EXHIBIT 10.1

 

AMENDMENT NO. 1

TO THE

OPEN BOOK CONTRACT

 

THIS AMENDMENT NO. 1 (the “Amendment”) to the Open Book Contract dated the 17th
day of August, 2004 (the “Open Book Contract”) is made and entered into this
10th day of February, 2005, by and between THE DAYTON POWER AND LIGHT COMPANY,
an Ohio corporation with an address of 1065 Woodman Drive, Dayton, Ohio 45432
(“DP&L”) and BLACK & VEATCH CORPORATION, a Delaware Corporation with an address
of 11401 Lamar, Overland Park, Kansas 66211 (“B&V”).  DP&L and B&V may be
sometimes referred to herein collectively as the “Parties” and individually as a
“Party.”

 

NOW THEREFORE, in consideration of the premises and the mutual promises and
agreements of the Parties herein expressed, the Parties, intending to be legally
bound, hereby agree to the following changes to the Open Book Contract:

 

1.               CAPITAL COST.  Delete Exhibit C, and replace it with the
attached Exhibit C dated 3 February 2005.

 

2.               CASH FLOW.  Delete Exhibit D, and replace it with the attached
Exhibit D, sheets 1 to 4 dated 3 February 2005.

 

3.               CONSTRUCTION MANAGEMENT SERVICES.  The terms of the attached
B&V letter dated December 15, 2004 (BV/DPL-083) are added to the Open Book
Contract.

 

4.               ARTICLE III. PRICING PAYMENT AND INCENTIVE STRUCTURE

 

•                  The total Target Costs of the Project are $660,090,350 as
itemized in Exhibit C.  A total Shared Incentive Fund value of $66,009,035 has
been calculated at 10% of the Target Cost.  The total Shared Incentive Fund
value has been assigned 50% to DP&L and 50% to B&V.  $2,777,674 has been
deducted from the DP&L portion of the Shared Incentive Fund.  The resulting
$33,004,518 represents the B&V portion of the Shared Incentive Fund and
$30,231,361 represents the DP&L portion of the Shared Incentive Fund.  The
combined Shared Incentive Fund value of $63,231,361 is entered into Exhibit C of
the Open Book Contract.

 

•                  The B&V and DP&L portions of the Shared Incentive Fund shall
be separately identified throughout the project.  The total Shared Incentive
Fund shall not be split 30% for Procurement Incentive and 70% for Project
Completion Incentive.  Project savings or cost overruns from both procurement
and completion activities will be added to or deducted from the DP&L and B&V
separate incentive funds in equal amounts (50% DP&L and 50% B&V).

 

•                  Upon completion of the major procurement awards, the
procurement incentive payment to B&V shall be determined.  The 30% value of the
B&V and DP&L Incentive Funds shall be calculated.  Based on mutual agreement of
the remaining Project’s risks and the current Project economic profile B&V shall
be paid one-half of the of the 30% value of the B&V Incentive Fund at this time
as an equivalent partial payment of the procurement incentive.  One half of the
30% value of the DP&L Incentive Fund shall be designated as the DP&L Procurement
Incentive.

 

1

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•                  Should the Project incur costs greater than the Not-to-Exceed
Price, DP&L shall replace the $2,777,674 in their share of the Incentive Funds
before the provisions of Article III. C. are implemented.

 

5.               The Open Book Contract as modified by this Amendment No. 1
shall remain in full force and effect.

 

IN WITNESS WHEREOF, the Parties have executed this Amendment to the Open Book
Contract as of the date indicated above.

 

  THE DAYTON POWER AND LIGHT

 

BLACK & VEATCH CORPORATION

  COMPANY

 

 

 

 

 

 

 

 

 

 

 

 

 

  By:

 

 

 

By:

 

 

 

A. A. Farrell

Legal

 

 

 

Michael A. Perry

 

Manager - Central Engineering

Proc.

 

 

 

 

Senior Vice President

 

 

 

 

Director AQC Projects

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  W. Steven Wolff

 

 

 

  President - Power Production

 

 

 

 

2

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EXHIBIT C

DP&L WFGD RETROFIT

CAPITAL COST SUMMARY - Definitive Estimate

 

3-Feb-05

 

ITEM

 

STUART 1,2,3, & 4

 

STUART COMMON

 

STUART TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UNIT RATING, MW

 

610

 

2,440

 

 

 

 

 

2,440

 

 

 

 

 

$

 

%

 

$

 

%

 

$

 

%

 

DIRECT COSTS

 

 

 

 

 

 

 

 

 

 

 

 

 

Civil/Structural Equipment & Material

 

$

19,159,614

 

8.8

%

$

31,405,834

 

9.3

%

$

50,565,448

 

9.1

%

Mechanical Equipment & Material

 

$

48,786,793

 

22.4

%

$

23,227,665

 

6.9

%

$

72,014,458

 

13.0

%

Electrical/Control Equip & Material

 

$

15,024,486

 

6.9

%

$

15,424,174

 

4.6

%

$

30,448,660

 

5.5

%

Construction Contracts

 

$

88,136,751

 

40.5

%

$

163,991,703

 

48.6

%

$

252,128,454

 

45.4

%

Stuart Baseline Stiffening

 

$

46,200,959

 

21.2

%

$

0

 

0.0

%

$

46,200,959

 

8.3

%

SUBTOTAL DIRECT COSTS

 

$

217,308,603

 

99.8

%

$

234,049,376

 

69.4

%

$

451,357,979

 

81.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INDIRECT COSTS

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineering/Proj Management

 

$

0

 

0.0

%

$

22,658,839

 

6.7

%

$

22,658,839

 

4.1

%

Construction Management

 

$

0

 

0.0

%

$

16,375,051

 

4.9

%

$

16,375,051

 

3.0

%

Site Services & Indirects

 

$

459,999

 

0.2

%

$

6,510,001

 

1.9

%

$

6,970,000

 

1.3

%

Chiyoda License Fee (Est.)

 

$

0

 

0.0

%

$

7,175,000

 

2.1

%

$

7,175,000

 

1.3

%

SUBTOTAL INDIRECT

 

$

459,999

 

0.2

%

$

52,718,891

 

15.6

%

$

53,178,890

 

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TARGET PRICE

 

$

217,768,602

 

100.0

%

$

286,768,267

 

85.0

%

$

504,536,869

 

90.9

%

CONTINGENCY/SHARED INCENTIVE FUND

 

$

0

 

0.0

%

$

50,453,687

 

15.0

%

$

50,453,687

 

9.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOT-TO-EXCEED PRICE

 

$

217,768,602

 

100.0

%

$

337,221,954

 

100.0

%

$

554,990,556

 

100.0

%

$/KW

 

 

 

 

 

 

 

 

 

$

227

 

 

 

 

ITEM

 

KILLEN 2

 

DP&L TOTAL

 

 

 

 

 

 

 

 

 

 

 

UNIT RATING, MW

 

635

 

 

 

3,075

 

 

 

 

 

$

 

%

 

$

 

%

 

DIRECT COSTS

 

 

 

 

 

 

 

 

 

Civil/Structural Equipment & Material

 

$

25,656,257

 

15.2

%

$

76,221,705

 

10.5

%

Mechanical Equipment & Material

 

$

18,536,996

 

11.0

%

$

90,551,454

 

12.5

%

Electrical/Control Equip & Material

 

$

7,975,687

 

4.7

%

$

38,424,347

 

5.3

%

Construction Contracts

 

$

83,683,315

 

49.7

%

$

335,811,769

 

46.4

%

Stuart Baseline Stiffening

 

$

0

 

0.0

%

$

46,200,959

 

6.4

%

SUBTOTAL DIRECT COSTS

 

$

135,852,255

 

80.7

%

$

587,210,234

 

81.2

%

 

 

 

 

 

 

 

 

 

 

INDIRECT COSTS

 

 

 

 

 

 

 

 

 

Engineering/Proj Management

 

$

7,360,641

 

4.4

%

$

30,019,480

 

4.2

%

Construction Management

 

$

6,487,506

 

3.9

%

$

22,862,557

 

3.2

%

Site Services & Indirects

 

$

2,803,079

 

1.7

%

$

9,773,079

 

1.4

%

Chiyoda License Fee (Est.)

 

$

3,050,000

 

1.8

%

$

10,225,000

 

1.4

%

SUBTOTAL INDIRECT

 

$

19,701,226

 

11.7

%

$

72,880,116

 

10.1

%

 

 

 

 

 

 

 

 

 

 

TARGET PRICE

 

$

155,553,481

 

92.4

%

$

660,090,350

 

91.3

%

CONTINGENCY/SHARED INCENTIVE FUND

 

$

12,777,674

 

7.6

%

$

63,231,361

 

8.7

%

 

 

 

 

 

 

 

 

 

 

NOT-TO-EXCEED PRICE

 

$

168,331,155

 

100.0

%

$

723,321,711

 

100.0

%

$/KW

 

$

265

 

 

 

$

235

 

 

 

 

3

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Exhibit D - Sheet 1

J. M. Stuat & Killen Scrubber Project

Estimated Cash Flow - Total Project

 

3-Feb-05

 

Date
Payment is
Due

 

Stuart Scrubber

 

Killen
Scrubber

 

Stuart
Balanced
Draft

 

Quarterly
Total

 

Cumulative Total

 

Jan-05

 

$

7,415,000

 

$

925,000

 

$

954,000

 

$

9,294,000

 

$

9,294,000

 

Apr-05

 

$

12,110,000

 

$

1,090,000

 

$

6,160,000

 

$

19,360,000

 

$

28,654,000

 

Jul-05

 

$

15,882,000

 

$

1,495,000

 

$

2,249,223

 

$

19,626,223

 

$

48,280,223

 

Oct-05

 

$

20,521,609

 

$

2,927,791

 

$

3,882,000

 

$

27,331,400

 

$

75,611,623

 

Jan-06

 

$

28,636,998

 

$

14,126,512

 

$

788,512

 

$

43,552,023

 

$

119,163,646

 

Apr-06

 

$

48,640,618

 

$

23,053,797

 

$

2,074,162

 

$

73,768,576

 

$

192,932,222

 

Jul-06

 

$

113,753,760

 

$

35,800,751

 

$

9,477,768

 

$

159,032,279

 

$

351,964,502

 

Oct-06

 

$

65,807,485

 

$

30,663,905

 

$

54,969

 

$

96,526,360

 

$

448,490,861

 

Jan-07

 

$

60,644,831

 

$

22,534,183

 

$

10,768,030

 

$

93,947,045

 

$

542,437,906

 

Apr-07

 

$

32,200,316

 

$

16,601,000

 

$

51,239

 

$

48,852,556

 

$

591,290,462

 

Jul-07

 

$

38,121,451

 

$

5,729,050

 

$

6,438,946

 

$

50,289,447

 

$

641,579,909

 

Oct-07

 

$

18,050,751

 

$

13,384,165

 

$

—

 

$

31,434,916

 

$

673,014,825

 

Jan-08

 

$

12,798,186

 

$

—

 

$

—

 

$

12,798,186

 

$

685,813,011

 

Apr-08

 

$

28,424,985

 

$

—

 

$

3,302,109

 

$

31,727,094

 

$

717,540,104

 

Jul-08

 

$

5,128,271

 

$

—

 

$

—

 

$

5,128,271

 

$

722,668,375

 

Oct-08

 

$

653,336

 

$

—

 

$

—

 

$

653,336

 

$

723,321,711

 

Jan-09

 

$

—

 

$

—

 

$

—

 

$

—

 

$

723,321,711

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub-Total

 

508,789,597

 

168,331,155

 

46,200,959

 

723,321,711

 

 

 

 

4

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