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Exhibit 10.1

1997 Edition—Electronic Format

AIA Document A111—1997

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

This document is not intended for use in competitive bidding.

AIA Document A201-1997, General Conditions of the Contract for Construction, is
adopted in this document by reference. Do not use with other general conditions
unless this document is modified.

This document has been approved and endorsed by The Associated General
Contractors of America.

[SEAL]
©1997 AIA®
AIA DOCUMENT A111 - 1997
OWNER - CONTRACTOR AGREEMENT

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

Standard Form of Agreement Between Owner and Contractor
where the basis for payment is the COST OF THE WORK PLUS A FEE with a negotiated
Guaranteed Maximum Price

AGREEMENT made as of the 22nd day of July in the year 2002
(In words, indicate day, month and year)

BETWEEN the Owner:
(Name, address and other information)
CYMER, Inc.
16750 Via del Campo Court
San Diego, CA 92127-1712

and the Contractor:
(Name, address and other information)
Hensel Phelps Construction Co.
2415 Campus Drive, Suite 100
Irvine, CA 92612

The Project is:
(Name and location)
Cymer, Inc. (CSD-6)
Lots 46 and 47 of 4S Ranch
Thornmint Court
San Diego, CA 92127

The Architect is:
(Name, address and other information)
Austin Veum Robbins Parshalle
One America Plaza
600 West Broadway
Suite 200
San Diego, CA 92101-3352

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© 1920, 1925, 1951, 1961, 1963, 1967, 1974, 1978, 1987, © 1997 by The American
Institute of Architects. Reproduction of the material herein or substantial
quotation of its provisions without written permission of the AIA violates the
copyright laws of the United States and will subject he violate to legal
prosecution. WARNING: Unlicensed photocopying violates U.S. copyright laws and
will subject the violator to legal prosecution. This document was electronically
produced with permission of the AIA and can be reproduced in accordance with
your license without violation until the date of expiration as noted below. User
Document: 97a111 - cymer worldwide customer operations facility
(csd-6).aia—9/10/2002. AIA License Number 1006044, which expires on 2/28/2003.

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The Owner and Contractor agree as follows.

ARTICLE 1    THE CONTRACT DOCUMENTS

        The Contract Documents consist of this Agreement, Conditions of the
Contract (General, Supplementary and other Conditions), Drawings,
Specifications, Addenda issued prior to execution of this Agreement, other
documents listed in this Agreement and Modifications issued after execution of
this Agreement; these form the Contract, and are as fully a part of the Contract
as if attached to this Agreement or repeated herein. The Contract represents the
entire and integrated agreement between the parties hereto and supersedes prior
negotiations, representations or agreements, either written or oral. An
enumeration of the Contract Documents, other than Modifications, appears in
Article 15, as may be amended. If anything in the other Contract Documents is
inconsistent with this Agreement, this Agreement shall govern.

ARTICLE 2    THE WORK OF THIS CONTRACT

        The Contractor shall fully execute the Work described in the Contract
Documents, except to the extent specifically indicated in the Contract Documents
to be the responsibility of others.

ARTICLE 3    RELATIONSHIP OF THE PARTIES

        The Contractor accepts the relationship of trust and confidence
established by this Agreement and covenants with the Owner to cooperate with the
Architect and exercise the Contractor's skill and judgment in furthering the
interests of the Owner; to furnish efficient business administration and
supervision; to furnish at all times an adequate supply of workers and
materials; and to perform the Work in an expeditious and economical manner
consistent with the Owner's interests. The Owner agrees to furnish and approve,
in a timely manner, information required by the Contractor and to make payments
to the Contractor in accordance with the requirements of the Contract Documents.

ARTICLE 4    DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION

        4.1    The date of commencement of the Work shall be the date of this
Agreement unless a different date is stated below or provision is made for the
date to be fixed in a notice to proceed issued by the Owner.

        (Insert the date of commencement, if it differs from the date of this
Agreement or, if applicable, state that the date will be fixed in a notice to
proceed.)

        August 1, 2002, contingent upon design and permit schedule performance
in accordance with Exhibit C.

        If, prior to commencement of the Work, the Owner requires time to file
mortgages, mechanic's liens and other security interests, the Owner's time
requirement shall be as follows: Not Applicable.

        4.2    The Contract Time shall be measured from the date of
commencement.

        4.3    The Contractor shall achieve Substantial Completion of the entire
Work not later than the date specified in Table A.5 of Addendum No. 1.

        Schedule completion for each Major Sector is contingent upon the
Architect meeting all design and permitting dates as indicated in Exhibit "C".
If design and permitting dates are not met, then the construction schedule for
each Major Sector affected by the design or permitting delay shall be adjusted
accordingly on a day for day basis.

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        Except for Contractor Design-Build items (Fire Protection), it is the
responsibility of the Architect to design the facility to meet all codes,
ordinances, CC&R's, or other requirements as necessary so that TCO can be
obtained when scheduled for each phase.

        , subject to adjustments of this Contract Time as provided in the
Contract Documents.

        (Insert provisions, if any, for liquidated damages relating to failure
to complete on time, or for bonus payments for early completion of the Work.)

        It is agreed that the damages due to Contractor caused delays shall be
limited to the liquidated damages amounts set forth in Addendum No. 1. The total
liquidated damages shall not exceed the total Contractor's Fee as calculated in
Section 5.1.2 of this Agreement.

ARTICLE 5    BASIS FOR PAYMENT

         5.1    CONTRACT SUM

        5.1.1    The Owner shall pay the Contractor the Contract Sum in current
funds for the Contractor's performance of the Contract. The Contract Sum is the
Cost of the Work as defined in Article 7 plus the Contractor's Fee.

        5.1.2    The Contractor's Fee is:

        (State a lump sum, percentage of Cost of the Work or other provision for
determining the Contractor's Fee, and describe the method of adjustment of the
Contractor's Fee for changes in the Work.)

        5.0% of the overall Cost of the Work.

        5.2    GUARANTEED MAXIMUM PRICE

        5.2.1    The sum of the Cost of the Work and the Contractor's Fee is
guaranteed by the Contractor not to exceed (TO BE DETERMINED) Dollars ($ (TO BE
DETERMINED)), subject to additions and deductions by Change Order as provided in
the Contract Documents. Such maximum sum is referred to in the Contract
Documents as the Guaranteed Maximum Price. Costs which would cause the
Guaranteed Maximum Price to be exceeded shall be paid by the Contractor without
reimbursement by the Owner.

        (Insert specific provisions if the Contractor is to participate in any
savings.)

        The Guaranteed Maximum Price will be established after the completion of
subcontractor bidding and will be incorporated into this Agreement by Change
Order.

        5.2.2    The Guaranteed Maximum Price is based on the following
alternates, if any, which are described in the Contract Documents and are hereby
accepted by the Owner:

        (State the numbers or other identification of accepted alternates. If
decisions on other alternates are to be made by the Owner subsequent to the
execution of this Agreement, attach a schedule of such other alternates showing
the amount for each and the date when the amount expires.)

        TO BE DETERMINED

        5.2.3    Unit prices, if any, are as follows:

        TO BE DETERMINED

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        5.2.4    Allowances, if any, are as follows:

        (Identify and state the amounts of any allowances, and state whether
they include labor, materials, or both.)

        TO BE DETERMINED

        5.2.5    Assumptions, if any, on which the Guaranteed Maximum Price is
based are as follows:

        TO BE DETERMINED

        5.2.6    To the extent that the Drawings and Specifications are
anticipated to require further development by the Architect, the Contractor has
provided in the Guaranteed Maximum Price for such further development consistent
with the Contract Documents and reasonably inferable therefrom. Such further
development does not include such things as changes in scope, systems, kinds and
quality of materials, finishes or equipment, all of which, if required, shall be
incorporated by Change Order.

ARTICLE 6    CHANGES IN THE WORK

        6.1    Adjustments to the Guaranteed Maximum Price on account of changes
in the Work may be determined by any of the methods listed in Subparagraph 7.3.3
of AIA Document A201-1997.

        6.2    In calculating adjustments to subcontracts (except those awarded
with the Owner's prior consent on the basis of cost plus a fee), the terms
"cost" and "fee" as used in Clause 7.3.3.3 of AIA Document A201-1997 and the
terms "costs" and "a reasonable allowance for overhead and profit" as used in
Subparagraph 7.3.6 of AIA Document A201-1997 shall have the meanings assigned to
them in AIA Document A201-1997 and shall not be modified by Articles 5, 7 and 8
of this Agreement. Adjustments to subcontracts awarded with the Owner's prior
consent on the basis of cost plus a fee shall be calculated in accordance with
the terms of those subcontracts.

        6.3    In calculating adjustments to the Guaranteed Maximum Price, the
terms "cost" and "costs" as used in the above-referenced provisions of AIA
Document A201-1997 shall mean the Cost of the Work as defined in Article 7 of
this Agreement and the terms "fee" and "a reasonable allowance for overhead and
profit" shall mean the Contractor's Fee as defined in Subparagraph 5.1.2 of this
Agreement.

        6.4    If no specific provision is made in Paragraph 5.1 for adjustment
of the Contractor's Fee in the case of changes in the Work, or if the extent of
such changes is such, in the aggregate, that application of the adjustment
provisions of Paragraph 5.1 will cause substantial inequity to the Owner or
Contractor, the Contractor's Fee shall be equitably adjusted on the basis of the
Fee established for the original Work, and the Guaranteed Maximum Price shall be
adjusted accordingly.

ARTICLE 7    COSTS TO BE REIMBURSED

         7.1    COST OF THE WORK

        The term Cost of the Work shall mean costs necessarily incurred by the
Contractor in the proper performance of the Work. Such costs shall be at rates
not higher than the standard paid at the place of the Project except with prior
consent of the Owner. The Cost of the Work shall include only the items set
forth in this Article 7 and Addendum No. 1.

        7.2    LABOR COSTS

        7.2.1    Wages of construction workers directly employed by the
Contractor to perform the construction of the Work at the site or, with the
Owner's approval, at off-site workshops.

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        7.2.2    Wages or salaries of the Contractor's supervisory and
administrative personnel when stationed at the site with the Owner's approval.
See Exhibit E Salaried Billing Schedule.

        (If it is intended that the wages or salaries of certain personnel
stationed at the Contractor's principal or other offices shall be included in
the Cost of the Work, identify in Article 14 the personnel to be included and
whether for all or only part of their time, and the rates at which their time
will be charged to the Work.)

        7.2.3    Wages and salaries of the Contractor's supervisory or
administrative personnel engaged, at factories, workshops or on the road, in
expediting the production or transportation of materials or equipment required
for the Work, but only for that portion of their time required for the Work.

        7.2.4    Costs paid or incurred by the Contractor for taxes, insurance,
contributions, assessments and benefits required by law or collective bargaining
agreements and, for personnel not covered by such agreements, customary benefits
such as sick leave, medical and health benefits, holidays, vacations and
pensions, provided such costs are based on wages and salaries included in the
Cost of the Work under Subparagraphs 7.2.1 through 7.2.3.

        7.3    SUBCONTRACT COSTS

        7.3.1    Payments made by the Contractor to Subcontractors in accordance
with the requirements of the subcontracts.

        7.4    COSTS OF MATERIALS AND EQUIPMENT INCORPORATED IN THE COMPLETED
CONSTRUCTION

        7.4.1    Costs, including transportation and storage, of materials and
equipment incorporated or to be incorporated in the completed construction.

        7.4.2    Costs of materials described in the preceding Subparagraph
7.4.1 in excess of those actually installed to allow for reasonable waste and
spoilage. Unused excess materials, if any, shall become the Owner's property at
the completion of the Work or, at the Owner's option, shall be sold by the
Contractor. Any amounts realized from such sales shall be credited to the Owner
as a deduction from the Cost of the Work.

        7.5    COSTS OF OTHER MATERIALS AND EQUIPMENT, TEMPORARY FACILITIES AND
RELATED ITEMS

        7.5.1    Costs, including transportation and storage, installation,
maintenance, dismantling and removal of materials, supplies, temporary
facilities, machinery, equipment, and hand tools not customarily owned by
construction workers, that are provided by the Contractor at the site and fully
consumed in the performance of the Work; and cost (less salvage value) of such
items if not fully consumed, whether sold to others or retained by the
Contractor. Cost for items previously used by the Contractor shall mean fair
market value.

        7.5.2    Rental charges for temporary facilities, machinery, equipment,
and hand tools not customarily owned by construction workers that are provided
by the Contractor at the site, whether rented from the Contractor or others, and
costs of transportation, installation, minor repairs and replacements,
dismantling and removal thereof. Rates and quantities of equipment rented shall
be subject to the Owner's prior approval.

        7.5.3    Costs of removal of debris from the site.

        7.5.4    Costs of document reproductions, facsimile transmissions and
long-distance telephone calls, postage and parcel delivery charges, telephone
service at the site and reasonable petty cash expenses of the site office;
provided, however, that Contractor shall use reasonable efforts to control
reproduction costs and shall provide Owner with budget for same.

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        7.5.5    That portion of the reasonable expenses of the Contractor's
personnel incurred while traveling in discharge of duties connected with the
Work.

        7.5.6    Costs of materials and equipment suitably stored off the site
at a mutually acceptable location, if approved in advance by the Owner.

        7.6    MISCELLANEOUS COSTS

        7.6.1    That portion of insurance and bond premiums that can be
directly attributed to this Contract and in the amounts set forth in Addendum
No. 1.

        7.6.2    Sales, use or similar taxes imposed by a governmental authority
that are related to the Work.

        7.6.3    Fees and assessments for the building permit and for other
permits, licenses and inspections for which the Contractor is required by the
Contract Documents to pay. Permit Costs, Plan Check Fees and Tests and
Inspection Costs are excluded and are the responsibility of the Owner, with the
sole exception of curtain wall testing, which shall be included in the Cost of
the Work.

        7.6.4    Fees of laboratories for tests required by the Contract
Documents, except those related to defective or nonconforming Work for which
reimbursement is excluded by Subparagraph 13.5.3 of AIA Document A201-1997 or
other provisions of the Contract Documents, and which do not fall within the
scope of Subparagraph 7.7.3.

        7.6.5    Royalties and license fees paid for the use of a particular
design, process or product required by the Contract Documents; the cost of
defending suits or claims for infringement of patent rights arising from such
requirement of the Contract Documents; and payments made in accordance with
legal judgments against the Contractor resulting from such suits or claims and
payments of settlements made with the Owner's consent. However, such costs of
legal defenses, judgments and settlements shall not be included in the
calculation of the Contractor's Fee or subject to the Guaranteed Maximum Price.
If such royalties, fees and costs are excluded by the last sentence of
Subparagraph 3.17.1 of AIA Document A201-1997 or other provisions of the
Contract Documents, then they shall not be included in the Cost of the Work.

        7.6.6    Data processing costs related to the Work, to the extent such
costs can be directly charged to Project and are included in the Contractor's
Job Site Overhead. There shall be no separate charge to Owner for such data
processing costs outside of the Job Site Overhead.

        7.6.7    Deposits lost for causes other than the Contractor's negligence
or failure to fulfill a specific responsibility to the Owner as set forth in the
Contract Documents.

        7.6.8    Reasonable legal, mediation and arbitration costs, including
reasonable attorneys' fees, other than those arising (1) from disputes between
the Owner and Contractor, and (2) from the negligence or willful misconduct of
the Contractor, reasonably incurred by the Contractor in the performance of the
Work and with the Owner's prior written approval; which approval shall not be
unreasonably withheld.

        7.6.9    Expenses incurred in accordance with the Contractor's standard
personnel policy for relocation and temporary living allowances of personnel
required for the Work, if approved by the Owner.

        7.7    OTHER COSTS AND EMERGENCIES

        7.7.1    Other costs incurred in the performance of the Work if and to
the extent approved in advance in writing by the Owner.

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        7.7.2    Costs due to emergencies incurred in taking action to prevent
threatened damage, injury or loss in case of an emergency affecting the safety
of persons and property, as provided in Paragraph 10.6 of AIA Document
A201-1997.

        7.7.3    Reasonable Costs of repairing or correcting damaged Work
executed by the Contractor, Subcontractors or suppliers, provided that such
damaged Work was not caused by negligence or failure to fulfill a specific
responsibility of the Contractor and only to the extent that the cost of repair
or correction is not recoverable by the Contractor from insurance, sureties,
Subcontractors or suppliers.

ARTICLE 8    COSTS NOT TO BE REIMBURSED

        8.1    The Cost of the Work shall not include:

        8.1.1    Salaries and other compensation of the Contractor's personnel
stationed at the Contractor's principal office or offices other than the site
office, except as specifically provided in Subparagraphs 7.2.2 and 7.2.3 or as
may be provided in Article 14.

        8.1.2    Expenses of the Contractor's principal office and offices other
than the site office.

        8.1.3    Overhead and general expenses, except as may be expressly
included in Article 7.

        8.1.4    The Contractor's capital expenses, including interest on the
Contractor's capital employed for the Work.

        8.1.5    Rental costs of machinery and equipment, except as specifically
provided in Subparagraph 7.5.2

        8.1.6    Except as provided in Subparagraph 7.7.3 of this Agreement,
costs due to the negligence or failure to fulfill a specific responsibility of
the Contractor, Subcontractors and suppliers or anyone directly or indirectly
employed by any of them or for whose acts any of them may be liable.

        8.1.7    Any cost not specifically and expressly described in Article 7.

        8.1.8    Costs, other than costs included in Change Orders approved by
the Owner, that would cause the Guaranteed Maximum Price to be exceeded.

ARTICLE 9    DISCOUNTS, REBATES AND REFUNDS

        9.1    Cash discounts obtained on payments made by the Contractor shall
accrue to the Owner if (1) before making the payment, the Contractor included
them in an Application for Payment and received payment therefor from the Owner,
or (2) the Owner has deposited funds with the Contractor with which to make
payments; otherwise, cash discounts shall accrue to the Contractor. Trade
discounts, rebates, refunds and amounts received from sales of surplus materials
and equipment shall accrue to the Owner, and the Contractor shall make
provisions so that they can be secured.

        9.2    Amounts that accrue to the Owner in accordance with the
provisions of Paragraph 9.1 shall be credited to the Owner as a deduction from
the Cost of the Work.

ARTICLE 10    SUBCONTRACTS AND OTHER AGREEMENTS

        10.1    Those portions of the Work that the Contractor does not
customarily perform with the Contractor's own personnel shall be performed under
subcontracts or by other appropriate agreements with the Contractor. The Owner
may designate specific persons or entities from whom the Contractor shall obtain
bids. The Contractor shall either (a) negotiate, with the consent of the Owner,
Subcontract Agreements as appropriate and necessary due to schedule needs
(includes Structural Steel, Kitchen Equipment, HVAC, Plumbing, Controls, Fire
Protection, Electrical and Fire Detection and Alarm) or (b) obtain bids from
Subcontractors and from suppliers of materials or equipment fabricated
especially

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for the Work and shall deliver such bids to the Owner and Architect. The Owner
shall then determine, with the advice of the Contractor and the Architect, which
bids will be accepted. The Contractor shall not be required to contract with
anyone to whom the Contractor has reasonable objection.

        10.2    If a specific bidder among those whose bids are delivered by the
Contractor to the Owner and Architect (1) is recommended to the Owner by the
Contractor; (2) is qualified to perform that portion of the Work; and (3) has
submitted a bid that conforms to the requirements of the Contract Documents
without reservations or exceptions, but the Owner requires that another bid be
accepted, then the Contractor may require that a Change Order be issued to
adjust the Guaranteed Maximum Price by the difference between the bid of the
person or entity recommended to the Owner by the Contractor and the amount of
the subcontract or other agreement actually signed with the person or entity
designated by the Owner.

        10.3    Subcontracts or other agreements shall conform to the applicable
payment provisions of this Agreement, and shall not be awarded on the basis of
cost plus a fee without the prior consent of the Owner.

ARTICLE 11    ACCOUNTING RECORDS

        The Contractor shall keep full and detailed accounts and exercise such
controls as may be necessary for proper financial management under this
Contract, and the accounting and control systems shall be satisfactory to the
Owner. The Owner and the Owner's accountants shall be afforded access to, and
shall be permitted to audit and copy, the Contractor's records, books,
correspondence, instructions, drawings, receipts, subcontracts, purchase orders,
vouchers, memoranda and other data relating to this Contract, and the Contractor
shall preserve these for a period of three years after final payment, or for
such longer period as may be required by law.

ARTICLE 12    PAYMENTS

        12.1    PROGRESS PAYMENTS

        12.1.1    Based upon Applications for Payment submitted to the Architect
and Owner by the Contractor and Certificates for Payment issued by the
Architect, the Owner shall make progress payments on account of the Contract Sum
to the Contractor as provided below and elsewhere in the Contract Documents.

        12.1.2    The period covered by each Application for Payment shall be
one calendar month ending on the last day of the month, or as follows:

        12.1.3    Provided that an Application for Payment is received by the
Architect and Owner not later than the first day of a month, the Owner shall
make payment to the Contractor not later than the last day of the month. If an
Application for Payment is received by the Owner after the application date
fixed above, payment shall be made by the Owner not later than thirty days after
the Owner receives the Application for Payment.

        12.1.4    With each Application for Payment, the Contractor shall submit
payrolls, petty cash accounts, receipted invoices or invoices with check
vouchers attached, and any other evidence required by the Owner or Architect to
demonstrate that cash disbursements already made by the Contractor on account of
the Cost of the Work equal or exceed (1) progress payments already received by
the Contractor; less (2) that portion of those payments attributable to the
Contractor's Fee; plus (3) payrolls for the period covered by the present
Application for Payment.

        12.1.5    Each Application for Payment shall be based on the most recent
schedule of values submitted by the Contractor in accordance with the Contract
Documents. The schedule of values

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submitted by the Contractor shall be reasonably detailed and shall be subject to
Owner's review and approval. The schedule of values shall allocate the entire
Guaranteed Maximum Price among the various portions of the Work, except that the
Contractor's Fee shall be shown as a single separate item. The schedule of
values shall be prepared in such form and supported by such data to substantiate
its accuracy as the Architect may require. This schedule, unless objected to by
the Architect, shall be used as a basis for reviewing the Contractor's
Applications for Payment.

        12.1.6    Applications for Payment shall show the percentage of
completion of each portion of the Work as of the end of the period covered by
the Application for Payment. The percentage of completion shall be the lesser of
(1) the percentage of that portion of the Work which has actually been
completed; or (2) the percentage obtained by dividing (a) the expense that has
actually been incurred by the Contractor on account of that portion of the Work
for which the Contractor has made or intends to make actual payment prior to the
next Application for Payment by (b) the share of the Guaranteed Maximum Price
allocated to that portion of the Work in the schedule of values.

        12.1.7    Subject to other provisions of the Contract Documents, the
amount of each progress payment shall be computed as follows:

.1take that portion of the Guaranteed Maximum Price properly allocable to
completed Work as determined by multiplying the percentage of completion of each
portion of the Work by the share of the Guaranteed Maximum Price allocated to
that portion of the Work in the schedule of values. Pending final determination
of cost to the Owner of changes in the Work, amounts not in dispute shall be
included as provided in Subparagraph 7.3.8 of AIA Document A201-1997;

.2add that portion of the Guaranteed Maximum Price properly allocable to
materials and equipment delivered and suitably stored at the site for subsequent
incorporation in the Work, or if approved in advance by the Owner, suitably
stored off the site at a location agreed upon in writing;

.3add the Contractor's Fee, less retainage of ten percent (10%) less retainage
as prescribed and set forth in Addendum No. 1. The Contractor's Fee shall be
computed upon the Cost of the Work described in the two preceding Clauses at the
rate stated in Subparagraph 5.1.2 or, if the Contractor's Fee is stated as a
fixed sum in that Subparagraph, shall be an amount that bears the same ratio to
that fixed-sum fee as the Cost of the Work in the two preceding Clauses bears to
a reasonable estimate of the probable Cost of the Work upon its completion;

.4subtract the aggregate of previous payments made by the Owner;

.5subtract the shortfall, if any, indicated by the Contractor in the
documentation required by Paragraph 12.1.4 to substantiate prior Applications
for Payment, or resulting from errors subsequently discovered by the Owner's
accountants in such documentation; and

.6subtract amounts, if any, for which the Architect has withheld or nullified as
Certificate for Payment as provided in Paragraph 9.5 of AIA Document A201-1997.

        12.1.8    Except with Owner's prior approval, payments to Subcontractors
shall be subject to retainage of not less than ten percent (10%). The Owner and
the Contractor shall agree upon a mutually acceptable procedure for review and
approval of payments and retention for Subcontractors. See Section B.7 of
Addendum No. 1.

        12.1.9    In taking action on the Contractor's Applications for Payment,
the Architect shall be entitled to rely on the accuracy and completeness of the
information furnished by the Contractor and shall not be deemed to represent
that the Architect has made a detailed examination, audit or arithmetic
verification of the documentation submitted in accordance with Subparagraph
12.1.4 or other supporting data; that the Architect has made exhaustive or
continuous on-site inspections or that the

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Architect has made examinations to ascertain how or for what purposes the
Contractor has used amounts previously paid on account of the Contract. Such
examinations, audits and verifications, if required by the Owner, will be
performed by the Owner's accountants acting in the sole interest of the Owner.

        12.2    FINAL PAYMENT

        12.2.1.1    Final payment, constituting the entire unpaid balance of the
Contract Sum less amounts retained by the Owner to cover any Punch List Work
pursuant to Section B.8 of Addendum No. 1 shall be made by the Owner to the
Contractor when:

.1the Contractor has fully performed the Contract except for the Contractor's
responsibility to correct Work as provided in Subparagraph 12.2.2 of AIA
Document A201-1997, and to satisfy other requirements, if any, which extend
beyond final payment; and

.1aall lien releases have been delivered to the Architect or Owner and

.2a final Certificate for Payment has been issued by the Architect.

        12.2.1.2    Any retainage held by the Owner for Punch List Work shall be
paid no later than 30 days after such Punch List Work is completed.

        12.2.2    The Owner's final payment to the Contractor shall be made no
later than 30 days after the issuance of the Architect's final Certificate for
Payment, or as follows:

        12.2.3    The Owner's accountants will review and report in writing on
the Contractor's final accounting within 30 days after delivery of the final
accounting to the Architect by the Contractor. Based upon such Cost of the Work
as the Owner's accountants report to be substantiated by the Contractor's final
accounting, and provided the other conditions of Subparagraph 12.2.1 have been
met, the Architect will, within seven days after receipt of the written report
of the Owner's accountants, either issue to the Owner a final Certificate for
Payment with a copy to the Contractor, or notify the Contractor and Owner in
writing of the Architect's reasons for withholding a certificate as provided in
Subparagraph 9.5.1 of the AIA Document A201-1997. The time periods stated in
this Subparagraph 12.2.3 supersede those stated in Subparagraph 9.4.1 of the AIA
Document A201-1997.

        12.2.4    If the Owner's accountants report the Cost of the Work as
substantiated by the Contractor's final accounting to be less than claimed by
the Contractor, the Contractor may request arbitration of the disputed amount
without a further decision of the Architect. Such request for arbitration may be
made by the Contractor within 30 days after the Contractor's receipt of a copy
of the Architect's final Certificate for Payment. Pending a final resolution,
the Owner shall pay the Contractor the amount certified in the Architect's final
Certificate for Payment. Any such arbitration shall be conducted in accordance
with the construction arbitration rules of the American Arbitration Association.

        12.2.5    If, subsequent to final payment and at the Owner's request,
the Contractor incurs costs described in Article 7 and not excluded by Article 8
to correct defective or nonconforming Work, the Owner shall reimburse the
Contractor such costs and the Contractor's Fee applicable thereto on the same
basis as if such costs had been incurred prior to final payment, but not in
excess of the Guaranteed Maximum Price. If the Contractor has participated in
savings as provided in Paragraph 5.2, the amount of such savings shall be
recalculated and appropriate credit given to the Owner in determining the net
amount to be paid by the Owner to the Contractor.

ARTICLE 13    TERMINATION OR SUSPENSION

        13.1    The Contract may be terminated by the Contractor, or by the
Owner for convenience, as provided in Article 14 of AIA Document A201-1997.
However, the amount to be paid to the

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Contractor under Subparagraph 14.1.3 of AIA Document A201-1997 shall not exceed
the amount the Contractor would be entitled to receive under Paragraph 13.2
below, except that the Contractor's Fee shall be calculated as if the Work had
been fully completed by the Contractor, including a reasonable estimate of the
Cost of the Work for Work not actually completed.

        13.2    The Contract may be terminated by the Owner for cause as
provided in Article 14 of AIA Document A201-1997. The amount, if any, to be paid
to the Contractor under Subparagraph 14.2.4 of AIA Document A201-1997 shall not
cause the Guaranteed Maximum Price to be exceeded, nor shall it exceed an amount
calculated as follows:

        13.2.1    Take the Cost of the Work incurred by the Contractor to the
date of termination;

        13.2.2    Add the Contractor's Fee computed upon the Cost of the Work to
the date of termination at the rate stated in Subparagraph 5.1.2 or, if the
Contractor's Fee is stated as a fixed sum in that Subparagraph, an amount that
bears the same ratio to that fixed-sum Fee as the Cost of the Work at the time
of termination bears to a reasonable estimate of the probable Cost of the Work
upon its completion; and

        13.2.3    Subtract the aggregate of previous payments made by the Owner.

        13.3    The Owner shall also pay the Contractor fair compensation,
either by purchase or rental at the election of the Owner, for any equipment
owned by the Contractor that the Owner elects to retain and that is not
otherwise included in the Cost of the Work under Subparagraph 13.2.1. To the
extent that the Owner elects to take legal assignment of subcontracts and
purchase orders (including rental agreements), the Contractor shall, as a
condition of receiving the payments referred to in this Article 13, execute and
deliver all such papers and take all such steps, including the legal assignment
of such subcontracts and other contractual rights of the Contractor, as the
Owner may require for the purpose of fully vesting in the Owner the rights and
benefits of the Contractor under such subcontracts or purchase orders.

        13.4    The Work may be suspended by the Owner as provided in Article 14
of AIA Document A201-1997; in such case, the Guaranteed Maximum Price and
Contract Time shall be increased as provided in Subparagraph 14.3.2 of AIA
Document A201-1997 except that the term "profit" shall be understood to mean the
Contractor's Fee as described in Subparagraphs 5.1.2 and Paragraph 6.4 of this
Agreement.

ARTICLE 14    MISCELLANEOUS PROVISIONS

        14.1    Where reference is made in this Agreement to a provision AIA
Document A201-1997 or another Contract Document, the reference refers to that
provision as amended or supplemented by other provisions of the Contract
Documents.

        14.2    Payments due and unpaid under the Contract shall bear interest
from the date payment is due at the rate stated below, or in the absence
thereof, at the legal rate prevailing from time to time at the place where the
Project is located.

        (Insert rate of interest agreed upon, if any.)

        (Usury laws and requirements under the Federal Truth in Lending Act,
similar state and local consumer credit laws and other regulations at the
Owner's and Contractor's principal places of business, the location of the
Project and elsewhere may affect the validity of this provision. Legal advice
should be obtained with respect to deletions or modifications, and also
regarding requirements such as written disclosures or waivers.)

        14.3    The Owner's representative is:

        (Name, address and other information.)

Mr. Dan Cancelleri
Cymer, Inc.
16750 Via Del Campo Court
San Diego, CA 92127-1712

        14.4    The Contractor's representative is:

        (Name, address and other information.)

Mr. John Goodman
Hensel Phelps Construction Co.
17082 Thornmint Court
San Diego, CA 92127

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        14.5    Neither the Owner's nor the Contractor's representative shall be
changed without ten days' written notice to the other party.

        14.6    Other provisions:

.1The Contractor shall assume design-build responsibility for Fire Protection
and for Gas Process Piping using, as requested by the Owner, University
Mechanical Engineers and Contractors. The Contractor shall also assume
design-build responsibility for the glass curtain-wall system structural
integrity and waterproofing, but shall assume no design responsibility for the
balance of the building's exterior envelope.

.2The Contract includes preconstruction services which will be included in the
Contractor's Job Site Overhead as provided by Addendum No. 1.

.3Any and all underlined language or terms contained in this agreement will not
be given any emphasis over non-underlined language or terms.

ARTICLE 15    ENUMERATION OF CONTRACT DOCUMENTS

        15.1    The Contract Documents, except for Modifications issued after
execution of this Agreement, are enumerated as follows: See Addendum No. 1.

        15.1.1    The Agreement is this executed 1997 edition of the Standard
Form of Agreement Between Owner and Contractor, AIA Document A111-1997, as
amended.

        15.1.2    The General Conditions are the 1997 edition of the General
Conditions of the Contract for Construction, AIA Document A201-1997, as amended.

        15.1.3    The Supplementary and other Conditions of the Contract are
those contained in the Project Manual dated (See phased design dates in
Exhibit C), and are as follows:

Document   Title   Pages

        Project Manual, Supplementary and other Conditions have not yet been
provided. All parties will negotiate in good faith to incorporate these
documents into the Contract by Change Order if and when available.

        15.1.4    The Specifications are those contained in the Project Manual
dated as in Subparagraph 15.1.3, and are as follows:

        (Either list the Specifications here or refer to an exhibit attached to
this Agreement.)

Section   Title   Pages

        The Specifications have not yet been provided. All parties will
negotiate in good faith to incorporate these documents into the Contract by
Change Order when available.

        15.1.5    The Drawings are as follows, and are dated unless a different
date is shown below:

        (Either list the Drawings here or refer to an exhibit attached to this
Agreement.)

Number   Title   Date

         See Exhibit "A".

        15.1.6    The Addenda, if any, are as follows:

Number   Date   Pages

12

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Exhibit "A", Scope of Work.
Exhibit "B", Contractor Personnel Assigned to Cymer Inc.'s CSD-6
Exhibit "C", Concept Schedule for the Work dated August 9, 2002
Exhibit "D", Initial Budget Estimate dated 8/9/02. Revised/Current Budget dated
8/28/02. Estimate History dated 8/19 & 20/02. Clarifications
Exhibit "E", Contractor's 2002-2003 Salaried Staff Billing Monthly Rates.
Exhibit "F", Conceptual Drawing of Side Elevation of Building 1, and
Exhibit "G", Certificates of Insurance
Addendum No. 1 to Standard Form of Agreement between Owner and Contractor (AIA
Document Number A111-1997) dated September 11, 2002.

        Portions of Addenda relating to bidding requirements are not part of the
Contract Documents unless the bidding requirements are also enumerated in this
Article 15.

        15.1.7    Other Documents, if any, forming part of the Contract
Documents are as follows:

        (List here any additional documents, such as a list of alternates that
are intended to form part of the Contract Documents. AIA Document A201-1997
provides that bidding requirements such as advertisement or invitation to bid,
Instructions to Bidders, sample forms and the Contractor's bid are not part of
the Contract Documents unless enumerated in this Agreement. They should be
listed here only if intended to be part of the Contract Documents.)

ARTICLE 16    INSURANCE AND BONDS

        (List required limits of liability for insurance and bonds. AIA Document
A201-1997 gives other specific requirements for insurance and bonds.)

1.No Bonds are required.

2.Insurance (as evidenced by the Certificates of Insurance in Exhibit "F") will
be provided as follows:

        GCL Policy

Primary:
$4,000,000 aggregate
$2,000,000 per occurrence—
$2,000,000 completed operations coverage

Excess:
$10,000,000 aggregate
$10,000,000 per occurrence
$10,000,000 completed operations

Primary—Auto:
$2,000,000 aggregate
$1,000,000 per occurrence
$1,000,000

Worker's Compensation:

$2,000,000 aggregate
$1,000,000 per occurrence
$1,000,000

        The Contractor will provide General Liability Insurance at a rate of
$5.70/$1,000 of Contract Value.

13

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3.The Contractor will provide Builder's All-Risk Insurance at the cost of
$5.25/$1,000 of Contract Value per year.

4.The Owner will assume the risk of loss and carry insurance on the Major Sector
at substantial completion of each Sector. This Agreement is entered into as of
the day and year first written above and is executed in at least three original
copies, of which one is to be delivered to the Contractor, one to the Architect
for use in the administration of the Contract, and the remainder to the Owner.

"OWNER:"   "CONTRACTOR:"
CYMER, INC., a Nevada corporation
 
HENSEL PHELPS CONSTRUCTION COMPANY, a Delaware corporation
By:
/s/ NANCY J. BAKER

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By:
/s/ WAYNE LINDHOLM

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Printed Name: Nancy J. Baker

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  Printed Name: Wayne Lindholm

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Its: Sr. Vice President and CFO

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

  Its: Vice President

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

/s/ DAN CANCELLERI 9/26
 
 
 

14

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CYMER—HENSEL PHELPS AGREEMENT

1997 Edition—Electronic Format

AIA Document A201—1997

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES. CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE USING AIA DOCUMENT D401.

This document has been approved and endorsed by The Associated General
Contractors of America.

[SEAL]
©1997 AIA®
AIA DOCUMENT A201—1997
GENERAL CONDITIONS OF THE CONTRACT FOR CONSTRUCTION

The American Institute of Architects
1735 New York Avenue, N.W.
Washington, D.C. 20006-5292

General Conditions of the Contract for Construction

TABLE OF ARTICLES

1.GENERAL PROVISIONS

2.OWNER

3.CONTRACTOR

4.ADMINISTRATION OF THE CONTRACT

5.SUBCONTRACTORS

6.CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS

7.CHANGES IN THE WORK

8.TIME

9.PAYMENTS AND COMPLETION

10.PROTECTION OF PERSONS AND PROPERTY

11.INSURANCE AND BONDS

12.UNCOVERING AND CORRECTION OF WORK

13.MISCELLANEOUS PROVISIONS

14.TERMINATION OR SUSPENSION OF THE CONTRACT

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Copyright 1911, 1915, 1918, 1925, 1937, 1951, 1958, 1961, 1963, 1966, 1967,
1970, 1976, 1987, © 1997 by The American Institute of Architects, Fifteenth
Edition. Reproduction of the material herein or substantial quotation of its
provisions without written permission of the AIA violates the copyright laws of
the United States and will subject the violate to legal prosecution. WARNING:
Unlicensed photocopying violates U.S. copyright laws and will subject the
violator to legal prosecution. This document was electronically produced with
permission of the AIA and can be reproduced in accordance with your license
without violation until the date of expiration as noted below, expiration as
noted below, expiration as noted below. User Document: 97a201—cymer worldwide
customer operations facility (csd-6).aia—9/10/2002. AIA License Number 1006044,
which expires on 2/28/2003.

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INDEX     Acceptance of Nonconforming Work   9.6.6, 9.9.3, 12.3 Acceptance of
Work   9.6.6, 9.8.2, 9.9.3, 9.10.1, 9.10.3, 12.3 Access to Work   3.16, 6.2.1,
12.1 Accident Prevention   4.2.3, 10 Acts and Omissions   3.2, 3.3.2, 3.12.8,
3.18, 4.2.3, 4.3.8, 4.4.1, 8.3.1, 9.5.1, 10.2.5, 13.4.2, 13.7, 14.1 Addenda  
1.1.1, 3.11 Additional Costs, Claims for   4.3.4, 4.3.5, 4.3.6, 6.1.1, 10.3
Additional Inspections and Testing   9.8.3, 12.2.1, 13.5 Additional Time, Claims
for   4.3.4, 4.3.7, 8.3.2 ADMINISTRATION OF THE CONTRACT   3.1.3, 4, 9.4, 9.5
Advertisement or Invitation to Bid   1.1.1 Aesthetic Effect   4.2.13, 4.5.1
Allowances   3.8 All-risk Insurance   11.4.1.1 Applications for Payment   4.2.5,
7.3.8, 9.2, 9.3, 9.4, 9.5.1, 9.6.3, 9.7.1, 9.8.5, 9.10, 11.1.3, 14.2.4, 14.4.3
Approvals   2.4, 3.1.3, 3.5, 3.10.2, 3.12, 4.2.7, 9.3.2, 13.4.2, 13.5
Arbitration   4.3.3, 4.4, 4.5.1, 4.5.2, 4.6, 8.3.1, 9.7.1, 11.4.9, 11.4.10
Architect   4.1 Architect, Definition of   4.1.1 Architect, Extent of Authority
  2.4, 3.12.7, 4.2, 4.3.6, 4.4, 5.2, 6.3, 7.1.2, 7.3.6, 7.4, 9.2, 9.3.1, 9.4,
9.5, 9.8.3, 9.10.1, 9.10.3, 12.1, 12.2.1, 13.5.1, 13.5.2, 14.2.2, 14.2.4
Architect, Limitations of Authority and Responsibility   2.1.1, 3.3.3, 3.12.4,
3.12.8, 3.12.10, 4.1.2, 4.2.1, 4.2.2, 4.2.3, 4.2.6, 4.2.7, 4.2.10, 4.2.12,
4.2.13, 4.4, 5.2.1, 7.4, 9.4.2, 9.6.4, 9.6.6 Architect's Additional Services and
Expenses   2.4, 11.4.1.1, 12.2.1, 13.5.2, 13.5.3, 14.2.4 Architect's
Administration of the Contract   3.1.3, 4.2, 4.3.4, 4.4, 9.4, 9.5 Architect's
Approvals   2.4, 3.1.3, 3.5.1, 3.10.2, 4.2.7 Architect's Authority to Reject
Work   3.5.1, 4.2.6, 12.1.2, 12.2.1 Architect's Copyright   1.6 Architect's
Decisions   4.2.6, 4.2.7, 4.2.11, 4.2.12, 4.2.13, 4.3.4, 4.4.1, 4.4.5, 4.4.6,
4.5, 6.3, 7.3.6, 7.3.8, 8.1.3, 8.3.1, 9.2, 9.4, 9.5.1, 9.8.4, 9.9.1, 13.5.2,
14.2.2, 14.2.4 Architect's Inspections   4.2.2, 4.2.9, 4.3.4, 9.4.2, 9.8.3,
9.9.2, 9.10.1, 13.5 Architect's Instructions   3.2.3, 3.3.1, 4.2.6, 4.2.7,
4.2.8, 7.4.1, 12.1, 13.5.2 Architect's Interpretations   4.2.11, 4.2.12, 4.3.6
Architect's Project Representative   4.2.10 Architect's Relationship with
Contractor   1.1.2, 1.6, 3.1.3, 3.2.1, 3.2.2, 3.2.3, 3.3.1, 3.4.2, 3.5.1, 3.7.3,
3.10, 3.11, 3.12, 3.16, 3.18, 4.1.2, 4.1.3, 4.2, 4.3.4, 4.4.1, 4.4.7, 5.2,
6.2.2, 7, 8.3.1, 9.2, 9.3, 9.4, 9.5, 9.7, 9.8, 9.9, 10.2.6, 10.3, 11.3, 11.4.7,
12, 13.4.2, 13.5 Architect's Relationship with Subcontractors   1.1.2, 4.2.3,
4.2.4, 4.2.6, 9.6.3, 9.6.4, 11.4.7 Architect's Representations   9.4.2, 9.5.1,
9.10.1 Architect's Site Visits   4.2.2, 4.2.5, 4.2.9, 4.3.4, 9.4.2, 9.5.1,
9.9.2, 9.10.1, 13.5

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Asbestos   10.3.1 Attorneys' Fees   3.18.1, 9.10.2, 10.3.3 Award of Separate
Contracts   6.1.1, 6.1.2 Award of Subcontracts and Other Contracts for Portions
of the Work   5.2 Basic Definitions   1.1 Bidding Requirements   1.1.1, 1.1.7,
5.2.1, 11.5.1 Boiler and Machinery Insurance   11.4.2 Bonds, Lien   9.10.2
Bonds, Performance, and Payment   7.3.6.4, 9.6.7, 9.10.3, 11.4.9, 11.5 Building
Permit   3.7.1 Capitalization   1.3 Certificate of Substantial Completion  
9.8.3, 9.8.4, 9.8.5 Certificates for Payment   4.2.5, 4.2.9, 9.3.3, 9.4, 9.5,
9.6.1, 9.6.6, 9.7.1, 9.10.1, 9.10.3, 13.7, 14.1.1.3, 14.2.4 Certificates of
Inspection, Testing or Approval   13.5.4 Certificates of Insurance   9.10.2,
11.1.3 Change Orders   1.1.1, 2.4.1, 3.4.2, 3.8.2.3, 3.11.1, 3.12.8, 4.2.8,
4.3.4, 4.3.9, 5.2.3, 7.1, 7.2, 7.3, 8.3.1, 9.3.1.1, 9.10.3, 11.4.1.2, 11.4.4,
11.4.9, 12.1.2 Change Orders, Definition of   7.2.1 CHANGES IN THE WORK   3.11,
4.2.8, 7, 8.3.1, 9.3.1.1, 11.4.9 Claim, Definition of   4.3.1 Claims and
Disputes   3.2.3, 4.3, 4.4, 4.5, 4.6, 6.1.1, 6.3, 7.3.8, 9.3.3, 9.10.4, 10.3.3
Claims and Timely Assertion of Claims   4.6.5 Claims for Additional Cost  
3.2.3, 4.3.4, 4.3.5, 4.3.6, 6.1.1, 7.3.8, 10.3.2 Claims for Additional Time  
3.2.3, 4.3.4, 4.3.7, 6.1.1, 8.3.2, 10.3.2 Claims for Concealed or Unknown
Conditions   4.3.4 Claims for Damages   3.2.3, 3.18., 4.3.10, 6.1.1, 8.3.3,
9.5.1, 9.6.7, 10.3.3, 11.1.1, 11.4.5, 11.4.7, 14.1.3, 14.2.4 Claims Subject to
Arbitration   4.4.1, 4.5.1, 4.6.1 Cleaning Up   3.15, 6.3 Commencement of
Statutory Limitation Period   13.7 Commencement of the Work, Conditions Relating
to   2.2.1, 3.2.1, 3.4.1, 3.7.1, 3.10.1, 3.12.6, 4.3.5, 5.2.1, 5.2.3, 6.2.2,
8.1.2, 8.2.2, 8.3.1, 11.1, 11.4.1, 11.4.6, 11.5.1 Commencement of the Work,
Definition of   8.1.2 Communications Facilitating Contract Administration  
3.9.1, 4.2.4 Completion, Conditions Relating to   1.6.1, 3.4.1, 3.11, 3.15,
4.2.2, 4.2.9, 8.2, 9.4.2, 9.8, 9.9.1, 9.10, 12.2, 13.7, 14.1.2 COMPLETION,
PAYMENTS AND   9 Completion, Substantial   4.2.9, 8.1.1, 8.1.3, 8.2.3, 9.4.2,
9.8, 9.9.1, 9.10.3, 9.10.4.2, 12.2, 13.7 Compliance with Laws   1.6.1, 3.2.2,
3.6, 3.7, 3.12.10, 3.13, 4.1.1, 4.4.8, 4.6.4, 4.6.6, 9.6.4, 10.2.2, 11.1, 11.4,
13.1, 13.4, 13.5.1, 13.5.2, 13.6, 14.1.1, 14.2.1.3 Concealed or Unknown
Conditions   4.3.4, 8.3.1, 10.3 Conditions of the Contract   1.1.1, 1.1.7,
6.1.1, 6.1.4 Consent, Written   1.6, 3.4.2, 3.12.8, 3.14.2, 4.1.2, 4.3.4, 4.6.4,
9.3.2, 9.8.5, 9.9.1, 9.10.2, 9.10.3, 11.4.1, 13.2, 13.4.2 CONSTRUCTION BY OWNER
OR BY SEPARATE CONTRACTORS   1.1.4, 6

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Construction Change Directive, Definition of   7.3.1 Construction Change
Directives   1.1.1, 3.12.8, 4.2.8, 4.3.9, 7.1, 7.3, 9.3.1.1 Construction
Schedules, Contractor's   1.4.1.2, 3.10, 3.12.1, 3.12.2, 4.3.7.2, 6.1.3
Contingent Assignment of Subcontracts   5.4, 14.2.2.2 Continuing Contract
Performance   4.3.3 Contract, Definition of   1.1.2 CONTRACT, TERMINATION OR
SUSPENSION OF THE   5.4.1.1, 11.4.9, 14 Contract Administration   3.1.3, 4, 9.4,
9.5 Contract Award and Execution, Conditions Relating to   3.7.1, 3.10, 5.2,
6.1, 11.1.3, 11.4.6, 11.5.1 Contract Documents, The   1.1, 1.2 Contract
Documents, Copies Furnished and Use of   1.6, 2.2.5, 5.3 Contract Documents,
Definition of   1.1.1 Contract Sum   3.8, 4.3.4, 4.3.5, 4.4.5, 5.2.3, 7.2, 7.3,
7.4, 9.1, 9.4.2, 9.5.1.4, 9.6.7, 9.7, 10.3.2, 11.4.1, 14.2.4, 14.3.2 Contract
Sum, Definition of   9.1 Contract Time   4.3.4, 4.3.7, 4.4.5, 5.2.3, 7.2.1.3,
7.3, 7.4, 8.1.1, 8.2, 8.3.1, 9.5.1, 9.7, 10.3.2, 12.1.1, 14.3.2 Contract Time,
Definition of   8.1.1 CONTRACTOR   3 Contractor, Definition of   3.1, 6.1.2
Contractor's Construction Schedules   1.4.1.2, 3.10, 3.12.1, 3.12.2, 4.3.7.2,
6.1.3 Contractor's Employees   3.3.2, 3.4.3, 3.8.1, 3.9, 3.18.2, 4.2.3, 4.2.6,
10.2, 10.3, 11.1.1, 11.4.7, 14.1, 14.2.1.1, Contractor's Liability Insurance  
11.1 Contractor's Relationship with Separate Contractors and Owner's Forces  
3.12.5, 3.14.2, 4.2.4, 6, 11.4.7, 12.1.2, 12.2.4 Contractor's Relationship with
Subcontractors   1.2.2, 3.3.2, 3.18.1, 3.18.2, 5, 9.6.2, 9.6.7, 9.10.2,
11.4.1.2, 11.4.7, 11.4.8 Contractor's Relationship with the Architect   1.1.2,
1.6, 3.1.3, 3.2.1, 3.2.2, 3.2.3, 3.3.1, 3.4.2, 3.5.1, 3.7.3, 3.10, 3.11, 3.12,
3.16, 3.18, 4.1.2, 4.1.3, 4.2, 4.3.4, 4.4.1, 4.4.7, 5.2, 6.2.2, 7, 8.3.1, 9.2,
9.3, 9.4, 9.5, 9.7, 9.8, 9.9, 10.2.6, 10.3, 11.3, 11.4.7, 12, 13.4.2, 13.5
Contractor's Representations   1.5.2, 3.5.1, 3.12.6, 6.2.2, 8.2.1, 9.3.3, 9.8.2
Contractor's Responsibility for Those Performing the Work   3.3.2, 3.18, 4.2.3,
4.3.8, 5.3.1, 6.1.3, 6.2, 6.3, 9.5.1, 10 Contractor's Review of Contract
Documents   1.5.2, 3.2, 3.7.3 Contractor's Right to Stop the Work   9.7
Contractor's Right to Terminate the Contract   4.3.10, 14.1 Contractor's
Submittals   3.10, 3.11, 3.12, 4.2.7, 5.2.1, 5.2.3, 7.3.6, 9.2, 9.3, 9.8.2,
9.8.3, 9.9.1, 9.10.2, 9.10.3, 11.1.3, 11.5.2 Contractor's Superintendent   3.9,
10.2.6 Contractor's Supervision and Construction Procedures   1.2.2, 3.3, 3.4,
3.12.10, 4.2.2, 4.2.7, 4.3.3, 6.1.3, 6.2.4, 7.1.3, 7.3.4, 7.3.6, 8.2, 10, 12, 14
Contractual Liability Insurance   11.1.1.8, 11.2, 11.3 Coordination and
Correlation   1.2, 1.5.2, 3.3.1, 3.10, 3.12.6, 6.1.3, 6.2.1 Copies Furnished of
Drawings and Specifications   1.6, 2.2.5, 3.11 Copyrights   1.6, 3.17 Correction
of Work   2.3, 2.4, 3.7.4, 4.2.1, 9.4.2, 9.8.2, 9.8.3, 9.9.1, 12.1.2, 12.2,
13.7.1.3 Correlation and Intent of the Contract Documents   1.2 Cost, Definition
of   7.3.6

4

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Costs   2.4, 3.2.3, 3.7.4, 3.8.2, 3.15.2, 4.3, 5.4.2, 6.1.1, 6.2.3, 7.3.3.3,
7.3.6, 7.3.7, 7.3.8, 9.10.2, 10.3.2, 10.5, 11.3, 11.4, 12.1, 12.2.1, 12.2.4,
13.5, 14 Cutting and Patching   6.2.5, 3.14 Damage to Construction of Owner or
Separate Contractors   3.14.2, 6.2.4, 9.2.1.5, 10.2.1.2, 10.2.5, 10.6, 11.1,
11.4, 12.2.4 Damage to the Work   3.14.2, 9.9.1, 10.2.1.2, 10.2.5, 10.6, 11.4,
12.2.4 Damages, Claims for   3.2.3, 3.18, 4.3.10, 6.1.1, 8.3.3, 9.5.1, 9.6.7,
10.3.3, 11.1.1, 11.4.5, 11.4.7, 14.1.3, 14.2.4 Damages for Delay   6.1.1, 8.3.3,
9.5.1.6, 9.7, 10.3.2 Date of Commencement of the Work, Definition of   8.1.2
Date of Substantial Completion, Definition of   8.1.3 Day, Definition of   8.1.4
Decisions of the Architect   4.2.6, 4.2.7, 4.2.11, 4.2.12, 4.2.13, 4.3.4, 4.4.1,
4.4.5, 4.4.6, 4.5, 6.3, 7.3.6, 7.3.8, 8.1.3, 8.3.1, 9.2, 9.4, 9.5.1, 9.8.4,
9.9.1, 13.5.2, 14.2.2, 14.2.4 Decisions to Withhold Certification   9.4.1, 9.5,
9.7, 14.1.1.3 Defective or Nonconforming Work, Acceptance, Rejection and
Correction of   2.3, 2.4, 3.5.1, 4.2.6, 6.2.5, 9.5.1, 9.5.2, 9.6.6, 9.8.2,
9.9.3, 9.10.4, 12.2.1, 13.7.1.3 Defective Work, Definition of   3.5.1
Definitions   1.1, 2.1.1, 3.1, 3.5.1, 3.12.1, 3.12.2, 3.12.3, 4.1.1, 4.3.1, 5.1,
6.1.2, 7.2.1, 7.3.1, 7.3.6, 8.1, 9.1, 9.8.1 Delays and Extensions of Time  
3.2.3, 4.3.1, 4.3.4, 4.3.7, 4.4.5, 5.2.3, 7.2.1, 7.3.1, 7.4.1, 7.5.1, 8.3,
9.5.1, 9.7.1, 10.3.2, 10.6.1, 14.3.2 Disputes   4.1.4, 4.3, 4.4, 4.5, 4.6, 6.3,
7.3.8 Documents and Samples at the Site   3.11 Drawings, Definition of   1.1.5
Drawings and Specifications, Use and Ownership of   1.1.1, 1.3, 2.2.5, 3.11, 5.3
Effective Date of Insurance   8.2.2, 11.1.2 Emergencies   4.3.5, 10.6, 14.1.1.2
Employees, Contractor's   3.3.2, 3.4.3, 3.8.1, 3.9, 3.18.2, 4.2.3, 4.2.6, 10.2,
10.3, 11.1.1, 11.4.7, 14.1, 14.2.1.1 Equipment, Labor, Materials and   1.1.3,
1.1.6, 3.4, 3.5.1, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1, 4.2.6, 4.2.7, 5.2.1, 6.2.1,
7.3.6, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1, 10.2.4, 14.2.1.2 Execution and
Progress of the Work   1.1.3, 1.2.1, 1.2.2, 2.2.3, 2.2.5, 3.1, 3.3, 3.4, 3.5,
3.7, 3.10, 3.12, 3.14, 4.2.2, 4.2.3, 4.3.3, 6.2.2, 7.1.3, 7.3.4, 8.2, 9.5,
9.9.1, 10.2, 10.3, 12.2, 14.2, 14.3 Extensions of Time   3.2.3, 4.3.1, 4.3.4,
4.3.7, 4.4.5, 5.2.3, 7.2.1, 7.3, 7.4.1, 9.5.1, 9.7.1, 10.3.2, 10.6.1, 14.3.2
Failure of Payment   4.3.6, 9.5.1.3, 9.7, 9.10.2, 14.1.1.3, 14.2.1.2, 13.6
Faulty Work (See Defective or Nonconforming Work)     Final Completion and Final
Payment   4.2.1, 4.2.9, 4.3.2, 9.8.2, 9.10, 11.1.2, 11.1.3, 11.4.1, 11.4.5,
12.3.1, 13.7, 14.2.4, 14.4.3 Financial Arrangements, Owner's   2.2.1, 13.2.2,
14.1.1.5 Fire and Extended Coverage Insurance   11.4 GENERAL PROVISIONS   1

5

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Governing Law   13.1 Guarantees (See Warranty)     Hazardous Materials   10.2.4,
10.3, 10.5 Identification of Contract Documents   1.5.1 Indentification of
Subcontractors and Suppliers   5.2.1 Indemnification   3.17, 3.18, 9.10.2,
10.3.3, 10.5, 11.4.1.2, 11.4.7 Information and Services Required of the Owner  
2.1.2, 2.2, 3.2.1, 3.12.4, 3.12.10, 4.2.7, 4.3.3, 6.1.3, 6.1.4, 6.2.5, 9.3.2,
9.6.1, 9.6.4, 9.9.2, 9.10.3, 10.3.3, 11.2, 11.4, 13.5.1, 13.5.2, 14.1.1.4,
14.1.4 Injury or Damage to Person or Property   4.3.8, 10.2, 10.6 Inspections  
3.1.3, 3.3.3, 3.7.1, 4.2.2, 4.2.6, 4.2.9, 9.4.2, 9.8.2, 9.8.3, 9.9.2, 9.10.1,
12.2.1, 13.5 Instructions to Bidders   1.1.1 Instructions to the Contractor  
3.2.3, 3.3.1, 3.8.1, 4.2.8, 5.2.1, 7, 12, 8.2.2, 13.5.2 Insurance   3.18.1,
6.1.1, 7.3.6, 8.2.1, 9.3.2, 9.8.4, 9.9.1, 9.10.2, 9.10.5, 11 Insurance, Boiler
and Machinery   11.4.2 Insurance, Contractor's Liability   11.1 Insurance,
Effective Date of   8.2.2, 11.1.2 Insurance, Loss of Use   11.4.3 Insurance,
Owner's Liability   11.2 Insurance, Project Management Protective Liability  
11.3 Insurance, Property   10.2.5, 11.4 Insurance, Stored Materials   9.3.2,
11.4.1.4 INSURANCE AND BONDS   11 Insurance Companies, Consent to Partial
Occupancy   9.9.1, 11.4.1.5 Insurance Companies, Settlement with   11.4.10
Intent of the Contract Documents   1.2.1, 4.2.7, 4.2.12, 4.2.13, 7.4 Interest  
13.6 Interpretation   1.2.3, 1.4, 4.1.1, 4.3.1, 5.1, 6.1.2, 8.1.4
Interpretations, Written   4.2.11, 4.2.12, 4.3.6 Joinder and Consolidation of
Claims Required   4.6.4 Judgment on Final Award   4.6.6 Labor and Materials,
Equipment   1.1.3, 1.1.6, 3.4, 3.5.1, 3.8.2, 3.8.3, 3.12, 3.13, 3.15.1, 42.6,
4.2.7, 5.2.1, 6.2.1, 7.3.6, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1, 10.2.4,
14.2.1.2 Labor Disputes   8.3.1 Laws and Regulations   1.6, 3.2.2, 3.6, 3.7,
3.12.10, 3.13, 4.1.1, 4.4.8, 4.6, 9.6.4, 9.9.1, 10.2.2, 11.1, 11.4, 13.1, 13.4,
13.5.1, 13.5.2, 13.6, 14 Liens   2.1.2, 4.4.8, 8.2.2, 9.3.3, 9.10 Limitation on
Consolidation or Joinder   4.6.4 Limitations, Statutes of   4.6.3, 12.2.6, 13.7
Limitations of Liability   2.3, 3.2.1, 3.5.1, 3.7.3, 3.12.8, 3.12.10, 3.17,
3.18, 4.2.6, 4.2.7, 4.2.12, 6.2.2, 9.4.2, 9.6.4, 9.6.7, 9.10.4, 10.3.3, 10.2.5,
11.1.2, 11.2.1, 11.4.7, 12.2.5, 13.4.2 Limitations of Time   2.1.2, 2.2, 2.4,
3.2.1, 3.7.3, 3.10, 3.11, 3.12.5, 3.15.1, 4.2.7, 4.3, 4.4, 4.5, 4.6, 5.2, 5.3,
5.4, 6.2.4, 7.3, 7.4, 8.2, 9.2, 9.3.1, 9.3.3, 9.4.1, 9.5, 9.6, 9.7, 9.8, 9.9,
9.10, 11.1.3, 11.4.1.5, 11.4.6, 11.4.10, 12.2, 13.5, 13.7, 14 Loss of Use
Insurance   11.4.3

6

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Material Suppliers   1.6, 3.12.1, 4.2.4, 4.2.6, 5.2.1, 9.3, 9.4.2, 9.6, 9.10.5
Materials, Hazardous   10.2.4, 10.3, 10.5 Materials, Labor, Equipment and  
1.1.3, 1.1.6, 1.6.1, 3.4, 3.5.1, 3.8.2, 3.8.23, 3.12, 3.13, 3.15.1, 4.2.6,
4.2.7, 5.2.1, 6.2.1, 7.3.6, 9.3.2, 9.3.3, 9.5.1.3, 9.10.2, 10.2.1, 10.2.4,
14.2.1.2 Means, Methods, Techniques, Sequences and Procedures of Construction  
3.3.1, 3.12.10, 4.2.2, 4.2.7, 9.4.2 Mechanic's Lien   4.4.8 Mediation   4.4.1,
4.4.5, 4.4.6, 4.4.8, 4.5, 4.6.1, 4.6.2, 8.3.1, 10.5 Minor Changes in the Work  
1.1.1, 3.12.8, 4.2.8, 4.3.6, 7.1, 7.4 MISCELLANEOUS PROVISIONS   13
Modifications, Definition of   1.1.1 Modifications to the Contract   1.1.1,
1.1.2, 3.7.3, 3.11, 4.1.2, 4.2.1, 5.2.3, 7, 8.3.1, 9.7, 10.3.2, 11.4.1 Mutual
Responsibility   6.2 Nonconforming Work, Acceptance of   9.6.6, 9.9.3, 12.3
Nonconforming Work, Rejection and Correction of   2.3, 2.4, 3.5.1, 4.2.6, 6.2.5,
9.5.1, 9.8.2, 9.9.3, 9.10.4, 12.2.1, 13.7.1.3 Notice   2.2.1, 2.3, 2.4, 3.2.3,
3.3.1, 3.7.2, 3.7.4, 3.12.9, 4.3, 4.4.8, 4.6.5, 5.2.1, 8.2.2, 9.7, 9.10, 10.2.2,
11.1.3, 11.4.6, 12.2.2, 12.2.4, 13.3, 13.5.1, 13.5.2, 14.1, 14.2 Notice, Written
  2.3, 2.4, 3.3.1, 3.9, 3.12.9, 3.12.10, 4.3, 4.4.8, 4.6.5, 5.2.1, 8.2.2, 9.7,
9.10, 10.2.2, 10.3, 11.1.3, 11.4.6, 12.2.2, 12.2.4, 13.3, 14 Notice of Testing
and Inspections   13.5.1, 13.5.2 Notice to Proceed   8.2.2 Notices, Permits,
Fees and   2.2.2, 3.7, 3.13, 7.3.6.4, 10.2.2 Observations, Contractor's   1.5.2,
3.2, 3.7.3, 4.3.4 Occupancy   2.2.2, 9.6.6, 9.8, 11.4.1.5 Orders, Written  
1.1.1, 2.3, 3.9, 4.3.6, 7, 8.2.2, 11.4.9, 12.1, 12.2, 13.5.2, 14.3.1 OWNER   2
Owner, Definition of   2.1 Owner, Information and Services Required of the  
2.1.2, 2.2, 3.2.1, 3.12.4, 3.12.10, 4.2.7, 4.3.3, 6.1.3, 6.1.4, 6.2.5, 9.3.2,
9.6.1, 9.6.4, 9.9.2, 9.10.3, 10.3.3, 11.2, 11.4, 13.5.1, 13.5.2, 14.1.1.4,
14.1.4 Owner's Authority   1.6, 2.1.1, 2.3, 2.4, 3.4.2, 3.8.1, 3.12.10, 3.14.2,
4.1.2, 4.1.3, 4.2.4, 4.2.9, 4.3.6, 4.4.7, 5.2.1, 5.2.4, 5.4.1, 6.1, 6.3, 7.2.1,
7.3.1, 8.2.2, 8.3.1, 9.3.1, 9.3.2, 9.5.1, 9.9.1, 9.10.2, 10.3.2, 11.1.3, 11.3.1,
11.4.3, 11.4.10, 12.2.2, 12.3.1, 13.2.2, 14.3, 14.4 Owner's Financial Capability
  2.2.1, 13.2.2, 14.1.1.5 Owner's Liability Insurance   11.2 Owner's Loss of Use
Insurance   11.4.3 Owner's Relationship with Subcontractors   1.1.2, 5.2, 5.3,
5.4, 9.6.4, 9.10.2, 14.2.2 Owner's Right to Carry Out the Work   2.4, 12.2.4,
14.2.2.2 Owner's Right to Clean Up   6.3 Owner's Right to Perform Construction
and to Award Separate Contracts   6.1 Owner's Right to Stop the Work   2.3
Owner's Right to Suspend the Work   14.3

7

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Owner's Right to Terminate the Contract   14.2 Ownership and Use of Drawings,
Specifications and Other Instruments of Service  
1.1.1, 1.6, 2.2.5, 3.2.1, 3.11.1, 3.17.1, 4.2.12, 5.3 Partial Occupancy or Use  
9.6.6, 9.9, 11.4.1.5 Patching, Cutting and   3.14, 6.2.5 Patents   3.17 Payment,
Applications for   4.2.5, 7.3.8, 9.2, 9.3, 9.4, 9.5.1, 9.6.3, 9.7.1, 9.8.5,
9.10.1, 9.10.3, 9.10.5, 11.1.3, 14.2.4, 14.4.3 Payment, Certificates for  
4.2.5, 4.2.9, 9.3.3, 9.4, 9.5, 9.6.1, 9.6.6, 9.7.1, 9.10.1, 9.10.3, 13.7,
14.1.1.3, 14.2.4 Payment, Failure of   4.3.6, 9.5.1.3, 9.7, 9.10.2, 14.1.1.3,
14.2.1.2, 13.6 Payment, Final   4.2.1, 4.2.9, 4.3.2, 9.8.2, 9.10, 11.1.2,
11.1.3, 11.4.1, 11.4.5, 12.3.1, 13.7, 14.2.4, 14.4.3 Payment Bond, Performance
Bond and   7.3.6.4, 9.6.7, 9.10.3, 11.4.9, 11.5 Payments, Progress   4.3.3, 9.3,
9.6, 9.8.5, 9.10.3, 13.6, 14.2.3 PAYMENTS AND COMPLETION   9 Payments to
Subcontractors   5.4.2, 9.5.1.3, 9.6.2, 9.6.3, 9.6.4, 9.6.7, 11.4.8, 14.2.1.2
PCB   10.3.1 Performance Bond and Payment Bond   7.3.6.4, 9.6.7, 9.10.3, 11.4.9,
11.5 Permits, Fees and Notices   2.2.2, 3.7, 3.13, 7.3.6.4, 10.2.2 PERSONS AND
PROPERTY, PROTECTION OF   10 Polychlorinated Biphenyl   10.3.1 Product Data,
Definition of   3.12.2 Product Data and Samples, Shop Drawings   3.11, 3.12,
4.2.7 Progress and Completion   4.2.2, 4.3.3, 8.2, 9.8, 9.9.1, 14.1.4 Progress
Payments   4.3.3, 9.3, 9.6, 9.8.5, 9.10.3, 13.6, 14.2.3 Project, Definition of
the   1.1.4 Project Management Protective Liability Insurance   11.3 Project
Manual, Definition of the   1.1.7 Project Manuals   2.2.5 Project
Representatives   4.2.10 Property Insurance   10.2.5, 11.4 PROTECTION OF PERSONS
AND PROPERTY   10 Regulations and Laws   1.6, 3.2.2, 3.6, 3.7, 3.12.10, 3.13,
4.1.1, 4.4.8, 4.6, 9.6.4, 9.9.1, 10.2.2, 11.1, 11.4, 13.1, 13.4, 13.5.1, 13.5.2,
13.6, 14 Rejection of Work   3.5.1, 4.2.6, 12.2.1 Releases and Waivers of Liens
  9.10.2 Representations   1.5.2, 3.5.1, 3.12.6, 6.2.2, 8.2.1, 9.3.3, 9.4.2,
9.5.1, 9.8.2, 9.10.1 Representatives   2.1.1, 3.1.1, 3.9, 4.1.1, 4.2.1, 4.2.10,
5.1.1, 5.1.2, 13.2.1 Resolution of Claims and Disputes   4.4, 4.5, 4.6
Responsibility for Those Performing the Work   3.3.2, 3.18, 4.2.3, 4.3.8, 5.3.1,
6.1.3, 6.2, 6.3, 9.5.1, 10 Retainage   9.3.1, 9.6.2, 9.8.5, 9.9.1, 9.10.2,
9.10.3 Review of Contract Documents and Field Conditions by Contractor   1.5.2,
3.2, 3.7.3, 3.12.7, 6.1.3 Review of Contractor's Submittals by Owner and
Architect   3.10.1, 3.10.2, 3.11, 3.12, 4.2, 5.2, 6.1.3, 9.2, 9.8.2 Review of
Shop Drawings, Product Data and Samples by Contractor   3.12

8

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Rights and Remedies   1.1.2, 2.3, 2.4, 3.5.1, 3.15.2, 4.2.6, 4.3.4, 4.5, 4.6,
5.3, 5.4, 6.1, 6.3, 7.3.1, 8.3, 9.5.1, 9.7, 10.2.5, 10.3, 12.2.2, 12.2.4, 13.4,
14 Royalties, Patents and Copyrights   3.17 Rules and Notices for Arbitration  
4.6.2 Safety of Persons and Property   10.2, 10.6 Safety Precautions and
Programs   3.3.1, 4.2.2, 4.2.7, 5.3.1, 10.1, 10.2, 10.6 Samples, Definition of  
3.12.3 Samples, Shop Drawings, Product Data and   3.11, 3.12, 4.2.7 Samples at
the Site, Documents and   3.11 Schedule of Values   9.2, 9.3.1 Schedules,
Construction   1.4.1.2, 3.10, 3.12.1, 3.12.2, 4.3.7.2, 6.1.3 Separate Contracts
and Contractors   1.1.4, 3.12.5, 3.14.2, 4.2.4, 4.2.7, 4.6.4, 6, 8.3.1, 11.4.7,
12.1.2, 12.2.5 Shop Drawings, Definition of   3.12.1 Shop Drawings, Product Data
and Samples   3.11, 3.12, 4.2.7 Site, Use of   3.13, 6.1.1, 6.2.1 Site
Inspections   1.2.2, 3.2.1, 3.3.3, 3.7.1, 4.2, 4.3.4, 9.4.2, 9.10.1, 13.5 Site
Visits, Architect's   4.2.2, 4.2.9, 4.3.4, 9.4.2, 9.5.1, 9.9.2, 9.10.1, 13.5
Special Inspections and Testing   4.2.6, 12.2.1, 13.5 Specifications, Definition
of the   1.1.6 Specifications, The   1.1.1, 1.1.6, 1.1.7, 1.2.2, 1.6, 3.11,
3.12.10, 3.17 Statute of Limitations   4.6.3, 12.2.6, 13.7 Stopping the Work  
2.3, 4.3.6, 9.7, 10.3, 14.1 Stored Materials   6.2.1, 9.3.2, 10.2.1.2, 10.2.4,
11.4.1.4 Subcontractor, Definition of   5.1.1 SUBCONTRACTORS   5 Subcontractors,
Work by   1.2.2, 3.3.2, 3.12.1, 4.2.3, 5.2.3, 5.3, 5.4, 9.3.1.2, 9.6.7
Subcontractual Relations   5.3, 5.4, 9.3.1.2, 9.6, 9.10, 10.2.1, 11.4.7, 11.4.8,
14.1, 14.2.1, 14.3.2 Submittals   1.6, 3.10, 3.11, 3.12, 4.2.7, 5.2.1, 5.2.3,
7.3.6, 9.2, 9.3, 9.8, 9.9.1, 9.10.2, 9.10.3, 11.1.3 Subrogation, Waivers of  
6.1.1, 11.4.5, 11.4.7 Substantial Completion   4.2.9, 8.1.1, 8.1.3, 8.2.3,
9.4.2, 9.8, 9.9.1, 9.10.3, 9.10.4.2, 12.2, 13.7 Substantial Completion,
Definition of   9.8.1 Substitution of Subcontractors   5.2.3, 5.2.4 Substitution
of Architect   4.1.3 Substitutions of Materials   3.4.2, 3.5.1, 7.3.7
Sub-subcontractor, Definition of   5.1.2 Subsurface Conditions   4.3.4
Successors and Assigns   13.2 Superintendent   3.9, 10.2.6 Supervision and
Construction Procedures   1.2.2, 3.3, 3.4, 3.12.10, 4.2.2, 4.2.7, 4.3.3, 6.1.3,
6.2.4, 7.1.3, 7.3.6, 8.2, 8.3.1, 9.4.2, 10, 12, 14 Surety   4.4.7, 5.4.1.2,
9.8.5, 9.10.2, 9.10.3, 14.2.2 Surety, Consent of   9.10.2, 9.10.3 Surveys  
2.2.3 Suspension by the Owner for Convenience   14.4 Suspension of the Work  
5.4.2, 14.3 Suspension or Termination of the Contract   4.3.6, 5.4.1.1, 11.4.9,
14 Taxes   3.6, 3.8.2.1, 7.3.6.4

9

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Termination by the Contractor   4.3.10, 14.1 Termination by the Owner for Cause
  4.3.10, 5.4.1.1, 14.2 Termination of the Architect   4.1.3 Termination of the
Contractor   14.2.2 TERMINATION OR SUSPENSION OF THE CONTRACT   14 Tests and
Inspections   3.1.3, 3.3.3, 4.2.2, 4.2.6, 4.2.9, 9.4.2, 9.8.3, 9.9.2, 9.10.1,
10.3.2, 11.4.1.1, 12.2.1, 13.5 TIME   8 Time, Delays and Extensions of   3.2.3,
4.3.1, 4.3.4, 4.3.7, 4.4.5, 5.2.3, 7.2.1, 7.3.1, 7.4.1, 7.5.1, 8.3, 9.5.1,
9.7.1, 10.3.2, 10.6.1, 14.3.2 Time Limits   2.1.2, 2.2, 2.4, 3.2.1, 3.7.3, 3.10,
3.11, 3.12.5, 3.15.1, 4.2, 4.3, 4.4, 4.5, 4.6, 5.2, 5.3, 5.4, 6.2.4, 7.3, 7.4,
8.2, 9.2, 9.3.1, 9.3.3, 9.4.1, 9.5, 9.6, 9.7, 9.8, 9.9, 9.10, 11.1.3, 11.4.1.5,
11.4.6, 11.4.10, 12.2, 13.5, 13.7, 14 Time Limits on Claims   4.3.2, 4.3.4,
4.3.8, 4.4, 4.5, 4.6 Title to Work   9.3.2, 9.3.3 UNCOVERING AND CORRECTION OF
WORK   12 Uncovering of Work   12.1 Unforeseen Conditions   4.3.4, 8.3.1, 10.3
Unit Prices   4.3.9, 7.3.3.2 Use of Documents   1.1.1, 1.6, 2.2.5, 3.12.6, 5.3
Use of Site   3.13, 6.1.1, 6.2.1 Values, Schedule of   9.2, 9.3.1 Waiver of
Claims by the Architect   13.4.2 Waiver of Claims by the Contractor   4.3.10,
9.10.5, 11.4.7, 13.4.2 Waiver of Claims by the Owner   4.3.10, 9.9.3, 9.10.3,
9.10.4, 11.4.3, 11.4.5, 11.4.7, 12.2.2.1, 13.4.2, 14.2.4 Waiver of Consequential
Damages   4.3.10, 14.2.4 Waiver of Liens   9.10.2, 9.10.4 Waivers of Subrogation
  6.1.1, 11.4.5, 11.4.7 Warranty   3.5, 4.2.9, 4.3.5.3, 9.3.3, 9.8.4, 9.9.1,
9.10.4, 12.2.2, 13.7.1.3 Weather Delays   4.3.7.2 Work, Definition of   1.1.3
Written Consent   1.6, 3.4.2, 3.12.8, 3.14.2, 4.1.2, 4.3.4, 4.6.4, 9.3.2, 9.8.5,
9.9.1, 9.10.2, 9.10.3, 11.4.1, 13.2, 13.4.2 Written Interpretations   4.2.11,
4.2.12, 4.3.6 Written Notice   2.3, 2.4, 3.3.1, 3.9, 3.12.9, 3.12.10, 4.3,
4.4.8, 4.6.5, 5.2.1, 8.2.2, 9.7, 9.10, 10.2.2, 10.3, 11.1.3, 11.4.6, 12.2.4,
12.2.2, 13.3, 14 Written Orders   1.1.1, 2.3, 3.9, 4.3.6, 7, 8.2.2, 11.4.9,
12.1, 12.2, 13.5.2, 14.3.1

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ARTICLE 1    GENERAL PROVISIONS

        1.1    BASIC DEFINITIONS

         1.1.1    THE CONTRACT DOCUMENTS

        The Contract Documents consist of the Agreement between Owner and
Contractor (hereinafter the Agreement), Conditions of the Contract (General,
Supplementary and other Conditions), Drawings, Specifications, Addenda issued
prior to execution of the Contract, other documents listed in the Agreement and
Modifications issued after execution of the Contract. A Modification is (1) a
written amendment to the Contract signed by both parties, (2) a Change Order,
(3) a Construction Change Directive or (4) a written order for a minor change in
the Work issued by the Architect. Unless specifically enumerated in the
Agreement, the Contract Documents do not include other documents such as bidding
requirements (advertisement or invitation to bid, Instructions to Bidders,
sample forms, the Contractor's bid or portions of Addenda relating to bidding
requirements).

        1.1.2    THE CONTRACT

        The Contract Documents form the Contract for Construction. The Contract
represents the entire and integrated agreement between the parties hereto and
supersedes prior negotiations, representations or agreements, either written or
oral. The Contract may be amended or modified only by a Modification. The
Contract Documents shall not be construed to create a contractual relationship
of any kind (1) between the Architect and Contractor, (2) between the Owner and
a Subcontractor or Sub-subcontractor, (3) between the Owner and Architect or
(4) between any persons or entities other than the Owner and Contractor. The
Architect shall, however, be entitled to performance and enforcement of
obligations under the Contract intended to facilitate performance of the
Architect's duties.

        1.1.3    THE WORK

        The term "Work" means the construction and services required by the
Contract Documents, whether completed or partially completed, and includes all
other labor, materials, equipment and services provided or to be provided by the
Contractor to fulfill the Contractor's obligations. The Work may constitute the
whole or a part of the Project.

        1.1.4    THE PROJECT

        The Project is the total construction of which the Work performed under
the Contract Documents may be the whole or a part and which may include
construction by the Owner or by separate contractors.

        1.1.5    THE DRAWINGS

        The Drawings are the graphic and pictorial portions of the Contract
Documents showing the design, location and dimensions of the Work, generally
including plans, elevations, sections, details, schedules and diagrams.

        1.1.6    THE SPECIFICATIONS

        The Specifications are that portion of the Contract Documents consisting
of the written requirements for materials, equipment, systems, standards and
workmanship for the Work, and performance of related services.

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        1.1.7    THE PROJECT MANUAL

        The Project Manual is a volume assembled for the Work which may include
the bidding requirements, sample forms, Conditions of the Contract and
Specifications.

        1.2    CORRELATION AND INTENT OF THE CONTRACT DOCUMENTS

        1.2.1    The intent of the Contract Documents is to include all items
necessary for the proper execution and completion of the Work by the Contractor.
The Contract Documents are complementary, and what is required by one shall be
as binding as if required by all; performance by the Contractor shall be
required only to the extent consistent with the Contract Documents and
reasonably inferable from them as being necessary to produce the indicated
results.

        1.2.2    Organization of the Specifications into divisions, sections and
articles, and arrangement of Drawings shall not control the Contractor in
dividing the Work among Subcontractors or in establishing the extent of Work to
be performed by any trade.

        1.2.3    Unless otherwise stated in the Contract Documents, words which
have well-known technical or construction industry meanings are used in the
Contract Documents in accordance with such recognized meanings.

        1.3    CAPITALIZATION

        1.3.1    Terms capitalized in these General Conditions include those
which are (1) specifically defined, (2) the titles of numbered articles and
identified references to Paragraphs, Subparagraphs and Clauses in the document
or (3) the titles of other documents published by the American Institute of
Architects.

        1.4    INTERPRETATION

        1.4.1    In the interest of brevity the Contract Documents frequently
omit modifying words such as "all" and "any" and articles such as "the" and
"an," but the fact that a modifier or an article is absent from one statement
and appears in another is not intended to affect the interpretation of either
statement.

        1.5    EXECUTION OF CONTRACT DOCUMENTS

        1.5.1    The Contract Documents shall be signed by the Owner and
Contractor. If either the Owner or Contractor or both do not sign all the
Contract Documents, the Architect shall identify such unsigned Documents upon
request.

        1.5.2    Execution of the Contract by the Contractor is a representation
that the Contractor has visited the site, become generally familiar with local
conditions under which the Work is to be performed and correlated personal
observations with requirements of the Contract Documents.

        1.6    OWNERSHIP AND USE OF DRAWINGS, SPECIFICATIONS AND OTHER
INSTRUMENTS OF SERVICE

        1.6.1    The Drawings, Specifications and other documents, including
those in electronic form, prepared by the Architect and the Architect's
consultants are Instruments of Service through which the Work to be executed by
the Contractor is described. The Contractor may retain one record set. Neither
the Contractor nor any Subcontractor, Sub-subcontractor or material or equipment
supplier shall own or claim a copyright in the Drawings, Specifications and
other documents prepared by the Architect or the Architect's consultants, and
unless otherwise indicated the Architect and the Architect's consultants shall
be deemed the authors of them and will retain all common law, statutory and
other reserved

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rights, in addition to the copyrights. All copies of Instruments of Service,
except the Contractor's record set, shall be returned or suitably accounted for
to the Architect, on request, upon completion of the Work. The Drawings,
Specifications and other documents prepared by the Architect and the Architect's
consultants, and copies thereof furnished to the Contractor, are for use solely
with respect to this Project. They are not to be used by the Contractor or any
Subcontractor, Sub-subcontractor or material or equipment supplier on other
projects or for additions to this Project outside the scope of the Work without
the specific written consent of the Owner, Architect and the Architect's
consultants. The Contractor, Subcontractors, Sub-subcontractors and material or
equipment suppliers are authorized to use and reproduce applicable portions of
the Drawings, Specifications and other documents prepared by the Architect and
the Architect's consultants appropriate to and for use in the execution of their
Work under the Contract Documents. All copies made under this authorization
shall bear the statutory copyright notice, if any, shown on the Drawings,
Specifications and other documents prepared by the Architect and the Architect's
consultants. Submittal or distribution to meet official regulatory requirements
or for other purposes in connection with this Project is not to be construed as
publication in derogation of the Architect's or Architect's consultants'
copyrights or other reserved rights.

ARTICLE 2    OWNER

        2.1    GENERAL

        2.1.1    The Owner is the person or entity identified as such in the
Agreement and is referred to throughout the Contract Documents as if singular in
number. The Owner shall designate in writing a representative who shall have
express authority to bind the Owner with respect to all matters requiring the
Owner's approval or authorization. Except as otherwise provided in Subparagraph
4.2.1, the Architect does not have such authority. The term "Owner" means the
Owner or the Owner's authorized representative.

        2.1.2    The Owner shall furnish to the Contractor within fifteen days
after receipt of a written request, information necessary and relevant for the
Contractor to evaluate, give notice of or enforce mechanic's lien rights. Such
information shall include a correct statement of the record legal title to the
property on which the Project is located, usually referred to as the site, and
the Owner's interest therein.

        2.2    INFORMATION AND SERVICES REQUIRED OF THE OWNER

        2.2.1    The Owner shall, at the written request of the Contractor,
prior to commencement of the Work and thereafter, furnish to the Contractor a
copy of its most recent Balance Sheet. Furnishing of such evidence shall be a
condition precedent to commencement or continuation of the Work. After such
evidence has been furnished, the Owner shall not materially vary such financial
arrangements without prior notice to the Contractor.

        2.2.2    Except for permits and fees, including those required under
Subparagraph 3.7.1, which are the responsibility of the Contractor under the
Contract Documents, the Owner shall secure and pay for necessary approvals,
easements, assessments and charges required for construction, use or occupancy
of permanent structures or for permanent changes in existing facilities.

        2.2.3    The Owner shall furnish surveys describing physical
characteristics, legal limitations and utility locations for the site of the
Project, and a legal description of the site. The Contractor shall be entitled
to rely on the accuracy of information furnished by the Owner but shall exercise
proper precautions relating to the safe performance of the Work.

        2.2.4    Information or services required of the Owner by the Contract
Documents shall be furnished by the Owner with reasonable promptness. Any other
information or services relevant to the

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Contractor's performance of the Work under the Owner's control shall be
furnished by the Owner after receipt from the Contractor of a written request
for such information or services.

        2.2.5    Unless otherwise provided in the Contract Documents, the
Contractor will be furnished, free of charge, such copies of Drawings and
Project Manuals as are reasonably necessary for execution of the Work.

        2.3    OWNER'S RIGHT TO STOP THE WORK

        2.3.1    If the Contractor fails to correct Work which is not in
accordance with the requirements of the Contract Documents as required by
Paragraph 12.2 or persistently fails to carry out Work in accordance with the
Contract Documents, the Owner may issue a written order to the Contractor to
stop the Work, or any portion thereof, until the cause for such order has been
eliminated; however, the right of the Owner to stop the Work shall not give rise
to a duty on the part of the Owner to exercise this right for the benefit of the
Contractor or any other person or entity, except to the extent required by
Subparagraph 6.1.3.

        2.4    OWNER'S RIGHT TO CARRY OUT THE WORK

        2.4.1    If the Contractor defaults or neglects to carry out the Work in
accordance with the Contract Documents and fails within a seven-day period after
receipt of written notice from the Owner to commence and continue correction of
such default or neglect with diligence and promptness, the Owner may after such
seven-day period give the Contractor a second written notice to correct such
deficiencies within a three-day period. If the Contractor within such three-day
period after receipt of such second notice fails to commence and continue to
correct any deficiencies, the Owner may, without prejudice to other remedies the
Owner may have, correct such deficiencies. In such case an appropriate Change
Order shall be issued deducting from payments then or thereafter due the
Contractor the reasonable cost of correcting such deficiencies, including
Owner's expenses and compensation for the Architect's additional services made
necessary by such default, neglect or failure. Such action by the Owner and
amounts charged to the Contractor are both subject to prior approval of the
Architect. If payments then or thereafter due the Contractor are not sufficient
to cover such amounts, the Contractor shall pay the difference to the Owner.

ARTICLE 3    CONTRACTOR

        3.1    GENERAL

        3.1.1    The Contractor is the person or entity identified as such in
the Agreement and is referred to throughout the Contract Documents as if
singular in number. The term "Contractor" means the Contractor or the
Contractor's authorized representative.

        3.1.2    The Contractor shall perform the Work in accordance with the
Contract Documents and submittals approved pursuant to paragraph 3.12.

        3.1.3    The Contractor shall not be relieved of obligations to perform
the Work in accordance with the Contract Documents either by activities or
duties of the Architect in the Architect's administration of the Contract, or by
tests, inspections or approvals required or performed by persons other than the
Contractor.

        3.2    REVIEW OF CONTRACT DOCUMENTS AND FIELD CONDITIONS BY CONTRACTOR

        3.2.1    Since the Contract Documents are complementary, before starting
each portion of the Work, the Contractor shall carefully study and compare the
various Drawings and other Contract Documents relative to that portion of the
Work, as well as the information furnished by the Owner pursuant to Subparagraph
2.2.3, shall take field measurements of any existing conditions related to that

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portion of the Work and shall observe any conditions at the site affecting it.
These obligations are for the purpose of facilitating construction by the
Contractor and are not for the purpose of discovering errors, omissions, or
inconsistencies in the Contract Documents; however, any errors, inconsistencies
or omissions discovered by the Contractor shall be reported promptly to the
Architect as a request for information in such form as the Architect may
require.

        3.2.2    Any design errors or omissions noted by the Contractor during
this review shall be reported promptly to the Architect, but it is recognized
that the Contractor's review is made in the Contractor's capacity as a
contractor and not as a licensed design professional unless otherwise
specifically provided in the Contract Documents. The Contractor is not required
to ascertain that the Contract Documents are in accordance with applicable laws,
statutes, ordinances, building codes, and rules and regulations, but any
nonconformity discovered by or made known to the Contractor shall be reported
promptly to the Architect and Owner.

        3.2.3    If the Contractor believes that additional cost or time is
involved because of clarifications or instructions issued by the Architect in
response to the Contractor's notices or requests for information pursuant to
Subparagraphs 3.2.1 and 3.2.2, the Contractor shall make Claims as provided in
Subparagraphs 4.3.6 and 4.3.7. If the Contractor fails to perform the
obligations of Subparagraphs 3.2.1 and 3.2.2, the Contractor shall pay such
costs and damages to the Owner as would have been avoided if the Contractor had
performed such obligations. Except with respect to design-build work, the
Contractor shall not be liable to the Owner or Architect for damages resulting
from errors, inconsistencies or omissions in the Contract Documents unless the
Contractor recognized such error, inconsistency, omission or difference and
knowingly failed to report it to the Architect and Owner.

        3.3    SUPERVISION AND CONSTRUCTION PROCEDURES

        3.3.1    The Contractor shall supervise and direct the Work, using the
Contractor's best skill and attention. The Contractor shall be solely
responsible for and have control over construction means, methods, techniques,
sequences and procedures and for coordinating all portions of the Work under the
Contract, unless the Contract Documents give other specific instructions
concerning these matters. If the Contract Documents give specific instructions
concerning construction means, methods, techniques, sequences or procedures, the
Contractor shall evaluate the jobsite safety thereof and, except as stated
below, shall be fully and solely responsible for the jobsite safety of such
means, methods, techniques, sequences or procedures. If the Contractor
determines that such means, methods, techniques, sequences or procedures may not
be safe, the Contractor shall give timely written notice to the Owner and
Architect and shall not proceed with that portion of the Work without further
written instructions from the Architect. If the Contractor is then instructed to
proceed with the required means, methods, techniques, sequences or procedures
without acceptance of changes proposed by the Contractor, the Owner shall be
solely responsible for any resulting loss or damage.

        3.3.2    The Contractor shall be responsible to the Owner for acts and
omissions of the Contractor's employees, Subcontractors and their agents and
employees, and other persons or entities performing portions of the Work for or
on behalf of the Contractor or any of its Subcontractors.

        3.3.3    The Contractor shall be responsible for inspection of portions
of Work already performed to determine that such portions are in proper
condition to receive subsequent Work.

        3.4    LABOR AND MATERIALS

        3.4.1    Unless otherwise provided in the Contract Documents, the
Contractor shall provide and pay for labor, materials, equipment, tools,
construction equipment and machinery, temporary water, temporary heat, temporary
utilities, temporary toilets, transportation, and other facilities and services
necessary for proper execution and completion of the Work, whether temporary or
permanent and

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whether or not incorporated or to be incorporated in the Work. The Owner shall
pay the cost of utility consumption once the project is connected to permanent
utilities.

        3.4.2    The Contractor may make substitutions only with the consent of
the Owner, after evaluation by the Architect and in accordance with a Change
Order or an approved submittal which specifically identifies the substitution.

        3.4.3    The Contractor shall enforce strict discipline and good order
among the Contractor's employees and other persons carrying out the Contract.
The Contractor shall not permit employment of unfit persons or persons not
skilled in tasks assigned to them.

        3.5    WARRANTY

        3.5.1    The Contractor warrants to the Owner and Architect that
materials and equipment furnished under the Contract will be of good quality and
new unless otherwise required or permitted by the Contract Documents, that the
Work will be free from defects not inherent in the quality required or
permitted, and that the Work will conform to the requirements of the Contract
Documents. Work not conforming to these requirements, including substitutions
not properly approved and authorized, may be considered defective. The
Contractor's warranty excludes remedy for damage or defect caused by abuse,
modifications not executed by the Contractor, improper or insufficient
maintenance, improper operation, or normal wear and tear and normal usage. If
required by the Architect, the Contractor shall furnish satisfactory evidence as
to the kind and quality of materials and equipment.

        3.6    TAXES

        3.6.1    The Contractor shall pay sales, consumer, use and similar taxes
for the Work provided by the Contractor which are legally enacted when bids are
received or negotiations concluded, whether or not yet effective or merely
scheduled to go into effect.

        3.7    PERMITS, FEES AND NOTICES

        3.7.1    Unless otherwise provided in the Contract Documents, the Owner
shall secure and pay for the building permit and other permits and governmental
fees, licenses and inspections necessary for proper execution and completion of
the Work which are customarily secured after execution of the Contract and which
are legally required when bids are received or negotiations concluded. Items
directly paid for by Owner shall not be included as part of the Cost of the Work
for purposes of computing Contractor's Fee.

        3.7.2    The Contractor shall comply with and give notices required by
laws, ordinances, rules, regulations and lawful orders of public authorities
applicable to performance of the Work.

        3.7.3    It is not the Contractor's responsibility to ascertain that the
Contract Documents are in accordance with applicable laws, statutes, ordinances,
building codes, and rules and regulations. However, if the Contractor observes
that portions of the Contract Documents are at variance therewith, the
Contractor shall promptly notify the Architect and Owner in writing, and
necessary changes shall be accomplished by appropriate Modification.

        3.7.4    If the Contractor performs Work knowing it to be contrary to
laws, statutes, ordinances, building codes, and rules and regulations without
such notice to the Architect and Owner, the Contractor shall assume appropriate
responsibility for such Work and shall bear the costs attributable to
correction.

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        3.8    ALLOWANCES

        3.8.1    The Contractor shall include in the Contract Sum all allowances
stated in the Contract Documents. Items covered by allowances shall be supplied
for such amounts and by such persons or entities as the Owner may direct, but
the Contractor shall not be required to employ persons or entities to whom the
Contractor has reasonable objection.

        3.8.2    Unless otherwise provided in the Contract Documents:

.1allowances shall cover the cost to the Contractor of materials and equipment
delivered at the site and all required taxes, less applicable trade discounts;

.2Contractor's costs for unloading and handling at the site, labor, installation
costs, overhead, profit and other expenses contemplated for stated allowance
amounts shall be included in the allowances;

.3whenever costs are more than or less than allowances, the Contract Sum shall
be adjusted accordingly by Change Order. The amount of the Change Order shall
reflect (1) the difference between actual costs and the allowances under
Clause 3.8.2.1 and (2) changes in Contractor's costs under Clause 3.8.2.2.

        3.8.3    Materials and equipment under an allowance shall be selected by
the Owner in sufficient time to avoid delay in the Work.

        3.9    SUPERINTENDENT

        3.9.1    The Contractor shall employ a competent Project Manager and
necessary assistants who shall be in attendance at the Project site during
performance of the Work. The superintendent shall represent the Contractor, and
communications given to the superintendent shall be as binding as if given to
the Contractor. Important communications shall be confirmed in writing. Other
communications shall be similarly confirmed on written request in each case.

        3.10    CONTRACTOR'S CONSTRUCTION SCHEDULES

        3.10.1    The Contractor, promptly after being awarded the Contract,
shall prepare and submit for the Owner's and Architect's information a
Contractor's construction schedule for the Work. The schedule shall not exceed
time limits current under the Contract Documents, shall be revised at
appropriate intervals as required by the conditions of the Work and Project,
shall be related to the entire Project to the extent required by the Contract
Documents, and shall provide for expeditious and practicable execution of the
Work.

        3.10.2    The Contractor shall prepare and keep current, for the
Architect's approval, a schedule of submittals which is coordinated with the
Contractor's construction schedule and allows the Architect reasonable time to
review submittals.

        3.10.3    The Contractor shall perform the Work in general accordance
with the most recent schedules submitted to the Owner and Architect.

        3.11    DOCUMENTS AND SAMPLES AT THE SITE

        3.11.1    The Contractor shall maintain at the site for the Owner one
record copy of the Drawings, Specifications, Addenda, Change Orders and other
Modifications, in good order and marked currently to record field changes and
selections made during construction, and one record copy of approved Shop
Drawings, Product Data, Samples and similar required submittals. These shall be
available to the Architect and shall be delivered to the Architect for submittal
to the Owner upon completion of the Work.

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        3.12    SHOP DRAWINGS, PRODUCT DATA AND SAMPLES

        3.12.1    Shop Drawings are drawings, diagrams, schedules and other data
specially prepared for the Work by the Contractor or a Subcontractor,
Sub-subcontractor, manufacturer, supplier or distributor to illustrate some
portion of the Work.

        3.12.2    Product Data are illustrations, standard schedules,
performance charts, instructions, brochures, diagrams and other information
furnished by the Contractor to illustrate materials or equipment for some
portion of the Work.

        3.12.3    Samples are physical examples which illustrate materials,
equipment or workmanship and establish standards by which the Work will be
judged.

        3.12.4    Shop Drawings, Product Data, Samples and similar submittals
are not Contract Documents. The purpose of their submittal is to demonstrate for
those portions of the Work for which submittals are required by the Contract
Documents the way by which the Contractor proposes to conform to the information
given and the design concept expressed in the Contract Documents. Review by the
Architect is subject to the limitations of Subparagraph 4.2.7. Informational
submittals upon which the Architect is not expected to take responsive action
may be so identified in the Contract Documents. Submittals which are not
required by the Contract Documents may be returned by the Architect without
action.

        3.12.5    The Contractor shall review for compliance with the Contract
Documents, approve and submit to the Architect Shop Drawings, Product Data,
Samples and similar submittals required by the Contract Documents with
reasonable promptness and in such sequence as to cause no delay in the Work or
in the activities of the Owner or of separate contractors. Submittals which are
not marked as reviewed for compliance with the Contract Documents and approved
by the Contractor may be returned by the Architect without action.

        3.12.6    By approving and submitting Shop Drawings, Product Data,
Samples and similar submittals, the Contractor represents that the Contractor
has determined and verified materials, field measurements and field construction
criteria related thereto, or will do so, and has checked and coordinated the
information contained within such submittals with the requirements of the Work
and of the Contract Documents.

        3.12.7    The Contractor shall perform no portion of the Work for which
the Contract Documents require submittal and review of Shop Drawings, Product
Data, Samples or similar submittals until the respective submittal has been
approved by the Architect.

        3.12.8    The Work shall be in accordance with approved submittals
except that the Contractor shall not be relieved of responsibility for
deviations from requirements of the Contract Documents by the Architect's
approval of Shop Drawings, Product Data, Samples or similar submittals unless
the Contractor has specifically informed the Architect in writing of such
deviation at the time of submittal and (1) the Architect has given written
approval to the specific deviation. The Contractor shall not be relieved of
responsibility for errors or omissions in Shop Drawings, Product Data, Samples
or similar submittals by the Architect's approval thereof.

        3.12.9    The Contractor shall direct specific attention, in writing or
on resubmitted Shop Drawings, Product Data, Samples or similar submittals, to
revisions other than those requested by the Architect on previous submittals. In
the absence of such written notice the Architect's approval of a resubmission
shall not apply to such revisions.

        3.12.10    The Contractor shall not be required to provide professional
services which constitute the practice of architecture or engineering unless
such services are specifically required by the Contract Documents for a portion
of the Work or unless the Contractor needs to provide such services in order to
carry out the Contractor's responsibilities for construction means, methods,
techniques, sequences

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and procedures. The Contractor shall not be required to provide professional
services in violation of applicable law. If professional design services or
certifications by a design professional related to systems, materials or
equipment are specifically required of the Contractor by the Contract Documents,
the Owner and the Architect will specify all performance and design criteria
that such services must satisfy. The Contractor shall cause such services or
certifications to be provided by a properly licensed design professional, whose
signature and seal shall appear on all drawings, calculations, specifications,
certifications, Shop Drawings and other submittals prepared by such
professional. Shop Drawings and other submittals related to the Work designed or
certified by such professional, if prepared by others, shall bear such
professional's written approval when submitted to the Architect. The Owner and
the Architect shall be entitled to rely upon the adequacy, accuracy and
completeness of the services, certifications or approvals performed by such
design professionals, provided the Owner and Architect have specified to the
Contractor all performance and design criteria that such services must satisfy.
Pursuant to this Subparagraph 3.12.10, the Architect will review, approve or
take other appropriate action on submittals only for the limited purpose of
checking for conformance with information given and the design concept expressed
in the Contract Documents. The Contractor shall not be responsible for the
adequacy of the performance or design criteria required by the Contract
Documents.

        3.13    USE OF SITE

        3.13.1    The Contractor shall confine operations at the site to areas
permitted by law, ordinances, permits and the Contract Documents and shall not
unreasonably encumber the site with materials or equipment.

        3.14    CUTTING AND PATCHING

        3.14.1    The Contractor shall be responsible for cutting, fitting or
patching required to complete the Work or to make its parts fit together
properly.

        3.14.2    The Contractor shall not damage or endanger a portion of the
Work or fully or partially completed construction of the Owner or separate
contractors by cutting, patching or otherwise altering such construction, or by
excavation. The Contractor shall not cut or otherwise alter such construction by
the Owner or a separate contractor except with written consent of the Owner and
of such separate contractor; such consent shall not be unreasonably withheld.
The Contractor shall not unreasonably withhold from the Owner or a separate
contractor the Contractor's consent to cutting or otherwise altering the Work.

        3.15    CLEANING UP

        3.15.1    The Contractor shall keep the premises and surrounding area
free from accumulation of waste materials or rubbish caused by operations under
the Contract. At completion of the Work, the Contractor shall remove from and
about the Project waste materials, rubbish, the Contractor's tools, construction
equipment, machinery and surplus materials.

        3.15.2    If the Contractor fails to clean up as provided in the
Contract Documents, the Owner may do so and the cost thereof shall be charged to
the Contractor.

        3.16    ACCESS TO WORK

        3.16.1    The Contractor shall provide the Owner and Architect access to
the Work in preparation and progress wherever located.

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        3.17    ROYALTIES, PATENTS AND COPYRIGHTS

        3.17.1    The Contractor shall pay all royalties and license fees. The
Contractor shall defend suits or claims for infringement of copyrights and
patent rights and shall hold the Owner and Architect harmless from loss on
account thereof, but shall not be responsible for such defense or loss when a
particular design, process or product of a particular manufacturer or
manufacturers is required by the Contract Documents or where the copyright
violations are contained in Drawings, Specifications or other documents prepared
by the Owner or Architect. However, if the Contractor has reason to believe that
the required design, process or product is an infringement of a copyright or a
patent, the Contractor shall be responsible for such loss unless such
information is promptly furnished to the Architect.

        3.18    INDEMNIFICATION

        3.18.1    To the greatest extent permitted by law, Contractor shall
defend, indemnify and hold Owner and its respective employees, agents, and
officers ("Indemnitees") harmless from and against any and all claims, losses,
damages, or other liabilities, and any costs, expenses or fees, including
attorney's fees, consultant and expert witness fees, investigation and/or court
costs, on account of bodily injury, disease or death of any person (including
employees of Contractor or its Subcontractors), or loss, injury, damage or
destruction of any property, including the Work itself, directly or indirectly,
allegedly or actually caused by, arising out of, or resulting from or incidental
to any of Contractor's Work, or, the work of its Subcontractors,
representatives, agents or employees of any of them, or any party for whom
Contractor may be legally liable. Contractor's defense and indemnity obligations
herein are in no way limited by the Contractor's requirement to provide the
various insurance coverages specified elsewhere herein, including but not
limited to the coverages of any workers' compensation, disability benefit or
other similar statute.

        3.18.2    The following is specifically understood: 1) Contractor's
defense obligations hereunder shall extend to all claimed losses or damages
which have been caused in part by negligence or alleged negligence of
Indemnitees, whether active or passive; 2) Contractor's indemnity obligations
hereunder shall include losses or damage which are determined to be caused in
part by the negligence of Indemnitees, whether active or passive; and
3) Contractor shall not be obligated to defend or indemnify Indemnitees for
losses or damages caused by the sole negligence or willful misconduct of
Indemnitees; and 4) This indemnity is not intended to extend to any claim or
loss that arises from the negligence of the Architect or any of their
consultants, agents or employees.

ARTICLE 4    ADMINISTRATION OF THE CONTRACT

        4.1    ARCHITECT

        4.1.1    The Architect is the person lawfully licensed to practice
architecture or an entity lawfully practicing architecture identified as such in
the Agreement and is referred to throughout the Contract Documents as if
singular in number. The term "Architect" means the Architect or the Architect's
authorized representative.

        4.1.2    Duties, responsibilities and limitations of authority of the
Architect as set forth in the Contract Documents shall not be restricted,
modified or extended without written consent of the Owner, Contractor and
Architect. Consent shall not be unreasonably withheld.

        4.1.3    If the employment of the Architect is terminated, the Owner
shall employ a new Architect against whom the Contractor has no reasonable
objection and whose status under the Contract Documents shall be that of the
former Architect.

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        4.2    ARCHITECT'S ADMINISTRATION OF THE CONTRACT

        4.2.1    The Architect will provide administration of the Contract as
described in the Contract Documents, and will be an Owner's representative
(1) during construction, (2) until final payment is due and (3) with the Owner's
concurrence, from time to time during the one-year period for correction of Work
described in Paragraph 12.2. The Architect will have authority to act on behalf
of the Owner only to the extent provided in the Contract Documents, unless
otherwise modified in writing in accordance with other provisions of the
Contract.

        4.2.2    The Architect, as a representative of the Owner, will visit the
site at intervals appropriate to the stage of the Contractor's operations (1) to
become generally familiar with and to keep the Owner informed about the progress
and quality of the portion of the Work completed, (2) to endeavor to guard the
Owner against defects and deficiencies in the Work, and (3) to determine in
general if the Work is being performed in a manner indicating that the Work,
when fully completed, will be in accordance with the Contract Documents.
However, the Architect will not be required to make exhaustive or continuous
on-site inspections to check the quality or quantity of the Work. The Architect
will neither have control over or charge of, nor be responsible for, the
construction means, methods, techniques, sequences or procedures, or for the
safety precautions and programs in connection with the Work, since these are
solely the Contractor's rights and responsibilities under the Contract
Documents, except as provided in Subparagraph 3.3.1.

        4.2.3    The Architect will not be responsible for the Contractor's
failure to perform the Work in accordance with the requirements of the Contract
Documents. The Architect will not have control over or charge of and will not be
responsible for acts or omissions of the Contractor, Subcontractors, or their
agents or employees, or any other persons or entities performing portions of the
Work.

        4.2.4    Communications Facilitating Contract Administration. The Owner
and Contractor shall endeavor to communicate directly with each other about
matters arising out of or relating to the Contract. Communications by and with
the Architect's consultants shall be through the Owner. Communications by and
with Subcontractors and material suppliers shall be through the Contractor.
Communications by and with separate contractors shall be through the Owner.

        4.2.5    Based on the Architect's evaluations of the Contractor's
Applications for Payment, the Architect will review and certify the amounts due
the Contractor and will issue Certificates for Payment in such amounts.

        4.2.6    The Architect will have authority to reject Work that does not
conform to the Contract Documents. Whenever the Architect considers it necessary
or advisable, the Architect will have authority to require inspection or testing
of the Work in accordance with Subparagraphs 13.5.2 and 13.5.3, whether or not
such Work is fabricated, installed or completed. However, neither this authority
of the Architect nor a decision made in good faith either to exercise or not to
exercise such authority shall give rise to a duty or responsibility of the
Architect to the Contractor, Subcontractors, material and equipment suppliers,
their agents or employees, or other persons or entities performing portions of
the Work.

        4.2.7    The Architect will review and approve or take other appropriate
action upon the Contractor's submittals such as Shop Drawings, Product Data and
Samples, but only for the limited purpose of checking for conformance with
information given and the design concept expressed in the Contract Documents.
The Architect's action will be taken with such reasonable promptness as to cause
no delay in the Work or in the activities of the Owner, Contractor or separate
contractors, while allowing sufficient time in the Architect's professional
judgment to permit adequate review. Review of such submittals is not conducted
for the purpose of determining the accuracy and completeness of other details
such as dimensions and quantities, or for substantiating instructions for
installation or performance of equipment or systems, all of which remain the
responsibility of the Contractor as required by the Contract Documents. The
Architect's review of the Contractor's submittals shall not relieve the
Contractor of the obligations under Paragraphs 3.3, 3.5 and 3.12. The
Architect's review shall not constitute approval of safety precautions or,
unless otherwise specifically stated by the Architect, of any construction
means, methods, techniques, sequences or procedures. The Architect's approval of
a specific item shall not indicate approval of an assembly of which the item is
a component.

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        4.2.8    The Architect will prepare Change Orders and Construction
Change Directives, and may authorize minor changes in the Work as provided in
Paragraph 7.4.

        4.2.9    The Architect will conduct inspections to determine the date or
dates of Substantial Completion and the date of final completion, will receive
and forward to the Owner, for the Owner's review and records, written warranties
and related documents required by the Contract and assembled by the Contractor,
and will issue a final Certificate for Payment upon compliance with the
requirements of the Contract Documents.

        4.2.10    If the Owner and Architect agree, the Architect will provide
one or more project representatives to assist in carrying out the Architect's
responsibilities at the site. The duties, responsibilities and limitations of
authority of such project representatives shall be as set forth in an exhibit to
be incorporated in the Contract Documents.

        4.2.11    The Architect will interpret and decide matters concerning
performance under and requirements of, the Contract Documents on written request
of either the Owner or Contractor. The Architect's response to such requests
will be made in writing within any time limits agreed upon or otherwise with
reasonable promptness. If no agreement is made concerning the time within which
interpretations required of the Architect shall be furnished in compliance with
this Paragraph 4.2, then delay shall not be recognized on account of failure by
the Architect to furnish such interpretations until 15 days after written
request is made for them.

        4.2.12    Interpretations and decisions of the Architect will be
consistent with the intent of and reasonably inferable from the Contract
Documents and will be in writing or in the form of drawings. When making such
interpretations and initial decisions, the Architect will endeavor to secure
faithful performance by both Owner and Contractor, will not show partiality to
either.

        4.2.13    The Architect's decisions on matters relating to aesthetic
effect will be final if consistent with the intent expressed in the Contract
Documents.

        4.3    CLAIMS AND DISPUTES

        4.3.1    Definition. A Claim is a demand or assertion by one of the
parties seeking, as a matter of right, adjustment or interpretation of Contract
terms, payment of money, extension of time or other relief with respect to the
terms of the Contract. The term "Claim" also includes other disputes and matters
in question between the Owner and Contractor arising out of or relating to the
Contract. Claims must be initiated by written notice. The responsibility to
substantiate Claims shall rest with the party making the Claim.

        4.3.2    Time Limits on Claims. Claims by either party must be initiated
within 21 days after occurrence of the event giving rise to such Claim or within
21 days after the claimant first recognizes the condition giving rise to the
Claim, whichever is later. Claims must be initiated by written notice to the
Architect and the other party.

        4.3.3    Continuing Contract Performance. Pending final resolution of a
Claim except as otherwise agreed in writing or as provided in Subparagraph 9.7.1
and Article 14, the Contractor shall proceed diligently with performance of the
Contract and the Owner shall continue to make payments in accordance with the
Contract Documents.

        4.3.4    Claims for Concealed or Unknown Conditions. If conditions are
encountered at the site which are (1) subsurface or otherwise concealed physical
conditions which differ materially from those indicated in the Contract
Documents or (2) unknown physical conditions of an unusual nature, which differ
materially from those ordinarily found to exist and generally recognized as
inherent in construction activities of the character provided for in the
Contract Documents, then notice by the observing party shall be given to the
other party no later than 21 days after first observance of the

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conditions. The Architect will promptly investigate such conditions and, if they
differ materially and cause an increase or decrease in the Contractor's cost of,
or time required for, performance of any part of the Work, will recommend an
equitable adjustment in the Contract Sum or Contract Time, or both. If the
Architect determines that the conditions at the site are not materially
different from those indicated in the Contract Documents and that no change in
the terms of the Contract is justified, the Architect shall so notify the Owner
and Contractor in writing, stating the reasons. Claims by either party in
opposition to such determination must be made within 21 days after the Architect
has given notice of the decision. If the conditions encountered are materially
different, the Contract Sum and Contract Time shall be equitably adjusted, but
if the Owner and Contractor cannot agree on an adjustment in the Contract Sum or
Contract Time, the adjustment shall be referred to the Architect for initial
determination, subject to further proceedings pursuant to Paragraph 4.4.

        4.3.5    Claims for Additional Cost. If the Contractor wishes to make
Claim for an increase in the Contract Sum, written notice as provided herein
shall be given before proceeding to execute the Work. Prior notice is not
required for Claims relating to an emergency endangering life or property
arising under Paragraph 10.6.

        4.3.6    If the Contractor believes additional cost is involved for
reasons including but not limited to (1) a written interpretation from the
Architect, (2) an order by the Owner to stop the Work where the Contractor was
not at fault, (3) a written order for a minor change in the Work issued by the
Architect, (4) failure of payment by the Owner, (5) termination of the Contract
by the Owner, (6) Owner's suspension or (7) other reasonable grounds, Claim
shall be filed in accordance with this Paragraph 4.3.

        4.3.7    Claims for Additional Time

        4.3.7.1    If the Contractor wishes to make Claim for an increase in the
Contract Time, written notice as provided herein shall be given. The
Contractor's Claim shall include an estimate of cost and of probable effect of
delay on progress of the Work. In the case of a continuing delay only one Claim
is necessary.

        4.3.7.2    If adverse weather conditions are the basis for a Claim for
additional time, such Claim shall be documented by data substantiating that
weather conditions were abnormal for the period of time, could not have been
reasonably anticipated and had an adverse effect on the scheduled construction.
See Section A.1(b)(2) of Addendum No. 1 for definition of Permitted Delays.

        4.3.8    Injury or Damage to Person or Property. If either party to the
Contract suffers injury or damage to person or property because of an act or
omission of the other party, or of others for whose acts such party is legally
responsible, written notice of such injury or damage, whether or not insured,
shall be given to the other party within a reasonable time not exceeding 21 days
after discovery. The notice shall provide sufficient detail to enable the other
party to investigate the matter.

        4.3.9    If unit prices are stated in the Contract Documents or
subsequently agreed upon, and if quantities originally contemplated are
materially changed in a proposed Change Order or Construction Change Directive
so that application of such unit prices to quantities of Work proposed will
cause substantial inequity to the Owner or Contractor, the applicable unit
prices shall be equitably adjusted.

        4.3.10    Claims for Consequential Damages. The Contractor and Owner
waive Claims against each other for consequential damages arising out of or
relating to this Contract. This mutual waiver includes:

.1damages incurred by the Owner for rental expenses, for losses of use, income,
profit, financing, business and reputation, and for loss of management or
employee productivity or of the services of such persons; and

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.2damages incurred by the Contractor for principal office expenses including the
compensation of personnel stationed there, for losses of financing, business and
reputation, and for loss of profit except anticipated profit arising directly
from the Work.

This mutual waiver is applicable, without limitation, to all consequential
damages due to either party's termination in accordance with Article 14. Nothing
contained in this Subparagraph 4.3.10 shall be deemed to preclude an award of
liquidated direct damages, when applicable, in accordance with the requirements
of the Contract Documents.

        4.4    RESOLUTION OF CLAIMS AND DISPUTES

        4.4.1    Decision of Architect. Claims, including those alleging an
error or omission by the Architect but excluding those arising under Paragraphs
10.3 through 10.5, shall be referred initially to the Owner for decision who may
involve the Architect in the resolution of the claims.

        4.4.2    The Owner will review Claims and within ten days of the receipt
of the Claim take one or more of the following actions: (1) request additional
supporting data from the claimant or a response with supporting data from the
other party, (2) reject the Claim in whole or in part, (3) approve the Claim, or
(4) suggest a compromise.

        4.5    MEDIATION

        4.5.1    Any Claim arising out of or related to the Contract 60 days
after submission of the Claim to the Owner, be subject to mediation as a
condition precedent to arbitration or the institution of legal or equitable
proceedings by either party.

        4.5.2    The parties shall endeavor to resolve their Claims by mediation
which, unless the parties mutually agree otherwise, shall be in accordance with
the Construction Industry Mediation Rules of the American Arbitration
Association currently in effect. Request for mediation shall be filed in writing
with the other party to the Contract and with the American Arbitration
Association. The request may be made concurrently with the filing of a demand
for arbitration but, in such event, mediation shall proceed in advance of
arbitration or legal or equitable proceedings, which shall be stayed pending
mediation for a period of 60 days from the date of filing, unless stayed for a
longer period by agreement of the parties or court order.

        4.5.3    The parties shall share the mediator's fee and any filing fees
equally. The mediation shall be held in the place where the Project is located,
unless another location is mutually agreed upon. Agreements reached in mediation
shall be enforceable as settlement agreements in any court having jurisdiction
thereof.

        4.6    ARBITRATION

        4.6.1    Any Claim arising out of or related to the Contract, except
Claims relating to aesthetic effect and except those waived as provided for in
Subparagraphs 4.3.10, 9.10.4 and 9.10.5, may, after decision by the Owner or
30 days after submission of the Claim to the Owner, be submitted to binding
arbitration if agreed by the parties. Prior to arbitration, the parties shall
endeavor to resolve disputes by mediation in accordance with the provisions of
Paragraph 4.5.

        4.6.2    Claims not resolved by mediation may be decided by arbitration
which, unless the parties mutually agree otherwise, shall be in accordance with
the Construction Industry Arbitration Rules of the American Arbitration
Association currently in effect. Any request for arbitration shall be filed in
writing with the other party to the Contract.

        4.6.3    Any request for arbitration shall be made within the time
limits specified in Subparagraphs 4.4.6 and 4.6.1 as applicable, and in other
cases within a reasonable time after the

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Claim has arisen, and in no event shall it be made after the date when
institution of legal or equitable proceedings based on such Claim would be
barred by the applicable statute of limitations as determined pursuant to
Paragraph 13.7.

        4.6.4    Limitation on Consolidation or Joinder. No arbitration shall
include, by consolidation or joinder or in any other manner, parties other than
the Owner, Contractor, a separate contractor as described in Article 6 and other
persons substantially involved in a common question of fact or law whose
presence is required if complete relief is to be accorded in arbitration. No
person or entity other than the Owner, Contractor or a separate contractor as
described in Article 6 shall be included as an original third party or
additional third party to an arbitration whose interest or responsibility is
insubstantial. Consent to arbitration involving an additional person or entity
shall not constitute consent to arbitration of a Claim not described therein or
with a person or entity not named or described therein. The foregoing agreement
to arbitrate and other agreements to arbitrate with an additional person or
entity duly consented to by parties to the Agreement shall be specifically
enforceable under applicable law in any court having jurisdiction thereof.

        4.6.5    Claims and Timely Assertion of Claims. The party filing a
request for arbitration must assert in the request all Claims then known to that
party on which arbitration is requested.

        4.6.6    Judgment on Final Award. The award rendered by the arbitrator
or arbitrators shall be final, and judgment may be entered upon it in accordance
with applicable law in any court having jurisdiction thereof.

ARTICLE 5    SUBCONTRACTORS

        5.1    DEFINITIONS

        5.1.1    A Subcontractor is a person or entity who has a direct contract
with the Contractor to perform a portion of the Work at the site. The term
"Subcontractor" is referred to throughout the Contract Documents as if singular
in number and means a Subcontractor or an authorized representative of the
Subcontractor. The term "Subcontractor" does not include a separate contractor
or subcontractors of a separate contractor.

        5.1.2    A Sub-subcontractor is a person or entity who has a direct or
indirect contract with a Subcontractor to perform a portion of the Work at the
site. The term "Sub-subcontractor" is referred to throughout the Contract
Documents as if singular in number and means a Sub-subcontractor or an
authorized representative of the Sub-subcontractor.

        5.2    AWARD OF SUBCONTRACTS AND OTHER CONTRACTS FOR PORTIONS OF THE
WORK

        5.2.1    Unless otherwise stated in the Contract Documents or the
bidding requirements, the Contractor, as soon as practicable after award of the
Contract, shall furnish in writing to the Owner the names of persons or entities
(including those who are to furnish materials or equipment fabricated to a
special design) proposed for each principal portion of the Work. The Owner will
promptly reply to the Contractor in writing stating whether or not the Owner,
after due investigation, has reasonable objection to any such proposed person or
entity. Failure of the Owner to reply within five (5) days shall constitute
notice of no reasonable objection.

        5.2.2    The Contractor shall not contract with a proposed person or
entity to whom the Owner has made reasonable and timely objection. The
Contractor shall not be required to contract with anyone to whom the Contractor
has made reasonable objection.

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        5.2.3    If the Owner has reasonable objection to a person or entity
proposed by the Contractor, the Contractor shall propose another to whom the
Owner has no reasonable objection. If the proposed but rejected Subcontractor
was reasonably capable of performing the Work, the Contract Sum and Contract
Time shall be increased or decreased by the difference, if any, occasioned by
such change, and an appropriate Change Order shall be issued before commencement
of the substitute Subcontractor's Work. However, no increase in the Contract Sum
or Contract Time shall be allowed for such change unless the Contractor has
acted promptly and responsively in submitting names as required.

        5.2.4    The Contractor shall not change a Subcontractor, person or
entity previously selected if the Owner or Architect makes reasonable objection
to such substitute.

        5.3    SUBCONTRACTUAL RELATIONS

        5.3.1    By appropriate agreement, written where legally required for
validity, the Contractor shall require each Subcontractor, to the extent of the
Work to be performed by the Subcontractor, to be bound to the Contractor by
terms of the Contract Documents, and to assume toward the Contractor all the
obligations and responsibilities, including the responsibility for safety to the
Subcontractor's Work, which the Contractor, by these Documents, assumes toward
the Owner and Architect. Each subcontract agreement shall preserve and protect
the rights of the Owner and Architect under the Contract Documents with respect
to the Work to be performed by the Subcontractor so that subcontracting thereof
will not prejudice such rights. Where appropriate, the Contractor shall require
each Subcontractor to enter into similar agreements with Sub-subcontractors. The
Contractor shall make available to each proposed Subcontractor, prior to the
execution of the subcontract agreement, copies of the Contract Documents to
which the Subcontractor will be bound, and, upon written request of the
Subcontractor, identify to the Subcontractor terms and conditions of the
proposed subcontract agreement which may be at variance with the Contract
Documents. Subcontractors will similarly make copies of applicable portions of
such documents available to their respective proposed Sub-subcontractors.

        5.3.2    The Owner is expressly designated a third-party beneficiary of
the subcontracts between Contractor and its Subcontractors.

        5.4    CONTINGENT ASSIGNMENT OF SUBCONTRACTS

        5.4.1    Each subcontract agreement for a portion of the Work is
assigned by the Contractor to the Owner provided that:

.1assignment is effective only after termination of the Contract by the Owner
for cause pursuant to Paragraph 14.2 and only for those subcontract agreements
which the Owner accepts by notifying the Subcontractor and Contractor in
writing; and

.2assignment is subject to the prior rights of the surety, if any, obligated
under bond relating to the Contract.

        5.4.2    Upon such assignment, if the Work has been suspended for more
than 30 days, the Subcontractor's compensation shall be equitably adjusted for
increases in cost resulting from the suspension.

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ARTICLE 6    CONSTRUCTION BY OWNER OR BY SEPARATE CONTRACTORS

        6.1    OWNER'S RIGHT TO PERFORM CONSTRUCTION AND TO AWARD SEPARATE
CONTRACTS

        6.1.1    The Owner reserves the right to perform construction or
operations related to the Project with the Owner's own forces, and to award
separate contracts in connection with other portions of the Project or other
construction or operations on the site under Conditions of the Contract
identical or substantially similar to these including those portions related to
insurance and waiver of subrogation. If the Contractor claims that delay or
additional cost is involved because of such action by the Owner, the Contractor
shall make such Claim as provided in Paragraph 4.3.

        6.1.2    When separate contracts are awarded for different portions of
the Project or other construction or operations on the site, the term
"Contractor" in the Contract Documents in each case shall mean the Contractor
who executes each separate Owner-Contractor Agreement.

        6.1.3    The Owner shall provide for coordination of the activities of
the Owner's own forces and of each separate contractor with the Work of the
Contractor, who shall cooperate with them. The Contractor shall participate with
other separate contractors and the Owner in reviewing their construction
schedules when directed to do so. The Contractor shall make any revisions to the
construction schedule deemed necessary after a joint review and mutual
agreement. The construction schedules shall then constitute the schedules to be
used by the Contractor, separate contractors and the Other until subsequently
revised.

        6.1.4    Unless otherwise provided in the Contract Documents, when the
Owner performs construction or operations related to the Project with the
Owner's own forces, the Owner shall be deemed to be subject to the same
obligations and to have the same rights which apply to the Contractor under the
Conditions of the Contract, including, without excluding others, those stated in
Article 3, this Article 6 and Articles 10, 11 and 12.

        6.2    MUTUAL RESPONSIBILITY

        6.2.1    The Contractor shall afford the Owner and separate contractors
reasonable opportunity for introduction and storage of their materials and
equipment and performance of their activities, and shall connect and coordinate
the Contractor's construction and operations with theirs as required by the
Contract Documents.

        6.2.2    If part of the Contractor's Work depends for proper execution
or results upon construction or operations by the Owner or a separate
contractor, the Contractor shall, prior to proceeding with that portion of the
Work, promptly report to the Architect apparent discrepancies or defects in such
other construction that would render it unsuitable for such proper execution and
results. Failure of the Contractor so to report shall constitute an
acknowledgment that the Owner's or separate contractor's completed or partially
completed construction is fit and proper to receive the Contractor's Work,
except as to defects not then reasonably discoverable.

        6.2.3    The Owner shall be reimbursed by the Contractor for costs
incurred by the Owner which are payable to a separate contractor because of
delays, improperly timed activities or defective construction of the Contractor.
The Owner shall be responsible to the Contractor for costs incurred by the
Contractor because of delays, improperly timed activities, damage to the Work or
defective construction of a separate contractor.

        6.2.4    The Contractor shall promptly remedy damage wrongfully caused
by the Contractor to completed or partially completed construction or to
property of the Owner or separate contractors as provided in
Subparagraph 10.2.5.

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        6.2.5    The Owner and each separate contractor shall have the same
responsibilities for cutting and patching as are described for the Contractor in
Subparagraph 3.14.

        6.3    OWNER'S RIGHT TO CLEAN UP

        6.3.1    If a dispute arises among the Contractor, separate contractors
and the Owner as to the responsibility under their respective contracts for
maintaining the premises and surrounding area free from waste materials and
rubbish, the Owner may clean up and the Architect will allocate the cost among
those responsible.

ARTICLE 7    CHANGES IN THE WORK

        7.1    GENERAL

        7.1.1    Changes in the Work may be accomplished after execution of the
Contract, and without invalidating the Contract, by Change Order, Construction
Change Directive or order for a minor change in the Work, subject to the
limitations stated in this Article 7 and elsewhere in the Contract Documents.

        7.1.2    A Change Order shall be based upon agreement among the Owner
and, Contractor; a Construction Change Directive requires agreement by the Owner
and Architect and may or may not be agreed to by the Contractor; an order for a
minor change in the Work may be issued by the Architect alone.

        7.1.3    Changes in the Work shall be performed under applicable
provisions of the Contract Documents, and the Contractor shall proceed promptly,
unless otherwise provided in the Change Order, Construction Change Directive or
order for a minor change in the Work.

        7.2    CHANGE ORDERS

        7.2.1    A Change Order is a written instrument prepared by the
Architect and signed by the Owner and Contractor stating their agreement upon
all of the following:

.1change in the Work;

.2the amount of the adjustment, if any, in the Contract Sum; and

.3the extent of the adjustment, if any, in the Contract Time.

See Section B.6 of Addendum No. 1.

        7.2.2    Methods used in determining adjustments to the Contract Sum may
include those listed in Subparagraph 7.3.3.

        7.3    CONSTRUCTION CHANGE DIRECTIVES

        7.3.1    A Construction Change Directive is a written order prepared by
the Architect and signed by the Owner and Architect, directing a change in the
Work prior to agreement on adjustment, if any, in the Contract Sum or Contract
Time, or both. The Owner may by Construction Change Directive, without
invalidating the Contract, order changes in the Work within the general scope of
the Contract consisting of additions, deletions or other revisions, the Contract
Sum and Contract Time being adjusted accordingly.

        7.3.2    A Construction Change Directive shall be used in the absence of
total agreement on the terms of a Change Order.

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        7.3.3    If the Construction Change Directive provides for an adjustment
to the Contract Sum, the adjustment shall be based on one of the following
methods:

.1mutual acceptance of a lump sum properly itemized and supported by sufficient
substantiating data to permit evaluation;

.2unit prices stated in the Contract Documents or subsequently agreed upon;

.3cost to be determined in a manner agreed upon by the parties and a mutually
acceptable fixed or percentage fee; or

.4as provided in Subparagraph 7.3.6.

        7.3.4    Upon receipt of a Construction Change Directive, the Contractor
shall promptly proceed with the change in the Work involved and advise the Owner
of the Contractor's agreement or disagreement with the method, if any, provided
in the Construction Change Directive for determining the proposed adjustment in
the Contract Sum or Contract Time.

        7.3.5    A Construction Change Directive signed by the Contractor
indicates the agreement of the Contractor therewith, including adjustment in
Contract Sum and Contract Time or the method for determining them. Such
agreement shall be effective immediately and shall be recorded as a Change
Order.

        7.3.6    If the Contractor does not respond promptly or disagrees with
the method for adjustment in the Contract Sum, the method and the adjustment
shall be determined by the Owner on the basis of reasonable expenditures and
savings of those performing the Work attributable to the change, including, in
case of an increase in the Contract Sum, a reasonable allowance for overhead and
profit. In such case, and also under Clause 7.3.3.3, the Contractor shall keep
and present, in such form as the Owner may prescribe, an itemized accounting
together with appropriate supporting data. Unless otherwise provided in the
Contract Documents, costs for the purposes of this Subparagraph 7.3.6 shall be
limited to the following:

.1costs of labor, including social security, old age and unemployment insurance,
fringe benefits required by agreement or otherwise paid by Contractor, and
workers' compensation insurance;

.2costs of materials, supplies and equipment, including cost of transportation,
whether incorporated or consumed;

.3rental costs of machinery and equipment, exclusive of hand tools, whether
rented from the Contractor or others;

.4costs of premiums for all bonds and insurance, permit fees, and sales, use or
similar taxes related to the Work; and

.5additional costs of supervision and field office personnel directly
attributable to the change.

        7.3.7    The amount of credit to be allowed by the Contractor to the
Owner for a deletion or change which results in a net decrease in the Contract
Sum shall be actual net cost as confirmed by the Architect. When both additions
and credits covering related Work or substitutions are involved in a change, the
allowance for overhead and profit shall be figured on the basis of net increase,
if any, with respect to that change.

        7.3.8    Pending final determination of the total cost of a Construction
Change Directive to the Owner, amounts not in dispute for such changes in the
Work shall be included in Applications for Payment accompanied by a Change Order
indicating the parties' agreement with part or all of such costs. For any
portion of such cost that remains in dispute, the Architect will make an interim
determination for purposes of monthly certification for payment for those costs.
That determination of

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cost shall adjust the Contract Sum on the same basis as a Change Order, subject
to the right of either party to disagree and assert a claim in accordance with
Article 4.

        7.3.9    When the Owner and Contractor agree concerning the adjustments
in the Contract Sum and Contract Time, or otherwise reach agreement upon the
adjustments, such agreement shall be effective immediately and shall be recorded
by preparation and execution of an appropriate Change Order.

        7.4    MINOR CHANGES IN THE WORK

        7.4.1    The Architect will have authority to order minor changes in the
Work not involving adjustment in the Contract Sum or extension of the Contract
Time and not inconsistent with the intent of the Contract Documents. Such
changes shall be effected by written order and shall be binding on the Owner and
Contractor. The Contractor shall carry out such written orders promptly.

ARTICLE 8    TIME

        8.1    DEFINITIONS

        8.1.1    Unless otherwise provided, Contract Time is the period of time,
including authorized adjustments, allotted in the Contract Documents for
Substantial Completion of the Work.

        8.1.2    The date of commencement of the Work is the date established in
the Agreement.

        8.1.3    The date of Substantial Completion is the date certified by the
Architect in accordance with Paragraph 9.8.

        8.1.4    The term "day" as used in the Contract Documents shall mean
calendar day unless otherwise specifically defined.

        8.2    PROGRESS AND COMPLETION

        8.2.1    Time limits stated in the Contract Documents are of the essence
of the Contract. By executing the Agreement the Contractor confirms that the
Contract Time is a reasonable period for performing the Work.

        8.2.2    The Contractor shall not knowingly, except by agreement or
instruction of the Owner in writing, prematurely commence operations on the site
or elsewhere prior to the effective date of insurance required by Article II to
be furnished by the Contractor and Owner. The date of commencement of the Work
shall not be changed by the effective date of such insurance. Unless the date of
commencement is established by the Contract Documents or a notice to proceed
given by the Owner, the Contractor shall notify the Owner in writing not less
than five days or other agreed period before commencing the Work to permit the
timely filing of mortgages, mechanic's liens and other security interests.

        8.2.3    The Contractor shall proceed expeditiously with adequate forces
and shall achieve Substantial Completion within the Contract Time.

        8.3    DELAYS AND EXTENSIONS OF TIME

        8.3.1    If the Contractor is delayed at any time in the commencement of
progress of the Work by an act or neglect of the Owner or Architect, or of an
employee of either, or of a separate contractor employed by the Owner, or by
changes ordered in the Work, or by labor disputes, fire, unusual delay in
deliveries, unavoidable casualties or other causes beyond the Contractor's
control, or by delay authorized by the Owner pending mediation and arbitration,
or by other causes which the Architect

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determines may justify delay, then the Contract Time shall be extended by
Changes Order for such reasonable time as the Architect and Owner may determine.

        8.3.2    Claims relating to time shall be made in accordance with
applicable provisions of Paragraph 4.3.

        8.3.3    This Paragraph 8.3 does not preclude recovery of damages for
delay by either party under other provisions of the Contract Documents.

ARTICLE 9    PAYMENTS AND COMPLETION

        9.1    CONTRACT SUM

        9.1.1    The Contract Sum is stated in the Agreement and, including
authorized adjustments, is the total amount payable by the Owner to the
Contractor for performance of the Work under the Contract Documents.

        9.2    SCHEDULE OF VALUES

        9.2.1    Before the first Application for Payment, the Contractor shall
submit to the Architect and Owner a schedule of values allocated to various
portions of the Work, prepared in such form and supported by such data to
substantiate its accuracy as the Architect may require. This schedule, unless
objected to by the Architect or Owner, shall be used as a basis for reviewing
the Contractor's Applications for Payment.

        9.3    APPLICATIONS FOR PAYMENT

        9.3.1    At least ten days before the date established for each progress
payment, the Contractor shall submit to the Architect an itemized Application
for Payment for operations completed in accordance with the schedule of values.
Such application shall be notarized, if required, and supported by such data
substantiating the Contractor's right to payment as the Owner or Architect may
reasonably require, such as copies of requisitions from Subcontractors and
material suppliers, and reflecting retainage if provided for in the Contract
Documents, and conditional mechanics lien releases form all parties receiving
payment.

        9.3.1.1    As provided in Subparagraph 7.3.8, such applications may
include requests for payment on account of changes in the Work which have been
properly authorized by Construction Change Directives, or by interim
determinations of the Architect, but not yet included in Change Orders.

        9.3.1.2    Such applications may not include requests for payment for
portions of the Work for which the Contractor does not intend to pay to a
Subcontractor or material supplier, unless such Work has been performed by
others whom the Contractor intends to pay.

        9.3.2    Unless otherwise provided in the Contract Documents, payments
shall be made on account of materials and equipment delivered and suitably
stored at the site for subsequent incorporation in the Work. Payment will
similarly be made for materials and equipment suitably stored off the site at a
location agreed upon in writing. Payment for materials and equipment stored on
or off the site shall be conditioned upon compliance by the Contractor with
procedures satisfactory to the Owner to establish the Owner's title to such
materials and equipment or otherwise protect the Owner's interest, and shall
include the costs of applicable insurance, storage and transportation to the
site for such materials and equipment stored off the site.

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        9.3.3    The Contractor warrants that title to all Work covered by an
Application for Payment will pass to the Owner no later than the time of
payment. The Contractor further warrants that upon submittal of an Application
for Payment all Work for which Certificates for Payment have been previously
issued and payments received from the Owner shall, to the best of the
Contractor's knowledge, information and belief, be free and clear of liens,
claims, security interests or encumbrances in favor of the Contractor,
Subcontractors, material suppliers, or other persons or entities making a claim
by reason of having provided labor, materials and equipment relating to the
Work.

        9.4    CERTIFICATES FOR PAYMENT

        9.4.1    The Architect will, within seven days after receipt of the
Contractor's Application for Payment, either issue to the Owner a Certificate
for Payment, with a copy to the Contractor, for such amount as the Architect
determines is properly due, or notify the Contractor and Owner in writing of the
Architect's reasons for withholding certification in whole or in part as
provided in Subparagraph 9.5.1.

        9.4.2    The issuance of a Certificate for Payment will constitute a
representation by the Architect to the Owner, based on the Architect's
evaluation of the Work and the data comprising the Application for Payment, that
the Work has progressed to the point indicated and that, to the best of the
Architect's knowledge, information and belief, the quality of the Work is in
accordance with the Contract Documents. The foregoing representations are
subject to an evaluation of the Work for conformance with the Contract Documents
upon Substantial Completion, to results of subsequent tests and inspections, to
correction of minor deviations from the Contract Documents prior to the
completion and to specific qualifications expressed by the Architect. The
issuance of a Certificate for Payment will further constitute a representation
that the Contractor is entitled to payment in the amount certified. However, the
issuance of a Certificate for Payment will not be a representation that the
Architect has (1) made exhaustive or continuous on-site inspections to check the
quality or quantity of the Work, (2) reviewed construction means, methods,
techniques, sequences or procedures, (3) reviewed copies of requisitions
received from Subcontractors and material suppliers and other data requested by
the Owner to substantiate the Contractor's right to payment, or (4) made
examination to ascertain how or for what purpose the Contractor has used money
previously paid on account of the Contract Sum.

        9.5    DECISIONS TO WITHHOLD CERTIFICATION

        9.5.1    The Architect may withhold a Certificate for Payment in whole
or in part, to the extent reasonably necessary to protect the Owner, if in the
Architect's opinion the representations to the Owner required by Subparagraph
9.4.2 cannot be made. If the Architect is unable to certify payment in the
amount of the Application, the Architect will notify the Contractor and Owner as
provided in Subparagraph 9.4.1. If the Contractor and Architect cannot agree on
a revised amount, the Architect will promptly issue a Certificate for Payment
for the amount for which the Architect is able to make such representations to
the Owner. The Architect may also withhold a Certificate for Payment or, because
of subsequently discovered evidence, may nullify the whole or a part of a
Certificate for Payment previously issued, to such extent as may be necessary in
the Architect's opinion to protect the Owner from loss for which the Contractor
is responsible, including loss resulting from acts and omissions described in
Subparagraph 3.3.2, because of:

.1defective Work not remedied;

.2third party claims filed or reasonable evidence indicating probable filing of
such claims unless security acceptable to the Owner is provided by the
Contractor;

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.3failure of the Contractor to make payments properly to Subcontractors or for
labor, materials or equipment;

.4reasonable evidence that the Work cannot be completed for the unpaid balance
of the Contract Sum;

.5damage to the Owner or another contractor;

.6reasonable evidence that the Work will not be completed within the Contract
Time, and that the unpaid balance would not be adequate to cover actual or
liquidated damages recoverable under the contract for the anticipated delay; or

.7persistent failure to carry out the Work in accordance with the Contract
Documents.

        9.5.2    When the above reasons for withholding certification are
removed, certification will be made for amounts previously withheld.

        9.6    PROGRESS PAYMENTS

        9.6.1    After the Architect has issued a Certificate for Payment and
Owner has approved the same, the Owner shall make payment in the manner and
within the time provided in the Contract Documents, and shall so notify the
Architect.

        9.6.2    The Contractor shall promptly pay each Subcontractor, upon
receipt of payment from the Owner, out of the amount paid to the Contractor on
account of such Subcontractor's portion of the Work, the amount to which said
Subcontractor is entitled, reflecting percentages actually retained from
payments to the Contractor on account of such Subcontractor's portion of the
Work. The Contractor shall, by appropriate agreement with each Subcontractor,
require each Subcontractor to make payments to Sub-subcontractors in a similar
manner.

        9.6.3    The Architect will, on request, furnish to a Subcontractor, if
practicable, information regarding percentages of completion or amounts applied
for by the Contractor and action taken thereon by the Architect and Owner on
account of portions of the Work done by such Subcontractor.

        9.6.4    Neither the Owner nor Architect shall have an obligation to pay
or to see to the payment of money to a Subcontractor except as may otherwise be
required by law.

        9.6.5    Payment to material suppliers shall be treated in a manner
similar to that provided in Subparagraphs 9.6.2, 9.6.3 and 9.6.4.

        9.6.6    A Certificate for Payment, a progress payment, or partial or
entire use or occupancy of the Project by the Owner shall not constitute
acceptance of Work not in accordance with the Contract Documents.

        9.6.7    Unless the Contractor provides the Owner with a payment bond in
the full penal sum of the Contract Sum, payments received by the Contractor for
Work properly performed by Subcontractors and suppliers shall be held by the
Contractor for those Subcontractors or suppliers who performed Work or furnished
materials, or both, under contract with the Contractor for which payment was
made by the Owner. Nothing contained herein shall require money to be placed in
a separate account not commingled with money of the Contractor, shall create any
fiduciary liability or tort liability on the part of the Contractor for breach
of trust or shall entitle any person or entity to an award of punitive damages
against the Contractor for breach of the requirements of this provision.

        9.7    FAILURE OF PAYMENT

        9.7.1    If the Architect does not issue a Certificate for Payment,
through no fault of the Contractor, within seven days after receipt of the
Contractor's Application for Payment, or if the

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Owner does not pay the Contractor within seven days after the date established
in the Contract Documents the amount certified by the Architect or awarded by
arbitration, then the Contractor may, upon seven additional days' written notice
to the Owner and Architect, stop the Work until payment of the amount owing has
been received. The Contract Time shall be extended appropriately and the
Contract Sum shall be increased by the amount of the Contractor's reasonable
costs of shut-down, delay and start-up, plus interest as provided for in the
Contract Documents.

        9.8    SUBSTANTIAL COMPLETION

        9.8.1    Substantial Completion is the stage in the progress of the Work
when the Work or designated portion thereof is sufficiently complete in
accordance with the Contract Documents so that the Owner can occupy or utilize
the Work for its intended use.

        The term "Substantial Completion" shall mean substantial completion of
construction of the Project in accordance with the final Plans, Construction
Documents, and applicable Governmental Construction Requirements, subject only
to completion of the Punchlist, so that owner can lawfully occupy and conduct
its business at the Project. Substantial Completion shall be evidenced by: (1) a
Certificate of Substantial Completion on standard AIA Form G-704 executed by the
Project Architect; (2) a written certification of Contractor that Contractor's
Work has been completed in accordance with applicable Governmental Construction
Requirements, the Final Plans and the Construction Documents; (3) a certificate
of occupancy (or temporary certificate of occupancy or its equivalent. e.g.,
final inspection authorizing issuance of a certificate of occupancy) for the
Building issued by the appropriate governmental authority; and (4) all other
certificates and permits (or final inspection authorizing issuance of such
certificates or permits) which evidence completion of construction of the
Building in accordance with the Contract Documents and which are required by
Governmental Requirements for lawful occupancy of the Building by Tenant.
Contractor acknowledges and agrees that Substantial Completion shall not have
been achieved unless and until the plumbing, HVAC, electrical, and all other
utility systems which serve the Building and which are required by the
Construction Documents have been installed and are operational in normal working
order. Design of the Project shall be completed so that Substantial Completion
for Phase 1B can be obtained by April 11, 2003, and for all other Major Sectors
of work as provided by Table A.5 of Addendum No. 1.

        9.8.2    When the Contractor considers that the Work, or a portion
thereof which the Owner agrees to accept separately, is substantially complete,
the Contractor shall prepare and submit to the Architect a comprehensive list of
items to be completed or corrected prior to final payment. Failure to include an
item on such list does not alter the responsibility of the Contractor to
complete all Work in accordance with the Contract Documents.

        9.8.3    Upon receipt of the Contractor's list, the Architect will make
an inspection to determine whether the Work or designated portion thereof is
substantially complete. If the Architect's inspection discloses any item,
whether or not included on the Contractor's list, which is not sufficiently
complete in accordance with the Contract Documents so that the Owner can occupy
or utilize the Work or designated portion thereof for its intended use, the
Contractor shall, before issuance of the Certificate of Substantial Completion,
complete or correct such item upon notification by the Architect. In such case,
the Contractor shall then submit a request for another inspection by the
Architect to determine Substantial Completion.

        9.8.4    When the Work or designated portion thereof is substantially
complete, the Architect will prepare a Certificate of Substantial Completion
which shall establish the date of Substantial Completion, at which time the
Owner shall assume responsibility for security, maintenance, heat, utilities,
damage to the Work and insurance, of completed work. After commencement of Owner
FF&E and equipment testing or conversion from temporary utilities to permanent
metering in each Phase, whichever occurs first, the Owner shall pay for utility
service costs. Warranties required by the Contract

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Documents shall commence on the date of Substantial Completion of the Work or
designated portion thereof unless otherwise provided in the Certificate of
Substantial Completion. Such portions of the Work shall correspond to the Major
Sectors specified in specified in Addendum No. 1.

        9.8.5    The Certificate of Substantial Completion shall be submitted to
the Owner and Contractor for their written acceptance of responsibilities
assigned to them in such Certificate. Upon such acceptance and consent of
surety, if any, the Owner shall make payment of retainage applying to such Work
or designated portion thereof. Such payment shall be adjusted for Work that is
incomplete or not in accordance with the requirements of the Contract Documents.

        9.9    PARTIAL OCCUPANCY OR USE

        9.9.1    The Owner may occupy or use any completed or partially
completed portion of the Work at any stage when such portion is designated by
separate agreement with the Contractor, provided such occupancy or use is
consented to by the insurer as required under Clause 11.4.1.5 and authorized by
public authorities having jurisdiction over the Work. Such partial occupancy or
use may commence whether or not the portion is substantially complete, provided
the Owner and Contractor have accepted in writing the responsibilities assigned
to each of them for payments, retainage, if any, security, maintenance, heat,
utilities, damage to the Work and insurance, and have agreed in writing
concerning the period for correction of the Work and commencement of warranties
required by the Contract Documents. When the Contractor considers a portion
substantially complete, the Contractor shall prepare and submit a list to the
Architect as provided under Subparagraph 9.8.2. Consent of the Contractor to
partial occupancy or use shall not be unreasonably withheld. The stage of the
progress of the Work shall be determined by written agreement between the Owner
and Contractor or, if no agreement is reached, by decision of the Architect.

        9.9.2    Immediately prior to such partial occupancy or use, the Owner,
Contractor and Architect shall jointly inspect the area to be occupied or
portion of the Work to be used in order to determine and record the condition of
the Work.

        9.9.3    Unless otherwise agreed upon, partial occupancy or use of a
portion or portions of the Work shall not constitute acceptance of Work not
complying with the requirements of the Contract Documents.

        9.10    FINAL COMPLETION AND FINAL PAYMENT

        9.10.1    Upon receipt of written notice that the Work is ready for
final inspection and acceptance and upon receipt of a final Application for
Payment, the Architect will promptly make such inspection and, when the
Architect finds the Work acceptable under the Contract Documents and the
Contract fully performed, the Architect will promptly issue a final Certificate
for Payment stating that to the best of the Architect's knowledge, information
and belief, and on the basis of the Architect's on-site visits and inspections,
the Work has been completed in accordance with terms and conditions of the
Contract Documents and that the entire balance found to be due the Contractor
and noted in the final Certificate is due and payable. The Architect's final
Certificate for Payment will constitute a further representation that conditions
listed in Subparagraph 9.10.2 as precedent to the Contractor's being entitled to
final payment have been fulfilled.

        9.10.2    Neither final payment nor any remaining retained percentage
shall become due until the Contractor submits to the Architect (1) an affidavit
that payrolls, bills for materials and equipment, and other indebtedness
connected with the Work for which the Owner or the Owner's property might be
responsible or encumbered (less amounts withheld by Owner) have been paid or
otherwise satisfied, (2) a certificate evidencing that insurance required by the
Contract Documents to remain in force after final payment is currently in effect
and will not be canceled or allowed to expire until at least 30 days' prior
written notice has been given to the Owner, (3) a written statement that the
Contractor knows of

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no substantial reason that the insurance will not be renewable to cover the
period required by the Contract Documents, (4) consent of surety, if any, to
final payment and (5), if required by the Owner, other data establishing payment
or satisfaction of obligations, such as receipts, releases and waivers of liens,
claims, security interests or encumbrances arising out of the Contract, to the
extent and in such form as may be reasonably designated by the Owner. If a
Subcontractor refuses to furnish a release or waiver required by the Owner, the
Contractor shall indemnify the Owner against such lien and in the event such
lien is filed, either issue the payment required to discharge the lien or, if
Contractor disputes the lien claim, file a bond in accordance with statutory
requirements to cause the Project and the property on which it is built to be
discharged from the lien.

        9.10.3    If, after Substantial Completion of the Work, final completion
thereof is materially delayed through no fault of the Contractor or by issuance
of Change Orders affecting final completion, and the Architect so confirms, the
Owner shall, upon application by the Contractor and certification by the
Architect, and without terminating the Contract, make payment of the balance due
for that portion of the Work fully completed and accepted. If the remaining
balance for Work not fully completed or corrected is less than retainage
stipulated in the Contract Documents, and if bonds have been furnished, the
written consent of surety to payment of the balance due for that portion of the
Work fully completed and accepted shall be submitted by the Contractor to the
Architect prior to certification of such payment. Such payment shall be made
under terms and conditions governing final payment, except that it shall not
constitute a waiver of claims.

        9.10.4    The making of final payment shall constitute a waiver of
Claims by the Owner except those arising from:

.1liens, Claims, security interest or encumbrances arising out of the Contract
and unsettled;

.2failure of the Work to comply with the requirements of the Contract Documents;
or

.3terms of special warranties required by the Contract Documents.

        9.10.5    Acceptance of final payment by the Contractor, a Subcontractor
or material supplier shall constitute a waiver of claims by that payee except
those previously made in writing and identified by that payee as unsettled at
the time of final Application for Payment.

ARTICLE 10    PROTECTION OF PERSONS AND PROPERTY

        10.1    SAFETY PRECAUTIONS AND PROGRAMS

        10.1.1    The Contractor shall be responsible for initiating,
maintaining and supervising all safety precautions and programs in connection
with the performance of the Contract.

        10.2    SAFETY OF PERSONS AND PROPERTY

        10.2.1    The Contractor shall take reasonable precautions for safety
of, and shall provide reasonable protection to prevent damage, injury or loss
to:

.1employees on the Work and other persons who may be affected thereby;

.2the Work and materials and equipment to be incorporated therein, whether in
storage on or off the site, under care, custody or control of the Contractor or
the Contractor's Subcontractors or Sub-subcontractors; and

.3other property at the site or adjacent thereto, such as trees, shrubs, lawns,
walks, pavements, roadways, structures and utilities not designated for removal,
relocation or replacement in the course of construction.

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        10.2.2    The Contractor shall give notices and comply with applicable
laws, ordinances, rules, regulations and lawful orders of public authorities
bearing on safety of persons or property or their protection from damage, injury
or loss.

        10.2.3    The Contractor shall erect and maintain, as required by
existing conditions and performance of the Contract, reasonable safeguards for
safety and protection, including posting danger signs and other warnings against
hazards, promulgating safety regulations and notifying owners and users of
adjacent sites and utilities.

        10.2.4    When use or storage of explosives or other hazardous materials
or equipment or unusual methods are necessary for execution of the Work, the
Contractor shall exercise utmost care and carry on such activities under
supervision of properly qualified personnel.

        10.2.5    The Contractor shall promptly remedy damage and loss (other
than damage or loss insured under property insurance required by the Contract
Documents) to property referred to in Clauses 10.2.1.2 and 10.2.1.3 caused in
whole or in part by the Contractor, a Subcontractor, a Sub-subcontractor, or
anyone directly or indirectly employed by any of them, or by anyone for whose
acts they may be liable and for which the Contractor is responsible under
Clauses 10.2.1.2 and 10.2.1.3, except damage or loss attributable to acts or
omissions of the Owner or Architect or anyone directly or indirectly employed by
either of them, or by anyone for whose acts either of them may be liable, and
not attributable to the fault or negligence of the Contractor. The foregoing
obligations of the Contractor are in addition to the Contractor's obligations
under Paragraph 3.18.

        10.2.6    The Contractor shall designate a responsible member of the
Contractor's organization at the site whose duty shall be the prevention of
accidents. This person shall be the Contractor's superintendent unless otherwise
designated by the Contractor in writing to the Owner and Architect.

        10.2.7    The Contractor shall not load or permit any part of the
construction or site to be loaded so as to endanger its safety.

        10.3    HAZARDOUS MATERIALS

        10.3.1    If reasonable precautions will be inadequate to prevent
foreseeable bodily injury or death to persons resulting from a material or
substance, including but not limited to asbestos or polychlorinated biphenyl
(PCB), encountered on the site by the Contractor, the Contractor shall, upon
recognizing the condition, immediately stop Work in the affected area and report
the condition to the Owner and Architect in writing.

        10.3.2    The Owner shall obtain the services of a licensed laboratory
to verify the presence or absence of the material or substance reported by the
Contractor and, in the event such material or substance is found to be present,
to verify that it has been rendered harmless. Unless otherwise required by the
Contract Documents, the Owner shall furnish in writing to the Contractor the
names and qualifications of persons or entities who are to perform tests
verifying the presence or absence of such material or substance or who are to
perform the task of removal or safe containment of such material or substance.
The Contractor will promptly reply to the Owner in writing stating whether or
not either has reasonable objection to the persons or entities proposed by the
Owner. If the contractor has an objection to a person or entity proposed by the
Owner, the Owner shall propose another to whom the Contractor has no reasonable
objection. When the material or substance has been rendered harmless, Work in
the affected area shall resume upon written agreement of the Owner and
Contractor. The Contract Time shall be extended appropriately and the Contract
Sum shall be increased in the amount of the Contractor's reasonable additional
costs of shut-down, delay and start-up, which adjustments shall be accomplished
as provided in Article 7.

        10.3.3    To the fullest extent permitted by law, the Owner shall
indemnify and hold harmless the Contractor, and its Subcontractors, and agents
and employees of any of them from and against claims,

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damages, losses and expenses, including but not limited to attorneys' fees,
arising out of or resulting from performance of the Work in the affected area if
in fact the material or substance presents the risk of bodily injury or death as
described in Subparagraph 10.3.1 and has not been rendered harmless, provided
that such claim, damage, loss or expense is attributable to bodily injury,
sickness, disease or death, or to injury to or destruction of tangible property
(other than the Work itself) and provided that such damage, loss or expense is
not due to the sole negligence of a party seeking indemnity.

        10.4    The Owner shall not be responsible under Paragraph 10.3 for
materials and substances brought to the site by the Contractor unless such
materials or substances were required by the Contract Documents.

        10.5    If, without negligence on the part of the Contractor, the
Contractor is held liable for the cost of remediation of a hazardous material or
substance solely by reason of performing Work as required by the Contract
Documents, the Owner shall indemnify the Contractor for all cost and expense
thereby incurred.

        10.6    EMERGENCIES

        10.6.1    In an emergency affecting safety of persons or property, the
Contractor shall act, at the Contractor's discretion, to prevent threatened
damage, injury or loss. Additional compensation or extension of time claimed by
the Contractor on account of an emergency shall be determined as provided in
Paragraph 4.3 and Article 7.

ARTICLE 11    INSURANCE AND BONDS

        11.1    CONTRACTOR'S LIABILITY INSURANCE

        11.1.1    The Contractor shall purchase from and maintain in a company
or companies lawfully authorized to do business in the jurisdiction in which the
Project is located such insurance as will protect the Contractor from claims set
forth below which may arise out of or result from the Contractor's operations
under the Contract and for which the Contractor may be legally liable, whether
such operations be by the Contractor or by a Subcontractor or by anyone directly
or indirectly employed by any of them, or by anyone for whose acts any of them
may be liable:

.1claims under workers' compensation, disability benefit and other similar
employee benefit acts which are applicable to the Work to be performed;

.2claims for damages because of bodily injury, occupational sickness or disease,
or death of the Contractor's employees;

.3claims for damages because of bodily injury, sickness or disease, or death of
any person other than the Contractor's employees;

.4claims for damages insured by usual personal injury liability coverage;

.5claims for damages, other than to the Work itself, because of injury to or
destruction of tangible property, including loss of use resulting therefrom;

.6claims for damages because of bodily injury, death of a person or property
damage arising out of ownership, maintenance or use of a motor vehicle;

.7claims for bodily injury or property damage arising out of completed
operations; and

.8claims involving contractual liability insurance applicable to the
Contractor's obligations under Paragraph 3.18.

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        11.1.2    The insurance required by Subparagraph 11.1.1 shall be written
for not less than limits of liability specified in the Contract Documents or
required by law, whichever coverage is greater. Coverages, whether written on an
occurrence or claims-made basis, shall be maintained without interruption from
date of commencement of the Work until date of final payment and termination of
any coverage required to be maintained after final payment. The Contractor shall
name the Owner and Architect as additional insureds on all of the policies
described in Paragraph 11.1.1, which coverage shall include completed
operations. The foregoing satisfies the "written contract" requirement of the
last paragraph of the Blanket Additional Insured endorsement to the Contractor's
General Liability policy.

        11.1.3    Copies of endorsements and Certificates of insurance shall be
filed with the Owner, and the Owner shall have 30 days to object to the nature
of the endorsements supplied by Contractor. If no objection is received within
30 days of the Owner's receipt of the certificates and endorsements from the
Contractor, such certificates and endorsements shall be deemed acceptable to the
Owner. These certificates and the insurance policies required by this
Paragraph 11.1 shall contain a provision that coverages afforded under the
policies will not be canceled or allowed to expire until at least 30 days' prior
written notice has been given to the Owner. If any of the foregoing insurance
coverages are required to remain in force after final payment and are reasonably
available, an additional certificate evidencing continuation of such coverage
shall be submitted with the final Application for Payment as required by
Subparagraph 9.10.2. Information concerning reduction of coverage on account of
revised limits or claims paid under the General Aggregate, or both, shall be
furnished by the Contractor with reasonable promptness in accordance with the
Contractor's information and belief.

        11.2    OWNER'S LIABILITY INSURANCE

        11.2.1    The Owner shall be responsible for purchasing and maintaining
the Owner's usual liability insurance.

        11.3    PROJECT MANAGEMENT PROTECTIVE LIABILITY INSURANCE

        11.3.1    

        11.4    PROPERTY INSURANCE

        11.4.1    Unless otherwise provided, the Contractor shall purchase and
maintain, in a company or companies lawfully authorized to do business in the
jurisdiction in which the Project is located, property insurance written on a
builder's risk "all-risk" or equivalent policy form in the amount of the initial
Contract Sum, plus value of subsequent Contract modifications and cost of
materials supplied or installed by others, comprising total value for the entire
Project at the site on a replacement cost basis with deductibles of $10,000 for
all perils except flood which has a $100,000 deductible and earthquake which is
5% of the value at risk at time of loss subject to a $250,000 minimum. Such
property insurance shall be maintained, unless otherwise provided in the
Contract Documents or otherwise agreed in writing by all persons and entities
who are beneficiaries of such insurance, until final payment has been made as
provided in Paragraph 9.10 or until no person or entity other than the Owner has
an insurable interest in the property required by this Paragraph 11.4 to be
covered, whichever is later. This insurance shall include interests of the
Owner, the Contractor, Subcontractors and Sub-subcontractors in the Project.

        11.4.1.1    Property insurance shall be on an "all-risk" or equivalent
policy form and shall include, without limitation, insurance against the perils
of fire (with extended coverage) and physical loss or damage including, without
duplication of coverage, theft, vandalism, malicious mischief, collapse,
earthquake, flood, windstorm, falsework, testing and startup, resultant damage
from defective workmanship, temporary buildings and debris removal including
demolition occasioned by enforcement of any applicable legal requirements, and
shall cover reasonable compensation for Architect's and Contractor's services
and expenses required as a result of such insured loss.

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        11.4.1.2    If the Owner does not intend to purchase such property
insurance required by the Contract and with all of the coverages in the amount
described above, the Owner shall so inform the Contractor in writing prior to
commencement of the Work. The Contractor may then effect insurance which will
protect the interests of the Contractor, Subcontractors and Sub-subcontractors
in the Work, and by appropriate Change Order the cost thereof shall be charged
to the Owner. If the Contractor is damaged by the failure or neglect of the
Owner to purchase or maintain insurance as described above, without so notifying
the Contractor in writing, then the Owner shall bear all reasonable costs
properly attributable thereto.

        11.4.1.3    If the property insurance requires deductibles, the Owner
shall pay costs not covered because of such deductibles.

        11.4.1.4    This property insurance shall cover portions of the Work
stored off the site, and also portions of the Work in transit.

        11.4.1.5    Partial occupancy or use in accordance with Paragraph 9.9
shall not commence until the insurance company or companies providing property
insurance have consented to such partial occupancy or use by endorsement or
otherwise. The Owner and the Contractor shall take reasonable steps to obtain
consent of the insurance company or companies and shall, without mutual written
consent, take no action with respect to partial occupancy or use that would
cause cancellation, lapse or reduction of insurance.

        11.4.2    Boiler and Machinery Insurance. The Contractor shall purchase
and maintain boiler and machinery insurance required by the Contract Documents
or by law, which shall specifically cover such insured objects during
installation and until final acceptance by the Owner, this insurance shall
include interests of the Owner, Contractor, Subcontractors and
Sub-subcontractors in the Work, and the Owner and Contractor shall be named
insureds.

        11.4.3    Loss of Use Insurance. The Owner, at the Owner's option, may
purchase and maintain such insurance as will insure the Owner against loss of
use of the Owner's property due to fire or other hazards, however caused. The
Owner waives all rights of action against the Contractor for loss of use of the
Owner's property, including consequential losses due to fire or other hazards
however caused.

        11.4.4    If the Contractor requests in writing that insurance for risks
other than those described herein or other special causes of loss be included in
the property insurance policy, the Owner shall, if possible, include such
insurance, and the cost thereof shall be charged to the Contractor by
appropriate Change Order.

        11.4.5    If during the Project construction period the Owner insures
properties, real or personal or both, at or adjacent to the site by property
insurance under policies separate from those insuring the Project, or if after
final payment property insurance is to be provided on the completed Project
through a policy or policies other than those insuring the Project during the
construction period, the Owner shall waive all rights in accordance with the
terms of Subparagraph 11.4.7 for damages caused by fire or other causes of loss
covered by this separate property insurance. All separate policies shall provide
this waiver of subrogation by endorsement or otherwise.

        11.4.6    Before an exposure to loss may occur, the Contractor shall
file with the Owner a copy of each policy that includes insurance coverages
required by this Paragraph 11.4. Each policy shall contain all generally
applicable conditions, definitions, exclusions and endorsements related to this
Project. Each policy shall contain a provision that the policy will not be
canceled or allowed to expire, and that its limits will not be reduced, until at
least 30 days' prior written notice has been given to the Contractor.

        11.4.7    Waivers of Subrogation. The Owner and Contractor waive all
rights against (1) each other and any of their subcontractors,
sub-subcontractors, agents and employees, each of the other, and

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(2) the Architect, Architect's consultants, separate contractors described in
Article 6, if any, and any of their subcontractors, sub-subcontractors, agents
and employees, for damages caused by fire or other causes of loss to the extent
covered by property insurance obtained pursuant to this Paragraph 11.4 or other
property insurance applicable to the Work, except such rights as they have to
proceeds of such insurance held by the Owner as fiduciary. The Owner or
Contractor, as appropriate, shall require of the Architect, Architect's
consultants, separate contractors described in Article 6, if any, and the
subcontractors, sub-subcontractors, agents and employees of any of them, by
appropriate agreements, written where legally required for validity, similar
waivers each in favor of other parties enumerated herein. The policies shall
provide such waivers of subrogation by endorsement or otherwise. A waiver of
subrogation shall be effective as to a person or entity even though that person
or entity would otherwise have a duty of indemnification, contractual or
otherwise, did not pay the insurance premium directly or indirectly, and whether
or not the person or entity had an insurable interest in the property damaged.

        11.4.8    A loss insured under Owner's property insurance shall be
adjusted by the Owner as fiduciary and made payable to the Owner as fiduciary
for the insureds, as their interests may appear, subject to requirements of any
applicable mortgagee clause and of Subparagraph 11.4.10. The Contractor shall
pay Subcontractors their just shares of insurance proceeds received by the
Contractor, and by appropriate agreements, written where legally required for
validity, shall require Subcontractors to make payments to their
Sub-subcontractors in similar manner.

        11.4.9    If required in writing by a party in interest, the Owner as
fiduciary shall, upon occurrence of an insured loss, give bond for proper
performance of the Owner's duties. The cost of required bonds shall be charged
against proceeds received as fiduciary. The Owner shall deposit in a separate
account proceeds so received, which the Owner shall distribute in accordance
with such agreement as the parties in interest may reach, or in accordance with
an arbitration award in which case the procedure shall be as provided in
Paragraph 4.6. If after such loss no other special agreement is made and unless
the Owner terminates the Contract for convenience, replacement of damaged
property shall be performed by the Contractor after notification of a Change in
the Work in accordance with Article 7.

        11.4.10    The Owner as fiduciary shall have power to adjust and settle
a loss with insurers unless one of the parties in interest shall object in
writing within five days after occurrence of loss to the Owner's exercise of
this power; if such objection is made, the dispute shall be resolved as provided
in Paragraphs 4.5 and 4.6. The Owner as fiduciary shall, in the case of
arbitration, make settlement with insurers in accordance with directions of the
arbitrators. If distribution of insurance proceeds by arbitration is required,
the arbitrators will direct such distribution.

        11.5    PERFORMANCE BOND AND PAYMENT BOND

        11.5.1    The Owner shall have the right to require the Contractor to
furnish bonds covering faithful performance of the Contract and payment of
obligations arising thereunder as stipulated in bidding requirements or
specifically required in the Contract Documents on the date of execution of the
Contract.

        11.5.2    Upon the request of any person or entity appearing to be a
potential beneficiary of bonds covering payment of obligations arising under the
Contract, the Contractor shall promptly furnish a copy of the bonds or shall
permit a copy to be made.

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ARTICLE 12    UNCOVERING AND CORRECTION OF WORK

        12.1    UNCOVERING OF WORK

        12.1.1    If a portion of the Work is covered contrary to the
Architect's request or to requirements specifically expressed in the Contract
Documents, it must, if required in writing by the Architect, be uncovered for
the Architect's examination and be replaced at the Contractor's expense without
change in the Contract Time.

        12.1.2    If a portion of the Work has been covered which the Architect
has not specifically requested to examine prior to its being covered, the
Architect may request to see such Work and it shall be uncovered by the
Contractor. If such Work is in accordance with the Contract Documents, costs of
uncovering and replacement shall, by appropriate Change Order, be at the Owner's
expense. If such Work is not in accordance with the Contract Documents,
correction shall be at the Contractor's expense unless the condition was caused
by the Owner or a separate contractor in which event the Owner shall be
responsible for payment of such costs.

        12.2    CORRECTION OF WORK

        12.2.1    BEFORE OR AFTER SUBSTANTIAL COMPLETION

        12.2.1.1    The Contractor shall promptly correct Work rejected by the
Architect or failing to conform to the requirements of the Contract Documents,
whether discovered before or after Substantial Completion and whether or not
fabricated, installed or completed. Costs of correcting such rejected Work,
including additional testing and inspections and compensation for the
Architect's services and expenses made necessary thereby, shall be at the
Contractor's expense.

        12.2.2    AFTER SUBSTANTIAL COMPLETION

        12.2.2.1    In addition to the Contractor's obligations under
Paragraph 3.5, if, within one year after the date of Substantial Completion of
the Work or designated portion thereof or after the date for commencement of
warranties established under Subparagraph 9.9.1, or by terms of an applicable
special warranty required by the Contract Documents, any of the Work is found to
be not in accordance with the requirements of the Contract Documents, the
Contractor shall correct it promptly after receipt of written notice from the
Owner to do so unless the Owner has previously given the Contractor a written
acceptance of such condition. The Owner shall give such notice promptly after
discovery of the condition. During the one-year period for correction of Work,
if the Owner fails to notify the Contractor and give the Contractor an
opportunity to make the correction, the Owner waives the rights to require
correction by the Contractor and to make a claim for breach of warranty. If the
Contractor fails to correct nonconforming Work within a reasonable time during
that period after receipt of notice from the Owner or Architect, the Owner may
correct it in accordance with Paragraph 2.4.

        12.2.2.2    The one-year period for correction of Work shall be extended
with respect to portions of Work first performed after Substantial Completion by
the period of time between Substantial Completion and the actual performance of
the Work.

        12.2.2.3    The one-year period for correction of Work shall not be
extended by corrective Work performed by the Contractor pursuant to this
Paragraph 12.2.

        12.2.3    The Contractor shall remove from the site portions of the Work
which are not in accordance with the requirements of the Contract Documents and
are neither corrected by the Contractor nor accepted by the Owner.

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        12.2.4    The Contractor shall bear the cost of correcting destroyed or
damaged construction, whether completed or partially completed, of the Owner or
separate contractors caused by the Contractor's correction or removal of Work
which is not in accordance with the requirements of the Contract Documents.

        12.2.5    Nothing contained in this Paragraph 12.2 shall be construed to
establish a period of limitation with respect to other obligations which the
Contractor might have under the Contract Documents. Establishment of the
one-year period for correction of Work as described in Subparagraph 12.2.2
relates only to the specific obligation of the Contractor to correct the Work,
and has no relationship to the time within which the obligation to comply with
the Contract Documents may be sought to be enforced, nor to the time within
which proceedings may be commenced to establish the Contractor's liability with
respect to the Contractor's obligations other than specifically to correct the
Work.

        12.3    ACCEPTANCE OF NONCONFORMING WORK

        12.3.1    If the Owner prefers to accept Work which is not in accordance
with the requirements of the Contract Documents, the Owner may do so instead of
requiring its removal and correction, in which case the Contract Sum will be
reduced as appropriate and equitable. Such adjustment shall be effected whether
or not final payment has been made.

ARTICLE 13    MISCELLANEOUS PROVISIONS

         13.1    GOVERNING LAW

        13.1.1    The Contract shall be governed by the law of the State of
California.

        13.2    SUCCESSORS AND ASSIGNS

        13.2.1    The Owner and Contractor respectively bind themselves, their
partners, successors, assigns and legal representatives to the other party
hereto and to partners, successors, assigns and legal representatives of such
other party in respect to covenants, agreements and obligations contained in the
Contract Documents. Except as provided in Subparagraph 13.2.2, neither party to
the Contract shall assign the Contract as a whole without written consent of the
other, which consent will not be unreasonably withheld. If either party attempts
to make such an assignment without such consent, that party shall nevertheless
remain legally responsible for all obligations under the Contract.

        13.2.2    The Owner may, without consent of the Contractor, assign the
Contract to an institutional lender providing construction financing for the
Project. In such event, the lender shall assume the Owner's rights and
obligations under the Contract Documents. The Contractor shall execute all
consents reasonably required to facilitate such assignment.

        13.3    WRITTEN NOTICE

        13.3.1    Written notice shall be deemed to have been duly served if
delivered in person to the individual or a member of the firm or entity or to an
officer of the corporation for which it was intended, or if delivered at or sent
by registered or certified mail to the last business address known to the party
giving notice.

        13.4    RIGHTS AND REMEDIES

        13.4.1    Duties and obligations imposed by the Contract Documents and
rights and remedies available thereunder shall be in addition to and not a
limitation of duties, obligations, rights and remedies otherwise imposed or
available by law.

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        13.4.2    No action or failure to act by the Owner, Architect or
Contractor shall constitute a waiver of a right or duty afforded them under the
Contract, nor shall such action or failure to act constitute approval of or
acquiescence in a breach thereunder, except as may be specifically agreed in
writing.

        13.5    TESTS AND INSPECTIONS

        13.5.1    Tests, inspections and approvals of portions of the Work
required by the Contract Documents or by laws, ordinances, rules, regulations or
orders of public authorities having jurisdiction shall be made at an appropriate
time. Unless otherwise provided, the Owner shall make arrangements for such
tests, inspections and approvals with an independent testing laboratory or
entity, or with the appropriate public authority, and shall bear all related
costs of tests, inspections and approvals. The Contractor shall give the
Architect and Owner's Test and Inspection entity timely notice of when and where
tests and inspections are to be made so that the Architect may be present for
such procedures.

        13.5.2    If the Architect, Owner or public authorities having
jurisdiction determine that portions of the Work require additional testing,
inspection or approval not included under Subparagraph 13.5.1, the Architect
will, upon written authorization from the Owner, instruct the Contractor to make
arrangements for such additional testing, inspection or approval by an entity
acceptable to the Owner, and the Contractor shall give timely notice to the
Architect and the Owner's Test and Inspection entity of when and where tests and
inspections are to be made so that the Architect may be present for such
procedures. Such costs, except as provided in Subparagraph 13.5.3, shall be at
the Owner's expense.

        13.5.3    If such procedures for testing, inspection or approval under
Subparagraphs 13.5.1 and 13.5.2 reveal failure of the portions of the Work to
comply with requirements established by the Contract Documents, all costs made
necessary by such failure including those of repeated procedures and
compensation for the Architect's services and expenses shall be at the
Contractor's expense.

        13.5.4    Required certificates of testing, inspection or approval
shall, unless otherwise required by the Contract Documents, be secured by the
Contractor and promptly delivered to the Architect.

        13.5.5    If the Architect is to observe tests, inspections or approvals
required by the Contract Documents, the Architect will do so promptly and, where
practicable, at the normal place of testing.

        13.5.6    Tests or inspections conducted pursuant to the Contract
Documents shall be made promptly to avoid unreasonable delay in the Work.

        13.6    INTEREST

        13.6.1    Payments due and unpaid under the Contract Documents shall
bear interest from the date payment is due at such rate as the parties may agree
upon in writing or, in the absence thereof, at the legal rate prevailing from
time to time at the place where the Project is located.

        13.7    COMMENCEMENT OF STATUTORY LIMITATION PERIOD

        13.7.1    As between the Owner and Contractor:

.1Before Substantial Completion.    As to acts or failures to act occurring
prior to the relevant date of Substantial Completion, any applicable statute of
limitations shall commence to run and any alleged cause of action shall be
deemed to have accrued in any all events not later than such date of Substantial
Completion;

.2Between Substantial Completion and Final Certificate for Payment.    As to
acts or failures to act occurring subsequent to the relevant date of Substantial
Completion and prior to issuance of the final Certificate for Payment, any
applicable statute of limitations shall commence to run and any alleged cause of
action shall be deemed to have accrued in any and all events not later than the
date of issuance of the final Certificate for Payment; and

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.3After Final Certificate for Payment.    As to acts or failures to act
occurring after the relevant date of issuance of the final Certificate for
Payment, any applicable statute of limitations shall commence to run and any
alleged cause of action shall be deemed to have accrued in any and all events
not later than the date of any act or failure to act by the Contractor pursuant
to any Warranty provided under Paragraph 3.5, the date of any correction of the
Work or failure to correct the Work by the Contractor under Paragraph 12.2, or
the date of actual commission of any other act or failure to perform any duty or
obligation by the Contractor or Owner, whichever occurs last.

ARTICLE 14    TERMINATION OR SUSPENSION OF THE CONTRACT

        14.1    TERMINATION BY THE CONTRACTOR

        14.1.1    The Contractor may terminate the Contract if the Work is
stopped for a period of 30 consecutive days through no act or fault of the
Contractor or a Subcontractor, Sub-subcontractor or their agents or employees or
any other persons or entities performing portions of the Work under direct or
indirect contract with the Contractor, for any of the following reasons:

.1issuance of an order of a court or other public authority having jurisdiction
which requires all Work to be stopped;

.2an act of government, such as a declaration of national emergency which
requires all Work to be stopped;

.3because the Architect has not issued a Certificate for Payment and has not
notified the Contractor of the reason for withholding certification as provided
in Subparagraph 9.4.1, or because the Owner has not made payment on a
Certificate for Payment within the time stated in the Contract Documents; or

.4the Owner has failed to furnish to the Contractor promptly, upon the
Contractor's request, reasonable evidence as required by Subparagraph 2.2.1.

        14.1.2    The Contractor may terminate the Contract if, through no act
or fault of the Contractor or a Subcontractor, Sub-subcontractor or their agents
or employees or any other persons or entities performing portions of the Work
under direct or indirect contract with the Contractor, repeated suspensions,
delays or interruptions of the entire Work by the Owner as described in
Paragraph 14.3 constitute in the aggregate more than 100 percent of the total
number of days scheduled for completion, or 120 days in any 365-day period,
whichever is less.

        14.1.3    If one of the reasons described in Subparagraph 14.1.1 or
14.1.2 exists, the Contractor may, upon seven days' written notice to the Owner
and Architect, terminate the Contract and recover from the Owner payment for
Work executed and for proven loss with respect to materials, equipment, tools,
and construction equipment and machinery, including reasonable overhead, profit
and damages.

        14.1.4    If the Work is stopped for a period of 30 consecutive days
through no act or fault of the Contractor or a Subcontractor or their agents or
employees or any other persons performing portions of the Work under contract
with the Contractor because the Owner has persistently failed to fulfill the
Owner's obligations under the Contract Documents with respect to matters
important to the progress of the Work, the Contractor may, upon seven additional
days' written notice to the Owner and the Architect, terminate the Contract and
recover from the Owner as provided in Subparagraph 14.1.3.

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        14.2    TERMINATION BY THE OWNER FOR CAUSE

        14.2.1    The Owner may terminate the Contract if the Contractor:

.1persistently or repeatedly refuses or fails to supply enough properly skilled
workers or proper materials;

.2fails to make payment to Subcontractors for materials or labor for which
Contractor has been paid by Owner in accordance with the respective agreements
between the Contractor and the Subcontractors;

.3persistently disregards laws, ordinances, or rules, regulations or orders of a
pubic authority having jurisdiction; or

.4otherwise is guilty of substantial breach of a provision of the Contract
Documents.

        14.2.2    When any of the above reasons exist, the Owner, upon
certification by the Architect that sufficient cause exists to justify such
action, may without prejudice to any other rights or remedies of the Owner and
after giving the Contractor and the Contractor's surety, if any, seven days'
written notice, terminate employment of the Contractor and may, subject to any
prior rights of the surety:

.1take possession of the site and of all materials, equipment, tools, and
construction equipment and machinery thereon owned by the Contractor;

.2accept assignment of subcontracts pursuant to Paragraph 5.4; and

.3finish the Work by whatever reasonable method the Owner may deem expedient.
Upon request of the Contractor, the Owner shall furnish to the Contractor a
detailed accounting of the costs incurred by the Owner in finishing the Work.

        14.2.3    When the Owner terminates the Contract for one of the reasons
stated in Subparagraph 14.2.1, the Contractor shall not be entitled to receive
further payment until the Work is finished.

        14.2.4    If the unpaid balance of the Contract Sum exceeds costs of
finishing the Work, including compensation for the Architect's services and
expenses made necessary thereby, and other damages incurred by the Owner and not
expressly waived, such excess shall be paid to the Contractor. If such costs and
damages exceed the unpaid balance, the Contractor shall pay the difference to
the Owner. The amount to be paid to the Contractor or Owner, as the case may be,
shall be certified by the Architect, upon application, and this obligation for
payment shall survive termination of the Contract.

        14.3    SUSPENSION BY THE OWNER FOR CONVENIENCE

        14.3.1    The Owner may, without cause, order the Contractor in writing
to suspend, delay or interrupt the Work in whole or in part for such period of
time as the Owner may determine.

        14.3.2    The Contract Sum and Contract Time shall be adjusted for
increases in the cost and time caused by suspension, delay or interruption as
described in Subparagraph 14.3.1. Adjustment of the Contract Sum shall include
profit. No adjustment shall be made to the extent:

.1that performance is, was or would have been so suspended, delayed or
interrupted by another cause for which the Contractor is responsible; or

.2that an equitable adjustment is made or denied under another provision of the
Contract.

        14.4    TERMINATION BY THE OWNER FOR CONVENIENCE

        14.4.1    The Owner may, at any time, terminate the Contract for the
Owner's convenience and without cause.

46

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

        14.4.2    Upon receipt of written notice from the Owner of such
termination for the Owner's convenience, the Contractor shall:

.1cease operations as directed by the Owner in the notice;

.2take actions necessary, or that the Owner may direct, for the protection and
preservation of the Work; and

.3except for Work directed to be performed prior to the effective date of
termination stated in the notice, terminate all existing subcontracts and
purchase orders and enter into no further subcontracts and purchase orders.

        14.4.3    In case of such termination for the Owner's convenience, the
Contractor shall be entitled to receive payment for Work executed, and costs
incurred by reason of such termination, along with reasonable overhead and
profit on the Work not executed.

47

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

EXHIBIT "A"
SCOPE OF WORK

        The basis of the scope is defined schematically in both the Hensel
Phelps Construction Co. Schedule dated August 2, 2002, and AVRP Pricing
Documents dated July 22, 2002. The scope is further defined in HPCC's August 9,
2002, "Cost Proposal" (Initial Budget Estimate), which includes Clarifications
and Assumptions.

SCHEMATIC PRICING SET (25 Sheets) from AVRP dated 07/22/02

CS T01.00—Title Sheet
CS T01.01—Accessibility Notes
CS T01.02—Accessibility Notes
CS T01.03—Accessibility Site Plan

CS A01.01—Site Plan
CS A02.01—First Floor (Area A)
CS A02.02—First Floor (Area B)
CS A02.03—Second Floor (Area A)
CS A02.04—Second Floor (Area B)
CS A02.05—Third Floor (Area B)
CS A03.01—Door Schedule
CS A05.01—Roof Plan (Area A)
CS A05.02—Roof Plan (Area C)
CS A06.01—Exterior Elevations
CS A06.02—Exterior Elevations
CS A07.01—Building Sections
CS A07.02—Building Sections
CS A09.01—Enlarged Restroom Details

PS A02.01—Parking Level 1
PS A02.02—Parking Level 2
PS A02.03—Parking Level 3
PS A02.04—Parking Level 4
PS A02.05—Parking Level 5
PS A06.01—Parking Structure Exterior Elevations
PS A07.01—Parking Structure Section

SPECIFICATIONS

        The Specifications have not been provided. All parties will negotiate in
good faith to incorporate these documents into the Contract by Change Order.

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

EXHIBIT "B"

HENSEL PHELPS CONSTRUCTION CO.

CYMER, Inc., CSD—6 PERSONNEL

STAFF POSITION

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

  NAME

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

  Start
Date

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

  MOS.

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

CONSTRUCTION-TO FINAL COMPLETION       13.5
Project Manager
 
John Goodman
 
6/24/02
 
15
Estimator/Buyout
 
Ken Ketchum
 
7/22/02
 
5
Supt - Site/CP/Park Gar
 
Scott Vernon
 
7/15/02
 
11
Supt - Phase 1/2 Shell
 
Keith Jester
 
10/1/02
 
13
Superintendent - Shift/TI
 
Mike Pilling
 
9/1/02
 
9
Project Engineer
 
Alex Begg
 
7/22/02
 
15
Office Engineer #1
 
Scott McBrayer
 
8/26/02
 
9
Office Engineer #2
 
TBD
 
10/1/02
 
9
Office Engineer #3
 
Steve Rudisill
 
7/29/02
 
14
Office Engineer #4
 
TBD
 
9/23/02
 
10
Field Engineer #1 (Selfwork)
 
Dave Lydick
 
8/26/02
 
10
Field Engineer #2
 
Brian Shoemaker
 
8/5/02
 
15
Field Engineer #3
 
Chris McCoy
 
9/1/02
 
12
Field Engineer #4 (Selfwork)
 
TBD
 
11/1/02
 
8
Field Engineer #5
 
David Dion
 
9/1/02
 
13
Office Manager
 
Jody Ideker
 
8/5/02
 
15  
DESCRIPTION
 
 
 
MONTHS
 
MONTHS

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

EXHIBIT "C"
CONCEPT SCHEDULE—AUGUST 2, 2002

Activity Name

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

  Start
Date

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

  Finish
Date

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

DESIGN          
Site Civil Drawings
 
 
 
  Grading/Site Utility & Site Retaining Wall Docs for Permit/Bidding   7/9/02  
7/19/02
PHASE 1 DESIGN
 
 
 
   
Ph 1A: Building 1 Shell (Areas A, B & C)
 
 
 
  Core & Shell Schematic Design Documents Building 1   6/17/02   7/12/02
Structural Design For Warehouse Purchase Building 1   7/8/02   7/12/02 Core &
Shell Design Development Docs Building 1   7/15/02   8/9/02 100% Structural to
Release Steel Building 1       8/9/02 Structural Documents for Permit/Misc Bids
Building 1   7/15/02   8/9/02 Underslab Utilities Documents for Permit Building
1   7/15/02   9/2/02 Balance Core & Shell Documents for Permit/Misc Bids
Building 1   8/12/02   10/11/02  
Ph 1B: Manufacturing (Area A/Lev-1) & Central Plant TI
 
 
 
  TI Schematic Docs (Includ. MEP)-Area A/Lev-1 Manuf/Util Corr/Central Plant  
7/8/02   7/26/02 TI Design Development Docs-Area A/Lev-1 Manuf/Util Corr/Central
Plant   7/29/02   8/23/02 Mockup/Evaluate/Select Demountable Wall System-Area
A/Lev-1 Manuf   7/29/02   9/6/02 TI Const Docs for Permit/Bids-Area A/Lev-1
Manuf/Util Corr/Cent Plant   8/26/02   10/25/02
PHASE 2 DESIGN
 
 
 
   
Ph 2A: Building 2-Parking Structure
 
 
 
  Parking Garage Schematic Design   7/8/02   7/26/02 Parking Garage Design
Development Docs   7/29/02   8/23/02 Parking Garage Const Docs for Permit/Bids  
8/26/02   10/11/02  
Ph 2B: Lobby/Offices/Breezeway (Area A/Lev-2) TI
 
 
 
  TI Schematic Docs-Lobby & Area A/Lev-2 Offices/Breezeway & Misc.   7/8/02  
7/26/02 TI Design Development Docs-Lobby & Area A/Lev-2 Offices/Breezeway &
Misc.   7/29/02   9/20/02 TI Const Docs for Permit/Bids-Lobby & Area A/Lev-2
Offices Breezeway & Misc   9/23/02   11/15/02  
Ph 2C: Offices (Area B/Lev-2) TI
 
 
 
  TI Schematic Docs-Area B/Lev-2 Offices   10/21/02   11/22/02 TI Design
Development Docs-Area B/Lev-2 Offices   11/25/02   1/10/03 TI Const Docs for
Permit/Bids-Area B/Lev-2 Offices   1/13/03   2/21/03
PERMITS
 
 
 
   
Site Civil Permit
 
 
 
  Grading, Site Retaining Walls and Site Utilities (4 Wks)   7/22/02   8/9/02  
    -Soils Engr. Provides Final As-Graded Report       9/11/02       -Civil
Engr. Provides Certification of Grades Bldg 1       9/11/02

1

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

PHASE 1 PERMITS
 
 
 
   
Ph 1A: Building 1 Shell (Areas A, B & C)
 
 
 
  Struct. Permit-Foundations/Bldg Retaining Walls/Struct Steel/Concrete Building
1   8/9/02   9/6/02 Underslab Utilities Permit-Building 1   8/9/02   9/6/02
Balance Shell Permit including Exterior Struct. Studs/Misc. Structural-Building
1   10/14/02   11/8/02  
Ph. 1B: Manuf. (Area A/Lev 1) & Cent. Plant TI Permit
 
 
 
  TI Permit-Area A/Lev-1 Manuf/Central Plant (as Req)/Utility Corridor  
10/28/02   11/22/02 Temp Cert. of Occup.-TI Manuf. Area A/Lev-1: Includes
Central Plant As Req & Util Corr       4/11/03
PHASE 2 PERMITS
 
 
 
   
Ph 2A: Parking Structure Permit
 
 
 
  Parking Garage Permit   10/14/02   11/15/02 Parking Garage Underslab Utilities
Permit   10/14/02   11/15/02 Temp. Cert. of Occup.-Parking Garage       7/25/03
 
Ph 2B: Lobby/Office/Brzewy (Area A/Lev 2) TI Permit
 
 
 
  TI Permit-Lobby & Area A/Lev 2 Offices/Breezeway & Misc. Areas   11/18/02  
12/13/02 Temp. Cert. of Occup.-TI Lobby & Area A/Lev 2 Offices/Breezeway & Misc.
Areas       7/25/03  
Ph 2C: Office (Area B/Lev 2) TI Permit
 
 
 
  TI Permit-Area B/Lev-2 Offices   2/24/03   3/14/03 Temp. Cert. of Occup.-TI
Area B/Level 2 Offices       10/10/03
CONSTRUCTION
 
 
 
   
Site Grading/Str. Excav./Site Utilities
 
 
 
  Clear and Grub Site   8/12/02   8/16/02 Mass Grading and Rough Pad
Preparation/Erosion Control Building #1   8/14/02   8/28/02 Overexcavate &
Controlled Fill Pad for Building #1   8/14/02   9/04/02       -Soils Engr.
Provides Final As-Graded Report Building #1       9/11/02       -Civil Engr.
Provides Certification of Grades Bldg 1       9/11/02 Site Utilities & Utility
Structures-North Half Site   9/9/02   10/18/02 Site Utilities & Utility
Structures-South Half Site   12/9/02   1/31/03  
Phase 1: Bldg 1 Shell/TI Manufacturing & Cent Plant
 
 
 
 
Areas A & C (Central Plant) Shell

 
 
 
 
Order/Fabricate Steel-Building 1 (=Areas A, B & C)
 
8/9/02
 
10/25/02 Excav/Rebar Founds for Areas A & C Bldg Ret. Walls (includes Cent.
Plant/Util Yard)   9/4/02   10/4/02 Underslab Utilities—Building 1 Areas A & C  
9/4/02   10/11/02 Place Founds for Areas A & C & Bldg Ret. Walls (Incl. Cent.
Plant/Util Yard)   9/9/02   10/4/02 Balance Foundations/Footings for Areas A & C
  9/16/02   10/18/02 Building Retaining Walls (Includes Central Plant/Utility
Yard)   9/11/02   11/1/02

2

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

Slab on Grade/Pits—Areas A & C   10/7/02   10/25/02 Waterproof/Backfill Building
Retaining Walls—Areas A & C   10/28/02   11/15/02 Steel Erection—Area A & Area C
  10/28/02   11/22/02 Metal Deck Areas A & C/Level 2   11/4/02   11/15/02 Stairs
Areas A & C   11/4/02   12/14/02 Slab-on-deck Areas A & C/Level 2   11/18/02  
11/29/02 Fireproofing Areas A & C—Level 1 Cols & Beams   12/2/02   12/20/02
Metal Deck Areas A & C Roof   11/25/02   12/6/02 Slab-on-deck Areas A & C Roof  
12/9/02   12/27/02 Exterior Framing/Sheathing/Waterproofing Areas A & C  
12/23/02   2/28/03 Set Rooftop Mechanical Equipment Area A   12/23/02   12/27/02
Fireproofing Areas A & C/Level 2 Cols & Beams   12/30/02   1/24/03 Insulation &
Roofing—Areas A & C   1/6/03   2/7/03 Exterior Wall Dry-in (Permanent + Temp As
Req)—Area A & Area C       2/14/03 Exterior Finish & Glazing Systems Areas A & C
  1/13/02   3/14/03 Rooftop Mechanical Screens/Hatches/Misc—Areas A & C  
2/10/03   3/7/03
Manufacturing & Central Plant TI
 
 
 
  Prefabrication Pipe and Rack Systems—Phase 1A Manufacturing   10/21/02  
1/3/03 MEP Rough-in Systems and Process Gas—Area A/Level-1 Manuf., Util Corr
&Cent Plant   12/2/02   2/7/03 Interior Framing—Area A/Lev-1 Manufacturing &
Util Corr/Cent. Plant & Shell as Req   12/2/02   2/7/03 MEP
Drops/Racks/Finishes—Area A/Lev-1 Manuf   1/20/03   3/21/03 Drywall & Tape—Area
A Manufacturing & Areas A & C Shell Spaces as Required   1/13/03   2/21/03
Interior Finishes—Area A/Lev-1 Manufacturing & Area A Shell Spaces as Required  
2/3/03   3/7/03 Elevator & Lift—Area A Shell as Required   2/10/03   3/21/03
Energize Main Electric Room       2/14/03 Startup Mechanical Equipment for Manuf
Area A/Lev-1 & Cent. Plant   2/17/03   3/14/03 Demountable Wall Systems—Manuf
Area A/Lev-1   2/17/03   3/7/03 Exterior Hardscape & Landscape as Required for
Ph   3/31/03   6/27/03 MEP Fitup on Demountable Wall Systems—Manuf Area A/Lev-1
  2/24/03   3/21/03 Testing and Balancing Manuf. Area A/Lev-1 & Central Plant  
3/17/03   4/11/03 Owner FF & E Manuf Area A/Lev-1   3/17/03   4/4/03 Punchlist
Manuf Area A/Lev-1 & Central Plant   3/24/03   4/11/03 Process Gas Certification
Manuf Area A/Lev-1 & Central Plant   3/31/03   4/11/03 Substantial Completion
for TCO—Manuf Area A/Lev-1 & Central Plant       4/11/03
Completion of Lobby & Area A/Lev-2 Shell Interiors
 
 
 
  MEP Rough-in As Required for Shell Only—Lobby & Area A/Lev-2   12/9/02  
2/21/03 Interior Framing As Required for Shell Only—Lobby & Area A/Lev-2  
12/16/02   2/21/03 Install Life Safety Systems As Required for Shell Only—Lobby
& Area A/Lev-2   12/23/02   3/21/03 Drywall & Tape As Required for Shell
Only—Lobby & Area A/Lev-2   2/17/03   3/28/03 Energize Lobby & Area A/Lev-2 As
Required for Shell Only       3/14/03 Interior Finishes Lobby & Area A/Lev-2 As
Required for Shell Only   2/24/03   3/28/03 Test Life Safety Systems As Required
for Shell Only—Lobby & Area A/Lev-2   3/3/03   3/28/03 Punchlist As Required for
Shell Only—Lobby & Area A/Lev-2   3/24/03   4/11/03 Completion of Shell As
Required for Manuf TCO—Lobby & Area A/Lev-2 Only       4/11/03

3

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

Area B Levels 1,2 & 3—Balance Building 1 Shell
 
 
 
  Foundations for Area B & N/S Road Ret. Walls   10/14/02   11/8/02 Balance
Foundations/Footings for Area B   10/21/02   11/15/02 Underslab
Utilities—Building 1 Area B   10/21/02   11/20/02 Building Retaining Walls
(Includes N/S Road Ret. Walls)   11/4/02   12/6/02 Slab on Grade/Pits—Area B  
11/4/02   11/22/02 Waterproof/Backfill Building Retaining Walls—Area B  
11/11/02   11/29/02 Steel Erection—Area B   11/18/02   12/20/02 Metal Deck Area
B/Lev-2   12/9/02   12/20/02 Stairs Area B   12/9/02   1/31/03 Fireproofing Area
B—Level 1 Cols & Beams   12/16/02   1/10/03 Metal Deck Area B—Level 3   12/16/02
  1/3/03 Slab-on-deck Area B/Lev-2   12/23/02   1/17/03 Metal Deck Area B Roof  
12/23/02   1/10/03 Fireproofing Area B/Lev-2 Cols & Beams   12/30/02   1/17/03
Slab-on-deck Area B/Lev-3   1/7/02   2/1/02 Exterior Framing/Sheathing/Finish &
Glazing Systems Area B   1/1/3/03   3/28/03 Fireproofing Area B /Level 3 Cols &
Beams   1/20/03   2/14/03 Slab-on-deck Area B Roof   1/20/03   2/7/03 Insulation
& Roofing—Area B   2/10/03   3/21/03 Exterior Wall Dry-in (Permanent + Temp As
Req)—Area B       3/28/03 Exterior Finish & Glazing Systems Area B   2/9/03  
4/18/03 MEP Rough-in As Required for Shell Only—Area B/Levels 1 & 3   3/3/03  
5/2/03 Rooftop Mechanical Screens/Hatches/Misc—Area B   3/17/03   4/18/03
Interior Framing As Required for Shell Only—Area B/Levels 1 & 3   3/17/03  
4/25/03 Exterior Hardscape & Landscape   3/31/03   6/27/03 Install Life Safety
Systems As Required for Shell Only—Area B/Levels 1 & 3   4/7/03   6/20/03
Drywall & Tape As Required for Shell Only—Area B/Levels 1 & 3   4/21/03  
5/30/03 Energize Area B/Levels 1 & 3 As Required for Shell Only       4/28/03
Interior Finishes As Required for Shell Only—Area B/Levels 1 & 3   5/12/03  
6/13/03 Test Life Safety Systems As Required for Shell Only—Area B/Levels 1 & 3
  6/2/03   6/27/03 Punchlist As Required for Shell Only—Area B/Levels 1 & 3  
6/23/03   7/18/03 Completion of Area B/Levels 1 & 3 Shell As Required for Area
B/Lev2 TI TCO       7/25/03
PHASE 2: Lobby & Lev-2 (Areas A & B) Offices & Parking
 
 
 
 
Ph 2A: Parking Structure
 
 
 
  Excavation/Shoring/Retaining Walls Parking Structure   9/2/02   11/8/02
Foundations Parking Structure   11/18/02   12/20/02 Underslab Utilities Parking
Structure   11/25/02   12/27/02 Retaining Walls Parking Structure   12/9/02  
1/3/03 Basement Slab-on-grade (Lev-1) Parking Structure   12/30/02   1/10/03
Shear Walls Parking Structure   1/13/03   3/7/03 Waterproof/Backfill Building
Retaining Walls Parking Structure   1/13/03   1/31/03

4

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

PHASE 2 CONSTRUCTION (cont.)
 
 
 
  Precast Erection Parking Structure   3/10/03   4/4/03 Lev-2 Floor Slab Parking
Structure   3/31/03   4/11/03 MEP Rough-in Parking Structure   3/31/03   5/30/03
Lev-3d Floor Slab Parking Structure   4/14/03   4/25/03 Stair/Guardrail/Trellis
Installation Parking Structure   4/14/03   5/16/03 Bridge from Parking Structure
to Building 1/Area B   4/14/03   6/13/03 Lev-4 Floor Slab Parking Structure  
4/21/03   5/2/03 Lev-5 (Roof Deck) Slab Parking Structure   4/28/03   5/9/03 MEP
Finishes Parking Structure   5/5/03   6/27/03 Misc. Finishes Parking Structure  
5/5/03   6/27/03 Punchlist Parking Structure   6/30/03   7/18/03 Substantial
Completion For TCO—Parking Structure       7/25/03
Ph 2B—Lobby & Area A/Lev-2 Office & Breezeway TI
 
 
 
  MEP Plumbing Rough-in—Restrooms/Kitchen & Servery/Misc Under Deck—Area A/L2  
12/23/02   1/23/03 MEP Overhead—Lobby, Offices & Kitchen/Servery/Misc Area
A/Lev-2   12/23/02   2/28/03 Interior Framing and Balance of MEP
Rough-in—Lobby/Breezeway & Area A/Lev-2   1/13/03   3/20/03 Elevators   2/10/03
  6/20/03 Drywall, Tape & Finish—Lobby/Breezeway & Area A/Lev-2   2/17/03  
4/11/03 Kitchen/Servery Equipment & Fixture Installation   2/24/03   4/4/03
Waterproofing Kitchen & Servery   3/3/03   3/14/03 Floor Tile Installation
Kitchen/Servery & Restrooms   3/17/03   4/4/03 FRP Panel & Stainless Steel
Installation Kitchen   4/7/03   5/2/03 Set Roof MEP Equipment       4/8/03
Finishes Lobby/Breezeway & Area A/Lev-2   4/7/03   6/20/03 Equipment Startup &
Pretesting Lobby/Breezeway & Area A/Lev-2   4/14/03   5/2/03 MEP Finishes
Lobby/Breezeway & Area A/Lev-2   4/21/03   6/20/03 Ceiling Tile Lobby/Breezeway
& Area A/Lev-2   5/5/03   6/20/03 Floor Finishes Lobby/Breezeway & Area A/Lev-2
  5/12/03   6/13/03 Final Cleanup Lobby/Breezeway & Area A/Lev-2   6/9/03  
6/27/03 Testing and Balancing Lobby/Breezeway & Area A/Lev-2   6/23/03   7/18/03
Punchlist Lobby/Breezeway & Area A/Lev-2   6/30/03   7/18/03 System Furniture/IT
Equipment & FF&E Lobby/Breezeway & Area A/Lev-2   7/7/03   7/25/03 Substantial
Completion for TCO—Lobby/Breezeway & Area A/Lev-2       7/25/03
Ph 2C: Office (Area B/Lev 2) TI
 
 
 
  MEP Plumbing Rough-in—Restrooms/Misc Under Deck—Area B/Lev-2   3/17/03  
4/4/03 MEP Overhead—Restrooms/Misc Under Deck—Area B/Lev-2   3/24/03   5/9/03
Interior Framing and MEP Roughin—Offices/Misc Area B/Lev-2   3/24/03   5/16/03
Elevators—Offices/Misc Area B/Lev-2   4/7/03   7/25/03 Drywall, Tape &
Finish—Offices/Misc Area B/Lev-2   4/21/03   6/13/03 Set Roof MEP
Equipment—Offices/Misc Area B/Lev-2   5/26/03   5/30/03 Finishes—Offices/Misc
Area B/Lev-2   6/9/03   8/22/03 Equipment Startup & Pretesting Offices/Misc Area
B/Lev-2   6/23/03   7/25/03 MEP Finishes Offices/Misc Area B/Lev-2   6/30/03  
9/5/03 Ceiling Tile Offices/Misc Area B/Lev-2   7/21/03   8/29/03 Floor Finishes
Offices/Misc Area B/Lev-2   7/28/03   9/5/03 Final Cleanup Offices/Misc Area
B/Lev-2   8/18/03   9/5/03 Testing and Balancing Offices/Misc Area B/Lev-2  
8/25/03   9/19/03 Punchlist Offices/Misc Area B/Lev-2   9/8/03   9/26/03
Substantial Completion for TCO—Offices/Misc Area B/Lev-2       9/29/03 System
Furniture/IT Equipment & FF&E Offices/Misc Area B/Lev-2   9/29/03   10/17/03

5

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

EXHIBIT "D"
CURRENT (Rev 13) BUDGET
(8/9/02 Est with
8/19/02 & 8/20/02 CHANGES)

Baseline Estimate (8/20/02)—GMAX

Owner: CYMER, Inc.
Architect: A.V.R.P.   Drawing Date: None
Revision No: 13

Project Description:
    Phased, 2 and 3 story building including Central Plant (270,000 SF) and 5
level Parking Garage

 
    
PROJECT SECTOR:
  
  
  
GROSS FLOOR AREA:
SECONDARY UNIT:

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

  Sector A
Phase 1—Building 1
(Area A & B) Cold Core
& Shell w/ Lobby &
Central Plant/Yard
262,440 GSF
    

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

  Sector B
Phase 1—Manufacturing
(Lab) Tenant
Improvements + Whse &
Utility Corridor
53,350 GSF
    

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

  Sector C
Phase 1—Office Tenant
Improvements (2nd
Floor) & Building
Entrance (2 floors)
66,515 GSF
    

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

  Sector D
Phase 2—Parking
Structure
 
 
180,000 GSF
555 Stall

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

  Sector E
Phase 2—Office Tenant
Improvements (2nd
Floor, 3rd Floor Remains
C/S)
45,508 GSF
    

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

  Sector F
Future Phase Rough-In—
Manufacturing Area B—
1st Floor
GSF
    

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

  Site A
Sitework
 
 
 
  
    

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

  Total
  
  
  
  
442,440 GSF
    

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

 
 
Comments
    

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

SEC.

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

  PARAMETER

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

  $/GSF

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

  AMOUNT

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

  $/GSF

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

  AMOUNT

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

  $/GSF

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

  AMOUNT

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

  $/GSF

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

  AMOUNT

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

  $/GSF

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

  AMOUNT

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

  $/GSF

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

  AMOUNT

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

  AMOUNT

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

  $/GSF

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

  AMOUNT

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

A10   FOUNDATIONS   4.78   1,254,424   0.47   25,000   0.00   0   3.00   539,600
  0.00   0   0.00   0   —   4.11   1,819,024   A20   BASEMENT CONSTRUCTION  
0.95   250,380   0.00   0   0.00   0   0.79   141,600   0.00   0   0.00   0   —
  0.89   391,980   B10   SUPERSTRUCTURE   20.26   5,318,154   0.00   0   0.00  
0   14.21   2,558,400   0.00   0   0.00   0   —   17.80   7,876,554   B20  
EXTERIOR CLOSURE   8.17   2,143,226   0.00   0   0.00   0   1.04   187,250  
0.00   0   0.00   0   —   5.27   2,330,476   B30   ROOFING   4.19   1,100,816  
0.00   0   0.00   0   0.80   144,000   0.00   0   0.00   3,000   —   2.82  
1,247,816   C10   INTERIOR CONSTRUCTION   2.50   656,405   35.17   1,876,500  
28.15   1,872,700   1.21   218,500   22.50   1,023,750   0.00   43,000   —  
12.86   5,690,855   C20   STAIRS   1.20   315,050   0.00   0   0.00   0   1.62  
292,313   0.00   0   0.00   0   —   1.37   607,363   C30   INTERIOR FINISHES  
0.85   222,500   0.98   52,500   1.28   85,000   0.25   44,560   0.00   0   0.00
  52,500   —   1.03   457,060   D10   CONVEYING   1.37   359,000   0.00   0  
0.00   0   0.61   110,000   0.00   0   0.00   0   —   1.06   469,000 UMEC,    
MECHANICAL   3.15   825,691   105.58   5,632,677   21.07   1,401,354   2.40  
432,000   15.40   700,823   0.00   60,000   —   20.46   9,052,544 Schmidt D50  
ELECTRICAL   0.30   78,732   88.59   4,726,065   7.61   506,123   0.65   117,000
  7.10   323,107   0.00   0   —   13.00   5,751,026 Berg E10   EQUIPMENT   0.13
  33,880   0.00   0   5.64   375,000   0.07   13,000   0.00   0   0.00   0   —  
0.95   421,880   E20   FURNISHINGS   0.00   0   0.00   0   0.00   0   0.00   0  
0.00   0   0.00   0   —   0.00   0   F10   SPECIAL CONSTRUCTION   0.00   0  
0.00   0   0.00   0   0.00   0   0.00   0   0.00   0   —   0.00   0   F20  
SELECTIVE BUILDING DEMOLITION   0.08   20,000   0.00   0   0.00   0   0.00   0  
0.00   0   0.00   0   —   0.05   20,000   G00   SITEWORK   —   —   —   —   —   —
  —   —   —   —   —   —   2,512,980   —   2,512,980          

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      Subtotal—BUILDING & SITE   47.93   12,578,259   230.79   12,312,742  
63.75   4,240,176   26.66   4,798,223   45.00   2,047,680   0.00   158,500  
2,512,980   87.35   38,648,559       GENERAL CONDITIONS                        
                                      Z1010   General Conditions   2.88  
754,696   13.85   738,764   3.82   254,411   1.60   287,893   2.70   122,861  
0.00   9,510   150,779   5.24   2,318,914   Z1015   Vertical Hoisting   0.00  
with C.O.W.   0.00   with C.O.W.   0.00   with C.O.W.   0.00   with C.O.W.  
0.00   with C.O.W.   0.00   with C.O.W.   with C.O.W.   0.00   0          

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  Z10   General Conditions   2.88   754,696   13.85   738,764   3.82   254,411  
1.60   287,893   2.70   122,861   0.00   9,510   150,779   5.24   2,318,914    
  INDIRECTS & RESERVES                                                          
    Z1020   Subcontractor's Bonds   0.00   with C.O.W.   0.00   with C.O.W.  
0.00   with C.O.W.   0.00   with C.O.W.   0.00   with C.O.W.   0.00   with
C.O.W.   with C.O.W.   0.00   with C.O.W.   Z1030   Builder's Risk Insurance  
0.25   65,618   1.20   64,233   0.33   22,120   0.14   25,031   0.23   10,682  
0.00   827   13,110   0.46   201,620   Z1040   General Liability Insurance  
0.32   83,116   1.53   81,361   0.42   28,019   0.18   31,706   0.30   13,531  
0.00   1,047   16,605   0.58   255,385   Z1050   Permits   0.00   By Owner  
0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00  
By Owner   By Owner   0.00   By Owner      Z1070   A & E Design Costs   0.00  
By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner
  0.00   By Owner   By Owner   0.00   By Owner   Z1080   Professional Liability
Insurance   0.00   By A/E   0.00   By A/E   0.00   By A/E   0.00   By A/E   0.00
  By A/E   0.00   By A/E   By A/E   0.00   By A/E   Z1090   Gross Receipts Tax  
0.00   Not Reqd.   0.00   Not Reqd.   0.00   Not Reqd.   0.00   Not Reqd.   0.00
  Not Reqd.   0.00   Not Reqd.   Not Reqd.   0.00   Not Reqd.   Z1100   Utility
Development & Tap Fees   0.00   By Owner   0.00   By Owner   0.00   By Owner  
0.00   By Owner   0.00   By Owner   0.00   By Owner   By Owner   0.00   By Owner
  Z1110   Hazardous Material Abatement   0.00   By Owner   0.00   By Owner  
0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   By Owner
  0.00   By Owner   Z1120   Testing & Inspections   0.00   By Owner   0.00   By
Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner  
By Owner   0.00   By Owner   Z1130   Escalation   0.00   None   0.00   None  
0.00   None   0.00   None   0.00   None   0.00   None   None   0.00   None  
Z1140   Bidding & Construction Reserves   1.41   370,656   6.80   362,832   1.88
  124,950   0.79   141,394   1.33   60,341   0.00   4,671   74,052   2.57  
1,138,896   Z1150   Preconstruction Costs   0.00   with GC's   0.00   with GC's
  0.00   with GC's   0.00   with GC's   0.00   with GC's   0.00   with GC's  
with GC's   0.00   with GC's   Z1160   G & A—Corporate   1.11   292,284   5.36  
286,115   1.48   98,530   0.62   111,498   1.05   47,583   0.00   3,683   58,395
  2.03   898,087          

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  Z20   Indirects & Reserves   3.09   811,674   14.89   794,540   4.11   273,618
  1.72   309,629   2.90   132,137   0.00   10,228   162,162   5.64   2,493,988  
    FEES                                                               Z1060  
Contractor's Fee   1.67   437,069   8.02   427,843   2.22   147,338   0.93  
166,729   1.56   71,153   0.00   5,508   87,321   3.04   1,342,959          

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  Z10   Fees   1.67   437,069   8.02   427,843   2.22   147,338   0.93   166,729
  1.56   71,153   0.00   5,508   87,321   3.04   1,342,959          

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  0   Project Total   55.56   14,581,697   267.55   14,273,889   73.90  
4,915,543   30.90   5,562,473   52.16   2,373,830   0.00   183,746   2,913,242  
101.27   44,804,420          

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      Total Cost / Unit                               10,022                    
                 

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        The information contained in this estimate is the proprietary property
of Hensel Phelps Construction Co. and may be used only by the authorized
recipient. Any reproduction or other reuse of this estimate or portions thereof
without the express consent of Hensel Phelps Construction Co. is strictly
prohibited.

[LOGO]
Page 1 of 1   Hensel Phelps
Construction Co.   Estimator: KK, Estimate Checker: MV
Current Date: 24-Aug-2002
Workbook: New Estimate 13 Baseline August 20 Agreement.xls

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EXHIBIT "D"
ESTIMATE HISTORY

CYMER, Inc. CSD—6

Estimate History Aug 19 & 20

 
  Description

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

  HPCC
7/1/02
Estimate

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  CYMER
7/1/02 Est
to Present

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  Description

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  HPCC
8/9/2002
Estimate

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  Re-Arrange
HP 8/9/02
Estimate

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  Adj Parking
HP 8/9/02
Estimate

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  Adj VE & Cont
HP 8/9/02
Estimate

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  New 8/20/02
Est Format
Per DC

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1   Cold Shell               Building Cold Shell   $ 14,566,729   $ 14,566,729  
$ 14,566,729   $ 14,566,729           Building Cold Shell Phase 1   $ 7,980,375
        Add Sitework         $ 2,930,813   $ 2,930,813   $ 2,930,813          
Central Plant   $ 633,600         Deduct Contingency Shell         $ -453,230  
$ -453,230   $ -453,230           Building Cold Shell Phase 2   $ 8,258,000    
    Deduct Contingency Sitework         $ -90,588   $ -90,588   $ -90,588      
    Subtotal Building Shell   $ 16,381,975         Subtotal Building Shell      
  $ 17,053,744   $ 17,053,744   $ 17,053,744   $ 0     Tenant Improvements      
                                        2   Phase 1                            
                      Manufacturing   $ 8,050,000         Manufacturing   $
14,950,229   $ 14,950,229   $ 14,950,229   $ 14,950,229           Utility Tunnel
  $ 270,000         Deduct Contingency Manufacturing         $ -461,991   $
-461,991   $ -461,991           Warm Shell   $ 139,200         Add Future Phase
Manuf Rough-in         $ 184,854   $ 184,854   $ 184,854           Manufacturing
Office   $ 195,000         Ded Fut Ph Manuf. Rough-in Conting         $ -5,712  
$ -5,712   $ -5,712                           Deduct & 20 VE include Fee        
            $ -483,000           Subtotal Phase 1 Manufacturing   $ 8,654,200  
      Subtotal Phase 1 Manufacturing         $ 14,667,380   $ 14,667,380   $
14,184,380       3   Phase 2                                                  
Office TI: Area A / Lev-2   $ 3,091,790         Phase 1 Office TI: Area A /
Lev-2   $ 4,945,190   $ 4,945,190   $ 4,945,190   $ 4,945,190           Add to
TI for Kitchen   $ 280,000         Deduct Contingency Ph 1 Office Tl         $
-152,816   $ -152,816   $ -152,816           Breezeway: Lev-2   $ 576,000      
  Phase 2 Office TI: Area B / Lev-2   $ 2,388,148   $ 2,388,148   $ 2,388,148  
$ 2,388,148           Breezeway: Lev-3   $ 207,000         Deduct Contingency Ph
2 Office TI         $ -73,798   $ -73,798   $ -73,798           Lobby TI   $
384,800         Deduct Arbitrary Breezeway Value         $ -1,156,000   $
-1,156,000   $ -1,156,000           Subtotal Area A / Lev-2 Offices   $
4,539,590         Subtotal Offices         $ 5,950,724   $ 5,950,724   $
5,950,724           Office TI: Area B / Lev-2   $ 2,697,500         Breezeway /
Utility Tunnel         $ 1,156,000   $ 1,156,000   $ 1,156,000          
Subtotal Offices   $ 7,237,090                                                  
          Future Phase Manuf. Rough-in   $ 184,854     w/Manuf     w/Manuf    
w/Manuf       4   Parking Structure   $ 6,020,000         Parking Structure   $
8,549,098   $ 8,549,098   $ 8,549,098   $ 8,549,098                          
Deduct Contingency Parking         $ -202,380   $ -202,380   $ -202,380        
                  Deduct "Lower Parking One Level"               $ -900,000   $
-900,000                           Subtotal Parking         $ 6,346,718   $
5,446,718   $ 5,446,718                           Sitework   $ 2,930,313    
w/Shell     w/Shell     w/Shell       5   Contingency   $ 2,909,495        
Contingency     w/Above   $ 1,441,496   $ 1,441,496   $ 1,441,496              
            Add Margin         $ 72,075   $ 72,075   $ 72,075                  
        Deduct $500K Conting Per DC                     $ -500,000              
            Subtotal Contingency         $ 1,513,571   $ 1,513,571   $ 1,013,571
          TOTAL   $ 41,702,780         TOTAL   $ 48,515,041   $ 46,688,137   $
45,788,137   $ 44,805,137      
1
 
Shell
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Building Cold Shell Phase 1         $ 7,980,375                          
            Central Plant         $ 633,600                                    
  Building Cold Shell Phase 2         $ 8,268,000                              
        Phase 1 TI Warm Shell         $ 139,200                                
      Subtotal Building Shell         $ 17,021,175   Shell               $
17,054,000   $ 17,054,000   $ 17,054,000                     Deduct Site        
                  $ -2,931,000 2   Breezeway / Utility Tunnel               Add
Back Contingency                           $ 349,000     Utility Tunnel        
$ 270,000   Subtotal Building Shell                           $ 14,472,000    
Breezeway Lev-2         $ 576,000                                      
Breezeway Lev-3         $ 207,000                                       Subtotal
Breezeway/Utility Tunnel         $ 1,053,000                   $ 1,156,000   $
1,156,000       3   Manufacturing         $ 8,050,000   Manufacturing          
    $ 14,667,000   $ 14,184,000   $ 14,184,000                     Add Back
Contingency                           $ 360,000 4   Office/Core              
Add Util Tunnel                           $ 296,000     Manufacturing Office    
    $ 195,000   Subtotal Manufacturing                           $ 14,840,000  
  Office TI: Area A / Lev-2         $ 3,091,790                                
      Add to TI for Kitchen         $ 280,000                                  
    Office TI: Area B / Lev-2         $ 2,697,500                              
        Lobby TI         $ 384,500                                      
Subtotal Office/Core         $ 8,849,090   Offices               $ 5,950,000   $
5,950,000   $ 5,950,000                     Add Back Contingency                
          $ 173,000                     Add Back Breezeway                      
    $ 860,000                     Subtotal Offices                           $
6,983,000 5   Parking         $ 6,020,000   Parking               $ 5,447,000  
$ 5,447,000   $ 5,447,000                     Add Back Contingency              
            $ 152,000                                                 $
5,599,000 6   Site           w/Shell   Site                           $
2,910,000 7   Contingency         $ 2,909,000                   $ 1,513,000   $
1,013,000     w/Above     TOTAL         $ 41,702,265                   $
45,787,000   $ 44,804,000   $ 44,804,000

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Project Description:
        Phased, 2 and 3 story building including Central Plant (270,000 SF) and
5 level Parking Garage

PROJECT SECTOR:

GROSS FLOOR AREA:
SECONDARY UNIT:

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  Sector A
Phase 1—Building 1
(Area A & B) Cold Core
& Shell w/ Lobby &
Central Plant/Yard
262,440 GSF
  

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  Sector B
Phase 1—Manufacturing
(Lab) Tenant
Improvements + Whse &
Utility Corridor
53,350 GSF
  

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  Sector C
Phase 1—Office Tenant
Improvements (2nd
Floor) & Building
Entrance (2 floors)
66,515 GSF
  

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  Sector D
Phase 2—Parking
Structure

180,000 GSF
555 Stall

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  Sector E
Phase 2—Office Tenant
Improvements (2nd
Floor, 3rd Floor Remains
C/S)
45,508 GSF
  

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  Sector F
Future Phase Rough-In—
Manufacturing Area B—
1st Floor
GSF
  

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  Site A
Sitework

  

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  Total

607,813 GSF
  

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  Comments

  

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A10   FOUNDATIONS   4.78   1,254,424   0.47   25,000   0.00   0   3.00   539,600
  0.00   0   0.00   0   —   2.99   1,819,024     A20   BASEMENT CONSTRUCTION  
0.95   250,380   0.00   0   0.00   0   5.33   958,800   0.00   0   0.00   0   —
  1.99   1,209,180     B10   SUPERSTRUCTURE   20.26   5,318,154   0.00   0  
0.00   0   14.21   2,558,400   0.00   0   0.00   0   —   12.96   7,878,554    
B20   EXTERIOR CLOSURE   8.18   2,140,726   0.00   0   0.00   0   1.04   187,250
  0.00   0   0.00   0   —   3.83   2,327,976     B30   ROOFING   4.19  
1,100,816   0.00   0   0.00   0   0.80   144,000   0.00   0   0.00   3,000   —  
2.05   1,247,816     C10   INTERIOR CONSTRUCTION   2.50   656,405   36.11  
1,926,600   28.15   1,872,700   1.21   218,500   22.50   1,023,750   0.00  
43,000   —   9.45   5,740,955     C20   STAIRS   1.20   315,050   0.00   0  
0.00   0   1.62   292,313   0.00   0   0.00   0   —   1.00   607,363     C30  
INTERIOR FINISHES   0.85   222,500   0.98   52,500   1.28   85,000   0.25  
44,560   0.00   0   0.00   52,500   —   0.75   457,060     D10   CONVEYING  
1.37   359,000   0.00   0   0.00   0   0.61   110,000   0.00   0   0.00   0   —
  0.77   469,000         MECHANICAL   3.15   825,691   105.58   5,632,677  
21.07   1,401,354   2.40   432,000   15.40   700,823   0.00   60,000   —   14.89
  9,052,544   IMEC, Schmidt D50   ELECTRICAL   0.30   78,732   97.13   5,182,065
  7.61   506,123   0.85   117,000   7.10   323,107   0.00   0   —   10.21  
6,207,026   Berg E10   EQUIPMENT   0.13   33,880   0.00   0   5.64   375,000  
0.07   13,000   0.00   0   0.00   0   —   0.69   421,880     E20   FURNISHINGS  
0.00   0   0.00   0   0.00   0   0.00   0   0.00   0   0.00   0   —   0.00   0  
  F10   SPECIAL CONSTRUCTION   0.00   0   0.00   0   0.00   0   0.00   0   0.00
  0   0.00   0   —   0.00   0     F20   SELECTIVE BUILDING DEMOLITION   0.08  
20,000   0.00   0   0.00   0   0.00   0   0.00   0   0.00   0   —   0.03  
20,000     G00   SITEWORK   —   —   —   —   —   —   —   —   —   —   —   —  
2,512,980   —   2,512,980            

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        Subtotal—BUILDING & SITE   47.92   12,575,759   240.28   12,818,842  
63.75   4,240,176   31.20   5,615,423   45.00   2,047,680   0.00   158,500  
2,512,980   65.76   39,969,359    
 
 
GENERAL CONDITIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Z1010   General Conditions   2.88   754,546   14.42   756,130   3.82   254,411
  1.87   336,925   2.70   122,861   0.00   9,510   150,779   3.95   2,398,162  
  Z1015   Vertical Hoisting   0.00   with C.O.W.   0.00   with C.O.W.   0.00  
with C.O.W.   0.00   with C.O.W.   0.00   with C.O.W.   0.00   with C.O.W.  
with C.O.W.   0.00   0            

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    Z10   General Conditions   2.88   754,546   14.42   769,130   3.82   254,411
  1.87   336,925   2.70   122,861   0.00   9,510   150,779   3.95   2,398,162  
 
 
 
INDIRECTS & RESERVES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Z1020   Subcontractor's Bonds   0.00   with C.O.W.   0.00   with C.O.W.   0.00
  with C.O.W.   0.00   with C.O.W.   0.00   with C.O.W.   0.00   with C.O.W.  
with C.O.W.   0.00   with C.O.W.     Z1030   Builder's Risk Insurance   0.25  
66,000   1.26   87,276   0.33   22,253   0.16   29,471   0.24   10,747   0.00  
832   13,189   0.35   209,768     Z1040   General Liability Insurance   0.32  
83,600   1.60   85,216   0.42   28,188   0.21   37,330   0.30   13,612   0.00  
1,054   16,706   0.44   265,706     Z1050   Permits   0.00   By Owner   0.00  
By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner
  By Owner   0.00   By Owner     Z1070   A & E Design Costs   0.00   By Owner  
0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00  
By Owner   By Owner   0.00   By Owner     Z1080   Professional Liability
Insurance   0.00   By A/E   0.00   By A/E   0.00   By A/E   0.00   By A/E   0.00
  By A/E   0.00   By A/E   By A/E   0.00   By A/E     Z1090   Gross Receipts Tax
  0.00   Not Reqd.   0.00   Not Reqd.   0.00   Not Reqd.   0.00   Not Reqd.  
0.00   Not Reqd.   0.00   Not Reqd.   Not Reqd.   0.00   Not Reqd.     Z1100  
Utility Development & Tap Fees   0.00   By Owner   0.00   By Owner   0.00   By
Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   By Owner   0.00  
By Owner     Z1110   Hazardous Material Abatement   0.00   By Owner   0.00   By
Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner  
By Owner   0.00   By Owner     Z1120   Testing & Inspections   0.00   By Owner  
0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00   By Owner   0.00  
By Owner   By Owner   0.00   By Owner     Z1130   Escalation   0.00   None  
0.00   None   0.00   None   0.00   None   0.00   None   0.00   None   None  
0.00   None     Z1140   Bidding & Construction Reserves   1.73   453,230   8.66
  461,991   2.30   152,816   1.12   202,380   1.62   73,798   0.00   5,712  
90,568   2.37   1,440,496     Z1150   Preconstruction Costs   0.00   with GC's  
0.00   with GC's   0.00   with GC's   0.00   with GC's   0.00   with GC's   0.00
  with GC's   with GC's   0.00   with GC's     Z1160   G & A—Corporate   1.11  
292,596   5.59   298,252   1.48   98,855   0.73   130,652   1.05   47,643   0.00
  3,688   58,469   1.53   929,953            

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    Z20   Indirects & Reserves   3.41   895,427   17.11   912,735   4.54  
301,912   2.22   399,833   3.20   145,800   0.00   11,286   178,931   4.68  
2,845,923         FEES                                                          
      Z1060   Contractor's Fee   1.68   440,998   8.43   449,522   2.24  
148,691   1.09   196,918   1.58   71,807   0.00   5,558   88,123   2.31  
1,401,617            

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    Z10   Fees   1.68   440,998   8.43   449,522   2.24   148,691   1.09  
196,918   1.58   71,807   0.00   5,558   88,123   2.31   1,401,617            

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    0   Project Total   55.89   14,666,729   280.23   14,950,229   74.35  
4,945,190   36.38   6,549,098   52.48   2,388,148   0.00   184,854   2,930,813  
76.69   46,615,060            

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        Total Cost/Unit                               11,800                   —
           

        The information contained in this estimate is the proprietary property
of Hensel Phelps Construction Co. and may be used only by the authorized
recipient. Any reproduction or other reuse of this estimate or portions thereof
without the express consent of Hensel Phelps Construction Co. is strictly
prohibited.

[LOGO]
Page 1 of 1   Hensel Phelps
Construction Co.   Estimator: KK, Estimate Checker: MV
Current Date: 9-Aug-2002
Workbook: New Estimate 11 Baseline August 8.xls

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EXHIBIT "D"
Cymer CSD-6—Rancho Bernardo, California
Initial Project Estimate
CLARIFICATIONS & ASSUMPTIONS
Architect: Austin Veum Robbins Parshalle (AVRP)

The estimate attached is Revision #11 dated August 9, 2002. It is based on the
following Documents and Clarifications:

BASIS DOCUMENTS:

1.Schematic pricing drawings dated 7/22/02 with clarifications & exceptions
noted herein and as further clarified in the UMEC, Bergelectric and Schmidt F.P.
estimates attached. In addition, Syska-Hennessy Group issued revised electrical
plans on 7/31/02: these plans supercede the 7/22/02 electrical plans.

2.GEOCON Geotechnical Investigation dated 7/29/02.

3.AVRP Architectural Performance Specifications issued for schematic pricing
dated 7/20/2002, with exceptions and clarifications as noted herein.

4.Syska-Hennessy Group Mechanical & Plumbing Outline Specifications, MEP Basis
of Design and Electrical Outline Specifications dated 7/12/02, except as
clarified in the UMEC, Bergelectric and Schmidt F.P. estimates attached.

5.Hensel Phelps Construction Co. Concept Schedule dated August 2, 2002.

6.AVRP Phasing Diagram.

7.AIA A111 Contract Agreement between CYMER, Inc. and Hensel Phelps Construction
Co. (HPCC), as proposed by HPCC on 7/26/02.

GENERAL ITEMS:

1.All items priced in this estimate are based on materials and equipment that
are not provided by sole source manufacturers. We have assumed that at least 3
manufacturers will be specified or allowed for all products, materials and
equipment required for this project unless otherwise clarified.

2.The schedule is extremely aggressive. HPCC's estimate assumes that all design
and permitting dates are met by the design consultants and that all Certificate
of Occupancy & Life Safety Issues are anticipated and adequately addressed in
the design.

3.Land costs are not included.

4.Environmental studies and reports are not included.

5.Developer/Land & Improvement Development costs are not included.

6.All Utility/Tap/Service/Use or Capacity fees or increases in existing utility
services are not included.

7.SDG&E Service Fees and costs for primary gas & electrical service are not
included.

8.A 12 month lease for use of the adjacent Lot owned by WES Consulting is
included.

9.Except for Design-Build Fire Protection and Process Gas Piping, all
Architectural/Structural/Civil/
Landscape/Electrical/Lighting/Mechanical/Controls/Fire Detection & Alarm/IT &
Data/ Communications/Acoustical/AV/Specialty—and Misc. Consultant design costs
are not included.

1

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10.Professional Liability Insurance (E & O) is not included, except for
Design-Build work.

11.Building Permit and Plan Check fees are not included.

12.Material testing and inspection costs are not included (By Owner).

13.Builder's Risk costs is included. Deductibles are included, if used, as
reimbursable costs of work.

14.General Liability Insurance is included.

15.Grading Bond is not included. Payment and Performance Bond costs for our
Subcontractors are included. General Contractor Payment & Performance Bonds have
not been included.

16.Sales Tax is included. Construction excise tax, school tax, gross receipts
tax, or any other tax other than sales tax is not included. Any special use tax
would be assumed included with Owner, if required.

3.Both union subcontractors and merit shop subcontractors will be used on this
project.

4.Temporary power consumption costs during GC construction period is included.
Utility Charges will be paid by the Owner once Owner FF & E commences or
Substantial Completion occurs, whichever occurs first.

5.An Allowance of $100,000 for 'Creteseal' or a similar product for vapor
emissions reduction in to accommodate first floor manufacturing area special
flooring adhesion issues is included. No other provisions have been made for
control of vapor emissions at remaining concrete floor or deck construction.

SITE WORK:

1.Removal of wooden utility poles currently at site boundaries is not included.

3.Hazardous/toxic material removal from the site is not included.

4.Removal of underground storage tanks, or asbestos-containing piping is not
included.

5.Off-site utility upgrades, road realignments are not included. All existing
utilities intended to serve this building are assumed located at or immediately
adjacent to property lines.

6.Trash Compactors/Dumpsters at Loading Docks are not included.

7.Parking Structure entry/exit control arm/card reader equipment is included.
Any other Parking Control equipment and booths are not included.

8.Canopy over handicapped parking adjacent to Lobby entrance is included.

9.An average cost of $8.50/SF has been assumed for enhanced concrete paving at
the Lobby entrance area. We will work with the Landscape consultant to come up
with a concept that equates to an average cost no more than this $8.50/SF
average value.

10.Landscaping and Irrigation, is included. This scope includes landscaping at
the berm shielding the Parking Garage along Camino San Bernardo street.

11.Landscape/Site Lighting, undefined at this time, is included as an Allowance
of $50,000.

12.An Allowance for Architectural Building Lighting is not included.

13.Rock excavation, including rock encountered drilling elevator jackholes, is
not included.

14.SDG&E Design Fees associated with relocation or re-guying the existing
transmission pole adjacent to the SW corner of the Parking Structure is included
as an Allowance of $100,000.

2

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15.An Allowance of $140,000 is included for a future Amphitheater.

16.An Allowance of $315,000 is included for a future Pedestrian Bridge.

17.Except for connections, Modifications to or upsizing of existing public
utility services is not included.

FOUNDATIONS:

1.Based upon Hope Engineering 7/22/02 Structural Documents.

SUBSTRUCTURE:

1.Based upon Hope Engineering 7/22/02 Structural Documents.

SUPERSTRUCTURE:

1.The Steel Structure is a Brace frame. As provided by Hope engineering, we have
included structural steel framing quantities based on an approximate weight of
11.5 #/SF. Major deviation from the 11.5 #/SF quantity is not included.

2.Concrete filled steel stairs and landings are included.

3.Fireproofing of all code required steel framing is included. Fireproofing for
Breezeway roof framing to create 2-hour fire rating is included.

4.Misc. metals are included for support framing, kickers, bracing required for
intermediate support from structural framing.

5.Mechanical Screens supported by full height columns extending through the roof
is included (no kickers are included).

6.The bridges from the parking garage to the Office Building are included as an
Allowance of $75,000 each.

EXTERIOR CLOSURE:

1.Standard Metallic 2-coat Kynar finish on all aluminum framing (standard
extrusions/no custom or special profiles) is included. 3-Coat Metallic and
exotic finishes are not included.

2.Punched openings are assumed to be approximately 5'x5' with minimal recess in
order to maintain the use of standard aluminum systems. The glazing is assumed
to be 1" insulated standard tint glass. Low E glass on two exposures only.

3.A double steel stud framing system at roof parapet to allow roofing operations
prior to exterior wall framing is included. No other double stud framing is
included.

4.Drywall at the exterior wall and columns as well as interior columns is not
included in the Core & Shell pricing. Values for this work are included in the
T.I. pricing portion of this proposal. Exterior wall insulation is included in
the Shell pricing.

5.Window blinds are included. Other window coverings (e.g. – Mechoshades) are
not included.

6.Main entry doors at the Lobby are included as 8' high doors. Electronic lock
and heavy-duty hardware is included.

7.Exterior metal panels will be aluminum, flat panel face with caulked joints
and standard color Kynar finish. Back-up system will be metal studs with
exterior sheathing and vapor barrier.

8.Thin-set stone is included at a material unit price of $7/SF.

3

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9.Rooftop Mechanical Screens are factory finished deck material.

10.Glass railing 2nd Floor Lobby is included in the T.I. pricing portion.

11.Typical exterior walls are included as cement plaster over 20 gauge metal
studs, 3-coat system with integral color, medium sand finish. Includes control
joints, excludes reveals and plant-ons.

12.Masonry exterior walls will be split-faced block with integral color at
exposed portions only. Below grade masonry and masonry covered by other
materials will be standard gray block.

13.Metal panel 'fins' at building corners are not included.

14.'Plant-ons' at building exterior are not included.

ROOFING:

1.Basic roofing @ top level consists of R-19 rigid insulation, and a 4 ply built
up system, including Cap Sheet.

2.Roofing over Breezeway and clerestory areas will be low profile standing seam
with standard color finish or a builtup system (whichever is less expensive) and
R-19 rigid insulation below.

3.Trellis elements at 5th parking level are not included.

INTERIOR CONSTRUCTION:

1.Restrooms—Drywall Partitions w/level 4 finish, solid core wood doors, paint,
ceramic wainscot (wet wall only) to six (6) feet high and floor tile, stainless
steel toilet accessories, floor mount solid surface partitions, plastic laminate
vanity top is included in Core & shell pricing.

2.Telecom/MEP Service Rooms—Unfinished spaces with lighting, VCT floors, plywood
telephone backboards and wood doors.

3.Stairs Treads & Landings—Finished with VCT or rubber tile.

3.Parking Garage—concrete floors with sealer, exposed concrete columns and shear
walls. Exposed double-T precast at ceilings. Elevator lobby block walls will be
painted. Elastomeric traffic coating is included on top level.

4.Mechanical Rooms—Exposed Ceilings; exposed/sealed concrete floors/painted
drywall.

5.Catwalks at Utility Corridor (drawing 1/A7.02) are not included. Mechanical
piping will be supported from racks above.

6.15/8" furr-out framing and insulation behind exterior skin system is included.
Framing at windowsills are not included and are assumed with the T.I. pricing
sector.

7.All drywall will be finished to Level 4.

CONVEYING:

Elevators and systems listed below are included.

1.(1) Parking Level Floors 1-5 are 3500# Hydraulic - 150 fpm.

2.(1) Building Portion 'A' Passenger type Floors 1,2 is 3500# Hydraulic - 150
fpm.

3.(1) Building Portion 'A' Lobby Passenger type Floors 1,2 is 3500# Hydraulic -
150 fpm.

4

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4.(1) Building Portion 'B' Passenger type Floors 1,2,3 is 3500# Hydraulic - 350
fpm.

5.(1) Building Portion 'A' Freight 10W' x 13L' x 10'H type Floors 1,2 is 8,000#
Hydraulic - 75 fpm.

Misc. Provisions.

1.(4) Passenger Cab Finish Allowances of $10,000/ea is included (Total $40,000).

3.Flooring is included with Elevator Cab Finish Allowance.

4.Exact Cab sizes will be per Standard Elevator Package provided by Elevator
Subcontractor.

5.SS #4 finish metal doors and frames are included at all floors, except freight
& parking (painted enamel). SS ceilings, fronts and returns is included.

6.Pricing does not included generic controllers.

7.Card Reader system is included.

8.Call destination systems or artificial intelligence systems are not included.

HVAC & CONTROLS:

1.See UMECH Estimate attached for clarifications & exclusions.

PLUMBING:

1.See UMECH Estimate attached for clarifications & exclusions.

DESIGN-BUILD GAS PROCESS PIPING:

1.See UMECH Estimate attached for clarifications & exclusions.

FIRE PROTECTION:

1.Fire Protection Design and Engineering costs are included.

2.Permit and plan check costs are included.

3.Fire Department connections are included.

4.Flow and Tamper switch devices are included.

5.Chrome or white semi-recessed sprinkler heads below finish ceilings at all
public and office areas. Sprinklers to be located in the center of a 2x2'
ceiling pattern. Restrooms will have concealed heads.

6.Corrosion resistant heads at exterior areas.

7.Brass upright sprinkler heads at all garage and unfinished TI areas.

8.Fully concealed sprinkler heads with white cover plates and gaskets at all
manufacturing T.I. ceilings.

9.Core and shell systems designed for ordinary hazard.

10.Office T.I. areas designed for light hazard.

5

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11.Warehouse area is designed for extra hazard.

12.Separate risers in Areas A and B, with 2 risers in 'A', 1 riser in 'B', and 1
riser in the Parking Garage. Isolation valves are included at each level.

13.Parking Garage is fully sprinklered with a Class 1 standpipe system.

14.An "Intergen" system in the 3,500 SF computer room with an eighteen inch
raised floor complete with control panel, detection system and all testing is
included.

15.Kitchen special (hood etc.) fire protection is with the kitchen Allowance.

ELECTRICAL & FIRE DETECTION & ALARM:

1.See Bergelectric estimate attached for clarifications & exclusions.

2.Complete Fire Alarm system, including fire sprinkler monitoring, is included.

3.Conduit stub only (3/4") to accessible ceiling space for telephone and/or data
outlets.

4.SDG&E service and/or tap, usage fees are not included.

5.Communication, telephone and data equipment, cables and connectors are not
included.

6.Security and Paging equipment, cables and terminations are not included.

7.Electrical engineering and plan check fees are not included.

SPECIALITIES:

1.All code, directional, and directory signage is included as an Allowance.

2.Toilet Partitions are floor mount with solid non-metallic finish.

EQUIPMENT:

1.Window washing tirbacks have been included. Davits, Staging, Equipment,
hoists, rigging and accessories are not included.

2.We have included costs for four (4) dock levelers and two (2) roll-up dock
doors.

3.Loading dock safety rails are included.

4.FF&E and Systems Furniture is not included.

6

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EXHIBIT "E"—CYMER, Inc., CSD-6 Contract

HENSEL PHELPS CONSTRUCTION COMPANY
2002 - 2003 SALARIED STAFF BILLING MONTHLY RATES
CYMER, Inc., CSD-6

 
  Base Wage

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  California Modifier

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  Incentive Bonus

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  Auto or Truck

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  Pension

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  Health Insur

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  Life Insur

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

  Work Comp

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  Payroll Tax

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

  Total

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

  Bill Rate

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

Project Manager   $ 8,000   $ 800   $ 1,6000   $ 700   $ 1,200   $ 700   $ 40  
$ 222   $ 1,537   $ 14,799   $ 14,800 Superintendent   $ 6,500   $ 800   $ 975  
$ 800   $ 975   $ 700   $ 40   $ 182   $ 1,257   $ 12,228   $ 12,230 Area
Superintendent   $ 5,800   $ 750   $ 580   $ 800   $ 870   $ 700   $ 40   $ 159
  $ 1,098   $ 10,797   $ 10,800 Sr. Estimator   $ 6,100   $ 750   $ 610   $ 700
  $ 915   $ 700   $ 40   $ 163   $ 1,130   $ 11,108   $ 11,110 MEP Coordinator  
$ 6,100   $ 450   $ 0   $ 700   $ 915   $ 700   $ 40   $ 145   $ 1,004   $
10,054   $ 10,050 Project Engineer   $ 5,300   $ 600   $ 530   $ 500   $ 795   $
700   $ 40   $ 139   $ 960   $ 9,553   $ 9,560 Office Engineer   $ 4,100   $ 450
  $ 0   $ 0   $ 615   $ 700   $ 30   $ 91   $ 630   $ 6,616   $ 6,620 Field
Engineer   $ 4,250   $ 450   $ 0   $ 0   $ 638   $ 700   $ 30   $ 94   $ 651   $
6,812   $ 6,880 Secretary   $ 3,675   $ 0   $ 0   $ 0   $ 551   $ 700   $ 30   $
74   $ 509   $ 5,539   $ 5,540

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Note:Salaried staff receive 2-3 weeks paid vacation
Current Wages are effective from June 1, 2002 through May 31, 2003
Wages subject to approx. 4-5% escalation beginning on June 1, 2003

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EXHIBIT "F"

CONCEPTUAL DRAWING OF SIDE ELEVATION OF BUILDING 1

         GRAPHIC [g815802.jpg]

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EXHIBIT "G"

ACORD™ CERTIFICATE OF LIABILITY INSURANCE   DATE (MM/DD/YY)
08/26/02

PRODUCER
Flood & Peterson Insurance Inc
P O Box 578
4687 West 18th Street
Greeley, CO 80632   THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY
AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT
AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
 
 
INSURERS AFFORDING COVERAGE
INSURED
                Hensel Phelps Construction Co
                Southern Calif District
                2415 Campus Dr Ste 100
                Irvine, CA 92612
 
INSURER A: Travelers Indemnity Company of IL
INSURER B:
INSURER C:
INSURER D:
INSURER E:
COVERAGES
 
 

THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED
ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR
CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES
DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INS
LTR

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

  TYPE OF INSURANCE

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

  POLICY NUMBER

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

  POLICY EFFECTIVE
DATE (MM/DD/YY)

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

  POLICY EXPIRATION
DATE (MM/DD/YY)

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

  LIMITS

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

A   GENERAL LIABILITY   GLSA260T8073   06/01/02   06/01/03   EACH OCCURRENCE   $
2,000,000     ý   COMMERCIAL
GENERAL
LIABILITY                   FIRE DAMAGE (Any one fire)   $ 50,000     o  CLAIMS
MADE   ý  OCCUR           MED EXP (Any one person)   $  
 
 
 
 
 
 
 
 
 
 
PERSONAL & ADV INJURY
 
$
2,000,000
 
 
 
 
 
 
 
 
 
 
GENERAL AGGREGATE
 
$
4,000,000     GEN'L AGGREGATE LIMIT APPLIES PER:               PRODUCTS—COMP/OP
AGG   $ 4,000,000     o  POLICY  ý  PROJECT  o  LOG                          
A
 
AUTOMOBILE LIABILITY
 
CAP260T8061
 
06/01/02
 
06/01/03
 
COMBINED SINGLE LIMIT
 
$
2,000,000     ý   ANY AUTO               (Ea accident)           o   ALL OWNED
AUTOS               BODILY INJURY   $       o   SCHEDULED AUTOS              
(Per person)           o   HIRED AUTOS               BODILY INJURY   $       o  
NON-OWNED AUTOS               (Per accident)                                    
  PROPERTY DAMAGE
(Per accident)   $  
 
 
GARAGE LIABILITY
 
 
 
 
 
 
 
AUTO ONLY—EA ACCIDENT
 
$
          ANY AUTO               OTHER THAN        EA ACC   $                  
                AUTO ONLY:                AGG   $  
A
 
EXCESS LIABILITY
 
CUP275T3633
 
06/01/02
 
06/01/03
 
EACH OCCURRENCE
 
$
10,000,000     ý  OCCUR   o  CLAIMS MADE           AGGREGATE   $ 10,000,000    
o DEDUCTIBLE                       $       o RETENTION        $                
      $  
A
 
WORKERS COMPENSATION AND EMPLOYERS' LIABILITY
 
UB260T8036
 
06/01/02
 
06/01/03
 
ý  WC STATUTORY LIMITS
o  OTHER
 
 
                                  E.L. EACH ACCIDENT   $ 1,000,000              
                  E.L. DISEASE—EA EMPLOYEE   $ 1,000,000                        
        E.L. DISEASE—POLICY LIMIT   $ 1,000,000
 
 
OTHER
 
 
 
 
 
 
 
 
 
 
 
 
 

DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY
ENDORSEMENT/SPECIAL PROVISIONS
RE: CYMER, Inc. (CSD-6)
        San Diego, CA
CYMER, Inc., Austin Veum Robbins Parshalle and WES Consulting, Inc. are named as
Additional Insureds as respects the General Liability.
(See Attached Descriptions)

CERTIFICATE HOLDER  ý ADDITIONAL INSURED; INSURER LETTER: CANCELLATION   CYMER,
Inc.
16750 Via del Campo Court
San Diego, CA 92127-1712 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED
BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30
DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO
DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS
AGENTS OR REPRESENTATIVES.
 
 
AUTHORIZED REPRESENTATIVE
 
 
/s/ CONNIE K. BOSTON

ACORD 25-S (7/97) 1 of 3 #S222565/M216296                                       
         CIR ® ACORD CORPORATION 1988

1

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IMPORTANT

If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be
endorsed. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement(s).

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,
certain policies may require an endorsement. A statement on this certificate
does not confer rights to the certificate holder in lieu of such endorsement(s).

DISCLAIMER

The Certificate of Insurance on the reverse side of this form does not
constitute a contract between the issuing insurer(s), authorized representative
or producer, and the certificate holder, nor does it affirmatively or negatively
amend, extend or alter the coverage afforded by the policies listed thereon.

2

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DESCRIPTIONS (Continued from Page 1)

The insurance coverage provided shall be primary and any other insurance
coverage carried by the additional insured shall be excess insurance."

3

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POLICY NUMBER: RTC2J-GLSA-260T6073-TIL-01   COMMERCIAL GENERAL LIABILITY
GENERAL PURPOSE ENDORSEMENT      

BLANKET ADDITIONAL INSURED

THIS ENDORSEMENT MODIFIES INSURANCE PROVIDED UNDER THE FOLLOWING:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SECTION II—WHO IS AN INSURED IS AMENDED TO INCLUDE ANY PERSON OR ORGANIZATION
YOU ARE REQUIRED BY WRITTEN CONTRACT TO INCLUDE AS AN INSURED. INSURANCE SHALL
BE LIMITED TO THE EXTENT OF COVERAGE AND LIMITS OF LIABILITY REQUIRED BY THE
WRITTEN CONTRACT. THE WRITTEN CONTRACT MUST BE EXECUTED PRIOR TO THE OCCURRENCE
OF ANY LOSS. THIS ENDORSEMENT SHALL NOT INCREASE THE LIMITS STATED IN
SECTION III—LIMITS OF INSURANCE, OR THE EXTENT OF COVERAGE STATED IN THIS
POLICY.

WE FURTHER AGREE WITH YOU THAT THE INSURANCE AFFORDED THE ADDITIONAL INSURED
DOES NOT APPLY TO LIABILITY FOR "BODILY INJURY", "PROPERTY DAMAGE", "PERSONAL
INJURY", OR "ADVERTISING INJURY" ARISING OUT OF THE ACTS OR OMISSIONS OF THE
ADDITIONAL INSURED UNLESS THIS WAS AGREED TO BY WRITTEN CONTRACT EXECUTED PRIOR
TO THE "OCCURRENCE" OF ANY LOSS.

4

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[LOGO]

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Zurich American Insurance Company
(A stock company herein called the Company)
1400 American Lane, Schaumberg, Illinois 50195-1058

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CERTIFICATE OF INSURANCE
CERTIFICATE PERIOD     06/12/02     to     09/30/03     CERTIFICATE NUMBER IM
    3703900 - 00    
This Certificate follows the terms and conditions of ZURICH AMERICAN INSURANCE
COMPANY Policy IM 3590054 - 00
This Certificate neither affirmatively nor negatively amends, extends or alters
the coverage limits, terms or conditions of the policy unless expressly stated
herein.

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NAMED
INSURED   Hertsel Phelps Construction Co.
Southern California    
 
 
 
 
  BUSINESS
ADDRESS   2415 Campus Drive, Suite 100
Irvine, CA 92612              

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ADDITIONAL
INSUREDS
(include address)   CYMER, Inc.
18750 Via del Campo Court
San Diego, CA 92127-1712   Austin Veum Robbins Parshalle
600 W. Broadway, Ste 200
San Diego, CA 92101          

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LOSS PAYEE
(include address)                  

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MORTGAGEE
(include address)                  

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PROJECT
LOCATION
(include address)   CYMER, Inc.
Lots 46 & 47 of 4S Ranch
10782 Thornmint Ct
San Diego, CA 92127    

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PROJECT
DESCRIPTION
(Structural type, size, material type, occupancy, etc.)

(If renovation or rehab, be specific)   Project consisting of a building that is
part 2 story and part 3 story, slab on grade, braced frame
Concrete foundation, street frame with glass, metal and plaster panel exterior.
There is also a 4 story precast parking garage.          

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5

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CERTIFICATE NUMBER:    IM    3703          00

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STANDARD COVERAGE TERMS
[ILLEGIBLE]

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LIMIT OF LIABILITY   $ 45,000,000   Any One OCCURRENCE*

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SUB-LIMITS OF LIABILITY   $ 45,000,000   Physical Damage To Insured Property    

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    (Sub-limits are per OCCURRENCE*)   $     Delay In Completion (see coverage
terms below for specific sublimits)    

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        $ 1,000,000   Physical Damage To Property In Transit - Any One
Conveyance    

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        $ 1,000,000   Physical Damage To Property In Offsite Storage - Any One
Location    

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

        $ 250,000   Expediting Expense    

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        $ 250,000   Physical Damage To Existing Property At The Insured Project
   

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

        $ 25,000   Fire Brigade Charges & Extinguishing Expenses    

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

        $ 10,000   Physical Damage To Plans, Blueprints, Drawings, Renderings,
Specifications Or Other Contract Documents And Models At The Insured Project    

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          25 % Of the amount of insured physical loss or damage - Debris Removal

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ANNUAL AGGREGATE LIMITS   $ 45,000,000   Caused By, Resulting From, Contributed
To Or Aggravated By The Peril Of EARTHQUAKE*    

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    (Aggregate limits apply to each         Caused By, Resulting From,
Contributed To Or Aggravated By The Peril Of annual period within this
Certificate   $ 45,000,000   COASTAL WINDSTORM* beginning on the Certificate  

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

    inception date)         Caused By, Resulting From, Contributed To Or
Aggravated By The Peril Of     $ 45,000,000   FLOOD*    

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DEDUCTIBLES   $ 10,000   Physical Damage, Except    

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

 

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    $ 250,000   5    %    EARTHQUAKE* (Deductibles apply per OCCURRENCE*)  

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

 

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(When % is entered, the % is   $ 25,000         %    COASTAL WINDSTORM* applied
against the total insured  

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

    physical damage values at risk at the   $ 100,000   FLOOD* time and place of
loss subject to the  

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

    dollar minimum)   $     Hot Testing    

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

          Days   Deductible Period - Delay In Completion - Standard Coverage    

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

          Days   Deductible Period - Delay In Completion - Optional Coverage

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

DELAY IN COMPLETION COVERAGE TERMS
[ILLEGIBLE]

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NAMED INSURED
BUSINESS ADDRESS                

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ANTICIPATED DATE OF COMPLETION*                                 
                        PERIOD OF INDEMNITY*                          Days      

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

Subject to individual sublimits shown below, the total sublimit for which the
Company shall be liable is   $                

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

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

SUB-LIMITS OF LIABILITY   Loss Of Gross Earnings   $                

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

          Loss Of Rental Income   $                

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

          Soft Costs / Additional Expense   $                

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

     

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

          Interim Interest Expense   $                

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

          Realty Taxes / Ground Rents   $                

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

          Advertising Expense   $                

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

          Commission Expense   $                

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

          Architect / Engineer Fees   $                

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

          Project Administration Expense   $                

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

          Legal / Accounting Fees   $                

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

          Insurance Premiums   $                

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

              $                

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

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

6

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HENSEL PHELPS CONSTRUCTION COMPANY
MASTER BUILDERS RISK PROGRAM
SECTION A—DECLARATIONS

A.   NAMED INSURED(S):   Hensel Phelps Construction Company
420 Sixth Ave
Greeley, CO 80631
B.
 
ADDITIONAL INSURED(S):
 
 
 
 
To the extent required by any contract or subcontract for an INSURED PROJECT*,
and then only as their respective interests may appear, all owners, all
contractors and subcontractors of every tier, tenants of the INSURED PROJECT*
and any other individual or entity specified in such contract or subcontract are
recognized as Additional Insureds hereunder.

All hereinafter referred to as the Insured.

LOSS PAYEE(S):

Unless otherwise amended on any Certificate issued to this Master Policy, loss,
if any, shall be adjusted with and made payable to the Named Insured, or as per
their order, whose receipt shall constitute a release in full of all liability
under this policy with respect to such loss.

TERM OF INSURANCE:

This Master Policy shall be effective on August 1, 2000 and shall continue in
full force and effect until the expiration date of August 1, 2003, both at 12:01
A.M. standard time at the address of the Named Insured, but only as respects
those INSURED PROJECTS* beginning on or after said effective date and prior to
said expiration date.

Notwithstanding the foregoing, or subsequent endorsements hereto, coverage under
this Master Policy will apply only to those projects for which the Company has
issued an individual Certificate to this Master Policy. Such coverage will apply
only for such periods commencing directly with work at the INSURED PROJECT* and
continuing in full force and effect until the earlier of the final acceptance by
the owner or the expiry of the Named Insured's Interest unless otherwise agreed
by endorsement to individual Certificates. It is understood that in the event an
owner places insurance on any portion of the work which has been declared and
accepted as Substantially Complete, coverage hereunder as respects such portion
of the work shall cease as of the Substantial Completion Date as stated in the
Certificate of Substantial Completion.

EXTENSION OF TERM OF INSURANCE:

The term of any Certificate shall automatically be extended subject to payment
of additional premium at the rates stated in said Certificate subject to the
conditions of Paragraph 9—Reporting Provisions and Paragraph 10—Premium
Adjustment appearing in SECTION B on page 7 of this manuscript policy form.

This Master Policy shall not be extended buy may be renewed at the Named
Insured's request and upon the Company's acceptance subject to rates,
deductibles, limits, terms and conditions to be agreed upon. Such renewal shall
only apply to those projects beginning on or after the expiration date of this
policy. Any INSURED PROJECT* in force prior to the renewal of the Master Policy
shall be held covered at the rates, deductibles, limits, terms and conditions of
the Master Policy within which the INSURED PROJECT* began.

AUTOMATIC ACQUISITION:

7

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[LOGO]
Flood and Peterson Insurance, Inc.

FAX
 
SEP 24 2002
 
Date:
 
September 23, 2002
 
             

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CLR
 
Number of pages including cover sheet:
 
3
 
                 

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To:   From:
Jim Reynolds
 
Connie Boston

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Phone:   Phone:    970-506-3202

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Fax phone:    619-696-1410   Fax phone:    970-506-3209

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CC:    Jeff D'Agosta    346-7252    

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REMARKS:
 
/ /
 
Urgent
 
/x/
 
For your review
 
/ /
 
Reply ASAP
 
/ /
 
Please comment

As I indicated on the phone, we do not endorse an umbrella policy to show CYMER
as additional insured. However, since CYMER has additional insured status on the
underlying general liability the umbrella would follow form.

I have attached wording from Hensel Phelps umbrella policy defining an insured.

8

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l.Property damage" to "your work" arising out of it or any part of it and
included in the "products-completed operations hazard".

This exclusion does not apply if the damaged work or the work out of which the
damage arises was performed on your behalf by a subcontractor.

m."Property damage" to "impaired property" or property that has not been
physically injured, arising out of:

(1)A defect, deficiency, inadequacy or dangerous condition in "your product" or
"your work"; or

(2)A delay or failure by you or anyone acting on your behalf to perform a
contract or agreement in accordance with its terms.

This exclusion does not apply to the loss of use of other property arising out
of sudden and accidental physical injury to "your product" or "your work" after
it has been put to its intended use.

n.Damages claimed for any loss, cost or expense incurred by you or others for
the loss of use, withdrawal, recall, inspection, repair, replacement,
adjustment, removal or disposal of:

(1)"Your product";

(2)"Your work"; or

(3)"Impaired property";

If such product, work or property is withdrawn or recalled from the market or
from use by any person or organization because of a known or suspected defect,
deficiency, inadequacy or dangerous condition in it.

Exclusions b. through n. do not apply to damage by fire to premises rented to
you.

SECTION II—WHO IS AN INSURED.

1.If you are designated in the Declarations as:

a.An individual, you and your spouse are insureds, but only with respect to the
conduct of a business of which you are the sole owner.

b.A partnership or joint venture, you are an insured. Your members, your
partners, and their spouses are also insureds, but only with respect to the
conduct of your business.

c.An organization other than a partnership or joint venture, you are an insured.

2.Each of the following is also an insured:

a.As respects the "auto hazard":

(1)Anyone using an "auto" you own, hire or borrow including any person or
organization legally responsible for such use provided it is with your
permission; and

(2)Any of your executive officers, directors, partners, employees or
stockholders, operating an "auto" you do not own, hire or borrow while it is
being used in your business.

None of the following is an insured under (1) or (2) above:

(a)Any person employed by or engaged in the duties of an auto sales agency,
repair shop, service station, storage garage or public parking place that you do
not operate;

9

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(b)The owner or lessee of any "auto" hired by or for you or loaned to you, and
any agent or employee of such owner or lessee.

b.As respects aircraft:

Anyone using an aircraft chartered with crew by you or on your behalf and anyone
legally responsible for its use except:

(1)The owner or crew of the aircraft or any person operating such aircraft;

(2)Any manufacturer of the aircraft or any of its parts;

(3)Any sales, service or repair company;

(4)Any airport or hangar operator;

or any employee of (2), (3) or (4).

c.Except as respects aircraft and the "auto hazard":

(1)Your executive officers, employees, directors or stockholders while acting
within the scope of their duties; and

(2)Any person or organization while acting as real estate manager for you.

d.Any organization you newly acquire or form, other than a partnership or joint
venture, and over which you maintain ownership or majority interest, will be
deemed to be a Named Insured. However, coverage does not apply to:

(1)"Bodily injury" or "property damage" that occurred before you acquired or
formed the organization; and

(2)"Personal injury" or "advertising injury" arising out of an "offense"
committed before you acquired or formed the organization.

e.Any person or organization having proper temporary custody of your property if
you die, but only:

(1)With respect to liability arising out of the maintenance or use of that
property; and

(2)Until your legal representative has been appointed.

f.Your legal representative if you die, but only with respect to duties as such.
That representative will have all your rights and duties under this insurance.

g.Any person or organization for whom you agreed in writing to provide this
insurance for operations you perform or facilities you own or use. This
insurance is subject to your "applicable underlying limits" for such operations
or facilities.

h.Any other person or organization insured under any policy of the "underlying
insurance." This grant is subject to all the limitations upon coverage under
such policy other than the limits of the "underlying insurers" liability.

No person or organization is an insured with respect to the conduct of any
current or past partnership or joint venture that is not shown as a Named
Insured in the Declarations.

No person is an insured as respects "bodily injury" to a fellow employee unless
insurance for such liability is afforded by the "underlying insurance".

10

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SECTION III—LIMITS OF INSURANCE.

1.The Limits of Insurance shown in the Declarations and the rules below fix the
most we will pay regardless of the number of:

a.Insureds;

b.Claims made or "suits" brought; or

c.Persons or organizations making claims or bringing "suits."

2.The Products-Completed Operations Aggregate Limit is the most we will pay
under Coverage A for damages because of injury and damage included in the
"products-completed operations hazard."

3.The General Aggregate Limit is the most we will pay for damages under Coverage
A and Coverage B, except:

a.Damages because of injury and damage included in the "products-completed
operations hazard"; and

b.Damages because of injury and damage included in the "auto hazard".

4.Subject to 3. above, the Personal and Advertising Injury Limit is the most we
will pay under Coverage B for the sum of all damages because of all "personal
injury" and all "advertising injury" sustained by any one person or
organization.

5.Subject to 2. or 3. above, whichever applies, the Each Occurrence Limit is the
most we will pay for the sum of damages under Coverage A because of all "bodily
injury" and "property damage" arising out of any one "occurrence".

To determine the limit of our liability, all "bodily injury" and "property
damage" arising out of continuous or repeated exposure to the same general
conditions shall be considered one "occurrence".

The limits of this insurance apply separately to each consecutive annual period
and to any remaining period of less than 12 months. The policy period begins
with the effective date shown in the Declarations. If the policy period is
extended after issuance for an additional period of less than 12 months, the
additional period will be deemed part of the last preceding period.

SECTION IV—CONDITIONS.

1.    APPEALS.

a.If the insured or the insured's "underlying insurer" elects not to appeal a
judgment which exceeds the "applicable underlying limit", we may do so.

b.If we do, we will pay all costs of the appeal. We will also pay all costs on
appeals related to the defense of the insured as provided in SECTION I.2. These
sums are in addition to the "applicable limit of insurance". In no event shall
our liability for "ultimate net loss" exceed the "applicable limit of
insurance."

2.    BANKRUPTCY.

Bankruptcy or insolvency of the insured or the insured's estate will not relieve
us of our obligations under this insurance.

11

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REV. 10
Dated: 09-23-02

ADDENDUM NO. 1
to
STANDARD FORM OF AGREEMENT
BETWEEN OWNER AND CONTRACTOR
(AIA DOCUMENT NUMBER A111-1997)
for
CYMER, INC.'S CSD-6
THORNMINT COURT, SAN DIEGO, CA 92127

Dated September 11, 2002

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A.    Introductory Matters.

        1.    Interpretation.    

        (a)    Document Conflicts.    This Addendum No. 1 (the "Addendum")
amends and supplements the above-referenced Standard Form of Agreement (the "AIA
Form A111"). In the event of a conflict between the provisions of this Addendum
and those of the AIA Form A111, the provisions of this Addendum shall control.
In the event of a conflict between this Addendum and the General AIA Conditions,
this Addendum shall control.

        (b)    Certain Defined Terms.    

        (1)    General.    Terms which begin with initial capital letters are
defined terms which shall have the respective meanings given them in the AIA
Form A111, the General AIA Conditions, or this Addendum, as the case may be.

        (2)    Listing.    Terms defined in this Addendum include the following:

        (i)    Above and Below.    The terms "above" and "below," as used in
this Addendum, refer to the AIA Form A111 or this Addendum, as the context
requires.

        (ii)    Accepted Proposals.    The term "Accepted Proposals" means the
bids or proposals accepted or deemed approved by Owner for: (A) the Self-Perform
Work and (B) the Subcontractor Work.

        (iii)    Agreement.    The term "Agreement" means and includes the AIA
Form A111 and the exhibits to this Agreement listed in Section A.2 below or in
Article 15 above.

        (iv)    AIA Form A111.    The term "AIA Form A111" has the meaning given
it in Section A.1(a) above.

        (v)    Building 1.    The Term "Building 1" is defined in
Section A.4(a)(1) below. Building 1 will contain the Central Plant and space
intended for manufacturing and office uses.

        (vi)    Building 2.    The term "Building 2" is defined in
Section A.4(a)(2) below. Building 2 is the Project's Parking Structure.

        (vii)    Contractor's Fee.    The term "Contractor's Fee" has the
meaning given it in Section 5.1.2 above.

        (viii)    Contractor's Job Site Administrative Personnel.    The term
"Contractor's Job Site Administrative Personnel" has the meaning given it in
Section A.1(b)(2)(ix)(A)(x) below.

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

        (ix)    Contractor's Job Site Overhead.    

        (A)    Included Costs.    The term "Contractor's Job Site Overhead"
includes:

        (w)  The Pre-Construction Costs, as provided in Section A.4(c) below;

        (x)  The amount payable by Owner to Contractor to pay for the cost of
the wages or salaries of Contractor's supervisory and administrative personnel,
including one full time estimator working on the Project for five (5) months
regardless of whether the estimator is on Site or not, ("Contractor's Job Site
Administrative Personnel") when stationed on the Site on a full time basis with
Owner's approval, as provided in Sections 7.2.2 and 7.2.4 above;

        (y)  The rental charges for job site trailers and the like, as described
in Section 7.5.2 above; and

        (z)  Contractor's Job Site Overhead for the Self-Perform Work, as
approved by Owner.

        (B)    Excluded Costs.    Contractor's Job Site Overhead shall not
include amounts payable for wages of construction workers employed in performing
the Self Perform Work under Sections 7.2.1 and 7.2.4 above, it being agreed that
such wages will be included in the Accepted Proposals for the Self-Perform Work.
It is understood, however, that additional costs may be added to Contractor's
Job Site Overhead when the Self-Perform Work is performed. Contractor's Job Site
Overhead shall not include the Project Insurance Premiums.

        (C)    Computation.    Contractor's Job Site Overhead is sometimes
commonly referred to as Contractor's "general conditions." Contractor's Job Site
Overhead is a variable number, which will vary over the course of the Work to
reflect changes in the number of Contractor's Job Site Administrative Personnel
assigned to the Project, the allocation of other resources to the Work, etc.
Contractor's Job Site Overhead may include the personnel costs for off Site
personnel of Contractor described in Sections 7.2.3 and 7.2.4 above, but only
with Owner's prior written consent.

        (x)    Contract Sum.    The term "Contract Sum" means the sum of:
(A) the Cost of the Work, (B) the Contractor's Fee, and (C) the Project
Insurance Premiums. The Contract Sum is a term used in the General AIA
Conditions.

        (xi)    Cost of the Work.    The term "Cost of the Work" means the sum
of (A) the Project Construction Costs and (B) Contractor's Job Site Overhead.
The Cost of the Work is subject to adjustment for Change Orders.

        (xii)    Cost Savings.    The term "Cost Savings" has the meaning given
it in Section B.5 below.

        (xiii)    General AIA Conditions.    The term "General AIA Conditions"
means the General Conditions of the Contract for Construction (AIA Document
A201-1997). The General AIA Conditions are attached to this Agreement, but, for
purposes of Section A.3(b) below, are not a part of this Agreement. The General
AIA Conditions are, however, part of the Contract Documents.

        (xiv)    GMP.    The term "GMP" means the Guaranteed Maximum Price for
the Work, which is to be determined in accordance with Section 5.2 above and
Section B.4 below.

2

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        (xv)    Major Sectors.    The term "Major Sectors" means the major
sectors or segments of the Project identified in Table A.5 below. The term
refers to the various areas of the Project.

        (xvi)    Owner-Caused Delays.    The term "Owner-Caused Delays" has the
meaning given it in Section B.3(b) below.

        (xvii)    Permitted Delays.    The term "Permitted Delays" means delays
in the Work resulting from the occurrence of events of force majeure; provided,
however, that Permitted Delays shall not include delays due to "typical"
inclement weather other than rain delays of construction activity that delay
completion of (A) Phase 1B by more than a total of five (5) work days or
(B) other Major Sectors by more than ten (10) work days in the aggregate.

        (xviii)    Pre-Construction Costs.    The term "Pre-Construction Costs"
means the cost incurred by Contractor before the commencement of the Work in
assisting Owner in planning the Work. See Section A.4(c) below.

        (xix)    Project Construction Costs.    The term "Project Construction
Costs" means: (A) the sum of the Accepted Proposals, less (B) any Cost Savings.
The Project Construction Costs shall not include any mark-up for Contractor's
Job Site Overhead, Contractor's Fee, or otherwise. The Project Construction
Costs may be adjusted by Change Orders as provided elsewhere.

        (xx)    Project Insurance Premiums.    The term "Project Insurance
Premiums" means the premiums on the following insurance policies obtained by
Contractor for the benefit of Owner and the Project: (A) comprehensive general
liability ("CGL") insurance (with a $250,000 per occurrence deductible), and
(B) builder's "all risk" property insurance (with a $10,000 per occurrence
deductible and earthquake and flood deductibles as noted below). Except as
provided below in this Section A.1(b)(2)(xx), Contractor will assume the
complete risk of paying all the deductible amounts under both insurance
policies, provided Owner pays (i) an aggregate premium for the CGL policy in the
amount of $5.70 per $1,000 of the Cost of the Work, as the same may change from
time to time, and (ii) an aggregate premium for the builder's risk policy in the
aggregate amount of $5.25 per $1,000 of the Cost of the Work, as the same may
change from time to time. The premium quote for the builder's risk policy will
provide insurance coverage through September 28, 2003. Notwithstanding anything
in this Addendum to the contrary, it is agreed that Contractor is not assuming
any liability for the $100,000 deductible for flood damage or the 5.0%
deductible ($250,000 minimum claim per occurrence) for earthquake damage under
the builder's risk policy. Owner shall retain liable for these two deductible
amounts. As regards the $250,000 deductible under Contractor's CGL policy, it is
expressly understood and agreed that Owner shall have no responsibility for any
portion thereof, regardless of how many claims may be asserted. No Contractor's
Fee shall be payable with respect to the Project Insurance Premiums.

        (xxi)    Punchlist.    The term "Punchlist" means the list of defective,
nonconforming, or incomplete Work to be prepared by Owner and Contractor upon
Substantial Completion of each Major Sectors of the Project. See Section B.8
below.

        (xxii)    Punchlist Work.    The term "Punchlist Work" means the
corrective work to be performed by Contractor after Substantial Completion of
the Project to correct or remedy defective or incomplete portions of the Work
listed on the Punchlist. See Section B.8 below.

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        (xxiii)    Self-Perform Work.    The term "Self-Perform Work" shares the
meaning given it in Section B.4(b) below.

        (xxiv)    Site.    The term "Site" means the land on which the Project
is to be constructed.

        (xxv)    Subcontractor Work.    The term "Subcontractor Work" means the
portion of the Work to be performed by the Subcontractors.

        (xxvi)    Substantial Completion.    The term "Substantial Completion"
is defined in Section 9.8.1 of the General AIA Conditions. In this Agreement,
the terms "Substantial Completion of the Work" and "Substantial Completion of
the Project" are synonymous.

        (xxvii)    TCO.    The term "TCO" means a temporary certificate of
occupancy issued by the County of San Diego permitting the Project or portions
thereof to be occupied by Owner's employees.

        (xxviii)    Warranty Period.    The term "Warranty Period" means a
one-year period, calculated as follows:

        (A)  As regards Phase 1B, the Central Plant and any mechanical,
electrical and plumbing systems serving Phase 1B and the Central Plant, the
Warranty Period shall commence as of the date of Substantial Completion of
Phase 1B;

        (B)  With respect to the balance of the Project, the Warranty Period
shall commence on the date of Substantial Completion of each Major Sector for
which Owner takes occupancy.

        2.    Exhibits.    The following exhibits are attached to this Agreement
and incorporated into this Agreement by this reference:

    (a)   Exhibit "A"   —   Scope of Work,
 
 
(b)
 
Exhibit "B"
 
—
 
Contractor Personnel Assigned to Cymer, Inc.'s CSD-6,
 
 
(c)
 
Exhibit "C"
 
—
 
Concept Schedule for the Work dated August 2, 2002,
 
 
(d)
 
Exhibit "D"
 
—
 
Initial Budget Estimate dated 8/9/02, Revised/Current Budget dated 8/28/02,
Estimate History dated 8/19 & 20/02, Clarifications
 
 
(e)
 
Exhibit "E"
 
—
 
Contractor's 2002-2003 Salaried Staff Billing Monthly Rates,
 
 
(f)
 
Exhibit "F"
 
—
 
Conceptual Drawing of Side Elevation of Building 1, and
 
 
(g)
 
Exhibit "G"
 
—
 
Certificates of Insurance

        3.    Contract Documents.    

        (a)    General.    As of the date of execution of this Agreement, the
list of the Contract Documents set forth in Article 15 above is incomplete,
because many of the documents intended to be part of the Contractual Documents
have not yet been prepared. When the missing Contract Documents are prepared,
this Agreement will be amended to provide a comprehensive enumeration or listing
of the Contract Documents.

        (b)    Interpretation Priority.    In the event of conflicts or
discrepancies among the Contract Documents, interpretations will be based on the
following priorities:

        (1)  This Addendum,

        (2)  The AIA Form A111, including the exhibits attached thereto,

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        (3)  Any Supplementary Conditions,

        (4)  The General A1A Conditions,

        (5)  The Drawings and the Specifications, and

        (6)  Submittals, pursuant to Section 3.12.4 of the General AIA
Conditions.

        (c)    Interpretation of Drawings and Specifications.    Drawings govern
Specifications for quantity, dimension, and location, and Specifications govern
Drawings for quality and performance. In the event of ambiguity in quantity or
quality, the greater quantity and the better quality shall govern. Figured
dimensions govern scale dimensions and large scale Drawings govern small scale
Drawings.

        4.    Description of Project.    

        (a)    General.    The Project is referred to as "Cymer, Inc.'s CSD-6."
The Project consists of two principal structures:

        (1)  A two-story and three-story structure ("Building 1") containing a
total of approximately 265,000 sq. ft. of Central Plant, manufacturing space and
office/support space; and

        (2)  A five-level parking garage ("Building 2") containing approximately
550 automobile parking spaces; and

        (3)  Site improvement work consisting of grading, construction of site
utilities, site mechanical yard, hardscape, landscape, vehicular paving and site
walls.

        (b)    Building 1 Areas.    For construction and design purposes,
Building 1 has been divided in three areas—Areas A, B and C. Area A is intended
for use primarily as manufacturing and office purposes. Area B is also intended
for use primarily as manufacturing and office purposes. Area C contains an HVAC
central plant (the "Central Plant") which will serve Building 1. A conceptual
drawing showing a side elevation of Building 1 and a portion of Building 2 is
attached hereto as Exhibit "F". The portion of Building 1 identified as Area
B/Levels 1 and 3 of Building will be left in shell condition. As a result, the
scope of the Work does not include the construction of tenant improvements in
such areas.

        (c)    Status of Work.    As of the date of this Agreement, Contractor
has commenced the portion of the Work identified as site grading. The
pre-construction services provided by Contractor to Owner before the
commencement of the Work are part of the Work, and will be included as part of
Contractor's Job Site Overhead for purposes of computing Contractor's Fee. The
parties have not yet agreed on the amount of the Pre-Construction Costs. Such
amount will be determined by mutual agreement.

        5.    Major Sectors of Work.    The parties have divided the Work into
the Major Sectors identified in Column B of Table A.5 below. Contractor's
references or identifications for the Major Sectors is listed in Column A of
Table A.5. The parties intend that Substantial Completion of the Major Sectors
of the Work will occur in stages, at the various times specified in Column C of
Table A.5.

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TABLE A.5
Major Sectors of Work
(Refer to Page 2 of Summary Schedule portion of Exhibit "C")

A

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

  B

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

  C

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

Contractor Phase No.

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

  Description

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

  Agreed Date for Substantial Completion

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

1A   Building shell for Areas A, B and C   7/25/03 1B   Tenant improvements for
Area A/Level 1 service yard, and the Central Plant (Area C) as required for
Substantial completion   4/11/03 2A   Building 2 (all portions)   7/25/03 2B  
Tenant improvements for lobby, Levels 1 and 2, offices and breezeway in Area
A/Level 2, as required for Substantial Completion   7/25/03 2C   Tenant
improvements for offices in Area B/Level 2 as required for Substantial
Completion, it being agreed that Area B/Levels 1 and 3 will be left in shell
condition   9/29/03

        6.    [INTENTIONALLY BLANK]    

        7.    Financial Summary.    

        (a)    General.    This section is intended to provide a concise summary
of the financial arrangements between Owner and Contractor. In the event of a
conflict between the provisions of this Section A.7 and other more detailed
provisions of this Agreement, the more detailed provisions shall control.

        (b)    Summary.    In consideration of Contractor's performance of the
Work, Owner will be responsible for paying Contractor the Contract Sum,
consisting of the Cost of the Work, the Contractor's Fee, and the Project
Insurance Premiums. The Contractor's Fee is equal to five percent (5.0%) of the
Cost of the Work. The Cost of the Work includes the Project Construction Costs,
plus Contractor's Job Site Overhead. Contractor's Job Site Overhead includes the
cost of Contractor's Job Site Administrative Personnel as provided in
Sections 7.2.2 and 7.2.4 above, the Pre-Construction Costs, and other costs
described in Sections 7.2.3, 7.2.4 and 7.5.2 above.

B.    General Modifications of AIA Form A111.

        1.    Commencement of Work (Section 4.1).    For purposes of computing
the Contract Time, the amounts due Contractor for Contractor's Overhead,
Contractor shall be deemed to have commenced the Work at such time as Contractor
first mobilized on the Site (August 1, 2002). Following mobilization, grading
equipment was moved on site (August 12, 2002) and grading commenced on
August 14, 2002."

        2.    Substantial Completion of Phase 1B (Section 4.3).    In Column C
of Table A.5, the agreed date for Substantial Completion of Phase 1B of the Work
is April 11, 2003. Contractor understands that Owner desires that Substantial
Completion of Phase 1B of the Work occur on or before April 1, 2003 in order to
meet Owner's delivery obligations to third party purchasers of the laser devices
to be manufactured by Owner in the subject space. Contractor agrees to endeavor
to perform the Work such that Phase 1B is Substantially Completed on or before
April 1, 2003; provided, however, that Contractor's efforts to accelerate
completion of Phase 1B shall not result in an increase in the Cost of the Work.
Contractor shall not, however, incur any penalty if Substantial Completion of
Phase 1B occurs after April 1, 2003, but on or before April 11, 2003. Upon
delivery of Phase 1B to Owner, the

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parties shall develop appropriate procedures to assure that Phase 1B is
physically secure and Owner's employees have reasonable access to Phase 1B.

        3.    Schedule for Substantial Completion (Section 4.3).    

        (a)    Construction Schedule.    Contractor shall endeavor to achieve
Substantial Completion of the Major Sectors of the Work by the dates specified
in Column C of Table A.5 above and Column B of Table B.3 below. The dates in
Tables A.5 and B.3 may be changed only by a Change Order signed by both Owner
and Contractor.

TABLE B3
Schedule of Liquidated Damages

A

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

  B

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

  C

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

Contractor Phase No.

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

  Agreed Date for Substantial Completion

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

  Amount of Liquidated Damages

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

1B   4/11/03   $2,000 per day 2A   7/25/03   $1,000 per day 2B   7/25/03  
$1,000 per day 2C   9/29/03   $1,000 per day Substantial Completion for the
entire Project   9/29/03   $1,000 per day

        (b)    Extension of Time.    It is agreed that the dates for completion
of the Major Sectors of the Work will be extended due to: (1) Owner's failure to
timely approve the design of components of the Work which impact the critical
path of the Work, (2) Owner's interference with the Work, or (3) the occurrence
of Permitted Delays. (Hereafter, the events described in clauses (1) and (2) may
be collectively referred to as "Owner-Caused Delays.") Contractor shall provide
Owner and Architect reasonable notice of any event or circumstance which
Contractor believes should be treated as an Owner Caused Delay.

        (c)    Liquidation Damages.    The parties agree that it would be very
difficult to ascertain and determine the actual amount of damages resulting from
Contractor's failure to complete the Major Sectors of the Work by the times
specified in Column B of Table B.3. Accordingly, the parties have agreed to fix
the amount of such damages payable by Contractor at the amounts specified in
Column C of said Table B.3. Such damages are agreed to be fair and reasonable
liquidated damages for the delays for which Contractor is responsible.
Notwithstanding anything in this Agreement to the contrary, the aggregate amount
of the liquidated damages payable by Contractor under this Section B.3(c) shall
not exceed the total amount of Contractor's Fee.

        4.    Guaranteed Maximum Price (Section 5.2.1).    

        (a)    General.    Owner and Contractor have decided to "fast tract"
construction of the Project, even though the design of significant portions of
the Project has not been completed as of the date of this Agreement. As a
result, the GMP cannot be presently determined. Owner and Contractor have agreed
to determine the GMP while the Work is progressing in an open and transparent
manner so that Owner will fully understand how the GMP is determined. To achieve
this transparency, the GMP will be determined through a process approved by
Owner. For certain portions of the Work, including all the Self-Perform Work and
some portions of the Subcontractor Work, Owner and Contractor will directly
negotiate prices for such portions of the Work without using a competitive
bidding process. After being approved by Owner, such negotiated prices shall
become included in the Accepted Proposals. As requested by Owner, Contractor
shall obtain competitive bids for those portions of the Subcontractor Work which
will be competitively bid in a number approved by Owner. The competitive bids
will be obtained as final plans and working

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drawings for portions of the Project are completed in sufficient detail to
permit Subcontractors to submit firm bids for the subject portions of the
Subcontractor Work. After Owner and Contractor have reviewed the competitive
bids, Owner will select the bids which will become the Accepted Proposals, which
may or may not be the lowest bid.

        (b)    Self-Perform Work.    Contractor has advised Owner that
Contractor desires to self-perform the following portions (the "Self-Perform
Work") of the Work—concrete, structural excavation and rough carpentry. In order
to establish the Accepted Proposals for the Self-Perform Work, Contractor shall
negotiate prices for same which are accepted and approved by Owner, the parties
realizing that it will be impractical to solicit truly competitive bids for the
Self-Perform Work from the Subcontractors because the Subcontractors will be
aware of Contractor's intention to construct the Self-Perform Work. The scope of
the Self-Perform Work is intended to include all parts of the Work to be done by
Contractor, regardless of whether it is specifically listed above. The cost of
the Self-Perform Work will be included in the Accepted Proposals.

        (c)    Setting the GMP.    As soon as practical, after the Accepted
Proposals for the Self-Perform Work and the Subcontractor Work have been
determined, the parties shall determine the GMP for the Work. Ultimately, the
parties expect to agree on a lump sum price for the cost of the Work to replace
the GMP. Pending agreement on such lump sum price, the GMP may contain a
contingency reserve in a mutually agreed on amount, it being agreed that upon
conversion to a lump sum contract, any unexpended portion of the contingency
reserve shall belong to Owner, subject to negotiations intended to establish
reasonable reserves for incomplete design, outstanding purchasing risks schedule
related risks and trade damage.

        5.    Cost Savings (Section 5.2.1).    Owner and Contractor acknowledge
that it may be possible to achieve cost savings ("Cost Savings") under the
Accepted Proposals through value engineering or otherwise. Owner and Contractor
shall cooperate with one another to achieve Cost Savings. Owner shall have the
right to approve or disapprove of any changes in the Work that would generate
Cost Savings.

        6.    Change Orders (Article 6).    

        (a)    Types.    There shall be five (5) types of Change Orders
—(1) Owner Initiated Change orders, (2) Owner Use Required Change Orders,
(3) Contractor Initiated Change Orders, (4) No Fault Change Orders, and (5) Cost
Saving Change Orders. The effect of Change Orders on the Contract Time and the
GMP is specified in Section B.6(b) below.

        (1)    Owner Initiated Change Orders.    The term "Owner Initiated
Change Orders" means Change Orders requested by the Owner after Owner and
Contractor have approved the GMP. Owner Initiated Change Orders will be made at
Owner's sole cost and expense. The GMP and the resultant Project Construction
Costs will be adjusted, as necessary or appropriate, to reflect the effect of
Owner Initiated Change Orders.

        (2)    Owner Use Required Change Orders.    The term "Owner Use Required
Change Orders" means Change Orders required or necessary (without specific
request of Owner) because of: (i) the particular use of the Project intended by
Owner or (ii) design criteria or materials selections or decisions made by
Owner. Owner Use Required Change Orders will be made at Owner's sole cost and
expense. The GMP and the resultant Project Construction Costs will be adjusted,
as necessary or appropriate, to reflect the effect of Owner Use Required Change
Orders. Contractor will advise Owner and Architect of circumstances giving rise
to Owner Use Required Change Orders.

        (3)    Contractor Initiated Change Orders.    The term "Contractor
Initiated Change Orders" means any Change Orders (other than Cost Savings Change
Orders) initiated by Contractor after the Work has started: (i) to correct
mistakes or errors by Contractor (including any

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Subcontractors) or (ii) with respect to the design-build components of the Work.
Unless Contractor Initiated Change Orders are the result of gross negligence of
Contractor or the Subcontractors, Contractor Initiated Change Orders will be
made at Owner's sole cost and expense, but will not increase the GMP or
Contractor's Job Site Overhead.

        (4)    No Fault Change Orders.    The term "No Fault Change Orders"
means any Change Orders which are not the responsibility of either Contractor or
Owner, as provided above, i.e., Change Orders necessitated by Permitted Delays,
unforeseen conditions, or acts or omissions of third parties (other than the
Architect and the Subcontractors). Contractor will advise Owner of circumstances
giving rise to No Fault Change Orders. No Fault Change Orders will be made at
Owner's cost and expense and will affect the GMP and the resultant the Project
Construction Costs, exclusive of Contractor's Job Site Overhead, unless it can
be demonstrated that such overhead has been substantially impacted thereby.

        (5)    Cost Saving Change Orders.    The term "Cost Saving Change
Orders" means Change Orders, initiated by Owner or Contractor, which reduce the
Contract Time and/or the Project Construction Costs.

        (b)    Certain Effects of Change Orders.    

        (1)    Time.    Change Orders will not result in an extension of the
Contract Time or the agreed dates for Substantial Completion of the Major
Sectors of the Work, unless Contractor demonstrates, to Owner's reasonable
satisfaction, that a proposed Change Order (which is not a Contractor Initiated
Change Order) will materially delay the Work and Substantial Completion of any
Major Sector, in which event a time extension will be granted reasonably
commensurate with the delay. In approving Change Orders, Owner will specify
whether a particular Change Order will result in an extension of time for any
part of the Work and the length of any such extension of time.

        (2)    Costs.    Until the parties switch from a GMP-pricing format to a
lump sum format, the cost of Change Orders will be based on the actual,
out-of-pocket cost of each Change Order to Contractor, without any
administrative mark-up or charge for Contractor's Job Site Overhead, unless the
cost of scope of a Change Order materially affects Contractor's Job Site
Overhead. The effect of Change Orders on Project Construction Costs is specified
in Section B.6(a) above. Contractor Initiated Change Orders will not result in
any increase in the GMP. Cost Saving Change Orders will result in a reduction in
the Project Construction Costs, but not the GMP.

        7.    Retainage (Section 12.1.7)    

        (a)    Amount.    Initially, all payments to Contractor and
Subcontractors shall be subject to a ten percent (10.0%) retainage. Owner's
right to withhold retainage shall continue until Substantial Completion of the
Project; provided, however, that the maximum amount of the retainage that Owner
may retain after the Project is fifty percent (50.0%) completed shall not exceed
5.0% (the "Retainage Cap") of the total GMP, as the same may change from time to
time.

        (b)    Release.    The parties have agreed to a "rolling release" of the
retainage. This means that: (1) Owner will release Contractor's retainage in
increments as portions of the Work are completed in accordance with a mutually
agreed on schedule and (2) Owner may continue to withhold 10.0% retainage on all
progress payments to Contractor (even those made after 50.0% completion of the
Work), subject, however, to the Retainage Cap on the aggregate amount of
retainage. Contractor shall have the right to release the Subcontractors'
retainage as Contractor deems reasonably prudent. At the time of Final Payment,
Owner shall pay Contractor all of the retainage then held by Owner except that
Owner may retain a portion equal to 1.5 times the estimated cost of the
Punchlist Work. All amounts retained for the Punchlist Work shall be

9

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released no later than thirty (30) days after such Punchlist Work is completed
to Owner's reasonable satisfaction.

        8.    Punchlist Work (Section 12.2).    Within five (5) business days
after the date of Substantial Completion of the Project, representatives of
Owner and Contractor shall inspect the Project and, within fifteen (15) days
thereafter, generate the Punchlist. The Punchlist shall indicate the parties'
estimate by of the cost of each item. After the Punchlist is prepared and agreed
upon in writing by Owner and Contractor, Contractor shall: complete the
Punchlist Work and remedy the nonconforming or defective work set forth on the
Punchlist within thirty (30) calendar days thereafter; provided, however, that
as to items of Punchlist Work which are of such a nature that completion thereof
is not reasonably practicable within said 30-day period, Contractor shall
complete all such items on the Punchlist with reasonable diligence and within a
specified time period, which as to each particular item, is reasonable, giving
due regard for the nature of the work to be performed. Owner shall be entitled
to withhold a portion of Contractor's retainage after Substantial Completion of
the Project and Final Payment until completion of the Punchlist Work, as
provided above.

        9.    Design-Build Work (Section 14.6)    

        (a)    General.    Contractor has agreed to assume design-build
responsibility for three parts of the Work: (a) gas process piping in Building 1
(through its subcontractor University Mechanical), (b) the glass curtain-wall
system on Building 1 (through its subcontractor Sunset Glazing), and (c) the
fire protection system for Building 1 (through its subcontractor Schmidt Fire
Protection) pursuant to Section 14.6.1 above. The scope of the design-build work
is defined in the subcontracts of the above referenced Subcontractors.
Contractor will provide Owner with applicable portions of the subject
subcontracts for review and approval by Owner. Following incorporation of
mutually agreed upon changes, a copy of the applicable portions of the executed
subcontracts for the subject design-build work will be provided to Owner and
thereby deemed to be incorporated into the Contract Documents.

        (b)    Risk Allocation.    Austin Veum Robbins Parshalle ("AVRP") is the
Architect for the Project. Hope Engineering has agreed to design the mechanical
connections between the curtain-wall and the building structure. Hope
Engineering is a structural engineering consultant for AVRP. Attachment of the
curtain-wall system to Building 1's structure is not part of the design-build
contract. AVRP and Contractor have agreed that their respective responsibilities
for the attachment of the curtain-wall to Building 1's structure are as follows:

        (1)  AVRP is responsible for designing (i) the "architectural" portions
of the curtain-wall (rough dimensions, configurations and general profiles of
members, glass type and glass thickness, aluminum finish type and color, etc),
(ii) the surrounding and contiguous structure of Building 1 to meet the design
criteria of the curtain-wall (i.e. assuring that the design of the surrounding
structure is capable of supporting the curtain-wall design loads and related
criteria, and (iii) the waterproofing systems (materials and materials
configurations) bridging the space between the exterior of Building 1 abutting
the curtain-wall and the curtain-wall itself (the "Waterproofing Interface").
AVRP shall consult with Contractor and coordinate its Waterproofing Interface
design with Contractor's curtain-wall design.

        (2)  Contractor is responsible for designing the curtain-wall system,
including (a) the structural portions integral to the curtain-wall system and
the attachment of the curtain-wall system to the contiguous structure of
Building 1 and (b) the waterproof integrity of the curtain-wall system.
Contractor shall not be responsible for designing the Waterproofing Interface.
Contractor shall be responsible for installing the Waterproofing Interface in
accordance with AVRP's design.

10

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C.    Modification of General AIA Conditions.    

        1.    Amendment of Section 3.9.1.    Project Manager is John Goodman.
Mr. Goodman cannot be changed without Owner's consent, which shall not be
unreasonable withheld.

        2.    Underground Conditions (Section 4.3.4).    Contractor shall be
liable for underground conditions which may be reasonably anticipated based on
soil tests performed prior to the commencement of the Work, except for soils
contamination and the presence of groundwater not disclosed in such soils
reports.

        3.    Amendment of Section 8.3.1.    If Contractor is delayed at any
time in the progress of the Work by: (a) any action or negligence of Owner,
(b) any employee of Owner or Architect, (c) any separate contractor employed by
Contractor, (d) Change Orders (except Contractor-Initiated Change Orders),
(e) labor disputes not involving Contractor or any Subcontractors, fire, unusual
delay in deliveries, unavoidable casualties, or (f) any other such causes that
are wholly beyond Contractor's or its Subcontractors' (including any suppliers')
control, are not reasonably anticipatable and justify delay, then the Contract
Time shall be extended by Change Order, without notice to sureties, for such
reasonable time as the Owner may determine. A time extension shall be
Contractor's sole remedy and compensation for all such delays other than those
resulting from the actions or negligence of Owner, the Architect or Owner's
separate contractors, except as may be otherwise provided in Section B.6 above
with respect to certain types of Change Orders.

11

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QuickLinks

Exhibit 10.1

1997 Edition—Electronic Format

AIA Document A111—1997

CYMER—HENSEL PHELPS AGREEMENT

1997 Edition—Electronic Format
EXHIBIT "A" SCOPE OF WORK
EXHIBIT "C" CONCEPT SCHEDULE—AUGUST 2, 2002
EXHIBIT "D" CURRENT (Rev 13) BUDGET (8/9/02 Est with 8/19/02 & 8/20/02 CHANGES)
EXHIBIT "D" Cymer CSD-6—Rancho Bernardo, California Initial Project Estimate
CLARIFICATIONS & ASSUMPTIONS Architect: Austin Veum Robbins Parshalle (AVRP)
EXHIBIT "E"—CYMER, Inc., CSD-6 Contract
EXHIBIT "F" CONCEPTUAL DRAWING OF SIDE ELEVATION OF BUILDING 1
EXHIBIT "G"
IMPORTANT
DISCLAIMER
HENSEL PHELPS CONSTRUCTION COMPANY MASTER BUILDERS RISK PROGRAM SECTION
A—DECLARATIONS
[LOGO] Flood and Peterson Insurance, Inc.
ADDENDUM NO. 1 to STANDARD FORM OF AGREEMENT BETWEEN OWNER AND CONTRACTOR (AIA
DOCUMENT NUMBER A111-1997) for CYMER, INC.'S CSD-6 THORNMINT COURT, SAN DIEGO,
CA 92127