEERING SUBCONTRACT ******
EQUIPMENT RENTAL ******
MATERIALS & OTHER
COST $ ******

SUB-TOTAL BECHTEL
TARGET CONSTRUCTION
COSTS ****** $ ******

TARGET CONSTRUCTION COST $ ******

TCC FEE $ ****** ******% $ ******

TOTAL BECHTEL COSTS AND


TAX ( WITH FEE): $ ******

TOTAL APRIL, 20056 $ ****** $ ****** $ ******

TCC FEE TO DATE

FEE @ $ ******
Prior Invoices ******% $ ******
Current Invoice (April 2006) ******% $ ******

Cumulative ****** % $ ******

PAGE 3B

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EXHIBIT 5.1-4

FirstEnergy - Job 25xxx


Engineering, Graphics and Other Professiional Labor
P/E 04/24/06

Org Employee Cost ST OT ST OT


Code Number Name SubJob Code Activity Hours Hours Grade Rate Rate Dollars

CNC-
XXXX 111111 Employee XXX 160 21 $ ****** $ ******
CNC-
XXXX 111112 Employee XXX 160 21 $ ****** $ ******
CNC-
XXXX 111113 Employee XXX 160 22 $ ****** $ ******
CNC-
XXXX 111114 Employee XXX 160 22 $ ****** $ ******
CNC-
XXXX 111115 Employee XXX 160 23 $ ****** $ ******
CNC-
XXXX 111116 Employee XXX 160 23 $ ****** $ ******
CNC-
XXXX 111117 Employee XXX 160 20 24 $ ****** $ ****** $ ******
CNC-
XXXX 111118 Employee XXX 160 24 $ ****** $ ******
CNC-
XXXX 111119 Employee XXX 160 24 $ ****** $ ******
CNC-
XXXX 111120 Employee XXX 160 24 $ ****** $ ******
CNC-
XXXX 111121 Employee XXX 160 20 25 $ ****** $ ****** $ ******
CNC-
XXXX 111122 Employee XXX 160 25 $ ****** $ ******
CNC-
XXXX 111123 Employee XXX 160 25 $ ****** $ ******
CNC-
XXXX 111124 Employee XXX 160 25 $ ****** $ ******
CNC-
XXXX 111125 Employee XXX 160 25 $ ****** $ ******
CNC-
XXXX 111126 Employee XXX 160 40 26 $ ****** $ ****** $ ******
CNC-
XXXX 111127 Employee XXX 160 26 $ ****** $ ******
CNC-
XXXX 111128 Employee XXX 160 26 $ ****** $ ******
CNC-
XXXX 111129 Employee XXX 160 26 $ ****** $ ******
CNC-
XXXX 111130 Employee XXX 160 27 $ ****** $ ******
CNC-

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XXXX 111131 Employee XXX 160 27 $ ****** $ ******


CNC-
XXXX 111132 Employee XXX 160 27 $ ****** $ ******
CNC-
XXXX 111133 Employee XXX 160 28 $ ****** $ ******
CNC-
XXXX 111134 Employee XXX 160 28 $ ****** $ ******
CNC-
XXXX 111135 Employee XXX 160 28 $ ****** $ ******
CNC-
XXXX 111136 Employee XXX 160 29 $ ****** $ ******
CNC-
XXXX 111137 Employee XXX 160 29 $ ****** $ ******

SUBTOTAL LABOR 4,320 80 $ ******

G&A @ ******% for Home Office


Labor Cost ******

SUBTOTALS $ ******

Fee on Engineering @ ******%


(Labor and G&A) ******
Engineering Technology Charge @
$******/Hour ******

TOTALS $ ******

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EXECUTION COPY
EXHIBIT 5.1-4

FirstEnergy - Job 25xxx


Professional Construction Labor
P/E 04/25/06

Org Employee
Code Number OT Rate Dollars

CNC-
XXXX 111138 Employee XXX 160 Letter $ ****** $ ******
CNC-
XXXX 111139 Employee XXX 160 21 $ ****** $ ******
CNC-
XXXX 111140 Employee XXX 160 22 $ ****** $ ******
CNC-
XXXX 111141 Employee XXX 160 22 $ ****** $ ******
CNC-
XXXX 111142 Employee XXX 160 23 $ ****** $ ******
CNC-
XXXX 111143 Employee XXX 160 23 $ ****** $ ******
CNC-
XXXX 111144 Employee XXX 160 24 $ ****** $ ******
CNC-
XXXX 111145 Employee XXX 160 24 $ ****** $ ******
CNC-
XXXX 111146 Employee XXX 160 25 $ ****** $ ******
CNC-
XXXX 111147 Employee XXX 160 25 $ ****** $ ******
CNC-
XXXX 111148 Employee XXX 160 25 $ ****** $ ******
CNC-
XXXX 111149 Employee XXX 160 26 $ ****** $ ******
CNC-
XXXX 111150 Employee XXX 160 26 $ ****** $ ******
CNC-
XXXX 111151 Employee XXX 160 26 $ ****** $ ******
CNC-
XXXX 111152 Employee XXX 160 27 $ ****** $ ******
CNC-
XXXX 111153 Employee XXX 160 27 $ ****** $ ******
CNC-
XXXX 111154 Employee XXX 160 28 $ ****** $ ******
CNC-
XXXX 111155 Employee XXX 160 28 $ ****** $ ******
CNC-
XXXX 111156 Employee XXX 160 29 $ ****** $ ******

SUBTOTALS 3,040 $ ******

G&A @ ******% for Professional Construction Labor Cost ******

SUBTOTALS $ ******
Engineering Technology Charge @ $******/Hour ******

$ ******

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PAGE 3D

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EXECUTION COPY
EXHIBIT 5.1-4

Org Employee Cost ST OT ST OT


Code Number Name SubJob Code Activity Hours Hours Grade Rate Rate Dollars

CNC-
XXXX 111157 Employee XXX 160 27 $ ****** $ ******
CNC-
XXXX 111158 Employee XXX 160 28 $ ****** $ ******
CNC-
XXXX 111159 Employee XXX 160 29 $ ****** $ ******

SUBTOTAL 480 $ ******

G&A @ ******% for Specialist Labor Cost ******

SUBTOTALS $ ******

Fee on Specialist @ ******% (Labor and G&A) ******


Engineering Technology Charge @ $******/Hour ******

TOTALS $ ******

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EXECUTION COPY
EXHIBIT 5.1-4

CRAFT LABOR
BECHTEL POWER CORPORATION
CRAFT LABOR

Pay ID Key
ST = Straight Time
OT = Overtime
DT = Double Time
MM = Meal Allowance
JU = Jury Duty
Job 25XXX-XXX
Week Ending 4/24/2006
WBS Code (All)

Bare Employer Insurance Total


Craft Description Pay ID Shift Hours Labor Fringes & Taxes Dollars
BOILERMAKERS 5,000.0 ****** ****** ****** ******
@ $******/hr ST 1 5,000.0 ****** ****** ****** ******
OT 1 - - - - -
DT 1 - - - - -

PIPEFITTER 5,000.0 ****** ****** ****** ******


@ ******/hr ST 1 5,000.0 ****** ****** ****** ******
OT 1 - - - - -
DT 1 - - - - -

ELECTRICIANS 5,000.0 ****** ****** ****** ******


@ ******/hr ST 1 5,000.0 ****** ****** ****** ******
OT 1 - - - - -
DT 1 - - - - -

Total Craft 15,000.0 ****** ****** ****** $ ******

Overhead (Rate is $******/hour, not a


percentage) ******
Small Tools @
$******/hour ******
Consumables @ $******/hour ******
SUBTOTAL $ ******

TOTALS ******

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EXECUTION COPY
EXHIBIT 5.1-4

DETAIL SCHEDULE OF CHARGES


OTHER DIRECT COSTS

OFFICE: 1A
COMPANY:E8 JOB-SUB: 25XXX-XXX
REGION: CN INV NO: XXXXX-XXXXXX
SECTION: 0B

SOURCE MONTH SOURCE PERFORM NAT


REFERENCE CYCLE DATE OFC CO REG CLS DESCRIPTION COST

049591852
008430568 0402 4/4/2005 1W E8 8N 660 TRAVEL, EMPLOYEE 1 $ ******
049591853 CONSTRUCTION
008430569 0402 4/8/2005 1W E8 8N 830 SUBCONTRACTOR ******
049591852 CONSTRUCTION MATERIALS &
008430569 0402 4/6/2005 1W E8 8N 310 SUPPLIES ******
049591853 FREIGHT FORWARDING
008430570 0402 4/15/2005 1W E8 8N 321 SERVICES ******
049591853
008430571 0402 4/26/2005 1W E8 8N 870 ENGINEERING SUBCONTRACT ******
049591852 AUTOMOTIVE & CONSTRUCTION
008430570 0402 4/28/2005 1W E8 8N 422 EQUIPMENT ******
Truck, Pickup, 1/2 ton 4x2 GAS
@ $******
Dump Truck, 13/15 CY Diesel @
$******
Crane, Crawler, 100T Diesel @
$******
Welder, 400 amp Diesel, TRL.
MTD. Diesel @ $******
Welder, 200 amp ELEC. 8 Station
@ $******
TOTAL MATERIAL $ ******

PAGE 3G

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-4

BECHTEL POWER CORPORATION


5275 WESTVIEW DRIVE
FREDERICK, MD 21703

TO: FIRSTENERGY GENERATION CORP. Please wire transfer to:


ATTN: RAYMOND REINHART The Bank of New York
76 SOUTH MAIN STREET New York, NY
AKRON, OH 44308 Account # ******
ABA # ******
Credit: BECHTEL POWER CORPORATION
Job Number: 25XXX
INVOICE # 25XXX-AFR604xxxA

INVOICE NUMBER DATE JOB NUMBER CONTRACT ACCOUNT


25XXX-AFR604xxxA 5/10/2006 25XXX X ******

Funds request for the Sammis Project.


Payment due by MAY 25, 2006.

Current
Month
FORECAST FOR ******% of MONTH #11 EXPENSES: $ ******
FEE FORECAST ON HOME OFFICE: ******

TOTAL AMOUNT DUE $ ******

(OVER)/UNDER RECOVERY FROM APRIL STMT OF COST $ ******

TOTAL AMOUNT DUE $ ******

Inception to

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Inception to
Date
BALANCE FORWARD INVOICES (MONTH 1 - 10) $ XXX
BILLED THIS INVOICE ******

CUMULATIVE INVOICED TO DATE: $ XXX

PAGE 4

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-4

BECHTEL POWER CORPORATION


5275 WESTVIEW DRIVE
FREDERICK, MD 21703

TO: FIRSTENERGY GENERATION CORP. Please wire transfer to:


ATTN: RAYMOND REINHART The Bank of New York
76 SOUTH MAIN STREET New York, NY
AKRON, OH 44308 Account # ******
ABA # ******
Credit: BECHTEL POWER CORPORATION
Job Number: 25XXX
INVOICE # 25XXX-AFR604xxxB

INVOICE NUMBER DATE JOB NUMBER CONTRACT ACCOUNT


25XXX-AFR604xxxB 5/10/2006 25XXX X ******

Funds request for the Sammis Project.


Payment due by JUNE 25, 2006.

FORECAST FOR ******% of MONTH #11 EXPENSES: $ ******


FEE FORECAST ON HOME OFFICE: ******

TOTAL AMOUNT DUE $ ******

Inception to
Date
BALANCE FORWARD INVOICES (MONTH 1 - 10) $ XXX
BILLED THIS INVOICE ******

CUMULATIVE INVOICED TO DATE: $ XXX

PAGE 5

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EXECUTION COPY
EXHIBIT 5.1-5

U.S. NATIONAL TEMPORARY/SHORT TERM ASSIGNMENT CONDITIONS TO A


PROJECT LOCATION

These assignment conditions apply to temporary assignments to a project location which is more than 50 miles from
their current U.S. residence. Temporary assignments are defined as assignments expected to be more than
******months but not more than ******months. If these conditions are silent, the Manual of Personnel Policies - U.S.
will prevail.

1.0 SHIPMENT/STORAGE OF HOUSEHOLD EFFECTS

a) For assignments of ****** months or less:


No shipment or storage of household effects is authorized.

b) For assignments longer than ****** months:

1. Single status employees are authorized shipment, including packing, crating and unpacking.
2. Family status employees are authorized shipment, including packing, crating and unpacking.

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c) For assignments longer than ****** months:


In addition to the shipment allowances, the cost of storage will be reimbursed. The combined weights
of shipment and storage are not to exceed the maximums, including packing, crating and unpacking.

d) Storage in Transit:
It is recommended that employees who have a minimal amount of personal household effects (e.g. 200
lbs. or less) ship their goods via UPS or Class “C” air freight when possible to avoid the 1,000 lbs.
minimum charge imposed by professional moving companies. Employees with applicable receipts will
be reimbursed by expense report.

2.0 SHIPMENT OF AUTOMOBILE


a) No automobile shipment costs are reimbursed for assignments of ****** months or less. For
assignments of more than 3 months, costs for shipment of an auto will be reimbursed, provided the
assigned location is more than ****** miles from point of departure.

b) For family status assignments, if an automobile is shipped, costs for a second automobile driven to the
location will be reimbursed at the second auto rate via the most direct route.

c) No reimbursement will be made for storage charges.

d) Reimbursement for the cost of transporting vehicles to and from terminal facilities is authorized when
the terminal facility is greater than ****** miles to the work location.

3.0 EN ROUTE EXPENSES


a) Transportation via public carrier will be reimbursed up to the equivalent of least cost economy air fare
plus actual and reasonable expenses to and from the terminal. One travel day is authorized.

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EXECUTION COPY
EXHIBIT 5.1-5

b) For single status assignments when an automobile is not shipped, mileage costs via the most direct
route will be reimbursed. No reimbursement will be provided for a second automobile.
c) For family status assignments, mileage costs via the most direct route will be reimbursed for the first
auto and for the second if applicable.

d) Whether single or family status, tolls will be reimbursed in addition to the mileage.

e) Actual and reasonable lodging costs, plus a daily allowance for actual meals and incidentals will be
reimbursed. Meals and incidentals include food, laundry, and phone calls. Reporting a flat rate is
unacceptable.

f) For those employees who drive to the new assignment location, the number of authorized travel days
will be determined based upon traveling 500 miles the first day and 350 miles for each day thereafter
via the most direct route.

4.0 AUTOMOBILE RENTAL

Actual and reasonable rental costs, excluding mileage, gasoline and insurance, will be reimbursed while
awaiting the arrival of a shipped automobile. Insurance coverage is automatically provided when the rental
is through a Contractor rental car company account.

5.0 EXPENSES AT TEMPORARY LOCATION

a) For assignments of ****** months or less:

Actual and reasonable itemized lodging costs will be reimbursed. Meals and incidental expenses will be
reimbursed for employee only.

Meals and incidentals include food, laundry and personal phone calls. Reporting a flat rate is unacceptable.
The actual daily meals and incidentals cost may be above or below the daily rate, however, the total cost
for the reported period (not to exceed ****** months) must not exceed the sum of the reported expense
days times the daily rate.

b) For assignments longer than ****** months:

1) Actual and reasonable lodging costs, plus a daily allowance for meals and incidentals will be
reimbursed for the first ****** days or until long term lodging is obtained, whichever occurs first.
2) Employees who are transferring from one temporary assignment to a subsequent temporary
assignment may be authorized to use up to ****** of the ******days of settling-in at the pre-transfer
location.

3) After the settling-in period, a per diem will be provided for employee only; receipts not required.
Lodging includes lodging, furniture rental, utility hook-up/installation and basic monthly service
costs. Meals and incidentals include meals, laundry, phone calls, and cable TV installation and
basic monthly service charge.

4) Interruption of Per Diem: During the per diem period, the meals and incidentals portion is forfeited
in the following circumstances:

·Saturday and Sunday of a scheduled monthly trip home


·When PTO is taken in excess of two consecutive workdays for reasons other than illness.

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

·When PTO is taken for more than two consecutive days in conjunction with a weekend
(e.g., Thursday, Friday, Weekend, Monday).

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EXECUTION COPY
EXHIBIT 5.1-5

5) The per diem is reduced by the meals and incidentals portion whenever the employee is away from
the assignment location in connection with reimbursed business travel, monthly trips home, PTO
other than illness, and other absences.

6.0 VISITS HOME

a) Employees on single status assignments of three months or more are authorized trips home,
provided that a minimum of ******days remain in the assignment. Transportation will be reimbursed up
to the least cost of ******-day advanced purchase economy airfare plus reasonable expenses to and
from airport. Receipts must be furnished.

If an employee elects to travel to a location other than his/her home base, the maximum reimbursement
allowed will be the actual or equivalent cost of the round trip airfare from the temporary assignment
location to the employee's home base, whichever is lower. The purpose of these trips is to reunite
families or conduct personal business that a temporary assignment might prohibit. If an alternate
location is selected, it must be noted on the PAN prior to the assignment start date and must have a
Category II approval. Receipts must be furnished.

b) Spouse/Registered Domestic Partner/Family Visit - In lieu of the employee’s trip home, reimbursement
for round trip airfare to the temporary assignment location only may be granted to the employee’s
spouse or registered domestic partner, and/or children up to the amount equal to one adult economy
class 14-day advanced purchase round trip airfare. Other costs such as transportation to and from
airports and motels or meal expenses for the family member will not be reimbursed. The employee’s
next authorized trip home will be four weeks after family member has returned home. Any expenses
reimbursed under this alternative will be considered taxable income.

7.0 HOLIDAY SCHEDULE

a) The following holidays are observed:

New Year’s Day


Martin Luther King Day
President’s Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day

b) When an approved holiday falls on Saturday, the preceding Friday will be recognized as a holiday.
When an approved holiday falls on Sunday, the following Monday will be recognized as a holiday.
Employees must be in a salaried status to be eligible for paid holidays.

8.0 LEASE CANCELLATION

Employees on temporary assignments are expected to negotiate short-term leases or leases containing
cancellation clauses. Reimbursement for unrecoverable costs due to rental lease termination may be made
with Category II approval when such costs result from an unexpected reduction in the assignment period.
Maximum reimbursement for lease cancellation is the equivalent of two months rent plus security deposit.

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EXECUTION COPY
EXHIBIT 5.1-5

9.0 TAXES

Tax information, including an Employee Tax Statement, is to be provided to employees prior to going on
temporary assignments.

10.0 CONVERSION FROM TEMPORARY TO PERMANENT STATUS

a)Employees whose assignments change from temporary to permanent status at the same location will
be reimbursed for relocation costs on an itemized basis only.

b)Employees are normally authorized a trip to home base if family or residence is being maintained at
home base; three day settling-out expenses may be authorized, usually scheduled around a weekend;
rental car may be authorized for up to three days, excluding gas, and additional insurance, plus mileage
reimbursement to and from home and airport terminal; parking at the airport will be authorized for the
duration of the settling-out period.

c)Settling-in is not normally authorized.

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EXHIBIT 5.1-5

U.S. NATIONAL LONG TERM ASSIGNMENT CONDITIONS TO A


PROJECT LOCATION

These assignment conditions apply to long-term assignments to a U.S. project location. Long-term assignments are
defined as assignments of more than 12 months, and the assignment location does not become the employee’s
point of origin. If these conditions are silent, the Manual of Personnel Policies - U.S. will prevail. These conditions
apply to transfers, new/rehires and college hires; however, they do not apply to employees undertaking international
assignments in the U.S.A. For more details on the specific policies/allowances, contact your Human Resources
Representative. These conditions may or may not be applicable to BSII - check with BSII HR prior to applying these
conditions.

1.0 HOUSE HUNTING TRIPS

a.) House hunting trips may be authorized for employees and their spouses or registered domestic partners
provided the objective is to purchase a home. This allowance is not available to employees already
resident in the area.

b.) Transportation via public carrier will be reimbursed up to the equivalent of least cost economy air fare
plus actual and reasonable expenses to and from the terminal.

c.) If a private automobile is used, mileage costs via the most direct route will be reimbursed.

d.) Actual and reasonable lodging costs, plus a daily allowance for actual meals and incidentals will be
reimbursed for a maximum period of ****** days, which is to include a weekend.
e.) Car rental (compact size with Bechtel discount excluding gas and mileage), airport parking, sitter for
small children and other justifiable expenses will be reimbursed.

2.0 SHIPMENT/STORAGE OF HOUSEHOLD EFFECTS

a.) Costs for shipment and storage, not to exceed the stated maximums include packing, crating and
unpacking. Storage in-transit is authorized.
b.) Storage at point of departure is authorized.

3.0 SHIPMENT OF AUTOS, HOUSE TRAILERS & MOBILE HOMES

a.) Costs for shipment by freight forwarder of an auto for new/re-hires or college hires and for
transferring employees will be reimbursed as follows:

1.) Vehicles must be in operating condition.


2.) Assignment location must be more than ****** miles from point of departure.
3.) No reimbursement will be made for storage charges at point of origin, departure or destination
locations.
4.) Reimbursement will be made for the cost of transporting vehicles to and from terminal facilities.

b.) Shipment by a licensed commercial carrier and where allowed by state law, of a single-unit house
trailer or mobile home to a maximum size of 14 feet by 70 feet and used as the principal residence
is authorized. The employee is responsible for the provision of insurance.

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EXECUTION COPY
EXHIBIT 5.1-5

4.0 EN ROUTE EXPENSES

a.) Transportation via public carrier will be reimbursed up to the equivalent of least cost economy air
fare plus actual and reasonable expenses to and from the terminal. One travel day is authorized.

b.) If a private automobile is used, mileage costs via the most direct route will be reimbursed for the
first auto and second auto (if applicable). The second auto rate also applies when one auto is
shipped and a second is driven. For a private auto used to tow a house trailer or for a mobile
home, the mileage costs via the most direct route will be reimbursed. Tolls will be reimbursed in
addition to the mileage rate. The number of authorized travel days for which expenses will be
reimbursed is determined based upon the approved mileage from authorized point of departure to
new assignment location as follows:

Approved Mileage Authorized Travel Days


******miles ****** day
******miles ****** days
******miles ****** days
******miles ****** days
******miles ****** days
******miles ****** days

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

****** ****** days

c.) Actual and reasonable lodging costs, plus a daily allowance for actual meals and incidentals will be
reimbursed.

d.) Meals and incidentals include food, laundry, and phone calls.

5.0 SETTLING-IN ALLOWANCES

a.) The maximum reimbursement period is ****** days. Up to ****** days (expenses only) may be used
at the pre-departure location. Dependents must arrive within ****** months of the employee’s date
of arrival to qualify for reimbursement.

b.) Actual and reasonable lodging costs, plus a daily allowance for actual meals and incidentals will be
reimbursed. Meals and incidentals include food, laundry, and phone calls.

c.) Alternative (Transfers Only)

As an alternative to settling-in on an itemized basis, transferring employees may elect a lump sum
settling-in amount (subject to taxes; no tax reimbursement). This option is not applicable when
returning to point of origin or when converting from temporary to long-term at the same location.
New hires and College hires are not eligible for this alternative allowance.

6.0 AUTOMOBILE RENTAL

a.) Actual and reasonable rental costs, excluding mileage, gasoline and insurance, will be reimbursed
while awaiting the arrival of a shipped automobile. Insurance coverage is automatically provided
when the rental is through a Bechtel rental car company account.

Page 2 of 4

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-5

7.0 RESIDENCE RELOCATION ASSISTANCE

a.) A lump sum residence relocation allowance is authorized for employees. The allowance is intended
to assist employees with the incidental costs incurred in relocation. This payment is subject to
federal, state and local taxes. Bechtel will provide tax assistance. See Section 11.0.

b.) A retiring employee returning to point of origin is not eligible for this allowance.

8.0 REAL ESTATE COMMISSION EXPENSE

This allowance does not normally apply to long-term assignments of less than three years. However, for
assignments of ****** months or longer, this allowance may be made available with the approval of the
Business Unit/Region/CentralFunction/Service Manager to employees permanently transferring between two
locations which have been identified as “long term” locations, but which are not permanent offices. For
more details, contact your Human Resources Representative.

9.0 DUPLICATE HOMEOWNER EXPENSE

a.) Duplicate housing costs for a pre-transfer residence, which is being offered for sale, will be
reimbursed.

b.) Reimbursable receipted expenditures include: interest on mortgage, taxes, insurance, and
mandatory expenses such as maintenance fees and homeowners association dues, where such
fees and dues are a condition of ownership of the property. Expense Reports typically include the
following documentation:

1.) A copy of the amortization schedule or monthly slip from the lending financial institution
delineating the principal, interest, insurance, taxes and other mandatory expenses, if applicable.
2.) A copy of the canceled checks or receipts for expenses for both residences.
3.) A copy of the agreement with the real estate company. (Proof of previous residence being
offered for sale.)
4.) Rental documentation or closing statement for the new residence (properly signed).

c.) New hires/re-hires and college hires and transferring employees who maintain pre-transfer
residences that are being offered for sale and incur duplicate housing costs are eligible for certain
receipted expenses. Employees who are attempting to rent their pre-transfer residence are not
eligible.

10.0 TAX ASSISTANCE

Transferring employees, new employees and college hires who are placed on long-term assignments at a
location in the United States, which is more than ****** miles from their current U.S. residence, are eligible
for reimbursement of certain relocation expenses. Contractor will provide employees tax assistance
reimbursements to offset taxes withheld on relocation expenses. The reimbursement payment will be based
upon standard reimbursement rates and, therefore, will not be an exact match of actual taxes withheld.

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Page 3 of 4

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-5

11.0 HOLIDAY SCHEDULE

a) The following holidays are observed:

New Year’s Day


Martin Luther King, Jr.’s Birthday
President’s Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Day after Thanksgiving
Christmas Day

b) When an approved holiday falls on Saturday, the preceding Friday will be recognized as a holiday.
Employees must be in a salaried status to be eligible for paid holidays.

Page 4 of 4

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-6

CONSTITUENTS OF G&A (OVERHEAD) COSTS

The G & A and overhead allocation includes the cost for:


Costs for [*****] at Bechtel Fossil Power ([*****], Bechtel Fossil Power) and above, including cost for
the Bechtel corporate and fossil business unit overhead allocated to Bechtel Power Corporation,
including their respective costs for:

· Furniture and equipment rental, lease, purchase, depreciation, and operating expenses
· Office facility charges
· Telephone, telegraph, cable, and facsimile
· Mail and courier services
· Reproduction services and supplies
· Communications and communications equipment
· Travel and temporary living expenses
· Corporate licenses
· Computer services (hardware and software, including computer-aided design [CAD])
· Automation (local and wide area network, maintenance, and support)

Page 1 of 1

EXECUTION COPY
EXHIBIT 5.1-7

CONSTITUENTS OF ENGINEERING TECHNOLOGY CHARGE

For Contractor HOME OFFICE:

Contractor includes the following items in the Engineering Technology Charge rates quoted in the PRICING
SUMMARY SHEET below:

(i) Standard engineering supplies used or consumed in the performance of the Services or
provision of Deliverables at Contractor’s home offices.

(ii) Costs of reproduction of standard plans, specifications, reports and other data regularly
generated at Contractor home offices.

(iii) Charges for use of Contractor desktop, laptop, and CADD computers at Contractor home
offices for those personnel billable to the project

(iv) Charges for phones, to include cell phones and pagers and faxes originating from
Contractor’s home offices, and Contractor’s actual costs for all other communication
services specifically identifiable to the performance of the Services and provision of the
Deliverables

(v) Charges for Contractor’s permanent office facilities and associated utilities.

Contractor EXCLUDES the following items in the Engineering Technology Charge rates quoted in the
PRICING SUMMARY SHEET below: Each of these items will be charged at cost.

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

(iii) Actual expenses of travel, subsistence, relocation, and return of personnel engaged in the
performance of the Services and Deliverables, including relocation and return expenses of
families of such personnel

(viii) Costs associated with consultants, subcontracts, and other outside services and facilities.

(xii) All federal, state and local taxes, assessments, levies, imposts, duties, excises, permits,
and licenses directly and solely identifiable to the Services and Deliverables, excepting only
payroll taxes included in the Personnel Costs and taxes levied solely on Contractor’s net
income

(ix) Costs of insurance premiums and any deductibles for the insurance required by this
Contract, other than the insurance included in the Personnel Costs.

(x) Other costs and expenses incurred by Contractor in connection with the Professional
Services that are not specifically set forth herein.

For PROJECT (SITE) OFFICE:

Contractor INCLUDES the following items in the Engineering Technology Charge rates quoted in the
PRICING SUMMARY SHEET:

(i) Standard engineering supplies used or consumed in the performance of the Services or
provision of Deliverables at Contractor’s Project site.

(ii) Costs of reproduction of plans, specifications, reports and other data at the Project site.

(iii) Charges for use and maintenance of Contractor central infrastructure and standard
application computer systems, other existing Contractor technical programs, and links to
the home office.

Page 1 of 2

EXECUTION COPY
EXHIBIT 5.1-7

(xi) Charges for cell phones and pagers originating in Contractor’s home offices.

(xii) Charges for Contractor’s permanent office facilities and associated utilities, including office
space and utilities maintained as permanent base for Contractor’s Professional Construction
Labor.

Contractor EXCLUDES the following items in the Engineering Technology Charge rates quoted in the
PRICING SUMMARY SHEET: Each of these items will be charged at cost.

(xiii) Actual expenses of travel, subsistence, relocation, and return of personnel engaged in the
performance of the Services and Deliverables, including relocation and return expenses of
families of such personnel

(xiv) Costs associated with consultants, subcontracts, and other outside services and facilities.

(xii) All federal, state and local taxes, assessments, levies, imposts, duties, excises, permits,
and licenses directly and solely identifiable to the Services and Deliverables, excepting only
payroll taxes included in the Personnel Costs and taxes levied solely on Contractor’s net
income

(xv) Costs of insurance premiums and any deductibles for the insurance required by this
Contract, other than the insurance included in the Personnel Costs.

(xvi) Costs of purchased or leased desktop, laptop, and CADD computers at the Project Site and
associated software.

(xvii) Charges for Contractor supplied temporary office facilities and associated utilities.

(xviii) Charges for site vehicles, including fuels and other operating costs.

(xix) Other costs and expenses incurred by Contractor in connection with the Professional
Services that are not specifically set forth herein.

Page 2 of 2

CONFIDENTIAL TREATMENT REQUEST


EXECUTION COPY
EXHIBIT 5.1-8

TOOL AND EQUIPMENT RATES


AE-Contractor's Major Equipment Internal Rate Schedule effective 3/20/05

SAMPLE

CONSTRUCTION EQUIPMENT & VEHICLES State &


DESCRIPTION Monthly Monthly Local Tax Total

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Bare Rate Maintenance @ 8% Monthly


CLASS 02 [TRUCKS - LIGHT DUTY]
PICKUP, 1/2 TON 4X2 GAS ****** ****** ****** ******
PICKUP, 1/2 TON 4X4 GAS ****** ****** ****** ******
SUV, UTILITY MEDIUM 4X4 GAS ****** ****** ****** ******
CLASS 03 [ TRUCKS - HEAVY DUTY]
TRUCK, DUMP 13/15 CY DIESEL ****** ****** ****** ******
TRUCK, FLATBED, HYD BOOM 11-15 TON CRANE
DIESEL ****** ****** ****** ******
TRUCK, STAKEBED 1 TON DIESEL ****** ****** ****** ******
TRUCK, FUEL /LUBE COMBINATION 1,500 GAL DIESEL ****** ****** ****** ******
TRUCK, MECHANICS SERVICE 1TON W/ BOOM,
COMPRESSOR, WELDER DIESEL ****** ****** ****** ******
TRUCK, WATER, 4,000G 6X6 PWR SPRAY, W/ WATER
CANNON DIESEL ****** ****** ****** ******
TRUCK, TRACTOR W/ 5th WHEEL 385 HP DIESEL ****** ****** ****** ******
CLASS 04 [TRAILERS]
TRAILER, LOWBOY, 50-60 TON ****** ****** ****** ******
TRAILER, FLATBED, HIGHBOY, 40-48 FT. ****** ****** ****** ******
CLASS 11 [EARTHMOVER]
EXCAVATOR, CRAWLER, 60,700# DIESEL ****** ****** ****** ******
MOTOR GRADER, 185HP, 32,460# W/ RIPPER
SCARIFIER DIESEL ****** ****** ****** ******
LOADER, BACKHOE, 78 HP DIESEL ****** ****** ****** ******
LOADER, TOOL CARRIER 125 HP, 2.25 CY, W/ FORKS,
BUCKET & BOOM DIESEL ****** ****** ****** ******
LOADER, SKID STEER 60HP 5,808# DIESEL ****** ****** ****** ******
LOADER, WHEEL 4YD 180HP W/FORKS DIESEL ****** ****** ****** ******
CLASS 12 [PIPELAYING/TRENCHING/TUNNELING)
TRENCHER, CHAIN, 6"-16" x 6', 51HP DIESEL ****** ****** ****** ******
CLASS 13 [COMPACTION]
COMPACTOR, SOIL, SD-DD WALK BEHIND, 29.9"
DIESEL ****** ****** ****** ******
COMPACTOR, SOIL, VIBRATORY, SMOOTH DRUM 66"
14,000# DIESEL ****** ****** ****** ******
CLASS 14 [CRANES]
CRANE, CRAWLER 100T DIESEL ****** ****** ****** ******
CRANE, CRAWLER 200T DIESEL ****** ****** ****** ******
CRANE, CRAWLER 230T DIESEL ****** ****** ****** ******
CRANE, CRAWLER 300T DIESEL ****** ****** ****** ******
CRANE, CRAWLER 440T W/SUPERLIFT DIESEL ****** ****** ****** ******
CRANE, ROUGH TERRAIN 28-30T DIESEL ****** ****** ****** ******
CRANE, ROUGH TERRAIN 50T DIESEL ****** ****** ****** ******
CRANE, ROUGH TERRAIN 65T DIESEL ****** ****** ****** ******
CRANE, ROUGH TERRAIN 100T DIESEL ****** ****** ****** ******
CLASS 15 [FORKLIFTS]
FORKLIFT, WAREHOUSE PNEU 6,000# GAS/LPG ****** ****** ****** ******
FORKLIFT, TELE-BOOM, 8,000# DIESEL ****** ****** ****** ******
CLASS 17 [ AIR COMPRESSORS]
AIR COMPRESSOR, 185 CFM DIESEL ****** ****** ****** ******
AIR COMPRESSOR, 750 CFM DIESEL ****** ****** ****** ******
CLASS 18 [ CRANE ACCESSORIES ]
CRANE, ATTACHMENT M250 LUFFING JIB ****** ****** ****** ******
CRANE, ATTACHMENT, 300T 225 MAXER ****** ****** ****** ******
CRANE, ATTACHMENT, RINGER 300T ****** ****** ****** ******
CLASS 19 [ GANTRYS ]
STRAND JACK LIFT SYSTEM PSC L180-40, L180-60 ****** ****** ****** ******
GANRTY - JACKING FRAME 450-700T J&R L1402-4-39 ****** ****** ****** ******
CLASS 52 [WELDERS]
WELDER, 400AMP DIESEL, TRL. MTD. DIESEL ****** ****** ****** ******
WELDER, 200AMP ELEC. 8 STATION ****** ****** ****** ******
CLASS 53 [GENERATORS/LIGHT
PLANTS/DISTRIBUTION]
GENERATOR, DIESEL 60KW, TRL. MTD. ****** ****** ****** ******
LIGHT PLANTS, 6KW 4 X 1,000 WATT LAMPS, DIESEL ****** ****** ****** ******
CLASS 54 [MANLIFTS/SCISSORLIFTS/ELEVATORS]
CONSTRUCTION ELEVATOR, MATERIAL HOIST, 150'
6,200# ****** ****** ****** ******
MANLIFT, ARTICULATING BOOM 66' DIESEL ****** ****** ****** ******
MANLIFT, ARTICULATING BOOM 86' DIESEL ****** ****** ****** ******
MANLFIT, TELESCOPIC BOOM 120' DIESEL ****** ****** ****** ******

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

The monthly bare rental rate is for “dry-hire only” and excludes operator, sales/use tax and
mobilization/demobilization.

Actual Pricing will be confirmed at time purchase order

Maintenance includes labor, fuel, lubricants, spare parts, tires, and insurance

PAGE 1 OF 3

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-8

TOOL AND EQUIPMENT RATES

AE-Constructor's Major Equipment Internal Rate Schedule - AED GREEN BOOK ANALYSIS effective 3/20/05
Over / Under
SAMPLE BEO = ******%
****** ******

AED
CONSTRUCTION EQUIPMENT & VEHICLES Monthly AED Rental Regional Regional
DESCRIPTION Bare Rate Rate Multiplier Rental Rate
Ohio Region 2 Multiplier
CLASS 02 [TRUCKS - LIGHT DUTY]
PICKUP, 1/2 TON 4X2 GAS Not in AED ****** ******
PICKUP, 1/2 TON 4X4 GAS Not in AED ****** ******
SUV, UTILITY MEDIUM 4X4 GAS Not in AED ****** ******
CLASS 03 [ TRUCKS - HEAVY DUTY]
TRUCK, DUMP 13/15 CY DIESEL Not in AED ****** ******
TRUCK, FLATBED, HYD BOOM 11-15 TON CRANE
DIESEL ****** ****** ****** ******
TRUCK, STAKEBED 1 TON DIESEL Not in AED ****** ******
TRUCK, FUEL /LUBE COMBINATION 1,500 GAL DIESEL Not in AED ****** ******
TRUCK, MECHANICS SERVICE 1TON W/ BOOM,
COMPRESSOR, WELDER DIESEL Not in AED ****** ******
TRUCK, WATER, 4,000G 6X6 PWR SPRAY, W/ WATER
CANNON DIESEL Not in AED ****** ******
TRUCK, TRACTOR W/ 5th WHEEL 385 HP DIESEL Not in AED ****** ******
CLASS 04 [TRAILERS]
TRAILER, LOWBOY, 50-60 TON Not in AED ****** ******
TRAILER, FLATBED, HIGHBOY, 40-48 FT. Not in AED ****** ******
CLASS 11 [EARTHMOVER]
EXCAVATOR, CRAWLER, 60,700# DIESEL ****** ****** ****** ******
MOTOR GRADER, 185HP, 32,460# W/ RIPPER
SCARIFIER DIESEL ****** ****** ****** ******
LOADER, BACKHOE, 78 HP DIESEL ****** ****** ****** ******
LOADER, TOOL CARRIER 125 HP, 2.25 CY, W/ FORKS,
BUCKET & BOOM DIESEL ****** ****** ****** ******
LOADER, SKID STEER 60HP 5,808# DIESEL ****** ****** ****** ******
LOADER, WHEEL 4YD 180HP W/FORKS DIESEL ****** ****** ****** ******
CLASS 12 [PIPELAYING/TRENCHING/TUNNELING)
TRENCHER, CHAIN, 6"-16" x 6', 51HP DIESEL ****** ****** ****** ******
CLASS 13 [COMPACTION]
COMPACTOR, SOIL, SD-DD WALK BEHIND, 29.9"
DIESEL ****** ****** ****** ******
COMPACTOR, SOIL, VIBRATORY, SMOOTH DRUM 66"
14,000# DIESEL ****** ****** ****** ******
CLASS 14 [CRANES]
CRANE, CRAWLER 100T DIESEL ****** ****** ****** ******
CRANE, CRAWLER 200T DIESEL ****** ****** ****** ******
CRANE, CRAWLER 230T DIESEL Not in AED ****** ******
CRANE, CRAWLER 300T DIESEL Not in AED ****** ******
CRANE, CRAWLER 440T W/SUPERLIFT DIESEL Not in AED ****** ******
CRANE, ROUGH TERRAIN 28-30T DIESEL ****** ****** ****** ******
CRANE, ROUGH TERRAIN 50T DIESEL ****** ****** ****** ******
CRANE, ROUGH TERRAIN 65T DIESEL ****** ****** ****** ******
CRANE, ROUGH TERRAIN 100T DIESEL ****** ****** ****** ******

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

PAGE 2 OF 3

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-8

TOOL AND EQUIPMENT RATES

AE-Constructor's Major Equipment Internal Rate Schedule - AED GREEN BOOK ANALYSIS effective 3/20/05
Over / Under
SAMPLE BEO = ******%
****** ******

Monthly AED
CONSTRUCTION EQUIPMENT & VEHICLES Bare AED Regional Regional
DESCRIPTION Rate Rental Rate Multiplier Rental Rate
CLASS 15 [FORKLIFTS]
FORKLIFT, WAREHOUSE PNEU 6,000# GAS/LPG ****** ****** ****** ******
FORKLIFT, TELE-BOOM, 8,000# DIESEL ****** ****** ****** ******
CLASS 17 [ AIR COMPRESSORS]
AIR COMPRESSOR, 185 CFM DIESEL ****** ****** ****** ******
AIR COMPRESSOR, 750 CFM DIESEL ****** ****** ****** ******
CLASS 18 [ CRANE ACCESSORIES ]
CRANE, ATTACHMENT M250 LUFFING JIB Not in AED ****** ******
CRANE, ATTACHMENT, 300T 225 MAXER Not in AED ****** ******
CRANE, ATTACHMENT, RINGER 300T Not in AED ****** ******
CLASS 19 [ GANTRYS ]
STRAND JACK LIFT SYSTEM PSC L180-40, L180-60 Not in AED ****** ******
GANRTY - JACKING FRAME 450-700T J&R L1402-4-39 Not in AED ****** ******
CLASS 52 [WELDERS]
WELDER, 400AMP DIESEL, TRL. MTD. DIESEL ****** ****** ****** ******
WELDER, 200AMP ELEC. 8 STATION Not in AED ****** ******
CLASS 53 [GENERTORS/LIGHT
PLANTS/DISTRIBUTION]
GENERATOR, DIESEL 60KW, TRL. MTD. ****** ****** ****** ******
LIGHT PLANTS, 6KW 4 X 1,000 WATT LAMPS, DIESEL ****** ****** ****** ******
CLASS 54 [MANLIFTS/SCISSORLIFTS/ELEVATORS]
CONSTRUCTION ELEVATOR, MATERIAL HOIST, 150'
6,200# Not in AED ****** ******
MANLIFT, ARTICULATING BOOM 66' DIESEL ****** ****** ****** ******
MANLIFT, ARTICULATING BOOM 86' DIESEL ****** ****** ****** ******
MANLFIT, TELESCOPIC BOOM 120' DIESEL ****** ****** ****** ******

Page 3 of 3

EXECUTION COPY
EXHIBIT 5.1-9

JOB SUPPLIES

Barrels (water, Trash, etc.)


Bits, Rock
Bits, Wood & Steel
Bolts (Temp. Use)
Boots
Brooms
Brushes
Cable, Wire Rope (except on power equip.)
Cable Welding
Carborundum Blocks
Chalk, Carpenters'
Checks, Brass
Clamps, Cable (except on power equip.)
Cleaning Compounds, Solvents, Rags & Waste
Coats, Rain
Crayon, Lumber
Cups, paper
Dies
Disposal, Protective Clothing
Drift pins
Drills, Star
Drills, Twist

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Electric Light Bulbs


Electrical Fittings (temp. power and light)
Employee Protective Equipment/Gear
Extension Cords
Files
Film
Fire Extinguishers (temporary)
Flashlights & Batteries
Form Lubricants
Form Materials, Misc. Forms
Gas & Oxygen for Cutting, etc. (Incl. Bulk
Supply)
Gloves, Canvas or Other
Goggles & Safety Lenses
Handles (All)
Hats, Safety

Helmets, Sleeves, Gloves (Welder's


Protection)
Holders, Electrode
Hose, Air & Accessories
Hose, Fire (temporary)
Hose, Water
Janitor's Supplies
Lanterns & Similar Devices
Manifolds, all temp. services
Mops
Pails & Containers
Paint (for use Temp. Struct., etc.)
Paper (Sand-Emery)
Points, Moil, Chipping, etc.
Reamers
Respirators
Rollers, Wood or Steel
Rope, Manilla or Other Fiber
Runaways, Screens, etc. for Concrete Placing
Saw Blades, Power
Saw Blades, Hack, Coping, etc.
Screens, Sand
Slag, etc. (Temp. Use)
Slings, 1-1/4" dia. and under
Solder
Steel Plate & Shapes for Temp. Supports, etc.
Supplies (All Office)
Supplies & Equip. (First Aid & Safety)
Tape, Rubber & Friction, etc. (Temp. Use)
Taps
Tips, Cutting & Welding
Timber Mats, Cribbing, Blocking, etc.
Tarpaulins, Visqueen, etc.
Towels
Water Dispensers (Portable)
Weld Test Specimens
Wheels, Burrs, etc., for Grinding
Wire for Temp. Construction

Page 1 of 1

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-10

2005 RATE SHEET


ENGINEERING / GRAPHICS LABOR & OTHER PROFESSIONAL LABOR (US OFFICES)
Bechtel Classification
ST OT
Grade
Letter Administrative, Clerical Support, Accounting [$*****] [$*****]
21 Senior Secretary, Administrator, Drafter, Project Controls Technician,
Assistant Engineer, Accounting [$*****] [$*****]
22 Engineer, Drafter, Designer, Project Controls Engineer, Accounting,
Procurement [$*****] [$*****]
23 Engineer, Drafter, Senior Designer [$*****] [$*****]
24 Engineer, Project Controls Engineer, Senior Designer, Contract
Administrator, Proposal Coordinator, Automation Support, Procurement [$*****] [$*****]
25 Senior Engineer, Senior Project Controls Engineer, Supervising
Designer, Contract and Project Administrators, Automation Support,
Procurement [$*****] [$*****]
26 Engineering Supervisor, Senior Engineer, Design/Drafting Supervisor,
Senior Contract Administrator, Project Controls Supervisor, Accounting
Supervisor, Procurement [$*****] [$*****]
27 Project Engineer, Project Estimator, Engineering Supervisor,
Design/Drafting Supervisor, Project Controls Manager [$*****] [$*****]
28 Project Engineer, Project Estimator, Engineering Supervisor,
Design/Drafting Supervisor, Project Controls Manager [$*****] [$*****]
29 Project Engineer, Department Manager, Project Manager, Chief
Engineer [$*****] [$*****]
30 Senior Project Engineer, Senior Manager, Department Manager, Project
Manager, Chief Engineer [$*****] [$*****]
31 & Up Manager of Operations, Manager of Services, Regional Manager,
Department Manager, Project Manager, Chief Engineer [$*****] [$*****]

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

Specialist
25 Home Office Rigging Engineer, Laser Mapping Specialist,
Environmental Permitting Specialist [$*****] [$*****]
26 Home Office Rigging Engineer, Laser Mapping Specialist,
Environmental Permitting Specialist [$*****] [$*****]
27 Home Office Rigging Engineer, Laser Mapping Specialist,
Environmental Permitting Specialist, FGD Technology Specialist,
Financial Analyst [$*****] [$*****]
28 Environmental Permitting Specialist, FGD Technology Specialist,
Financial Analyst [$*****] [$*****]
29 Environmental Permitting Specialist, FGD Technology Specialist,
Financial Analyst [$*****] [$*****]
30 Environmental Permitting Specialist, FGD Technology Specialist,
Financial Analyst [$*****] [$*****]
31 & Up Environmental Permitting Specialist, FGD Technology Specialist,
Financial Analyst [$*****] [$*****]

Page 1 of 2

EXECUTION COPY
EXHIBIT 5.1-10

Classifications provided are typical but not all-inclusive. All personnel supporting the
Work are billable, including technical and Management oversight (i.e., project
management, project controls quality assurance, contract formation, construction
administrative, and technical support services) and financial services specifically
requested for the project (such as audit support and special reports).

Page 2 of 2

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-11

2005 RATE SHEET


Professional Construction Labor (US Offices)
Bechtel Grade Classification ST OT
Letter Administrative, Clerical Support, Accounting [$*****] [$*****]
21 Senior Secretary, Administrator, Drafter, Project Controls Technician,
Assistant Engineer, Accounting [$*****] [$*****]
22 Engineer, Drafter, Designer, Project Controls Engineer, Accounting,
Procurement [$*****] [$*****]
23 Engineer, Drafter, Senior Designer, Construction Supervision, Safety [$*****] [$*****]
24 Engineer, Project Controls Engineer, Senior Designer, Contract
Administrator, Proposal Coordinator, Automation Support, Safety,
Construction Supervision, Procurement [$*****] [$*****]
25 Senior Engineer, Senior Project Controls Engineer, Supervising
Designer, Contract and Project Administrators, Automation Support,
Safety, Procurement [$*****] [$*****]
26 Engineering Supervisor, Senior Engineer, Design/Drafting Supervisor,
Senior Contract Administrator, Project Controls Supervisor, Accounting
Supervisor, Safety, Procurement [$*****] [$*****]
27 Project Engineer, Project Estimator, Engineering Supervisor,
Design/Drafting Supervisor, Project Controls Manager [$*****] [$*****]
28 Project Engineer, Project Estimator, Engineering Supervisor,
Design/Drafting Supervisor, Project Controls Manager, General
Superintendent [$*****] [$*****]
29 Project Engineer, Department Manager, Project Manager, Chief Engineer [$*****] [$*****]
30 Senior Project Engineer, Senior Manager, Department Manager, Project
Manager [$*****] [$*****]
31 & Up Manager of Operations, Manager of Services, Senior Construction
Manager, Department Manager, Project Manager [$*****] [$*****]

Classifications provided are typical but not all-inclusive. All personnel supporting the
work are billable, including technical and management oversight (i.e., project
management, project controls, quality assurance, contract formation, construction
administrative, and technical support services) and financial services specifically
requested for the project (such as audit support and special reports).

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CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-12

AQC SYSTEMS COST REIMBURSABLE WORK


CRAFT LABOR

The AE-Constructor shall be paid an amount to be determined by the following methods:

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

A. Payment for authorized Subcontracts (a subsidiary or company which is in any way associated with the AE-
Constructor is not considered a Subcontractor) at AE-Constructor's direct cost (Invoice). For permanent
materials furnished by a Subcontractor, such materials shall be furnished at Subcontractor's direct cost
(Invoice). AE-Constructor shall include with invoices, receipts for all such materials furnished by
Subcontractor.

B. Payment for permanent materials furnished by AE-Constructor at AE-Constructor's direct cost (Invoice).
AE-Constructor shall include with invoice receipts for all such materials furnished.

C. Payment for major construction and maintenance tools and equipment that have an original cost greater
than [$*****] each (MAJOR EQUIPMENT), by one or more of the following methods as determined by
FirstEnergy and/or as dictated by ownership of equipment:

1. For AE-Constructor-owned MAJOR EQUIPMENT, the AE-Constructor shall be reimbursed in


accordance with the AE-Constructor's Internal Rate Schedule, Exhibit 5.1-8, and as noted below or at
mutually agreed upon rates.

a. AE-Constructor’s Internal Rate Schedule shall constitute full compensation for the use of
this equipment, including fuel, lubricants, taxes and including compensation for all labor,
material and other costs incurred in the repair and maintenance of said equipment.
b. Rental rates shall be charged at the lowest rates considering the duration of time
that the equipment or tools are required. Rental rates shall be per calendar day, Week and
Month with billing as follows:
· Beginning on the first day required, a daily rate during that Week (7-day period beginning on the day of the
week the equipment is first required or for subsequent months, the first day of accrual for that month), but not to
exceed the Weekly rate for that Week.
· The second Week of a rental again begins with the daily rate during the Week but not to exceed the Weekly
rate for that Week.
· Further Weeks of rental again begin as above, but once the monthly rate is accrued, the monthly rate is used.
The equipment is then available for a Month (beginning on the day of the month first used and until reaching
the same day of the following month, at which time the cycle of accrual begins again.
c. If the physical use of the equipment in operating hours dictates required maintenance for
the equipment including major overhauls (as designated in Exhibit 5.1-8 by AE-
Constructor), for continuous use of the equipment for two shifts in one calendar day, Week,
Month, AE-Constructor shall be reimbursed as if there were two pieces of equipment in use
during that day, Week, Month.

d.
If the physical use of the equipment in operating hours dictates required maintenance for
the equipment including major overhauls (as designated in Exhibit 5.1-8 by AE-
Constructor), for intermittent use of the equipment for two shifts in one calendar day, Week,
Month, AE-Constructor shall be reimbursed as follows:
For second shift work (after the first shift has been reimbursed based on Article C.1.a.
and b. above) rental rates shall be at half of the hourly rental rate (the hourly rental rate
is determined using the monthly rental rate from Exhibit 5.1-8 divided by 176 hours)
times the actual hours of use on second shift. Therefore as examples (For these
examples, assume equipment rates are [$*****]/day, [$*****]/week, [$*****]/month, and
hourly rental rate is [$*****]):
· Working 6 days per week, with actual work on second shift averaging 6 hours per day, (36 hours/week),
reimbursement for a week would be [$*****] plus 36 hours times [$*****] times 50% or [$*****].
e. AE-Constructor shall document actual billable time and appropriate billing rates for
purposes of determining actual cost to FirstEnergy, including daily, weekly or monthly

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EXHIBIT 5.1-12

documentation, as appropriate, signed by FirstEnergy’s Superintendent. If no pre-planned


written agreement is reached relative to the appropriate documentation, then daily
documentation (such as supplemental documentation incorporated with signed daily time
sheets) is required. AE-Constructor shall maintain documentation acceptable to FirstEnergy’s
Superintendent indicating equipment usage and idle time and/or equipment required to be on-
site. This documentation shall be a minimum of daily, or as indicated in above referenced pre-
planned written agreement.

2. For AE-Constructor owned electrical tools meeting the requirements of this paragraph, not listed in
Exhibit 5.1-8, or as determined by FirstEnergy, AE-Constructor shall be reimbursed at [*****%] of the
daily, weekly and monthly rates contained in the latest edition of the"NECA Tool and Equipment Rental
Schedules” (A Guide for Electrical Contractors or A Guide for Line Contractors), administered as in
C.1.a., b., c., and d. above.

3. For AE-Constructor owned construction equipment meeting the requirements of this paragraph, not
listed in Exhibit 5.1-8 , or as determined by FirstEnergy, AE-Constructor shall be reimbursed at
competitive regional rates no more than [*****%] of the AED Green Book of the daily, weekly and
monthly rates contained in the latest edition of “The AED Green Book” published by Primedia
Information Inc., San Jose, California (Refer to Exhibit 5.1-8) administered as in C.1.a.,b.,c., and d.
above.

4. For rented MAJOR EQUIPMENT from a third party, not a subsidiary or company which is in any way
associated with the AE-Constructor, the AE-Constructor will be reimbursed at the direct cost (Invoice).
No addidtional markup of the invoice cost for engine-driven equipment shall be allowed; with added
mark-up (to be determined) to cover fuels and lubricants if such costs are not included in the
equipment rental price. AE-Constructor shall endeavor to engage such third party rental company in the
same form and manner as 2 above.

a. AE-Constructor’s primary source for third party reimbursable rented or leased MAJOR
EQUIPMENT should be with FirstEnergy’s “preferred supplier” United Rentals, under the
Pantellos Collaborative Agreement for FirstEnergy. The AE-Constructor shall secure
comparative rental rates whenever feasible. FirstEnergy’s “preferred supplier” shall be used

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

unless the rental rate is, in the AE-Constructor’s opinion, not competitive or the “preferred
supplier” is unable to satisfactorily supply the equipment. The AE-Constructor is to
communicate these exceptions and the reasons to the Supply Chain Department
representative in a reasonable time, but no later than 30 days after completion of the work.

Contact at United Rentals: Chris Britt, Branch Manager, cbritt@ur.com

Columbiana #A27 East Liverpool #A28


44691 State Route 14 16695 Lisbon Street
Columbiana, Ohio 44408 East Liverpool, Ohio 43920
Phone: 330-482-1100 Phone: 330-385-5381
FAX: 330-482-1182 FAX: 330-385-7304

Estimated Cost for MAJOR EQUIPMENT may be pre-determined for a Subproject, including both owned
and third-party rentals. The Estimated Cost shall be agreed upon by the parties, and becomes part of the
“Target Construction Cost”.

If the parties, prior to the start of a Subproject (with equipment use greater than a month), agree (in writing)
upon a fixed rental period for the Subproject, the rental amount shall be determined based on use of
fractional month’s rental for any period in excess of full months.

All MAJOR EQUIPMENT must be authorized by FirstEnergy prior to being delivered to the jobsite and in no
event shall the rental rates be higher than the rates paid in the locality for similar equipment.

FirstEnergy reserves the right to provide any MAJOR EQUIPMENT at any time during the term of this
Contract. If provided, FirstEnergy will either provide or pay for all necessary fuel, lubricants and
maintenance.

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EXECUTION COPY
EXHIBIT 5.1-12

D. By payment for:

1. Wages and fringe benefits required by applicable union contract for craft labor up to and including
the General Foreman.

2. Payroll taxes, contributions to Federal and State Unemployment and Worker's (Workmen's)
Compensation funds required to be made by the AE-Constructor for craft labor and Comprehensive
General Liability and Employer's Liability Insurance (burdens).

In lieu of invoicing actuals, such payroll taxes, Federal and State Unemployment, Worker's
Compensation funds and Comprehensive General Liability and Employer's Liability Insurance as
required by the Contract terms may be charged at the Cumulative Adjustable Rate (CAR), as
defined below, of Boiler Maker [*****%], Pipe Fitter [*****%], Electrician [*****%] (Ohio) or of Boiler
Maker [*****%], Pipe Fitter [*****%], Electrician [*****%] (Pennsylvania) of the Wages (up to and
including General Foreman) and adjusted (periodic adjustments to be determined) to reflect
actual costs. In the event that FirstEnergy elects for the Contractor to provide $[******] million excess
liability insurance in accordance with Article 12 of the Agreement, the Cumulative Adjustable Rate
(CAR), as defined below, will be of Boiler Maker [*****%], Pipe Fitter [*****%], Electrician [*****%]
(Ohio) or, of Boiler Maker [*****%], Pipe Fitter [*****%], Electrician [*****%] (Pennsylvania) of the
Wages. Pursuant to the provisions of the Contract terms allowing FirstEnergy's access to AE-
Constructor's records to review Contract cost, FirstEnergy shall have the right of access to records
substantiating the actual cost of the various portions of the Cumulative Adjustable Rate, and
FirstEnergy and AE-Constructor agree to make adjustments to actual costs (periodic adjustments
to be determined), subject to audit (FirstEnergy's access) under the provisions as allowed for
herein.

The Cumulative Adjustable Rate (CAR) shall be comprised and represent the sum of the
components listed below (a., b., and c. or d.) with some components, or portions thereof,
reimbursable based on actual costs incurred by the AE-Constructor, and other portions, or portions
thereof, reimbursable and shall be adjusted (periodic adjustments to be determined) during the
term of the Contract.

a. FICA, FUTA, and SUTA

FirstEnergy will reimburse the AE-Constructor for FICA, Federal (FUTA) and State (SUTA)
Unemployment at the Rate of [*****%] (Ohio) or [*****%] (Pennsylvania) of Wages (up to and
including General Foreman). Upon receipt of notification of statutory changes in these rates,
AE-Constructor shall notify FirstEnergy within 10 days of receipt of this notification for
consideration by the parties of making changes in the CAR. The AE-Constructor shall
provide a report, which reconciles the difference between the amount billed for FICA, FUTA
and SUTA with the actual amount paid therefor, whether charges or credits, which shall be
submitted to FirstEnergy along with an invoice or a check, with proper reconciliation of
adjustments (periodic adjustments to be determined). The breakdown for the FICA, FUTA
and SUTA percentage listed above is FICA [*****%]; FUTA [*****%] and SUTA [*****%] (Ohio)
and [*****%] (PA).

b. Comprehensive General Liability and Employer's Liability Insurance

The portion of the AE-Constructor's premiums that are directly related to the insurance
required by FirstEnergy as per the Contract terms will be reimbursed to the AE-Constructor
at [*****%] of the Wages; in the event that FirstEnergy elects for the Contractor to provide
$[******] excess liability insurance, in accordance with Article 12 of the Agreement, the
insurance required by FirstEnergy as per the Contract terms will be reimbursed to the AE-
Constructor at [*****%] of the Wages. This percentage mark-up shall be adjusted (periodic
adjustments to be determined) during the term of the contract. Premiums for additional
insurance (other than as required by the Contract terms) as may be required by FirstEnergy
and will be reimbursed at invoice cost.

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EXHIBIT 5.1-12

c. Worker’s (Workmen’s) Compensation - State of Ohio

For work performed in the state of Ohio, the portion of the AE-Constructor's Workers'
Compensation premiums that are directly related to the coverage required by FirstEnergy shall
be reimbursed at of Boiler Maker [*****%], Pipe Fitter [*****%], Electrician [*****%] (Ohio) of
Wages. This percentage shall be based on the AE-Constructor’s actual premium rate in effect
on July 1 immediately preceding the effective date of the Contract. The statutory percentage
component of Boiler Maker [*****%], Pipe Fitter [*****%], Electrician [*****%] for Ohio may be
escalated/de-escalated, upon notification from the AE-Constructor, for any increase/decrease in
the statutory Worker's Compensation (Manual Rate only) as modified by the AE-Constructor's
Experience Modification Percentage (rate). The Experience Modification Rate, in effect on
[*****] immediately preceding the effective date of the Contract shall be periodically adjusted
during the term of the Contract. AE-Constructor shall provide evidence, acceptable to and
agreed by FirstEnergy, of such escalation/de-escalation that directly affect such cost prior to
such changes becoming effective. FirstEnergy shall be notified within 10 days of AE-
Constructor’s receipt of Worker’s Compensation notice from the State of Ohio whether there is
an increase, a decrease or no change. FirstEnergy and AE-Constructor shall then determine
appropriate timing for adjustment of the CAR. The AE-Constructor shall provide a report, for
any adjustments for past work (refunds/rebates/discounts/weekly wage caps/etc.), whether
charges or credits, which shall be submitted to FirstEnergy along with an invoice or a check,
with proper reconciliation of adjustments (periodic adjustments to be determined). The
Manual rate and the Experience Modification Factor used to calculate the rate above are
Manual Rate Boiler Maker [*****%], Pipe Fitter [*****%], Electrician [*****%] for Ohio and
Experience Modification Factor 1.00 for Ohio, plus statutory Administrative Costs and DWRF
Costs of Boiler Maker [*****%], Pipe Fitter [*****%], Electrician [*****%] for Ohio. Any
escalation/de-escalation because of changes to the Experience Modification Factor shall be as
mutually agreed by both FirstEnergy and AE-Constructor. Should the Manual Rate Code used
as the Base Rate for premium cost calculation purposes be revised resulting in a lower Manual
and total premium cost rate, the resulting change shall accrue to the benefit of FirstEnergy.

If AE-Constructor compliance for Workers' Compensation is provided under an acceptable (by


the State Workers' Compensation Commission) self-insurance program, AE-Constructor shall
submit evidence of such certification and the degree of self-insurance being undertaken. The
effective rate as provided above for reimbursement under such self-insurance program shall be
adjusted (periodic adjustments to be determined) during the term of the Contract.

If during the duration of the Contract the Contractor’s Ohio Worker’s Compensation status
changes from the individual program to a group program, or from the group program to an
individual program, then FirstEnergy shall be notified within 10 days of AE-Constructor’s receipt
of such Worker’s Compensation notice from the State of Ohio. FirstEnergy and AE-Constructor
shall then determine the necessary adjustments to the percentage markup for Ohio worker’s
compensation and the appropriate timing for adjustment of the CAR.

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CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-12

d. Worker's (Workmen's) Compensation - Commonwealth of Pennsylvania

For work performed in the Commonwealth of Pennsylvania, the portion of the Contractor's
Workers' Compensation premiums that are directly related to the coverage required by
FirstEnergy shall be reimbursed at Boiler Maker [*****%], Pipe Fitter [*****%], Electrician [*****%]
(Pennsylvania) of Wages. This percentage shall be based on the AE-Constructor’s actual
premium rate in effect on the first day of the month immediately preceding the effective date of
the Contract. The statutory percentage component of Boiler Maker [*****%], Pipe Fitter [*****%],
Electrician [*****%] for Pennsylvania may be escalated/de-escalated, upon notification from the
AE-Constructor, for any increase/decrease in the statutory Worker's Compensation (Manual
Rate only) as modified by the AE-Constructor's Experience Modification Percentage (rate). The
Experience Modification Rate in effect on the first day of the month immediately preceding the
effective date of the Contract shall be adjusted (periodic adjustments to be determined)
during the term of the Contract. AE-Constructor shall provide evidence, acceptable to and
agreed by FirstEnergy, of such escalation/de-escalation that directly affect such cost prior to
such changes becoming effective. FirstEnergy shall be notified within 10 days of AE-
Constructor’s receipt of Worker’s Compensation notice from the insurance underwriters of
current statutory Worker’s Compensation rates whether there is an increase, a decrease or no
change. FirstEnergy and AE-Constructor shall then determine appropriate timing for adjustment
of the CAR. Within 45 days of such receipt by AE-Constructor and within 45 days of the end of
the project, any adjustments for past work (refunds/rebates/discounts/etc.), whether charges or
credits, shall be submitted to FirstEnergy in the form of an invoice or a check, with proper
reconciliation of adjustments (periodic adjustments to be determined). The Manual rate and
the Experience Modification Factor used to calculate the rate above are Manual Rate Boiler
Maker [*****%], Pipe Fitter [*****%], Electrician [*****%] for Pennsylvania and Experience
Modification Factor [*****] for Pennsylvania. Any escalation/de-escalation because of changes to
the Experience Modification Factor shall be as mutually agreed by both FirstEnergy and AE-
Constructor. Should the Manual Rate Code used as the Base Rate for premium cost calculation
purposes be revised resulting in a lower Manual and total premium cost rate, the resulting
change shall accrue to the benefit of FirstEnergy.

3. Overheads (excluding Fee/profit) include, but not limited to, offsite support personnel, automotive
insurance premiums, home office expenses, transporting small tools and light construction equipment
to and from the jobsite, etc. to be paid for at a rate of [$*****]/Hr of the Base Hourly Wages calculated
as follows: the direct straight time labor rate per hour required by applicable labor contract for craft
labor (up to and including General Foreman) multiplied by the number of hours worked, multiplied by
[$*****]/Hr. , as noted above. The initial charge rate shall be in effect for the period January 1, 2005
through December 31, 2005. Commencing January 1, 2006, the initial charge rate will be adjusted

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

annually per the annual Consumer Price Index - Urban Wage Earners and Clerical Workers,
Washington - Baltimore, DC-MD-VA-WV (Nov 96 = 100). For example, if the average Index for the
12 months preceding October 2005 were [*****%], the 2006 rate effective for January 1, 2006 through
December 31, 2006, would be [$*****]/Hr.

E. Payment for small tools (that have an original cost of less than or equal to [$*****]) by one of the following
methods as determined by FirstEnergy:

1. [$*****] Craft Labor Hour Worked. (Does not include Superintendent, craft General Foreman and
Foreman, office personnel time, and AE-Constructor’s other non-craft administrative personnel.)

2. Pricing for Small Tools shall be adjusted annually at an escalation rate determined by the Bureau of
Labor Statistics (BLS) Producer Price Index for “Material and Components for Construction”,
commodity code [*****] (“BLS Index”). In the event that commodity code [*****] is discontinued, the
next higher level series as published by BLS shall be used for escalation. The initial charge rate shall
be in effect for the period January 1, 2005 through December 31, 2005. Commencing January 1,
2006, the initial charge rates will be adjusted annually. The BLS Index for the average of the twelve
months preceding each October shall be used to determine the next year’s escalation. For example, if
the average Index for the 12 months preceding October 2005 were [*****%], the 2006 rate effective
for January 1, 2006 through December 31, 2006, would be [$*****]/Hr.

Page 5 of 9

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-12

3. FirstEnergy may opt to furnish small tools.

F. Payment for consumables (job supplies such as paper clips, tape, respirators, gloves, paper, soap, grinding
wheels, saw blades, etc. as defined in Exhibit 5.1-9, Job Supplies) by one of the following methods as
determined by FirstEnergy:

1. [$*****] Craft Labor Hour Worked. (Does not include Superintendent, craft General Foreman and
Foreman, office personnel time, and AE-Constructor’s other non-craft administrative personnel.)

2. Pricing for Small Tools shall be adjusted annually at an escalation rate determined by the Bureau of
Labor Statistics (BLS) Producer Price Index for “Material and Components for Construction”,
commodity code [*****] (“BLS Index”). In the event that commodity code [*****] is discontinued, the
next higher level series as published by BLS shall be used for escalation. The initial charge rate shall
be in effect for the period January 1, 2005 through December 31, 2005. Commencing January 1,
2006, the initial charge rates will be adjusted annually. The BLS Index for the average of the twelve
months preceding each October shall be used to determine the next year’s escalation. For example, if
the average Index for the 12 months preceding October 2005 were [*****%], the 2006 rate effective
for January 1, 2006 through December 31, 2006, would be [$*****]/Hr.

3. FirstEnergy may opt to furnish small tools.

The payment for such items of Work as covered above shall be made as provided in the General Terms and
Conditions for the Engineering, Procurement, and Construction.

FirstEnergy may authorize minor changes in the work not involving an adjustment in the [******] Price or [******] for
Performance, which are consistent with the overall intent of the Contract.

Page 6 of 9

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-12

Example of Labor Costs


As of July 26, 2005

COST REIMBURSABLE WORK


BREAKDOWN OF COST OF LABOR (PF OH, 1 st Shift)

1. [*****%] published wage rate (plus taxable fringes @ [$*****])


Pipe Fitter Journeyman Local 495 [$*****]

a. Base Hourly Wage Rate [*****%] published rate (plus taxable [$*****]

fringes @ [$*****]) Pipe Fitter Journeyman

2. Fringe benefit cost/MNHR* (Non Taxable Fringes)

a. Hours Worked (Includes $-______/HR Industry Funds**) [$*****]

b. Hours Paid (Includes $-______/HR Industry Funds**) [$*****]

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3. Insurance & Taxes (CAR) [*****%] of Wages (Hours Paid) [$*****]

4. Overheads (excluding Fee) (Hours Worked) [$*****]

5. Payment for small tools (Hours Worked) [$*****]

6. Payment for consumables (Hours Worked) [$*****]

7. Total Cost Per Hour (First Shift)

a. Straight (1a+2a+2b+3+4+5+6) [$*****]

b. Premium (1a+2b+3) [$*****]

1. Time & one-half [(straight + .5 (premium)] [$*****]


2. Double Time (straight + premium) [$*****]

8. Shift differential - Add to 1 above and recalculate


3, 4, and 7 for 2nd and 3rd shift rates. If fringe
benefits are affected by shift differential (i.e. fringes
as a % of pay rate), items 2a. and 2b. may also
need adjusted.

1. 2 nd [$*****]/HR
2. 3 rd [$*****]/HR

NOTE: (1) The AE-Constructor will be required to complete and submit the information above for all crafts
used prior to the crafts beginning any Work.

All billing rate information to be sent to:


FirstEnergy Corp.
76 S. Main Street
Akron, OH 44308
ATTN: Peter F. Bertolo
* As required by applicable union contract.
** Industry Funds, if applicable.
***Exclusive of the premium cost of [******] insurance, which shall be priced at an additional [*****%] of Wages
paid.

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CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-12

Example of Labor Costs


As of July 26, 2005

COST REIMBURSABLE WORK


BREAKDOWN OF COST OF LABOR (BM OH, 1 st Shift)

1. [*****%] published wage rate (plus taxable fringes @ [$*****])


Boiler Maker Journeyman Local 154 [$*****]

a. Base Hourly Wage Rate [*****%] published rate (plus taxable


fringes @ [$*****]) Boiler Maker Journeyman [$*****]

2. Fringe benefit cost/MNHR* (Non Taxable Fringes)

a. Hours Worked (Includes $______/HR Industry Funds**) [$*****]

b. Hours Paid (Includes $______/HR Industry Funds**) [$*****]

3. Insurance & Taxes (CAR) [*****%] of Wages (Hours Paid) [$*****]

4. Overheads (excluding Fee) (Hours Worked) [$*****]

5. Payment for small tools (Hours Worked) [$*****]

6. Payment for consumables (Hours Worked) [$*****]

7. Total Cost Per Hour (First Shift)

a. Straight (1a+2a+2b+3+4+5+6) [$*****]

b. Premium (1a+2b+3) [$*****]

1. Time & one-half [(straight + .5 (premium)] [$*****]


2. Double Time (straight + premium) [$*****]

8. Shift differential - Add to 1 above and recalculate


3, 4, and 7 for 2nd and 3rd shift rates. If fringe
benefits are affected by shift differential (i.e. fringes

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

as a % of pay rate), items 2a. and 2b. may also


need adjusted.

1. 2nd [$*****]/HR
2. 3rd [$*****]/HR

NOTE: (1) The AE-Constructor will be required to complete and submit the information above for all
crafts used prior to the crafts beginning any Work.

All billing rate information to be sent to:


FirstEnergy Corp.
76 S. Main Street
Akron, OH 44308
ATTN: Peter F. Bertolo
* As required by applicable union contract.
** Industry Funds, if applicable.
***Exclusive of the premium cost of $[******] million excess liability insurance, which shall be priced at an
additional [*****]% of Wages paid.

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CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 5.1-12

Example of Labor Costs


As of July 26, 2005

COST REIMBURSABLE WORK


BREAKDOWN OF COST OF LABOR (EL OH, 1 st Shift)

1. [*****%] published wage rate (plus taxable fringes @ [$*****])


Electrician Journeyman Local 246 [$*****]

a. Base Hourly Wage Rate 90% published rate (plus taxable


fringes @ [$*****]) Electrician Journeyman [$*****]

2. Fringe benefit cost/MNHR* (Non Taxable Fringes)

a. Hours Worked (Includes $ - ___/HR Industry Funds**) [$*****]

b. Hours Paid (Includes $ - ___/HR Industry Funds**) [$*****]

3. Insurance & Taxes (CAR) [*****%] of Wages (Hours Paid) [$*****]

4. Overheads (excluding Fee) (Hours Worked) [$*****]

5. Payment for small tools (Hours Worked) [$*****]

6. Payment for consumables (Hours Worked) [$*****]

7. Total Cost Per Hour (First Shift)

a. Straight (1a+2a+2b+3+4+5+6) [$*****]

b. Premium (1a+2b+3) [$*****]

1. Time & one-half [(straight + .5 (premium)] [$*****]


2. Double Time (straight + premium) [$*****]

8. Shift differential - Add to 1 above and recalculate


3, 4, and 7 for 2nd and 3rd shift rates. If fringe
benefits are affected by shift differential (i.e. fringes
as a % of pay rate), items 2a. and 2b. may also
need adjusted.

1. 2nd [$*****]/HR
2. 3rd [$*****]/HR

NOTE: (1) The AE-Constructor will be required to complete and submit the information above for
all crafts used prior to the crafts beginning any Work.

All billing rate information to be sent to:


FirstEnergy Corp.
76 S. Main Street
Akron, OH 44308
ATTN: Peter F. Bertolo
* As required by applicable union contract.
** Industry Funds, if applicable.
***Exclusive of the premium cost of ${******] million excess liability insurance, which shall be priced at an
additional [*****]% of Wages paid.

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EXECUTION COPY
EXHIBIT 5.2(C)

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CONTRACTOR’S INTERIM WAIVER AND RELEASE OF LIENS AND CLAIMS


UPON PROGRESS PAYMENT

STATE OF ______________________
COUNTY OF ____________________:

The undersigned, _____________________________ ("Contractor"), has been engaged by FirstEnergy Generation


Corp. ("FirstEnergy"), to furnish certain materials, equipment, services, and/or labor for the project known as
[Subproject #____ (the "Subproject")] of the W.H. Sammis Plant Air Quality Control Project (the "Project"), which is
located in Stratton, Ohio, and more particularly described on Attachment A, attached hereto (the "Property"),
pursuant to the General Terms and Conditions for Engineering, Procurement, and Construction, dated
_______________, 2005 (the “Agreement”).

Upon receipt of the sum of $_____________________ (“Current Payment”), Contractor waives and releases all
liens or claims of liens for labor and materials against FirstEnergy, the Subproject, the Project, and the Property,
and any right against any labor and/or material bond with the exception of the bond obligations in Section 12.7 of
the Agreement, “Security for Vendor Termination Costs” Contractor has or may have through the date of
____________________, 200__ (“Current Date”) arising out of Contractor's performance of work on the Subproject
and the Project.

Contractor represents that all of its obligations, legal, equitable, or otherwise, through ____________________,
200__ (date of last prior invoice) relating to or arising out of its work on the Subproject or the Project have been
fully satisfied, including, but not limited to obligations relating to:
· Employees, laborers, materialmen and subcontractors employed by Contractor;
· Labor, materials, equipment and supplies furnished by others to Contractor; and
· Sales and use taxes, social security taxes, income tax withholding, unemployment insurance, privilege taxes,
license fees, and any other taxes and obligations imposed by governmental authorities.

This Interim Lien Waiver is freely and voluntarily given, and Contractor acknowledges and represents that it has fully
reviewed the terms and conditions of this Interim Lien Waiver, that it is fully informed with respect to the legal effect
of this Interim Lien Waiver, and that it has voluntarily chosen to accept the terms and conditions of this Interim Lien
Waiver in return for the payment recited above.

[NAME OF CONTRACTOR]

By:

Title

AFFIDAVIT
On this ____ day of _________________, 20____, before me appeared the above-signed, known or identified to
me personally, who, being first duly sworn, did say that the information provided in this document is true and
accurate, this document was signed under oath personally and on behalf of Contractor, and that this Affidavit was
executed as a free act and deed of Contractor.

Notary Public
My term Expires (date): _________________

Page 1 of 1

EXECUTION COPY
EXHIBIT 5.2(C)

SUBCONTRACTOR'S INTERIM WAIVER AND RELEASE OF LIENS AND CLAIMS


UPON PROGRESS PAYMENT

STATE OF ______________________
COUNTY OF ____________________:
OR OTHER JURISDICTION (where signing) __________________

The undersigned, ________________________, of ____________________________ ("Subcontractor") who has,


under an agreement with ____________________________________ ("Contractor"), furnished certain materials,
equipment, services, and/or labor for the project known as [Subproject #____ (the "Subproject")] of the W.H.
Sammis Plant Air Quality Control Project (the "Project"), which is located in Stratton, Ohio, and more particularly
described on Attachment A, attached hereto (the "Property").

Upon receipt of the sum of $_____________________ (“Current Payment”), the Subcontractor waives and releases
any and all claims of lien for labor and materials against FirstEnergy Generation Corp. ("FirstEnergy"), Contractor,
the Subproject, the Project, and the Property, at law, in contract, tort, equity or otherwise, and any and all liens or
claims of liens or any right against any labor and/or material bond Subcontractor has or may have through the date
of ____________________, 200__ (“Current Date”), arising out of Subcontractor's performance of work on the
Subproject and the Project.

The Subcontractor represents that all of its obligations, legal, equitable, or otherwise, relating to or arising out of its
work on the Subproject and the Project through ____________________, 200__ (date of last prior invoice) relating
to or arising out of its work on the Subproject or the Project have been fully satisfied, including, but not limited to
obligations relating to:
· Employees, laborers, materialmen and subcontractors employed by the Subcontractor;
· Labor, materials, equipment and supplies furnished by others to the Subcontractor; and

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· Sales and use taxes, social security taxes, income tax withholding, unemployment insurance, privilege taxes,
license fees, and any other taxes and obligations imposed by governmental authorities.

This Interim Lien Waiver is freely and voluntarily given and the Subcontractor acknowledges and represents that it
has fully reviewed the terms and conditions of this Interim Lien Waiver, that it is fully informed with respect to the
legal effect of this Interim Lien Waiver, and that it has voluntarily chosen to accept the terms and conditions of this
Interim Lien Waiver in return for the payment recited above.

[NAME OF SUBCONTRACTOR]

By:

Title:

AFFIDAVIT
On this ____ day of _________________, 20____, before me appeared the above-signed, known or identified to
me personally, who, being first duly sworn, did say that the information provided in this document is true and
accurate, this document was signed under oath personally and on behalf of Subcontractor, and that this Affidavit
was executed as a free act and deed of Subcontractor.

Notary Public
My term Expires (date):_____________

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EXECUTION COPY
EXHIBIT 6.3(A)

CONTRACTOR’S FINAL LIEN WAIVER

STATE OF ______________________
COUNTY OF ____________________:

The undersigned, _____________________________ ("Contractor"), has been engaged by FirstEnergy Generation


Corp. ("FirstEnergy"), to furnish certain materials, equipment, services, and/or labor for the project known as
[Subproject #____ (the "Subproject")] of the W.H. Sammis Plant Air Quality Control Project (the "Project"), which is
located in Stratton, Ohio, and more particularly described on Attachment A, attached hereto (the "Property"),
pursuant to the General Terms and Conditions for Engineering, Procurement, and Construction, dated
_______________, 2005 (the “Agreement”).

In consideration of payment of the Contract Price, the Fee (as defined in the Agreement), and all other amounts
due under the Agreement, Contractor waives and releases all liens or claims of liens for labor and materials against
FirstEnergy, the Subproject, and the Property in respect of the Subproject, and any right against any labor and/or
material bond Contractor has, may have had or may have in the future arising out of Contractor's performance of
work on the Subproject.

Contractor represents that all of its payment obligations, legal, equitable, or otherwise, that are due as of the date
hereof relating to or arising out of its work on the Subproject have been fully satisfied, including, but not limited to
obligations relating to:
· Employees, laborers, materialmen and subcontractors employed by Contractor;
· Labor, materials, equipment and supplies furnished by others to Contractor (except for the disputed amounts
specified in the Certificate of Final Completion); and
· Sales and use taxes, social security taxes, income tax withholding, unemployment insurance, privilege taxes,
license fees, and any other taxes and obligations imposed by governmental authorities.

This Final Lien Waiver is freely and voluntarily given, and Contractor acknowledges and represents that it has fully
reviewed the terms and conditions of this Final Lien Waiver, that it is fully informed with respect to the legal effect of
this Final Lien Waiver, and that it has voluntarily chosen to accept the terms and conditions of this Final Lien Waiver
in return for the payment recited above.

[NAME OF CONTRACTOR]

By:

Title:

AFFIDAVIT
On this ____ day of _________________, 20____, before me appeared the above-signed, known or identified to
me personally, who, being first duly sworn, did say that the information provided in this document is true and
accurate, this document was signed under oath personally and on behalf of Contractor, and that this Affidavit was
executed as a free act and deed of Contractor.

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Notary Public
My term Expires (date): _______________

Page 1 of 1

EXECUTION COPY
EXHIBIT 6.3(A)

SUBCONTRACTOR'S FINAL LIEN WAIVER

STATE OF ______________________
COUNTY OF ____________________:
OR OTHER JURISDICTION (where signing) __________________

The undersigned, ________________________, of ____________________________ ("Subcontractor") who has,


under an agreement with ____________________________________ ("Contractor"), furnished certain materials,
equipment, services, and/or labor for the project known as [Subproject #____ (the "Subproject")] of the W.H.
Sammis Plant Air Quality Control Project (the "Project"), which is located in Stratton, Ohio, and more particularly
described on Attachment A, attached hereto (the "Property").

In consideration of payment of the full amount of contract price owing to Subcontractor, the receipt of which is
hereby acknowledged, the Subcontractor waives and releases any and all claims of lien for labor and materials
against FirstEnergy Generation Corp. ("FirstEnergy"), Contractor, the Subproject, and the Property in respect of
such Subproject, at law, in contract, tort, equity or otherwise, and any and all liens or claims of liens or any right
against any labor and/or material bond Subcontractor has, may have had or may have in the future arising out of
Subcontractor's performance of work on the Subproject.

The Subcontractor represents that all of its payment obligations, legal, equitable, or otherwise, relating to or arising
out of its work on the Subproject have been fully satisfied, including, but not limited to obligations relating to:
· Employees, laborers, materialmen and subcontractors employed by the Subcontractor;
· Labor, materials, equipment and supplies furnished by others to the Subcontractor; and
· Sales and use taxes, social security taxes, income tax withholding, unemployment insurance, privilege taxes,
license fees, and any other taxes and obligations imposed by governmental authorities.

This Final Lien Waiver is freely and voluntarily given and the Subcontractor acknowledges and represents that it has
fully reviewed the terms and conditions of this Final Lien Waiver, that it is fully informed with respect to the legal
effect of this Final Lien Waiver, and that it has voluntarily chosen to accept the terms and conditions of this Final
Lien Waiver in return for the payment recited above.

[NAME OF SUBCONTRACTOR]

By:

Title

AFFIDAVIT
On this ____ day of _________________, 20____, before me appeared the above-signed, known or identified to
me personally, who, being first duly sworn, did say that the information provided in this document is true and
accurate, this document was signed under oath personally and on behalf of Subcontractor, and that this Affidavit
was executed as a free act and deed of Subcontractor.

Notary Public
My term Expires (date):___________________

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EXECUTION COPY
EXHIBIT 6.3(C)

FINAL COMPLETION CERTIFICATE

__________________________________, a(n) ________________ corporation ("Contractor"), in accordance with


Section 6.3(C) of the General Terms and Conditions for Engineering, Procurement, and Construction, dated
__________________, 2005 (the "Agreement"), between Contractor and FirstEnergy Generation Corp., an Ohio
corporation ("FirstEnergy"), does hereby certify that[, with respect to Subproject #___ of the W.H. Sammis Plant]:

1. Contractor has achieved Mechanical Completion of the Subproject;

2. Contractor has delivered to FirstEnergy a Final Lien Waiver, and Final Lien Waivers from each of its

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Subcontractors involved in the Subcontract, each in the form of Exhibit 6.3(A) to the Agreement;

3. Contractor has transferred to FirstEnergy all final documentation, records, Drawings and Specifications, and test
reports required by the Agreement to be delivered to FirstEnergy.

4. Contractor has assigned or provided to FirstEnergy all warranties relating to the Subproject to the extent
Contractor is required to do so under the Agreement;

5. Contractor has obtained all Contractor Permits required in connection with the performance of the Subproject;

6. Contractor has removed all Hazardous Substances brought onto, stored, used or located on the Site by
Contractor or its Subcontractors in connection with the delivery, installation, or testing of the Subproject (unless the
same have been permanently incorporated into the work in accordance with the Agreement and Applicable Law or
unless the Parties have mutually agreed the same are required to support other on-going Contractor work);

7. Contractor has removed all its supplies, waste, materials, rubbish, and temporary facilities from the Site (except to
the extent the Parties have mutually agreed the same are required to support other on-going Contractor work);

8. All Subcontractors have been finally paid, except for the disputed amounts listed below (but without limiting
Contractor’s obligations under Article 14 and Section 6.4 of the Agreement.

Capitalized terms used herein which are not defined shall have the meaning ascribed to such terms in the
Agreement.

IN WITNESS WHEREOF, Contractor has caused this Notice of Final Completion to be duly executed and delivered
this ____ day of ______________, 20____.

[NAME OF CONTRACTOR]

By:

Title:

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EXHIBIT 6.5

SCHEDULE LIQUIDATED DAMAGES

SCHEDULE LIQUIDATED DAMAGES (Wrap Arrangement)

For each day after the Guaranteed Final Completion date, but prior to 12/31/2010 (the “NSR Consent Decree
Date”), that the Final Completion of an AQC Unit is delayed, the Contractor shall pay FirstEnergy an amount equal
to the amount of the liquidated damages provided in the contract between the OEM and the Contractor regardless
of whether Contractor or its Subcontractors (including the OEM) are at fault (but except to the extent FirstEnergy or
FE Vendors are at fault or the Guaranteed Final Completion Date is extended pursuant to a Change Order) and
regardless of the ability of the Contractor to ultimately collect such liquidated damages from the OEM. Contractor
shall use best efforts to obtain, in such OEM contract, a liquidated damages rate of {$******] for each megawatt of
NDC (defined in Exhibit 7.2) on the affected Generating Unit for each day of delay prior to the NSR Consent
Decree Date (e.g. for the 300 MW Sammis Unit 5, the rate would be {$******] per day of delay).

For each day after the NSR Consent Decree Date that the Final Completion of an AQC Unit is delayed, the
Contractor shall pay FirstEnergy an amount equal to the amount of the liquidated damages provided in the contract
between the OEM and the Contractor regardless of whether Contractor or its Subcontractors (including the OEM)
are at fault (but except to the extent FirstEnergy or FE Vendors are at fault or the Guaranteed Final Completion
Date is extended pursuant to a Change Order) and regardless of the ability of the Contractor to ultimately collect
such liquidated damages from the OEM. Contractor shall use best efforts to obtain, in such OEM contract, a
liquidated damages rate of {$******] for each megawatt of NDC on the affected Generating Unit for each day of
delay after the NSR Consent Decree Date (e.g. for the 300 MW Sammis Unit 5, the rate would be {$******] per day
of delay).

In addition, with respect to an AQC Unit, for each Outage Day (defined in Exhibit 7.2) beyond [******] days the
Contractor uses during the Corrective Action Period (defined in Exhibit 7.2), the Contractor shall pay FirstEnergy the
an amount equal to the amount of liquidated damages provided in the contract between the OEM and the
Contractor regardless of whether Contractor or its Subcontractors (including the OEM) are at fault (but except to the
extent FirstEnergy or FE Vendors are at fault or the Guaranteed Final Completion Date is extended pursuant to a
Change Order) and regardless of the ability of the Contractor to ultimately collect such liquidated damages from the
OEM. Contractor shall use best efforts to obtain, in such OEM contract, a liquidated damages rate of {$******] for
each affected megawatt of NDC on the affected Generating Unit for each Outage Day (e.g. for the 300 MW
Sammis Unit 5, the rate would be {$******] per Outage Day).

In addition, with respect to each Subproject or AQC Unit, in the event that Final Document Delivery has not been
achieved by the date that Final Completion is achieved, Contractor shall pay FirstEnergy as liquidated damages
{$******] per day until Final Document Delivery occurs.

SCHEDULE LIQUIDATED DAMAGES (FE Vendor Arrangement)

With respect to an AQC Unit, for each day after the Guaranteed Final Completion date, but prior to the NSR
Consent Decree Date, that the Final Completion is delayed, but only for that portion of such delay caused by the
Contractor, the Contractor shall pay FirstEnergy as Liquidated Damages {$******] for each megawatt of NDC on the
affected Generating Unit for each day of delay (e.g. for the 300 MW Sammis Unit 5, the rate would be {$******] per
day of delay) and for each day after the NSR Consent Decree Date that the Final Completion is delayed, but only
for that portion of such delay caused by the Contractor, the Contractor shall pay FirstEnergy as liquidated damages
{$******] for each megawatt of NDC on the affected Generating Unit for each day of delay (e.g. for the 300 MW
Sammis Unit 5, the rate would be {$******]/day of delay).

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EXECUTION COPY
EXHIBIT 6.5

In addition, with respect to an AQC Unit, for each Outage Day beyond [******] days the Contractor uses during the
Corrective Action Period, the Contractor shall pay FirstEnergy as liquidated damages, but only for that portion of
such Outage Days caused by the Contractor, {$******] for each megawatt of NDC on the affected Generating unit
for each Outage Day (e.g. for the 300 MW Sammis Unit 5, the rate would be {$******] Outage Day of delay).

In addition, with respect to each Subproject or AQC Unit, in the event that Final Document Delivery has not been
achieved by the date that Final Completion is achieved, Contractor shall pay FirstEnergy as Liquidated Damages
{$******] per day until Final Document Delivery occurs.

The Parties anticipate that the Project Schedule for the Subproject associated with Generating Units 1 through 4 of
the Sammis Plant will designate a separate Guaranteed Final Completion Date for each AQC Unit within that
Subproject. At the election of FirstEnergy, the Project Schedule for the Subproject associated with Sammis Plant
Generating Units 5, 6, and 7 will designate either a single Guaranteed Final Completion Date for all AQC Units
within that Subproject, or separate Guaranteed Final Completion Dates for each AQC Unit within that Subproject
(with an adequate time allowed between the Scheduled Mechanical Completion Dates established for Generating
Units 5, 6, and 7).

Contractor’s liability for Schedule Liquidated Damages for AQC Units associated with Sammis Plant Generating
Units 1 through 4 shall in no event exceed the amount of the [******] on the total Subproject.

The limitation on the amount of Schedule Liquidated Damages for the AQC Units associated with Sammis Plant
Generating Units 5, 6, and 7 shall be determined during the Development Phase as follows:

i) If FirstEnergy elects to designate a single Guaranteed Final Completion Date for all AQC Units
within that Subproject, then the Parties will treat all such AQC Units as one Subproject for
purposes of the application of Schedule Liquidated Damages, and the Project Schedule will
include an adequate time allowed between the Scheduled Mechanical Completion Dates
established for the AQC Units associated with Generating Units 5, 6, and 7. In such case,
Contractor’s liability for the Schedule Liquidated Damages for the Subproject shall in no event
exceed the amount of the [******] on the total Subproject.

ii) If FirstEnergy elects to designate separate Guaranteed Final Completion Dates for each AQC
Unit within that Subproject, then the Parties will treat such AQC Units separately for purposes of
the application of Schedule Liquidated Damages. In such case, Contractor’s liability for the
Schedule Liquidated Damages for each AQC Unit shall in no event exceed the amount of the
[******] on that AQC Unit.

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EXECUTION COPY
EXHIBIT 7.2

RELIABILITY STANDARD, PERFORMANCE GUARANTEES AND PERFORMANCE LIQUIDATED DAMAGES


RELIABILITY STANDARD

As a prerequisite for Final Completion of an AQC Unit such AQC Unit shall complete a reliability test consisting of a
30 consecutive day run (the “Reliability Standard”).

An AQC Unit shall be deemed to have successfully met the Reliability Standard if the following criteria (or such
criteria as may be negotiated with the OEM during the Development Phase; Contractor shall use best efforts to
obtain the criteria listed below in the contract between the OEM and Contractor are met:
1. During the reliability test, the average outlet emission rate is 0.10 lb./MMBTU or less for SO2 with
respect to AQC Units 5, 6, and 7 of the W.H. Sammis facility as measured by the AQC Unit CEMS. The
acceptable average outlet emission rate with respect to AQC Units 1 - 4 will be determined during the
Development Phase for that Subproject.
2. The AQC Unit does not cause the associated Generating Unit output to be restricted during the
duration of the test.
3. No auxiliary, standby or temporary equipment or machinery is used during the performance of the test,
unless otherwise approved by FirstEnergy (however, installed redundant, permanent plant equipment
may be used during the test).
4. The AQC Unit is operated in its normal mode of operation while the test is being conducted, which shall
consist of;
(i) the operation of the AQC Unit as a whole in accordance with the Specifications and the
operating instructions supplied by the Contractor and approved by FirstEnergy during the
Development Phase;
(ii) the operation of all AQC Unit systems within the manufacturers’ specifications and
without over-stressing or over-pressurizing any such systems; and
(iii) the Generating Unit is operating on the range of fuels shown in Exhibit 7.2 -1.

The test shall be run by the Contractor utilizing FirstEnergy’s personnel by means of supervising and directing
FirstEnergy’s supervisor(s); it being agreed by the parties that FirstEnergy’s personnel shall not be (or deemed to
be) employees of the Contractor. However, the use of FirstEnergy’s personnel by the Contractor shall not relieve the
Contractor of any liability or responsibility under this Agreement. FirstEnergy shall reasonably make available a set
of operating spare parts for the Subproject available for Contractor’s use during the performance test. The operating
spare parts inventory requirements will be established during the Development Phase.

In the event the Contractor fails to successfully meet the Reliability Standard after a test run, it shall promptly
thereafter submit a plan to correct the work including an explanation of the reason for failure of the test, the tasks
anticipated to correct the deficiencies, duration of the tasks and their critical path, the outages required and a cost
estimate (the “Corrective Action Plan”). The Corrective Action Plan will be subject to timely and reasonable review
and approval by FirstEnergy. Once the Corrective Action Plan is approved, the Contractor will execute the plan and
re-perform the test. The Contractor shall repeat this procedure until the Reliability Standard has been met.

If, during the course of performing the test, the Generating Unit operation causes the Subproject to fail the test
through no fault of the Contractor or the Subproject itself, the test will be suspended until the Generating Unit is

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returned to service. Once the AQC Unit is returned to service, the Contractor will continue the test counting from
the day it had been suspended as if no interruption had occurred. Contractor will be given a day for day extension
of the Corrective Action Period, if required, to complete such suspended test, and a Change Order to reflect
adjustments to the Guaranteed Final Completion Date (and any other appropriate changes to the Changed Criteria)
shall be completed.

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CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 7.2

PERFORMANCE GUARANTEES (Wrap Arrangement)

Performance Guarantees for an AQC Unit under a Wrap Arrangement are as follows:

· SO2 Emission Removal Rate Guarantee: [******%] (or such amount as may be negotiated with the OEM
during the Development Phase; Contractor shall use best efforts to
obtain a [******%] SO2 emission removal rate guarantee in the
contract between the OEM and Contractor.)

· Auxiliary Power Guarantee: To be set during the Development Phase for the Subproject but will
include all new loads associated with a given Subproject and any
modification of existing loads (e.g. fan upgrades etc.) for a
Subproject. For purposes of the Auxiliary Power Guarantee,
allocation of new and existing electric loads between the AQC Units
will be established during the Development Phase.

All Performance Guarantees are to be met while the Generating Unit operates at its Net Demonstrated Capacity
(which capacity FirstEnergy shall reasonably document for Contractor) as modified by the additional auxiliary loads
related to the Subproject (“NDC”) with consumables meeting the criteria set forth in the Design Fuel range as
defined in Exhibit 7.2 -1 and the Design Reagent range. FirstEnergy and Contractor will establish the Design
Reagent range during the Development Phase for the Subproject. During the performance test, there should be no
net increase in front half filterable PM emissions for AQC Units 6 & 7 between inlet and outlet of the new WFGD
systems for units 6 and 7, using reference methods specified in 40 CFR Part 60, Appendix A, Method 5, or Method
5B, in support of FirstEnergy's commitments within the NSR Consent Decree.

PERFORMANCE GUARANTEES (FE Vendor Arrangement)

Performance Guarantees, Design Fuel range, and Design Reagent range under a FE Vendor Arrangement will be
set between the OEM for each Subproject and FirstEnergy and coordinated with Bechtel. Contractor shall be liable
with respect to such Performance Guarantees to the extent Contractor contributes to any performance shortfall.

CORRECTIVE ACTION PERIOD

For purposes of this Exhibit 7.2, the “Operation Date” with respect to an AQC Unit shall mean the date which is
[******] days prior to the Guaranteed Final Completion Date. If the Contractor fails to meet any of the Performance
Guarantees, excluding the Reliability Standard, by the Operation Date, Contractor will be permitted a [******] day
period to correct deficiencies in the work (the “Corrective Action Period”). During the Corrective Action Period the
Contractor will be allowed an aggregate of [******] days during which the Generating Unit may be taken out of
service at Contractor’s request without schedule Liquidated Damages and during which Contractor shall have
reasonably unimpeded access to the Subproject in order to correct any such deficiencies (“Outage Days”). Once
FirstEnergy has reviewed and approved the Corrective Action Plan the Contractor will implement the plan.
FirstEnergy may modify the dates of any Outage Days at FirstEnergy’s sole discretion; however, at the end of the
Corrective Action Period, if Contractor has not met the Performance Guarantees and FE has not provided at least
[******] Outage Days during the Corrective Action Period, an extension of the Corrective Action Period and the
Guaranteed Final Completion Date will be granted in accordance with Section 9.2 to allow scheduling of additional
Outage Days. The number of additional Outage Days will be equal to the lessor of (i) the number of Outage Days
requested by Contractor and denied by FirstEnergy during the original Corrective Action Period, or (ii) the difference
between [******] days and the number of Outage Days actually used by Contractor during the initial Corrective
Action Period.

Contractor shall work diligently to minimize the length of any required extension of the Correction Period.

Prior to Final Completion, FirstEnergy will work with the Contractor to allow Contractor additional access to the AQC
Unit during any outages that are not related to the Subproject. Such access shall be granted at FirstEnergy’s sole
discretion. The AE/Constructor will pay Schedule Liquidated Damages for any Outage Days taken in excess of the
permitted [*****] Outage Days as provided in Exhibit 6.5.

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EXECUTION COPY
EXHIBIT 7.2

Contractor shall use best efforts to obtain, in the contract between the OEM and Contractor, provisions for a
Corrective Action Period and Outage Days similar to those provisions above. Contractor and FirstEnergy shall
mutually determine the terms of the Corrective Action Period if the foregoing provisions cannot be obtained from an
OEM.

PERFORMANCE LIQUIDATED DAMAGES (Wrap Arrangement)

· SO2 Emission Removal Rate Guarantee:

The SO2 removal rate for an AQC Unit should be greater than or equal to the SO2 Emission Removal Rate
Guarantee by the Guaranteed Final Completion Date. If the SO2 removal rate for an AQC Unit is less than the

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SO2 Emission Removal Rate Guarantee, the Contractor shall pay FirstEnergy, as Liquidated Damages, the
liquidated damages provided in the contract between the OEM and the Contractor regardless of whether
Contractor or its Subcontractors (including the OEM) are at fault (but except to the extent FirstEnergy or FE
Vendors are at fault or the Performance Guarantee(s) has changed pursuant to a ChangeOrder) and regardless
of the ability of the Contractor to ultimately collect such liquidated damages from the OEM. Contractor shall use
best efforts to obtain, in such OEM contract, a liquidated damages rate of [$******] for each 0.1 percentage
point by which the actual SO2 removal rate is less than the SO2 Emission Removal Rate Guarantee for each
AQC Unit,

· Auxiliary Power Guarantee:

The auxiliary power requirements for an AQC Unit should be less than or equal to the Auxiliary Power
Guarantee by the Guaranteed Final Completion Date. If the auxiliary power requirements of an AQC Unit are
greater than the Auxiliary Power Guarantee, the Contractor shall pay FirstEnergy, as Liquidated Damages, the
liquidated damages provided in the contract between the OEM and the Contractor regardless of whether
Contractor or its Subcontractors (including the OEM) are at fault (but except to the extent FirstEnergy or FE
Vendors are at fault or the Performance Guarantee(s) has changed pursuant to a ChangeOrder) and regardless
of the ability of the Contractor to ultimately collect such liquidated damages from the OEM. Contractor shall use
best efforts to obtain, in such OEM contract, a liquidated damages rate of [$******] for each kilowatt by which
the actual auxiliary power requirements of an AQC Unit, are greater than the Auxiliary Power Guarantee.

Contractor’s aggregate payment for all Performance Liquidated Damages for the Subproject conducted under the
Wrap Arrangement is limited to the amount of the performance liquidated damages provided in the contract
between the OEM (for purposes of clarification, it is anticipated that there will be only one (1) OEM for this
Subproject) and the Contractor (subject to further limitation by the aggregate overall Liquidated Damages cap
provided in such contract as applicable), regardless of whether Contractor or the OEM is at fault (but except to the
extent FirstEnergy or FE Vendors are at fault or the Performance Guarantee(s) has changed pursuant to a Change
Order) and regardless of the ability of the Contractor to ultimately collect such performance liquidated damages from
the OEM, provided that, in the event such cap exceeds[$******], Contractor shall -be required to pay any amount in
excess of [$******] in the cumulative aggregate only to the extent such excess is collected from the OEM. Contractor
shall use best efforts to obtain, in such OEM contract, a liquidated damages aggregate payment cap of at
least[$******].

PERFORMANCE LIQUIDATED DAMAGES (FE Vendor Arrangement)

· SO2 Emission Removal Rate Guarantee:

The SO2 removal rate for an AQC Unit should be greater than or equal to the SO2 Emission Removal Rate
Guarantee negotiated with the OEM by the Guaranteed Final Completion Date. If the SO2 removal rate for an
AQC Unit is less than the SO2 Emission Removal Rate Guarantee, but only to the extent the Contractor
contributes to such shortfall, the Contractor shall pay FirstEnergy, as liquidated damages, [$******] for each 0.1
percentage point (i.e., prorated for the extent the Contractor contributed to such shortfall) by which the AQC
Unit’s actual SO2 removal rate is less than the SO2 Emission Removal Rate Guarantee.

Page 3 of 4

CONFIDENTIAL TREATMENT REQUESTED


EXECUTION COPY
EXHIBIT 7.2

· Auxiliary Power Guarantee:

The auxiliary power requirements for each AQC Unit should be less than or equal to the Auxiliary Power
Guarantee by the Guaranteed Final Completion Date. If the auxiliary power requirements for an AQC unit are
greater than the Auxiliary Power Guarantee, but only to the extent the Contractor contributes to such excess,
the Contractor shall pay FirstEnergy as Liquidated Damages, [$******] for each kilowatt (i.e., prorated for the
extent the Contractor contributed to such shortfall) by which the actual auxiliary power requirements of an AQC
Unit are greater than the Auxiliary Power Guarantee.

The parties shall jointly develop a test procedure to reflect the above during the Development Phase of each
Subproject.

Page 4 of 4

EXECUTION COPY
EXHIBIT 7.2-1

DESIGN FUEL

Proximate Analysis (As Received)

Design Fuel Design Range


Moisture, wt.% 5.52 5.0 - 15.2
Volatiles, wt.% 37.27 33.0 - 38.0
Ash, wt.% 9.25 7.0 - 10.2
Fixed Carbon, wt.% 49.41 44.0 - 50.0
Sulfur, wt.% 2.57 1.2 - 2.7*
Heat Content, BTU/Lb. 12,962 11,100 - 13,000
SO2 , Lb./MMBTU 4.00 2.00 - 4.15

* Uncontrolled SO2 Lb./MMBTU values will govern design guarantees, not the sulfur wt. % values.

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Agreement Between FE Generation Corp. & Bechtel 7/7/11 12:41 PM

This is FirstEnergy Reliable Information

Page 1 of 1

EXECUTION COPY
EXHIBIT 8.2

W.A. Sammis Plant AQC Project(s) CSCO No.


Contracted Services Change Order and
Pricing Sheet

Issued To P.O. No.

Contractor Representative Location/Unit Other No.

Initiated By Date
Contr FE Const Engineering Purchasing Other
Extra Work/Field Change Design Change Scope Change
Price Before Work/Commence Upon Receipt of a Formal Change Order
Work Before Price/Schedule Urgent/Commence Work Upon Receipt of a Signed Notice to Proceed

Schedule Start Work, This Complete Work, This


CSCO: CSCO:

Schedule Impact: Yes No

Comments:

Estimated by:
Date:
Estimated Agreed Price: $ Contractor
FirstEnergy
Cost Reimbursable T&M Not to Exceed Firm Price
Other

Backcharge To Whom Contract/PO No.


Yes No

Description of Work:

Previously
Drawings/Sketches Attached Yes NA No
Transmitted
Previously
Revised Specification Attached Yes NA No
Transmitted

Contractor to Coordinate All Work Through: Phone:

Authorized By: Date:

Copies to: TBD

PAGE 1 OF 1

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