Document:

Exhibit
10.1

AGREEMENT
BETWEEN

OWNER AND DESIGN BUILDER

THIS
AGREEMENT

made
as of this 28th day of
August in the year of 2006.

BETWEEN
the Owner:

Great Plains Ethanol, LLC

27716 462nd Avenue

Chancellor,
SD 57015

And
the Design Builder:

Broin and Associates, Inc.

2209 East 57th Street North

Sioux Falls, 
SD 57104

For the following Project:

Expansion
from 45 to 100 MMGPY

The Owner and Design Builder, in consideration of
the mutual covenants hereinafter set forth, agree as follows:

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ARTICLE I - GENERAL PROVISIONS

1.1                               BASIC DEFINITIONS

1.1.1        The Contract Documents consist of this Agreement, the Design Builder’s Exhibits
and written addenda identified in Article 14, the Construction Documents
approved by the Owner and Modifications issued after execution of this
Agreement.  A Modification is a Change
Order or a written amendment to this Agreement signed by both parties, or a
Construction Change Directive issued by the Owner in accordance with Paragraph
8.3.

1.1.2.       The term ‘Work” means the construction and services provided by the
Design Builder to fulfill the Design Builder’s obligations.

1.2                               EXECUTIONS, CORRELATION AND
INTENT

1.2.1        It is the intent of the Owner and Design Builder that the Contract
Documents include all items necessary for proper execution and completion of
the Work.  The Contract Documents are
complimentary, and what is required by one shall be as binding as if required
by all; performance by the Design Builder shall be required only to the extent
consistent with and reasonably inferable from the Contract Documents as being
necessary to produce the intended results. 
Words that have well-known technical or construction industry meanings
are used in the Contract Documents in accordance with such recognized meanings.

1.2.2        If the Design Builder believes or is advised by another design
professional retained by the Design Builder to provide services on the Project
that implementation of any instruction received from the Owner would cause a
violation of any applicable law, the Design Builder shall notify the Owner in
writing. Neither the Design Builder nor another design professional retained by
the Design Builder shall be obligated to perform any act which either believes
will violate any applicable law.

1.2.3        Nothing contained in this Agreement shall create a contractual
relationship between the Owner and any person or entity other than the Design
Builder.

1.3                               OWNERSHIP AND USE OF
DOCUMENTS

1.3.1        Drawings, specifications, and other documents and electronic data
furnished by the Design Builder and other design professionals retained by the
Design Builder, are instruments of service. 
The Design Builder and other providers of professional services shall
retain all common law, statutory and other reserved rights, including copyright
in those instruments of service furnished by them.  Drawings, specifications, and other documents
and electronic data are furnished for use solely with respect to this 

 2
 

 

Agreement.  The Owner shall be permitted to retain
copies, including reproducible copies, of the drawings, specifications, and
other documents and electronic data furnished by the Design Builder for
information and reference in connection with the Project except as provided in
Subparagraphs 1.3.2 and 1.3.3.

1.3.2        Drawings, specifications, and other documents and electronic data
furnished by the Design Builder shall not be used by the Owner or others on
other projects, for additions to this Project or for completion of this Project
by others, except by agreement in writing and with appropriate compensation to
the Design Builder.

1.3.3        Submission or distribution of the Design Builder’s documents to meet
official regulatory requirements or for similar purposes in connection with the
Project is not to be construed as publication in derogation of the rights
reserved in Subparagraph 1.3.1.

ARTICLE 2- OWNER

2.1                               The Owner shall designate a representative authorized to act on the
Owner’s behalf with respect to the Project. The Owner or such authorized
representative shall examine documents submitted by the Design Builder and shall
render decisions in a timely manner and in accordance with the schedule
accepted by the Owner. The Owner may obtain independent review of the Contract
Documents by a separate architect, engineer, contractor, or cost estimator
under contract to or employed by the Owner, Such independent review shall be
undertaken at the Owner’s expense in a timely manner and shall not delay the
orderly progress of the Work.

2.2                               The Owner shall cooperate with the Design Builder in securing building
and other permits, licenses and inspections. The Owner shall not be required to
pay the fees for such permits, licenses and inspections unless the cost of such
fees is excluded from the Design Builder’s Scope of Services.

2.3                               The Owner shall furnish services of land surveyors, geotechnical
engineers, and other consultants for subsoil, air and water conditions, when
such services are deemed necessary by the Design Builder to properly carry out
the design services required by this Agreement.

2.4                               The Owner shall disclose, to the extent known to the Owner, the results
and reports of prior tests, inspections or investigations conducted for the
Project involving: structural or mechanical systems; chemical; air and water
pollution; hazardous materials; or other environmental and subsurface
conditions.  The Owner shall disclose all
information known to the Owner regarding the presence of pollutants at the
Project’s site.

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2.5                               The Owner shall furnish all legal, accounting and insurance counseling
services as may be necessary at any time for the Project, including such
auditing services as the Owner may require to verify the Design Builder’s
Applications for Payment.

2.6                               Those services, information, surveys and reports required by Paragraphs
2.3 through 2.5 which are within the Owner’s control shall be furnished at the
Owner’s expense.  The Design Builder
shall be entitled to rely upon the accuracy and completeness thereof, except to
the extent the Owner advises the Design Builder to the contrary in writing.

2.7                               If the Owner requires the Design Builder to maintain any special
insurance coverage, policy, amendment, or rider, the Owner shall pay the
additional cost thereof, except as otherwise stipulated in this Agreement.

2.8                               If the Owner observes or otherwise becomes aware of a fault of defect
in the Work or nonconformity with the Design Builder’s Scope of Services or the
Construction Documents, the Owner shall give prompt written notice thereof to
the Design Builder.

2.9                               The Owner shall promptly upon the request of the Design Builder, furnish
to the Design Builder reasonable evidence that financial arrangements have been
made to fulfill the Owner’s obligations under the Contract.

2.10                        The Owner shall communicate with persons or entities employed or
retained by the Design Builder through the Design Builder, unless otherwise
directed by the Design Builder.

ARTICLE 3 – DESIGN BUILDER

3.1                               SERVICES AND
RESPONSIBILITIES

3.1.1        Standard of Care: Design Builder shall perform or furnish Design
Professional Services and related services in all phases of the project. The
standard of care for all such services performed or furnished under this
Agreement will be the care and skill ordinarily used by members of the
engineering profession practicing under similar conditions at the same time and
locality.

3.1.2        The Design Builder shall be responsible to the Owner for acts and
omissions of the Design Builder’s employees, subcontractors and their agents
and employees, and other persons, including other design professionals,
performing any portion of the Design Builder’s obligations under this
Agreement.

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3.2                               BASIC SERVICES

3.2.1        The Design Builder’s Basic Services are described below and in Article
14.

3.2.2        The Design Builder shall designate a representative authorized to act
on the Design Builder’s behalf with respect to the Project.

3.2.3        The Design Builder, with the assistance of the Owner, shall file
documents required to obtain necessary approvals of governmental authorities
having jurisdiction over the Project.

3.2.4        Unless otherwise provided in the Contract Documents, the Design Builder
shall provide or cause to be provided and shall pay for design services, labor,
materials, equipment, tools, construction equipment and machinery, water, heat,
utilities, transportation and other facilities and services necessary for
proper execution and completion of the Work, whether temporary or permanent and
whether or not incorporated or to be incorporated in the Work.

3.2.5        Design Builder shall supervise, inspect and direct the Construction
competently and efficiently, devoting such attention thereto and applying such
skills and expertise as may be necessary to provide the Construction in
accordance with the Contract Documents. 
Design Builder shall be solely responsible for the means, methods,
techniques, sequences and procedures employed for the provision of
Construction. Design Builder shall be responsible to see that the complete
Construction complies accurately with the Contract Documents and shall keep
Owner advised as to the quality and progress of the Construction.

3.2.6        The Design Builder shall keep the Owner informed of the progress and
quality of the Work.

3.2.7        The Design Builder shall be responsible for correcting Work which does
not conform to the Contract Documents.

3.2.8        The Design Builder warrants to the Owner 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 construction will be
free from faults and defects, and that the construction will conform with the
requirements of the Contract Documents. 
Construction not conforming to these requirements, including
substitutions not properly approved by the Owner, shall be corrected in
accordance with Article 9.

3.2.9        The Design Builder shall pay all state sales, consumer, use and similar
taxes which had been legally enacted prior to the date of this Agreement, and
shall secure and pay for building and other permits and governmental fees,
licenses and inspections necessary for the proper execution and completion of
the Work which are either 

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customarily secured after
execution of a contract for construction or are legally required prior to the
date of this Agreement.

3.2.10 Laws and Regulations

1.             Design Builder shall give all notices and
comply with all Laws and Regulations of the place of the Project which are
applicable to furnishing and performance of the Work.  Except where otherwise expressly required by
applicable Laws and Regulations, Owner shall not be responsible for monitoring
Design Builder’s compliance with any Laws or Regulations.

2.             If Design Builder performs any Work knowing
or having reason to know that it is contrary to Laws or Regulations, Design
Builder shall bear all costs arising therefrom.

3.             Changes in Laws and Regulations not known or
foreseeable on the date of receipt of Proposals having an effect on the cost or
time of performance may be the subject of a claim under Article 8.

3.2.11      Design Builder shall pay all license fees and royalties and assume all
costs incident to the use in the performance of the Work or the incorporation
in the Work of any invention, design, process, product or device which is
subject of patent rights or copyrights held by others.  If a particular invention, design, process,
product or device is specified in the Conceptual Documents for use in the
performance of the Construction and if to the actual knowledge of Owner its use
is subject to patent rights or copyrights calling for the payment of any
license fee or royalty to others, the existence of such rights shall be
disclosed by Owner in the Conceptual Documents. 
To the fullest extent permitted by Laws and Regulations, Design Builder
shall indemnify and hold harmless Owner, from and against all claims, costs,
losses and damages (including but not limited to all fees and charges of
engineers, architects, attorneys and other professionals and all court or
arbitration or other dispute resolution costs) arising out of or resulting from
any infringement of patent rights or copyrights incident to the use in the performance
of the Work or resulting from the incorporation in the Work of any invention,
design, process, product or device not specified in the Conceptual Documents.

3.2.12      Use of Site and Other Areas

1.             Design Builder shall confine construction
equipment, the storage of materials and equipment and the operations of
construction workers to those lands and areas permitted by the Owner and other
land and areas permitted by Laws and Regulations, rights-of-way, permits and
easements, and shall not unreasonably encumber the premises with construction
equipment or other materials or equipment. 
Design Builder shall assume full responsibility for any damage to any
such land or area, or to the owner or occupant thereof or of any 

 6
 

 

adjacent land or areas,
resulting from the performance of the Construction.  Should any claim be made by any such owner or
occupant because of the performance of the Construction, Design Builder shall
promptly settle with such other party by negotiation or otherwise resolve the
claim by arbitration or other dispute resolution proceeding or at law. Design
Builder shall, to the fullest extent permitted by Laws and Regulations,
indemnify and hold harmless Owner, Owner’s Consultants and anyone directly or
indirectly employed by any of them from and against all claims, costs, losses
and damages (including, but not limited to, fees of engineers, architects,
attorneys and other professionals and court and arbitration or other dispute
resolution costs) arising out of or resulting from any claim or action, legal
or equitable, brought by any such owner or occupant against Owner, or any other
party indemnified hereunder to the extent caused by or based upon Design
Builder’s performance of the Construction.

2.             During the performance of the Construction, Design
Builder shall keep the premises free from accumulations of waste materials
rubbish and other debris resulting from the Construction. At the completion of
the Construction Design Builder shall remove all waste materials, rubbish and
debris from and about the premises as well as all tools, appliances,
construction equipment, temporary construction and machinery and surplus
materials.  Design Builder shall leave
the Site clean and ready for occupancy by Owner at Substantial Completion.
Design Builder shall restore to original condition all property not designated
for alteration by the Contract Documents.

3.             Design Builder shall not load nor permit any
part of any structure to be loaded in any manner that will endanger the
structure, nor shall Design Builder subject any part of the Work or adjacent
property to stresses or pressures that will endanger it.

3.2.13      The Design Builder shall notify the Owner when the Design Builder
believes that the Work or an agreed upon portion thereof is substantially
completed.  If the Owner concurs, the
Design Builder shall issue a Certificate of Substantial Completion which shall
establish the Date of Substantial Completion, shall state the responsibility of
each party for security, maintenance, heat, utilities, damage to the Work and
insurance, shall include a list of items to be completed or corrected and shall
fix the time within which the Design Builder shall complete items listed
therein.  Disputes between the Owner and
Design Builder regarding the Certificate of Substantial Completion shall be
resolved in accordance with provisions of Article 10.

3.2.14      The Design Builder shall maintain at the site for the Owner one record
copy of the drawings, specifications, product data, samples, shop drawings,
Change Orders and other modifications, in good order and regularly updated to
record the completed construction. These shall be delivered to the Owner upon
completion of construction and prior to final payment.

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3.2.15      Unless otherwise provided in the Contract Documents, Design Builder
shall directly or through one or more Subcontractors obtain and pay for all
permits and licenses necessary for construction.  Owner shall assist Design Builder, when
necessary, in obtaining such permits and licenses.  Design Builder shall pay all governmental
charges and inspection fees necessary for the prosecution of the Construction,
which are applicable on the date of this Agreement.  The Owner is responsible for paying any and
all utility company connection charges and/or capital costs related thereto.

3.2.16      Design Builder’s General Warranty and Guarantee

1.             Design Builder warrants and guarantees to
Owner that all Construction will be in accordance with the Contract Documents
and will not be defective. This warranty shall be effective for a period of
twelve months from the date of substantial completion and will cover all labor
and materials to correct any deficiencies. Design Builder’s warranty and
guarantee hereunder excludes defects or damage caused by:

a.                                       Abuse, modification or improper maintenance
or operation by persons other than Design/Builder, Subcontractors or Suppliers;
or

b.                                      Normal wear and tear under normal usage.

2.             Design Builder’s obligation to perform and
complete the Work in accordance with the Contract Documents shall be absolute.
None of the following will constitute an acceptance of Work that is not in
accordance with the Contract Documents or a release of Design Builder’s
obligation to perform the Work in accordance with the Contract Documents:

a.                                       Observations by Owner:

b.                                      The making of any progress or final payment;

c.                                       The issuance of a certificate of Substantial
Completion;

d.                                      Use or occupancy of the Work or any part
thereof by Owner;

e.                                       Any acceptance by Owner or any failure to do
so;

f.                                         Any review and approval of a Submittal;

g.                                      Any inspection, test or approval by others;
or

h.                                      Any correction of defective Construction by
Owner.

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3.2.17      Operational
Phase: During the Operations Phase, Design Builder shall:

1.                                       Provide assistance in connection with the
start-up, testing. refining and adjusting of any equipment or system.

2.                                       Assist Owner in training staff to operate and
maintain the Project.

3.                                       Assist Owner in developing systems and
procedures for control of the operation and maintenance of and record keeping
for the Project.

3.3                               ADDITIONAL SERVICES

3.3.1        The services described in this Paragraph 3.3 are not included in Basic
Services unless so identified in Article 14, and they shall be paid for by the
Owner as provided in this Agreement, in addition to the compensation for Basic
Services. The services described in this Paragraph 3.3 shall be provided only
if authorized or confirmed in writing by the Owner.

3.3.2        Making revisions in drawings, specifications, and other documents or
electronic data when such revisions are required by the enactment or revision
of codes, laws or regulations subsequent to the preparation of such documents
or electronic data.

3.3.3        Providing consultation concerning replacement of Work damaged by fire
or other cause during construction, and furnishing services required in
connection with the replacement of such Work.

3.3.4        Providing services in connection with a public hearing, arbitration
proceeding or legal proceeding, except where the Design Builder is a party
thereto.

3.3.5        Providing coordination of construction performed by the Owner’s own
forces or separate contractors employed by the Owner, and coordination of
services required in connection with construction performed and equipment
supplied by Owner.

3.3.6        Submitting Construction Documents for review and approval by the Owner.
Construction Documents may include drawings, specifications, and other
documents and electronic data setting forth in detail the requirements for
construction of the Work.

3.3.7        Preparing a set of reproducible record documents or electronic data
showing significant changes in the Work made during construction.

3.3.8        Providing additional assistance for training personnel, preparing
manuals or consulting during operation outside of the Scope of Basic Services.

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ARTICLE 4 - TIME

4.1                               Unless otherwise indicated, the Owner and the Design Builder shall
perform their respective obligations as expeditiously as is consistent with
reasonable skill and care and the orderly progress of the Project.

4.2                               Time limits stated in the Contract Documents are of the essence. The
Work to be performed under this Agreement shall commence upon receipt of a
Notice To Proceed unless otherwise agreed and, subject to authorized
Modifications, Substantial Completion shall be achieved on or before the date established
in Article 14.

4.3                               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 the Owner can occupy or utilize the Work for its
intended use.

4.4                               Based on the Design Builder’s Scope of Services, a construction
schedule shall be provided consistent with Paragraph 4.2 above.

4.5                               If the Design Builder is delayed at any time in the progress of the
Work by an act or neglect of the Owner, Owner’s employees, or separate
contractors employed by the Owner, or by changes ordered in the Work, or by
labor disputes, fire, unusual delay in deliveries, adverse weather conditions
not reasonably anticipatable, unavoidable casualties or other causes beyond the
Design Builder’s control, or by delay authorized by the Owner pending
arbitration, or by other causes which the Owner and Design Builder agree may
justify delay, then Contract Time shall be reasonably extended by Change Order.

ARTICLE 5 - PAYMENTS

5.1                               PROGRESS PAYMENTS

5.1.1        The Design Builder shall deliver to the Owner itemized Applications for
Payment in such detail as indicated in Article 14.

5.1.1.1     Application shall be made on AlA forms G702 and G703 or similar documents.  Two percent retainage shall be held by the
owner on up to fifty percent value of the original contract value after which
no additional retainage will be held.

5.1.2        Within ten (10) days of the Owner’s receipt of a properly submitted and
correct Application for Payment, the Owner shall make payment to the Design
Builder.

 10

 

 

5.1.3        The Application for Payment shall constitute a representation by the
Design Builder to the Owner that the design and construction have progressed to
the point indicated; the quality of Work covered by the application is in
accordance with the Contract Documents; and the Design Builder is entitled to
payment in the amount requested.

5.1.4        Upon receipt of payment from the Owner, the Design Builder shall
promptly pay the other design professionals and each contractor the amount to
which each is entitled in accordance with the terms of their respective
contracts.

5.1.5        The Owner shall have no obligation under this Agreement to pay or to be
responsible in any way for payment to another design professional, or a
contractor performing portions of the Work.

5.1.6        Neither progress payment nor partial or entire use or occupancy of the
Project by the Owner shall constitute acceptance of Work not in accordance with
the Contract Documents.

5.1.7        The Design Builder warrants that title to all construction covered by an
Application for Payment will pass to the Owner no later than the time of
payment.  The Design Builder further
warrants that upon submittal of an Application for Payment all construction for
which payments have been received from the Owner shall be free and clear of
liens, claims, security interests or encumbrances in favor of the Design
Builder or any other person or entity performing construction at the site or
furnishing materials or equipment relating to the construction.

5.1.8        Upon compliance with the Process Guarantee, the Owner shall pay the
Design Builder the retainage, if any, less the reasonable cost to correct or
complete incorrect or incomplete Work. 
Final payment of such withheld sum shall be made upon correction or
completion of such Work.

5.2.                            FINAL PAYMENT

5.2.1        When the Work has been completed and the contract fully performed, the
Design Builder shall submit a final application for payment to the Owner, who
shall make final payment within ten (10) days of receipt.

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

5.2.2.1     liens,
claims, security interests or encumbrances arising out of the Contract and
unsettled;

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

5.2.2.3     terms of
special warranties required by the Contract Documents.

5.2.3        Acceptance of final payment shall constitute a waiver of all claims by
the Design Builder except those previously made in writing and identified by
the Design Builder as unsettled at the time of final Application for Payment.

5.3                               INTEREST PAYMENTS

5.3.1        Payments due to the Design Builder under this Agreement which are not
paid when due shall bear interest from the date due at the rate specified in
Article 13, or in the absence of a specified rate, at the legal rate prevailing
where the Project is located.

ARTICLE 6 - PROTECTION OF PERSONS AND PROPERTY

6.1          The
Design Builder shall be responsible for initiating, maintaining and providing supervision
of safety precautions and programs in connection with the performance of this
Agreement.

6.2          The
Design Builder shall take reasonable precautions for the safety of, and shall
provide reasonable protection to prevent damage, injury or loss to: (1)
employees on the Work and other persons who may be affected thereby; (2) the
Work and materials and equipment to be incorporated therein, whether in storage
on or off the site, under care, custody, or control of the Design Builder or
the Design Builder’s contractors; and (3) other property at 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.

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

6.4          The
Design Builder shall promptly remedy damage and loss (other than damage or loss
insured under property insurance provided or required by the Contract
Documents) to property at the site caused in whole or in part by the Design
Builder, a contractor of the Design Builder or anyone directly or indirectly
employed by any of them, or by anyone for whose acts they may be liable.

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ARTICLE 7 - INSURANCE AND BONDS

7.1                               PERFORMANCE, PAYMENT AND
OTHER BONDS

7.1.1        If it is required by the Primary Lender, Design Builder shall furnish
performance and payment Bonds, each in an amount at least equal to the Contract
Price as security for the faithful performance and payment of all Design
Builder’s obligations to furnish, provide and pay for Construction and related
materials under the Contract Documents.  
These Bonds shall remain in effect at least until one year after the
date when final payment becomes due, except as provided otherwise by Laws or
Regulations or by the Contract Documents. 
Design Builder shall also furnish such other Bonds as are required by
Article 14.  All Bonds shall be in the
form prescribed by the Contract Documents except as provided otherwise by Laws
or Regulations, and shall be executed by such sureties as are named in the
current list of “Companies Holding Certificates of Authority as Acceptable
Surety Companies” as published in Circular 570 (amended) by the Audit Staff,
Bureau of Government Financial Operations, U.S. Treasury Department.  All Bonds signed by an agent must be
accompanied by a certified copy of such agent’s authority to act.  The cost of the performance and payment bonds
shall be paid by the Owner.

7.1.2        If the surety on any Bond furnished by Design Builder is declared
bankrupt or becomes insolvent or its right to do business is terminated in any
state where any part of the Project is located or it ceases to meet the
requirements of paragraph 7.1.1, Design Builder shall within thirty days
thereafter substitute another Bond and surety meeting the requirements of
paragraphs 7.1.1 and 7.9.

7.2                               DESIGN/BUILDER’S LIABILITY
INSURANCE

7.2.1        The Design Builder 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 Owner and Design Builder
from claims set forth below which may arise out of or result from operations
under this Agreement by the Design Builder.

7.2.1.1     Claims under workers’ compensation, disability benefits and other similar
employee benefit acts;

7.2.1.2     Claims for damages because of bodily injury, occupational sickness or disease,
or death of Design Builder’s employees;

7.2.1.3     Claims for damages because of bodily injury, sickness or disease, or death
of any person other than Design Builder’s employees;

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7.2.1.4     Claims for damages insured by customary personal injury liability coverage
which are sustained (I) by any person as a result of an offense directly or
indirectly related to the employment of such person by Design Builder, or (U)
by any other person for any other reason;

7.2.1.5     Claims for damages, other than to the Work itself, because of injury to
or destruction of tangible property wherever located, including loss of
use resulting therefrom; and

7.2.1.6     Claims for damages because of bodily injury or
death of any person or property damage arising
out of the ownership, maintenance or use of any motor vehicle.

7.2.2        The policies of insurance required by paragraph 7.2.1 shall:

7.2.2.1     With respect to insurance required by paragraphs 7.2.1.3 through
7.2.1,6 inclusive, include as additional insureds Owner and any other persons
or entities indicated in Article
14, all of whom shall be listed as additional insureds, and include coverage
for the respective officers and employees of all such additional insureds;

7.2.2.2     Include at least the specific coverages and be written for not less
than the limits of liability provided in 7.2,2.2.a through 7.2.2.2.c or
required by Laws or Regulations, whichever is greater;

a.                                       Worker’s Compensation under Paragraph 7.2.1.1
of the General Conditions:

	
  1.

  	
   

  	
  State:

  	
   

  	
  Statutory

  	
   

  
	
  2.

  	
   

  	
  Applicable
  Federal:

  	
   

  	
  Statutory

  	
   

  
	
  3.

  	
   

  	
  Employer’s Liability:

  	
   

  	
  $

  	
  500,000

  	
   

  
							

 

b.                                      Design Builder’s General Liability (under
paragraphs 7.2.1,2 through 7.2.1,6) which shall include completed operations
and product liability coverages.

	
  1.

  	
   

  	
  General Aggregate: 

  (Except Products-Completed Operations)

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Products-Completed
  Operations Aggregate

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Personal and Advertising Injury

  (Per Person/Organization)

  	
   

  	
  $

  	
  1,000,000

  	
   

  

 

 14
 

 

 

	
  4.

  	
   

  	
  Each Occurrence 

  (Bodily Injury and Property Damages)

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Property Damage liability insurance will provide
  Explosion, Collapse and Underground coverages where applicable.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Excess Liability

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  General
  Aggregate

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
  Each Occurrence

  	
   

  	
  $

  	
  5,000,000

  	
   

  

 

c.               Automobile Liability:

 

	
  Combine Single Limit (Bodily
  Injury and Property Damage)

  	
   

  	
  $1,000,000

  	
   

  

 

7.2.2.3     include
completed operations insurance;

7.2.2.4               Include contractual liability insurance
covering Design Builder’s indemnity obligations under paragraphs 3.2,11, 3.2.12
and 11.4;

7.2.2.5               Contain a provision or endorsement that the
coverage afforded will not be canceled until at least 30 days’ prior written
notice has been given to Owner and each other additional insured indicated in
Article 14 to whom a Certificate of Insurance has been issued (and the
Certificate of Insurance furnished by the Design Builder pursuant to paragraph
7.9.2 will so provide);

7.2.2.6.            Remain in effect at least until final payment
and at all times thereafter when Design Builder may be correcting, removing or
replacing defective Construction in accordance with Article 9; and

7.2.2.7               With respect to completed operations
insurance, and any other insurance coverage written on a claims-made basis,
this insurance shall remain in effect for at least one year after final
payment.

7.2.3        Design Builder’s insurance agency shall agree in writing to give to
owner notice of cancellation of insurance by either party.

 15
 

 

 

7.3                               OWNER’S LIABILITY INSURANCE

7.3.1        The Owner shall be responsible for purchasing and maintaining the Owner’s
General, Auto and Workmen’s Compensation liability insurance.  Optionally, the Owner may purchase and
maintain other insurance for self-protection against claims which may arise
from operations under this Agreement. 
The Design Builder shall not be responsible for purchasing and maintaining
this optional Owner’s liability insurance unless specifically required by the
Contract Documents.

7.4                               PROPERTY INSURANCE

7.4.1        Unless otherwise provided in Article 14, Owner shall purchase and
maintain property insurance upon the Construction at the Site in the amount of
the full replacement cost thereof (subject to deductible amounts not exceeding
$5000 per occurrence). This insurance will:

7.4.1.1     Include the interests of Owner, Design/Builder, Subcontractors, and any
other persons or entities indicated in the Supplementary Conditions, each of
whom is deemed to have an insurable interest and shall be listed as an insured
or additional insured;

7.4.1.2     Be written on a Builder’s Risk “all-risk” or open peril or special
causes of loss policy form that shall at least include insurance for physical
loss and damage to the Construction, temporary buildings, falsework and all
materials and equipment in transit, and shall insure against at least the
following perils or causes of loss: fire, lightning, extended coverage, theft,
vandalism and malicious mischief, collapse, debris removal, demolition
occasioned by enforcement of Laws and Regulations, and such other perils or
causes of loss as may be specifically required by the Supplementary Conditions;

7.4.1.3     Include expenses incurred in the repair or replacement of any insured property
(including but not limited to fees and charges of engineers and design
professionals);

7.4.1.4     Be maintained in effect until final payment is made unless otherwise agreed
to in writing by Owner and Design/Builder with thirty days written notice to
each other additional insured to whom a certificate of insurance has been
issued; and

7.4.1.5     Allow
partial utilization in accordance with paragraph 7.8.

7.4.2        All the policies of insurance (and the certificates or other evidence
thereof) required to be purchased and maintained by Owner in accordance with
paragraph 7.4 will contain a provision or endorsement that the coverage
afforded will not be canceled until 

 16
 

 

at
least 30 days’ prior written notice has been given to Design Builder and to
each other additional insured to whom a Certificate of Insurance has been
issued and will contain waiver provisions in accordance with paragraph
7.5.1.  In addition, the insurance agency
representing the Owner shall agree in writing to give to Design Builder notice
of cancellation by either party.

7.4.3.       Owner shall not be responsible for purchasing and maintaining any
property insurance to protect the interests of Design Builder, Subcontractors,
Supplies, Engineers or others in the Work to the extent of any deductible
amounts.  The risk of loss within such
identified deductible amount, will be borne by Design Builder, Subcontractor or
others suffering any such loss and if any of them wishes property insurance
coverage within the limits of such amounts, each may purchase and maintain it
at the purchaser’s own expense.

7.5                               WAIVER OF RIGHTS

7.5.1        Owner and Design Builder intend that all policies purchased in
accordance with paragraph 7.4 will protect Owner, Design Builder, Engineers,
subcontractors, and all other individuals or entities indicated in Article 14
to be listed as insured or additional insureds in such policies and will
provide primary coverage for all losses and damages caused by the perils or
causes of loss covered thereby.  All such
policies shall contain provisions to the effect that in the event of payment of
any loss or damage the insurers will have no rights of recovery against any of
the insureds or additional insureds thereunder. 
Owner and Design Builder waive all rights against each other and their
respective officers, directors, employees and agents for all losses and damages
caused by, arising out of or resulting from any of the perils or causes of loss
covered by such policies and any other property insurance applicable to the
Work; and, in addition, waive all such rights against Subcontractors,
Suppliers, Engineers and all other individuals or entities indicated in the
Supplementary Conditions to be listed as insureds or additional insureds under
such policies for losses and damages so caused. 
None of the above waivers shall extend to the rights that any party
making such waiver may have to the proceeds of insurance held by Owner as
trustee or otherwise payable under any policy so issued.  In addition, Owner waives all rights against
Design Builder, Subcontractors, Engineers and Suppliers and the officers,
directors, employees and agents of any of them for business interruption, loss
of use of Owner’s property and any other consequential damages caused by,
arising out of or resulting from any of such insured perils or causes of loss
or any other peril or cause of loss whether or not insured.

7.6                               RECEIPT AND APPLICATION OF
PROCEEDS

7.6.1        Any insured loss under the policies of insurance required by paragraph
7.4 will be adjusted with Owner and made payable to Owner as fiduciary for the
insureds, as their interests may appear, subject to the requirements of any
applicable mortgage clause and of paragraph 7.6.3.

 17
 

 

 

7.6.2.       Owner shall deposit in a separate account any money so received, and
shall distribute it in accordance with such agreement as the parties in
interest may reach.  If no other special
agreement is reached the damaged Work shall be repaired or replaced, the moneys
so received applied on account thereof and the Work and the cost thereof
covered by an appropriate Change Order or Written Amendment.

7.6.3.       Owner as fiduciary shall have power to adjust and settle any loss with
the insurers unless one of the parties in interest shall object in writing
within fifteen days after the occurrence of loss to Owner’s exercise of this
power.  If such objection be made, Owner
as fiduciary shall make settlement with the insurers in accordance with such
agreement as the parties in interest may reach. 
If no such agreement among the parties in interest is reached, Owner as
fiduciary shall adjust and settle the loss with the insurers and, if required
in writing by any party in interest, Owner as fiduciary shall give bond for the
proper performance of such duties.

7.7                               ACCEPTANCE OF BONDS AND
INSURANCE; OPTION TO REPLACE

7.7.1        If either party has any objection to the coverage afforded by or other
provisions of the Bonds or insurance required to be purchased and maintained by
the other party in accordance with Article 7 on the basis of their not
complying with the Contract Documents, the objecting party shall so notify the
other party in writing within ten days after receipt of the certificates.  Owner and Design Builder shall each provide
to the other such additional information in respect of insurance provided as
the other may reasonably request.  If
either party does not purchase or maintain all of the Bonds and insurance
required of such party by the Contract Documents, such party shall notify the
other party in writing of such failure to purchase prior to the start of the
Work, or of such failure to maintain prior to any change in the required
coverage.  Without prejudice to any other
right or remedy, the other party may elect to obtain equivalent Bonds or
insurance to protect such other party’s interests at the expense of the party
who was supposed to provide such coverage, and a Change Order or Written
Amendment shall be issued to adjust the Contract Price accordingly.

7.8                               PARTIAL UTILIZATION –
PROPERTY INSURANCE

7.8.1        If Owner finds it necessary to occupy or use a portion or portions of
the Work prior to Substantial Completion of all the construction, such use or
occupancy may be accomplished; provided that no such use or occupancy shall
commence before the insurers providing the property insurance have acknowledged
notice thereof and in writing effected any changes in coverage necessitated
thereby. The insurers providing the property insurance shall consent by
endorsement on the policy or policies, but the property insurance shall not be
cancelled or permitted to lapse on account of any such partial use or
occupancy.

 18
 

 

 

7.9                               LICENSED SURETIES AND
INSURERS; CERTIFICATES OF INSURANCE

7.9.1        All Bonds and insurance required by the Contract Documents to be purchased
and maintained by Owner or Design Builder shall be obtained from surety or
insurance companies that are duly licensed or authorized in the jurisdiction in
which the Project is located to issue Bonds or insurance policies for the
limits and coverage’s so required. Such surety and insurance companies shall
also meet such additional requirements and qualifications as may be provided in
Article 14.

7.9.2        Design Builder shall deliver to Owner, with copies to each additional
insured indicated in Article 14, certificates of insurance (and other evidence
of insurance requested by Owner or any other additional insured) which
Design/Builder is required to purchase and maintain in accordance with
paragraph 7.2.1.  Owner shall deliver to
Design Builder, with copies to each additional insured indicated in Article 14,
certificates of insurance (and other evidence of insurance requested by Design
Builder or any other additional insured) which Owner is required to purchase
and maintain in accordance with paragraphs 7.4.1 and 7.4.2.

ARTICLE 8 - CHANGES IN THE WORK

8.1                               CHANGES

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

8.1.2        A Change Order shall be based upon agreement between the Owner and the Design
Builder; a Construction Change Directive may be issued by the Owner without the
agreement of the Design Builder; an order for a minor change in the Work may be
issued by the Design Builder alone.

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

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

 19
 

 

 

8.2                               CHANGE ORDERS

8.2.1        A Change Order is a written instrument prepared by the Design Builder
and signed by the Owner and the Design Builder, stating their agreement upon
all of the following:

1.             a change in the Work;

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

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

8.2.2        If the Owner requests a proposal for a change in the Work from the
Design Builder and subsequently elects not to proceed with the change, a Change
Order shall be issued to reimburse the Design Builder for any costs incurred
for estimating services, design services or preparation of proposed revisions
to the Contract Documents.

8.3                               CONSTRUCTION CHANGE
DIRECTIVES

8.3.1        A Construction Change Directive is a written order prepared and signed
by the Owner, directing a change in the Work prior to agreement on adjustment,
if any, in the Contract Sum or Contract Time, or both.

8.3.2        Except as otherwise agreed by the Owner and the Design Builder, the
adjustment to the Contract Sum shall be determined on the basis of reasonable
expenditures and savings of those performing the Work attributable to the
change, including the expenditures for design services and revisions to the
Contract Documents.  In such case, the
Design Builder shall keep and present an itemized accounting together with
appropriate supporting data for inclusion in a Change Order.  Unless otherwise provided in the Contract
Documents, costs for these purposes shall be limited to the following:

1.                                       costs of labor, including social security,
old age and unemployment insurance, fringe benefits required by agreement or
custom, and workers’ compensation insurance;

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

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

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

 20

 

 

5.                                       additional costs of supervision and field
office personnel directly attributable to the change; and fees paid to other
design professionals.

8.3.3        Pending final determination of cost to the Owner, amounts not in
dispute may be included in Applications for Payment.  The amount of credit to be allowed by the
Design Builder to the Owner for deletion or change which results in a net
decrease in the Contract Sum and Contract Time, such agreement shall be
effective immediately and shall be recorded by preparation and execution of an
appropriate Change Order.

8.4                               MINOR CHANGES IN THE WORK

8.4.1        The Design Builder shall have authority to make minor changes in the Construction
Documents and construction consistent with the intent of the Contract Documents
when such minor changes do not involve adjustment in the Contract Sum or
extension of the Contract Time.  The
Design Builder shall promptly inform the Owner, in writing, of minor changes in
the Construction Documents and construction.

8.5                               CONCEALED CONDITIONS

8.5.1        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 promptly before conditions are disturbed and
in no event later than 21 days after first observance of the conditions.  The Contract Sum shall be equitably adjusted
for such concealed or unknown conditions by Change Order upon claim by either
party made within 21 days after the claimant becomes aware of the conditions.

8.6                               REGULATORY CHANGES

8.6.1        The Design Builder shall be compensated for changes in the construction
necessitated by the enactment or revisions of codes, laws or regulations
subsequent to the submission of the Design Builder’s Proposal.

ARTICLE 9 - CORRECTION OF WORK

9.1                               The Design Builder shall promptly correct Work rejected by the Owner or
known by the Design Builder to be defective or failing to conform to the
requirements of the Contract Documents, whether observed before or after
Substantial Completion and whether or not fabricated, installed or completed.
The Design Builder shall bear costs of correcting such rejected Work, including
additional testing and inspections.

 21
 

 

9.2                               If, within one (1) year after the date of Substantial Completion of the
Work or, after the date for commencement of warranties established in a written
agreement between the Owner and the Design Builder, 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 Design Builder shall correct it promptly after receipt of a
written notice from the Owner to do so unless the Owner has previously given
the Design Builder a written acceptance of such condition.

9.3                               Nothing contained in this Article 9 shall be construed to establish a
period of limitation with respect to other obligations which the Design/Builder
might have under the Contract Documents. 
Establishment of the time period of one (1) year as described in
Subparagraph 9.2 relates only to the specific obligation of the Design Builder
to correct the Work, and has no relationship to the time within which
proceedings may be commenced to establish the Design Builder’s liability with
respect to the Design Builder’s obligations other than specifically to correct
the Work.

9.4                               If the Design Builder fails to correct nonconforming Work as required
or fails to carry out Work in accordance with the Contract Documents, the
Owner, by written order signed personally or by an Agent specifically so
empowered by the Owner in writing, may order the Design Builder to stop the
Work, or any portion thereof, until the cause for such order has been
eliminated; however, the Owner’s right to stop the Work shall not give rise to
a duty on the part of the Owner to exercise the right for benefit of the Design
Builder or other persons or entities.

9.5                               If the Design Builder defaults or neglects to carry out the Work in
accordance with the Contract Documents and fails within fourteen (14) days
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 give a second written notice to the Design Builder and, fourteen (14) days
following receipt by the Design Builder of that second written notice and
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 Design Builder, the costs of
correcting such deficiencies. If the payments then or thereafter due the Design
Builder are not sufficient to cover the amount of the deduction, the Design
Builder shall pay the difference to the Owner. Such action by the Owner shall
be subject to dispute resolution procedures as provided in Article 10.

ARTICLE 10 - DISPUTE RESOLUTION — MEDIATION AND
ARBITRATION

10.1                        Claims, disputes or other matters in question between the parties to
this Agreement arising out of or relating to this Agreement or breach thereof
shall be subject to and decided by mediation or arbitration.  Such mediation or arbitration shall be
conducted in accordance with the Construction Industry Mediation or Arbitration
Rules of the American Arbitration Association currently in effect.

 22
 

 

10.2                        In addition to and prior to arbitration, the parties shall endeavor to
settle disputes by mediation.  Demand for
mediation shall be filed in writing with the other party to this Agreement and
with the American Arbitration Association. 
A demand for mediation shall be made within a reasonable time after the
claim, dispute, or other matter in question has arisen.  In no event shall the demand for mediation be
made after the date when institution of legal or equitable proceedings based on
such claim, dispute or other matter in question would be barred by the
applicable statutes or repose or limitations.

10.3                        Demand for arbitration shall be filed in writing with the other party
to this Agreement and with the American Arbitration Association. A demand for
arbitration shall be made within a reasonable time after the claim, dispute or
other matter in question has arisen.  In
no event shall the demand for arbitration be made after the date when
institution of legal or equitable proceedings based on such claim, dispute or
other matter in question would be barred by the applicable statutes of repose
or limitations.

10.4                        An arbitration pursuant to this Article may be joined with an
arbitration involving common issues of law or fact between the Design Builder
and any person or entity with whom the Design Builder has a contractual
obligation to arbitrate disputes.  No
other arbitration arising out of or relating to this Agreement shall include,
by consolidation, joinder or in any other matter, an additional person or
entity not a party to this Agreement or not a party to an agreement with the
Design Builder, except by written consent containing a specific reference to
this Agreement signed by the Owner, the Design Builder and any other person or
entities sought to be joined. Consent to arbitration involving an additional
person or entity shall not constitute consent to arbitration of any claim,
dispute or other matter in question not described in the written consent 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 the parties to this Agreement shall be specifically enforceable
in accordance with applicable law in any court having jurisdiction thereof.

10.5                        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. Any and all arbitration or mediation hearings
shall be held in Sioux Falls, SD.

ARTICLE 11 - MISCELLANEOUS PROVISIONS

11.1                        Unless otherwise provided, this Agreement shall be governed by the law
of the place where the Project is located.

 23
 

 

 

11.2                        RELATED CONSTRUCTION OF SITE

11.2.1      Owner may perform other Work related to the Project at the Site by
Owner’s own forces, or let other direct contracts therefore or have other work
performed by utility owners.  If the fact
that such other work is to be performed was not noted in the Conceptual
Documents then (I) written notice thereof will be given to Design Builder prior
to starting any such other work and (ii) Design Builder may make a claim
therefore as provided in Article 8 if Design Builder believes that such performance
will involve additional expense to Design Builder or requires additional time
and the parties are unable to agree as to the amount or extent thereof.

11.2.2      Design Builder shall afford each other contractor who is a party to
such a direct contract and each utility owner (and Owner, if Owner is
performing the additional work with Owner’s employees) proper and safe access
to the Site and a reasonable opportunity for the introduction and storage of
materials and equipment and the execution of such other work and shall properly
connect and coordinate the Construction with theirs.  Unless otherwise provided in the Contract
Documents, Design Builder shall do all cutting, fitting and patching of the
Work that may be required to make its several parts come together properly and
integrate with such other work.  Design
Builder shall not endanger any work of others by cutting, excavating or
otherwise altering their work without the written consent of Owner and the
others whose work will be affected.  The
duties and responsibilities of Design Builder under this paragraph are for the
benefit of such utility owners and other contractors to the extent that there
are comparable provisions for the benefit of Design Builder in said direct
contracts between Owner and such utility owners and other contractors.

11.2.3      If the proper execution or results of any part of Design Builder’s Work
depends upon work performed or services provided by others under this paragraph
11.2, Design Builder shall inspect such other work and appropriate instruments
of service and promptly report to Owner in writing any delays, defects of
deficiencies in such other work or services that render it unavailable or
unsuitable for the proper execution and results of Design Builder’s Work.
Design Builder’s failure so to report will constitute an acceptance of such
other work as fit and proper for integration with Design Builder’s Work except
for latent or nonapparent defects and deficiencies in such other work.

11.2.4      Coordination

11.2.4.1   If Owner contracts with others for the performance of other work on the
Project at the Site, the following will be set forth in Article 14:

a.             The individual or entity who will have
authority and responsibility for coordination of the activities among the
various prime contractors will be identified;

 24
 

 

 

b.             The specific matters to be covered by such
authority and responsibility will be itemized; and

c.             The extent of such authority and
responsibilities will be provided.

11.2.4.2   Unless otherwise provided in Article 14, Owner shall have sole authority
and responsibility in respect of such coordination.

11.3                        CLAIMS FOR DAMAGES

11.3.1      If either party to this Agreement suffers injury or damage to person or
property because of an act or omission of the other party, of any of the other
party’s employees or agents, or of others for whose acts such party is legally
liable, 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 first observance.  The notice shall
provide sufficient detail to enable the other party to investigate the
matter.  If a claim of additional cost or
time related to this claim is to be asserted, it shall be filed in writing.

11.4                        INDEMNIFICATION

11.4.1      To the fullest extent permitted by law, the Design Builder shall
indemnify and hold harmless the Owner’s, the Board of Managers, Officers, Owner’s
consultants, and agents and employees of any of them from and against claims,
damages, losses and expenses, including but not limited to attorney’s fees,
arising out of or resulting from performance of the Work, 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) including loss of use resulting therefrom, but only to
the extent caused in whole or in part by negligent acts or omissions of the
Design Builder, anyone directly or indirectly employed by the Design Builder or
anyone for whose acts the Design Builder may be liable.  Such obligation shall not be construed to
negate, abridge, or reduce other rights or obligations of indemnity which would
otherwise exist as to a party or person described in this Paragraph 11.4.

11.4.2      To the fullest extent permitted by law, the Owner shall indemnify and
hold harmless the Design Builder, Broin’s Board of Directors and Officers,
Design Builder’s consultants, and agents and employees of any of them from and
against claims, damages, losses and expenses, including but not limited to
attorney’s fees, arising out of or resulting from performance of the Work,
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) including loss of use resulting
therefrom, but only to the extent caused in whole or in part by negligent acts
or omissions of the Owner, anyone directly or indirectly employed by the Owner
or anyone for whose acts the Owner may be liable.  Such obligation shall not be construed to 

 25
 

 

negate, abridge, or reduce
other rights or obligations of indemnity which would otherwise exist as to a
party or person described in this Paragraph 11 .4.

11.4.3      In claims against any person or entity indemnified under this Paragraph
11.4 by an employee of the Design Builder, anyone directly or indirectly
employed by the Design Builder or anyone for whose acts the Design Builder may
be liable, the indemnification obligation under this Paragraph 11.4 shall not
be limited by a limitation on amount or type of damages, compensation or
benefits payable by or for the Design Builder under worker’s compensation acts,
disability benefit acts or other employee benefit acts.

11.5                        SUCCESSORS AND ASSIGNS

11.5.1      The Owner and Design Builder, respectively, bind themselves, their
partners, successors, assigns and legal representatives to the other party to
this Agreement and to the partners, successors and assigns of such other party
with respect to all covenants of this Agreement.  Neither the Owner nor the Design Builder
shall assign this Agreement without the written consent of the other.  The Owner may assign this Agreement to any institutional
lender providing construction financing, and the Design Builder agrees to
execute all consents reasonably required to facilitate such an assignment.  If either party makes such an assignment,
that party shall nevertheless remain legally responsible for all obligations
under this Agreement, unless otherwise agreed by the other party.

11.6                        EXTENT OF AGREEMENT

11.6.1      This Agreement represents the entire agreement between the Owner and
the Design Builder and supersedes prior negotiations, representations or
agreements, either written or oral.  This
Agreement may be amended only by written instrument and signed by both the
Owner and the Design Builder.

ARTICLE 12 - TERMINATION OF THE AGREEMENT

12.1                        TERMINATION BY THE OWNER

12.1.1      This Agreement may be terminated by the Owner upon 14 days’ written
notice to the Design Builder in the event that the Project is abandoned.  If such termination occurs, the Owner shall
pay the Design Builder for Work completed and for proven loss sustained upon
materials, equipment, tools, and construction equipment machinery, including
reasonable profit and applicable damages.

12.1.2      If the Design Builder defaults or persistently fails or neglects to
carry out the Work in accordance with the Contract Documents or fails to
perform the provisions of this Agreement, the Owner may give written notice
that the Owner intends to terminate this Agreement.  If the Design Builder fails to correct the
defaults, failure or neglect 

 26
 

 

within fourteen (14) days
after being given notice, the Owner may then give a second written notice and,
after an additional fourteen (14) days the Owner may without prejudice to any
other remedy terminate the employment of the Design Builder and take possession
of the site and of all materials, equipment and finish the Work by whatever
method the Owner may deem expedient.  If
the unpaid balance of the Contract Sum exceeds the expense of finishing the
Work and all damages incurred by the Owner, such excess shall be paid to the
Design Builder.  If the expense of
completing the Work and all damages incurred by the Owner exceeds the unpaid
balance, the Design Builder shall pay the difference to the Owner.  This obligation for payment shall survive
termination of this Agreement.

12.2                        TERMINATION BY THE
DESIGN/BUILDER

12.2.1      If the Owner fails to make payment when due, the Design Builder may
give written notice of the Design Builder’s intention to terminate this
Agreement. If the Design Builder fails to receive payment within fourteen (14)
days after receipt of such notice by the Owner, the Design Builder may give a
second written notice and, fourteen (14) days after receipt of such second
written notice by the Owner, may terminate this Agreement and recover from the
Owner payment for Work executed and for proven losses sustained upon materials,
equipment, tools, and construction equipment and machinery, including
reasonable profit and applicable damages.

ARTICLE 13 - BASIS OF COMPENSATION

The Owner shall compensate the Design Builder in accordance with
Article 5, Payments, and the other provisions of this Agreement as described
below.

13.1                        COMPENSATION

13.1.1      For the Design Builder’s performance of the Work, as described in
Paragraph 3.2 and including any other services listed in Article 14 as part of
Basic Services, the Owner shall pay the Design Builder in current funds the
Contract Sum as follows:

Sixty Eight
Million One Hundred Thirty One Thousand Seven Hundred Fifty one Dollars and no
Cents ($68,131,751.00).  This price includes sales and excise tax and
will remain valid as long as construction is started by April 1, 2007.  A Start date after that time will cause the
price to be reviewed and adjusted accordingly.

13.1.2      For Additional Services, as described in Paragraph 3.3 and including
any other services listed in Article 14 as Additional Services, compensation
shall be at a negotiated price.

 27
 

 

 

13.2                        REIMBURSABLE EXPENSES

13.2.1      Reimbursable Expenses are in addition to the compensation for Basic and
Additional Services, and include actual expenditures made by the Design Builder
and the Design/Builder’s employees and contractors in the interest of the
Project.

13.2.2      FOR REIMBURSABLE EXPENSES, compensation shall be a multiple of(1.1) times
the amounts expended.

13.3                        INTEREST PAYMENTS

13.3.1      The rate
of interest for past due payments shall be as follows:

(1.5%) one and one half percent per month.

ARTICLE 14 – OTHER CONDITIONS AND SERVICES

14.1                        The Basic Services to be performed shall be commenced on issuance of
Notice to Proceed and, subject to authorized adjustments and to delays not
caused by the Design Builder, Substantial Completion shall be achieved in
Eighteen (18) months following the start of concrete work.

14.2                        The Basic Services beyond those described in Article 3 are as follows:

None

14.3                        Additional Services beyond those described in Article 3 are as follows:

None

14.4                        The Design Builder shall submit an Application for Payment on or about
the 15th day of each month.

14.5                        The Design Builders Exhibits include the following documents:

	
  Title

  	
   

  	
   

  	
   

  	
  Date

  
	
  Exhibit 1 -

  	
   

  	
  Schedule of contract Values and Project Estimate
  consisting of two (2) pages

  	
   

  	
   

  

 

 28
 

 

14.6                        OTHER CONDITIONS

14.6.1                  A payment of Three Hundred Thousand Dollars
($300,000) will be due and payable for Preliminary Engineering for the Project
within 15 days upon signing of this document.

14.6.2                  A payment of Seventy-five Thousand Dollars
($75,000) for permitting and initial design will be due and payable for the
Project within 15 days upon signing of this document.

14.6.3                  Owner will apply for and receive any
applicable state sales or excise tax refunds. Design Builder will assist the
Owner in compiling necessary documentation.

14.6.4                  The Process Guarantee attached as Exhibits,
shall be met within 90 days following the date of substantial completion.

NO OTHER CONDITIONS ARE NEITHER EXPRESSED NOR IMPLIED OTHER THAN THOSE
STATED ABOVE.

IN WITNESS WHEREOF, OWNER and DESIGN BUILDER have signed this Agreement
in duplicate.  One counterpart each has
been delivered to OWNER and DESIGN BUILDER. 
All portions of the Contract Documents have been signed, initialed or
identified by OWNER and DESIGN BUILDER.

This Owner – Design Builder Agreement will be effective on the day and
year first written above.

	
  OWNER:

  	
   

  	
  DESIGN BUILDER:

  	
   

  
	
  Great Plains Ethanol, LLC

  	
   

  	
  Broin and Associates, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  BY:

  	
  /s/ Darrin Ihnen

  	
   

  	
  By:

  	
  /s/ Mark Melander

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Darrin Ihnen

  	
   

  	
  Name:

  	
  Mark D. Melander

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  COO

  	
   

  
															

 

 29

 

GREAT PLAINS ETHANOL, LLC
EXPANSION (GPE-E1)

SCHEDULE OF CONTRACT VALUES
AND PROJECT ESTIMATE

THE CONTRACT PROVIDES ALLOWANCES FOR:

$1,040,000
for Site Preparation, Testing and Utilities (Paved roadways & Parking lots,
Building Base Excavation & Backfill, Rail Spur sub-grade, Excavation &
Backfill, Storm Water Ponds, Other Testing services during Construction)

$35,000
for Permitting

$50,000
for Water Mains, Branches & Hydrants On-Site

$25,000
for Sanitary Sewer Piping/Septic System

$1
5,000 for On-Site Direct Discharge Piping

$1,250,000
for Railroad Switches and Trackage, not including main-line switch(s)

$25,000
for On-Site Gas Line Relocation

$50,000
for Electrical Distribution

$1,309,198
for Sub-Contractor/Vendor Surcharges (Guaranteed Maximum Price)

$50,000
for Maintenance Equipment

$1
0,000 for Communication Equipment

$150,000
for Spare Parts

$25,000
for Safety Equipment

$15,000
for Office Equipment & Furnishings

 1
 

 

 

SCHEDULE OF
CONTRACT VALUES AND PROJECT ESTIMATE

	
  CONTRACT
  COSTS

  	
   

  	
   

  	
   

  
	
  100

  	
   

  	
  SITE
  WORK

  	
   

  	
  $

  	
  2,565,000

  	
   

  
	
  200

  	
   

  	
  BUILDINGS

  	
   

  	
  $

  	
  8,385,000

  	
   

  
	
  300

  	
   

  	
  MECHANICAL

  	
   

  	
  $

  	
  10,273,500

  	
   

  
	
  400

  	
   

  	
  PROCESS
  SYSTEMS

  	
   

  	
  $

  	
  18,072,300

  	
   

  
	
  500

  	
   

  	
  ELECTRICAL

  	
   

  	
  $

  	
  5,664,000

  	
   

  
	
  600

  	
   

  	
  INSTRUMENTATION

  	
   

  	
  $

  	
  960,000

  	
   

  
	
  700

  	
   

  	
  GRAIN
  SYSTEMS

  	
   

  	
  $

  	
  4,565,000

  	
   

  
	
  800

  	
   

  	
  GENERAL
  CONSTRUCTION, TAX, FREIGHT, COATINGS, MISC.

  	
   

  	
  $

  	
  6,038,954

  	
   

  
	
  900

  	
   

  	
  OTHER
  PROJECT EQUIPMENT, COSTS

  	
   

  	
  $

  	
  250,000

  	
   

  
	
  1000

  	
   

  	
  DESIGN,
  ENGINEERING, MANAGEMENT, MISC, LABOR, ETC.

  	
   

  	
  $

  	
  11,358,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TOTAL
  CONTRACT COST

  	
   

  	
  $

  	
  68,131,751

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  OWNER’S
  ESTIMATED PROJECT COSTS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LAND AND
  ACQUISITION COSTS

  	
   

  	
  $

  	
  50,000

  	
   

  
	
   

  	
   

  	
  WATER SUPPLY,
  WATER PIPELINE, WATER DISCHARGE

  	
   

  	
  $

  	
  600,000

  	
   

  
	
   

  	
   

  	
  RAILROAD MAIN
  SWITCHES (1)

  	
   

  	
  $

  	
  200,000

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS
  ADDITIONAL DEVELOPMENT

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
  OWNER’S
  CONTINGENCY

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
  OPERATING COST
  PRIOR TO STARTUP

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
  STARTUP AND WORKING
  CAPITAL

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
  OFFERING,
  ORGANIZATIONAL, & CONSULTING COSTS

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
  UTILITY
  FINANCING COSTS (LOC) / INFRASTRUCTURE

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
  GAS COMPRESSOR
  UPGRADE W/ NORTHWESTERN

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
  FINANCING COSTS

  	
   

  	
  $

  	
  500,000

  	
   

  
	
   

  	
   

  	
  CAPITALIZED
  INTEREST

  	
   

  	
  $

  	
  1,500,000

  	
   

  
	
   

  	
   

  	
  ROAD
  IMPROVEMENTS

  	
   

  	
  $

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OWNER’S
  ESTIMATED PROJECT COST

  	
   

  	
  $

  	
  11,850,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOTAL PROJECT COST:

  	
   

  	
  $

  	
  79,981,751

  	
   

  
									

 

 2EXHIBIT
10.06

ESCROW AGREEMENT

ESCROW AGREEMENT, dated as of July
31, 2006 (this “Agreement”), by and among Comcast Corporation, a Pennsylvania
corporation (“Buyer”), Adelphia Communications Corporation, a Delaware
corporation (“Seller”), and Deutsche Bank Trust Company Americas, a New
York banking corporation, as escrow agent (the “Escrow Agent”).

W I T N E S E T H:

WHEREAS, Buyer and Seller
have entered into that certain Asset Purchase Agreement, dated as of April 20,
2005, as amended from time to time (the “Purchase Agreement”), pursuant
to which Buyer is acquiring certain assets and assuming certain liabilities of
Seller and its Affiliates, as more particularly set forth therein;

WHEREAS, in connection with
the closing under the Purchase Agreement (the “Closing”), Buyer is
delivering by wire transfer in immediately available funds, $143,312,338.73
(together with any subsequent deposits by Buyer pursuant to Section 2.8(f) of
the Purchase Agreement) (including any interest or earnings thereon, less any
distributions made therefrom or losses thereon under this Agreement, the “Escrowed
Funds”) to an account with the Escrow Agent (the “Escrow Account”);
and

WHEREAS, Buyer and Seller
wish to engage the Escrow Agent as the escrow agent for the Escrow Account, and
the Escrow Agent wishes to act as such Escrow Agent.

NOW THEREFORE, in
consideration of the premises and the mutual covenants and agreements contained
herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

ARTICLE I

DEFINITIONS

Section 1.1               Certain Definitions. 
As used in this Agreement, the following terms have the meanings set
forth below:

(a)           “Affiliate” means, with respect to any Person,
any other Person directly or indirectly controlling, controlled by, or under
common control with, such Person as of the date on which, or at any time during
the period for which, the determination of affiliation is being made.  For purposes of this definition, the term “control”
(including the correlative meanings of the terms “controlled by” and “under

 

 

common control with”), as
used with respect to any Person, means the possession, directly or indirectly,
of the power to direct or cause the direction of the management policies of
such Person, whether through the ownership of voting securities or by contract
or otherwise.  For purposes of this
Agreement, (i) none of Seller or any of its Affiliates shall be deemed to be an
Affiliate of Buyer or any of its Affiliates and (ii) none of Buyer or any
of its Affiliates shall be deemed to be an Affiliate of Seller or any of its
Affiliates.

(b)           “Agreed Rate” means 5.543%.

(c)           “Agreement” has the meaning set forth in the
preamble hereto.

(d)           “Bankruptcy Court” has the meaning set forth in
Section 7.6 hereof.

(e)           “Business Day” means any day other than a Saturday, a
Sunday or a day on which banks in New York City are authorized or
obligated by Law or executive order to close.

(f)            “Buyer” has the meaning set forth in the
preamble hereto.

(g)           “Cap Amount” means the Group 1 Cap Amount or
Group 2 Cap Amount, as applicable.

(h)           “Certificate of Instruction” has the meaning
set forth in Section 4.1(b) hereof.

(i)            “Chosen Courts” has the meaning set forth in
Section 7.6 hereof.

(j)            “Claim” has the meaning set forth in Section
4.1(a) hereof.

(k)           “Claim Amount” has the meaning set forth in
Section 4.1(a) hereof.

(l)            “Closing” has the meaning set forth in the
recitals hereto.

(m)          “Contributing Party” has the meaning set forth
in Section 5.10 hereof.

(n)           “Escrow Account” has the meaning set forth in
the recitals hereto.

(o)           “Escrow Agent” has the meaning set forth in the
preamble hereto.

(p)           “Escrow Claim Notice” has the meaning set forth
in Section 4.1(a) hereof.

(q)           “Escrow Earnings” means, with respect to any payment
from the Escrow Account pursuant to the Purchase Agreement and this Agreement to
the extent

 2
 

 

 

that the payment is (A)
made pursuant to Section 2.8(f) of the Purchase Agreement, as provided in the
Escrow Claim Notice, or Section 4.2(a)(i)(A) of this Agreement, interest on
such payment from the date of the Closing or, in the case of Section 4.2(a)(i)(B),
from the date of deposit, to the date of payment at the Agreed Rate calculated on an actual over 365-day basis, or (B) for
indemnification under Section 7.2 of the Purchase Agreement, as provided in the
Escrow Claim Notice, interest on such payment at the Agreed Rate calculated on
an actual over 365-day basis from the date of the Escrow Claim Notice with
respect thereto until the date such payment is made.

(r)            “Escrow Fund” means, as of any date of
determination, the Escrowed Funds at such time.

(s)           “Escrowed Funds” has the meaning set forth in the
recitals hereto.

(t)            “Exchange Agreement” means the Exchange
Agreement, dated as of April 20, 2005, by and among Buyer, Comcast Cable
Communications Holdings, Inc., Comcast of Georgia, Inc., Time Warner Cable Inc.
and Time Warner NY Cable LLC, among others, as such agreement may be amended
from time to time.

(u)           “Government Entity” means any federal, state or
local court, administrative body or other governmental or quasi-governmental
entity with competent jurisdiction.

(v)           “Group 1 Cap Amount” means $119,100,000, as
adjusted pursuant to Sections 2.8(f) of the Purchase Agreement, as such
adjustment is jointly certified by Buyer and Seller pursuant to Section 2.3
hereof.

(w)          “Group 1 Business” has the meaning set forth in
the Purchase Agreement.

(x)            “Group 2 Cap Amount” means $20,900,000, as
adjusted pursuant to Sections 2.8(f) of the Purchase Agreement, as such
adjustment is jointly certified by Buyer and Seller pursuant to Section 2.3
hereof.

(y)           “Group 2 Business” has the meaning set forth in
the Purchase Agreement.

(z)            “Indemnification Deadline” has the meaning set
forth in Section 4.2(b) hereof.

(aa)         “Indemnifying Party” has the meaning set forth
in Section 5.10 hereof.

(bb)         “Joint Certification” has the meaning set forth
in Section 4.1(c) hereof.

 3
 

 

 

(cc)         “Law” means any law, statute, ordinance, rule,
regulation, code, order, judgment, injunction or decree enacted, issued,
promulgated, enforced or entered by a Government Entity or Self-Regulatory
Organization.

(dd)          “Objection Certificate” has the meaning set
forth in Section 4.1(c) hereof.

(ee)         “Order Certificate” has the meaning set forth
in Section 4.1(c) hereof.

(ff)           “Partial Release Date” has the meaning set
forth in Section 4.2(a) hereof.

(gg)         “Person” means an individual, a corporation, a
partnership, an association, a limited liability company, a Government Entity,
a trust, a labor union or other entity or organization.

(hh)         “Purchase Agreement” has the meaning set forth
in the recitals hereto.

(ii)           “Reorganization Case” has the meaning set forth
in Section 7.6 hereof.

(jj)           “Self-Regulatory Organization” means the
National Association of Securities Dealers, Inc., the American Stock Exchange,
the New York Stock Exchange, any national securities exchange (as defined in
the Securities Exchange Act of 1934, as amended) or any other similar self-regulatory
body or organization.

(kk)         “Seller” has the meaning set forth in the
preamble hereto.

ARTICLE II

ESTABLISHMENT OF ESCROW

Section 2.1               Escrow
Fund.  Buyer and Seller hereby constitute and appoint the
Escrow Agent as, and the Escrow Agent hereby agrees to assume and perform the
duties of, escrow agent under and pursuant to this Agreement.  By signing this Agreement, the Escrow Agent
acknowledges receipt of an executed copy of this Agreement.

Section 2.2               Notices.  The Escrow
Agent shall promptly (and in any event within two Business Days) provide Buyer
and Seller with written notice upon its

 4
 

 

 

respective receipt of the
Escrowed Funds.  Any notice pursuant to
this Section 2.2 shall specify the applicable dollar amount.

Section 2.3               Cap
Amounts.  Buyer and Seller shall
promptly (and in any event within two Business Days) following any purchase
price adjustment pursuant to Section 2.8(f) of the Purchase Agreement provide
to the Escrow Agent a joint certification as to any adjustment to any Cap
Amount, required under the Purchase Agreement.

ARTICLE III

MANAGEMENT OF ESCROW FUND

Section 3.1               Escrow
Fund.  The Escrow Agent shall
maintain the Escrow Fund in a separate account, segregated from all other
monies held by the Escrow Agent on behalf of itself or others, and shall hold,
safeguard and disburse the Escrow Fund pursuant to this Agreement.

Section 3.2               Investment.

(a)           Unless otherwise jointly instructed in writing by
Buyer and Seller, the Escrow Agent shall deposit the Escrowed Funds in deposit
accounts with banks organized under the laws of the United States, any state
thereof or the District of Columbia in accounts that earn the bank deposit rate
equal to the effective daily federal funds rate, less any reserves and fees not
to exceed 0.1%, until disbursement of the entire Escrow Fund.  The Escrow Agent is authorized to liquidate
in accordance with its customary procedures any portion of the Escrowed Funds
consisting of investments to provide for payments required to be made under
this Agreement.  Any interest or other
income earned on the investment and reinvestment of the Escrowed Funds shall be
added to and become part of the Escrowed Funds.

(b)           The Escrow Agent shall have no obligation to invest or
reinvest newly deposited Escrowed Funds on any particular day if such newly
deposited Escrowed Funds are deposited with the Escrow Agent after 5:00 p.m. (local
time in New York City) on such day of deposit; it  being  understood
that the Escrow Agent shall invest or reinvest such newly deposited
Escrowed Funds on the following Business Day. 
Instructions received after 5:00 p.m. (local time in New York City) will
be treated as if received on the following Business Day.  The Escrow Agent shall have no responsibility
for any investment losses resulting from the investment, reinvestment or
liquidation of the Escrowed Funds in accordance with this Agreement.  Any interest or other income received on such
investment and reinvestment of the Escrowed Funds shall become part of the
Escrowed Funds and any losses incurred on such investment and reinvestment of
the Escrowed Funds shall be debited against the Escrowed Funds.  In no event shall the Escrow Agent be deemed
an investment manager or adviser in respect of any selection of

 5
 

 

 

investments hereunder.  It is understood and agreed that, to the
extent disclosed in a prospectus delivered to Buyer and Seller prior to Buyer’s
and Seller’s determination to make the applicable investment, the Escrow Agent
or its Affiliates are permitted to receive customary additional compensation
that could be deemed to be in the Escrow Agent’s economic self-interest for (i)
serving as investment adviser, administrator, shareholder servicing agent,
custodian or sub-custodian with respect to certain of the investments, (ii)
using Affiliates to effect transactions in certain investments and (iii) effecting
transactions in investments.

ARTICLE IV

CLAIMS AND RELEASE
OF ESCROWED FUNDS

Section 4.1               Claims.

(a)           If Buyer wishes to make a claim against the Escrow
Fund pursuant to its rights under the Purchase Agreement (a “Claim”), it
shall send a written notice of Claim to Seller (an “Escrow Claim Notice”),
specifying the nature of the Claim (indicating (i) whether it is a
purchase price adjustment under Section 2.8(f) of the Purchase Agreement, or an
indemnification claim under Section 7.2 of the Purchase Agreement and (ii) whether
such Claim is in respect of the Group 1 Business or the Group 2 Business) and the
amount of such purchase price adjustment or, if such indemnification claim is
pursuant to Section 7.2 of the Purchase Agreement, the estimated maximum dollar
amount that Buyer in good faith reasonably believes it (or another Person, as
applicable) is or may be entitled to in respect of such Claim under the
Purchase Agreement (as adjusted in accordance with this Section 4.1(a), a “Claim
Amount”); provided, however, that Buyer shall promptly (and
in any event no later than the fifth Business Day following the date that Buyer
reasonably determines that a different Claim Amount is warranted), upon written
notice to Seller and the Escrow Agent, adjust the Claim Amount in good faith if
at any time it reasonably believes a different Claim Amount is warranted; provided,
further, that the failure by Buyer to adjust an Escrow Claim Notice as
required by the immediately preceding proviso shall not affect the rights of
Seller hereunder except to the extent that such failure has a prejudicial
effect on the rights available to Seller hereunder.

(b)           Concurrently with the delivery of the Escrow Claim
Notice, Buyer shall deliver to the Escrow Agent, with a contemporaneous copy to
Seller, a certificate in substantially the form of Annex I attached
hereto (a “Certificate of Instruction”).

(c)           If within ten Business Days following delivery of a
Certificate of Instruction to the Escrow Agent and to Seller, (i) Seller does
not send a certificate to the Escrow Agent, with a contemporaneous copy to
Buyer, in substantially the form of Annex II attached hereto (an “Objection
Certificate”) objecting in good faith to the

 6
 

 

 

payment of the Claim or
any portion thereof or (ii) Buyer and Seller deliver to the Escrow Agent a
joint certification in substantially the form of Annex III attached
hereto (a “Joint Certification”) that the Claim (or any portion thereof)
should be paid out of the Escrow Fund to the extent set forth in such Joint
Certification, then the Escrow Agent shall pay to Buyer as soon as practicable
thereafter (and in any event no later than the twelfth Business Day following
delivery of the Certificate of Instruction to the Escrow Agent and to Seller) the
sum of (A) the Claim Amount set forth in the Certificate of Instruction or the
amount set forth in the Joint Certification, as applicable, plus (B) the Escrow
Earnings on such Claim Amount or the amount set forth in the Joint
Certification, as applicable, collectively up to an amount equal to the then
remaining Escrow Fund but in no event with respect to a payment (excluding the
portions thereof in respect of Escrow Earnings) pursuant to Section 7.2 of the
Purchase Agreement, in excess of the applicable Cap Amount (when taken together
with all previous payments (excluding the portions thereof in respect of Escrow
Earnings) from the Escrow Fund pursuant to Section 7.2 of the Purchase
Agreement in respect of the Group 1 Business or the Group 2 Business, as
applicable).

(d)           If Seller does send an Objection Certificate to the
Escrow Agent and to Buyer within ten Business Days following Buyer’s delivery
of the relevant Certificate of Instruction to the Escrow Agent and to Seller,
the Escrow Agent shall (i) pay to Buyer as soon as practicable thereafter (and
in any event no later than the twelfth Business Day following delivery of the
Certificate of Instruction to the Escrow Agent and to Seller) the portion of
the Claim Amount as to which Seller has not objected, if any, as evidenced by the
Objection Certificate, plus the Escrow Earnings thereon, collectively up to an
amount equal to the then remaining Escrow Fund but in no event with respect to
a payment (excluding the portions thereof in respect of Escrow Earnings) pursuant
to Section 7.2 of the Purchase Agreement, in excess of the applicable Cap
Amount (when taken together with all previous payments (excluding the portions
thereof in respect of Escrow Earnings) from the Escrow Fund pursuant to Section
7.2 of the Purchase Agreement in respect of the Group 1 Business or the Group 2
Business, as applicable) and (ii) make a payment in respect of the portion of
such Claim Amount objected to by Seller in the Objection Certificate as soon as
practicable (and in any event no later than two Business Days) following
receipt of (A) a final judgment or order of a court of competent jurisdiction
in the United States (the time for appeal having expired and no appeal having
been perfected) in favor of Buyer, accompanied by a certificate of Buyer in
substantially the form of Annex IV attached hereto (an “Order
Certificate”), (B) a final and non-appealable determination of an
arbitration or like panel with respect to disputes that Buyer and Seller have
mutually agreed to submit thereto, including, without limitation, a
determination of the CPA Firm (as defined in the Purchase Agreement) pursuant
to Section 2.8(f) of the Purchase Agreement, accompanied by an Order
Certificate or (C) a Joint Certification that the Claim Amount (or any portion
thereof) should be paid out of the Escrow Fund to the extent set forth in such
Joint Certification.  If the Escrow Agent
makes a payment pursuant to clause (ii) of the preceding sentence, then the
Escrow Agent shall pay to Buyer as soon as practicable thereafter (A) the amount
set forth in such Order Certificate or Joint Certification, as applicable, plus
(B)

 7
 

 

 

the Escrow Earnings on such
amount, as applicable, collectively up to an amount equal to the then remaining
Escrow Fund but in no event with respect to a payment (excluding the portions
thereof in respect of Escrow Earnings) pursuant to Section 7.2 of the Purchase
Agreement, in excess of the applicable Cap Amount (when taken together with all
previous payments (excluding the portions thereof in respect of Escrow Earnings)
from the Escrow Fund pursuant to Section 7.2 of the Purchase Agreement in
respect of the Group 1 Business or the Group 2 Business, as applicable).

(e)           Prior to the Indemnification Deadline, Buyer may, to
the extent such action is taken in good faith, subdivide any Claim into one or more Claims.  Following the Indemnification Deadline Buyer may, to the extent such action is taken in
good faith, subdivide any Claim
into one or more Claims so long as the total dollars claimed thereunder does
not exceed the aggregate dollar value of such Claim as of the Indemnification
Deadline.  The provisions of Section 4.1 hereof shall apply to any
such subdivided Claim as if such subdivided claim were an independent
Claim, otherwise governed by the applicable terms of any Certificate of
Instruction, Objection Notice, Joint Certification or Order Certificate
delivered in respect of the original Claim (for the avoidance of doubt, no new
Certificate of Instruction or Objection Notice will be required in respect of
such subdivided claim).

Section 4.2               Release
of Escrow Fund to Seller.

(a)           On January 31, 2007 (the “Partial Release Date”),
the Escrow Agent shall release to Seller from the Escrow Fund an amount equal
to the excess of (i) (A) the sum of $47,293,071.78 plus
33% of any amounts deposited following the date hereof pursuant to
Section 2.8(f) of the Purchase Agreement plus
(B) Escrow Earnings in respect of such sum (calculated as of the Partial
Release Date) over (ii) the sum of (A) all amounts previously paid
hereunder out of the Escrow Fund, plus (B) the
sum of (x) the aggregate of all Claim Amounts with respect to the Escrow Fund outstanding
immediately prior to the Partial Release Date plus
(y) an amount equal to the Escrow Earnings on all such Claim Amounts (calculated
as of the Partial Release Date).

(b)           On July 31, 2007 (the “Indemnification
Deadline”), the Escrow Agent shall release to Seller the excess, if any, of
the Escrow Fund over the aggregate of all Claim Amounts (and Escrow Earnings
thereon calculated as of the Indemnification Deadline) with respect to the
Escrow Fund then outstanding (disregarding any such Claim Amounts (and Escrow
Earnings thereon) pursuant to Section 7.2 of the Purchase Agreement, to the
extent such Claim Amounts, together with all previous payments from the Escrow
Fund (excluding the portions thereof in respect of Escrow Earnings) pursuant to
Section 7.2 of the Purchase Agreement in respect of the Group 1 Business or the
Group 2 Business, as applicable exceed the applicable Cap Amount).  Any portions of the Escrow Fund subject to an
unresolved outstanding Certificate of Instruction as of the Indemnification
Deadline, subject to the applicable Cap Amount, shall continue to be held in
escrow by the Escrow Agent in accordance with this Agreement, and shall be
released (i) to Buyer pursuant to Section 4.1(c) or 4.1(d) hereof, as
applicable, or (ii) to

 8
 

 

 

Seller as soon as
practicable (but in no event later than five Business Days) following (A) the
reduction in the Claim Amount as a result of a downward adjustment thereof by
Buyer pursuant to Section 4.1(a) hereof in respect of any unresolved
outstanding Certificate of Instruction, to the extent of such reduction, or (B)
the full resolution of any Claim set forth in any Certificate of Instruction
that remained unresolved and outstanding as of the Indemnification Deadline to
the extent the amount to be released to Buyer pursuant to Section 4.1(c) or
4.1(d) hereof, as applicable, in respect of such Claim is less than the
corresponding Claim Amount; provided, however, that no amount
shall be released to Seller pursuant to this clause (ii) to the extent that the
sum of the Claim Amounts and the Escrow Earnings thereon in respect of the
remaining unresolved outstanding Certificates of Instruction would exceed the
amount remaining in the Escrow Fund following such release, disregarding for
purposes of such sum any Claim Amounts pursuant to Section 7.2 of the
Purchase Agreement to the extent that such Claim Amounts, together with all
previous payments (excluding the portions thereof in respect of Escrow
Earnings) from the Escrow Fund pursuant to Section 7.2 of the Purchase
Agreement in respect of the Group 1 Business or the Group 2 Business, as
applicable, exceed the applicable Cap Amount.

Section 4.3               Payments.  All payments
made by any party hereunder shall be made by wire transfer in immediately
available funds to an account identified to the transferor by the transferee in
writing not later than two Business Days prior to the scheduled date of the
relevant release.

Section 4.4               Statement.  The Escrow Agent shall provide Buyer and
Seller monthly statements identifying transactions, transfers and holdings of
the Escrow Fund.  In the event that Buyer
or Seller notifies the other of any mistake in any payment from the Escrow
Account, the party receiving such notice shall in good faith determine whether
such party agrees in whole or in part with the mistake asserted in such
notice.  In the event that the party
receiving such notice has so determined that it agrees in whole or in part with
the mistake asserted in such notice, Buyer and Seller shall promptly but in no
event later than ten Business Days following the date of the payment from the
Escrow Account jointly notify the Escrow Agent of such agreed-upon error and, as
applicable, Buyer or Seller shall return to the Escrow Agent any wrongful
distribution made to such party, and the Escrow Agent shall promptly make any
necessary additional distribution to correct the error.

ARTICLE V

DUTIES OF ESCROW
AGENT

Section 5.1               Degree
of Care.  The Escrow Agent shall not
be under any duty to give the Escrow Fund any greater degree of care than it
gives its own similar property.

 9
 

 

 

Section 5.2               No
Liability.  The Escrow Agent shall
not be liable to either Buyer or Seller for any action taken or omitted by it,
or any action suffered by it to be taken or omitted, unless the Escrow Agent
shall have acted with (or the Escrow Agent’s omission to act is with) bad
faith, gross negligence or willful misconduct.

Section 5.3               Reliance.  The Escrow Agent shall be entitled to rely in
good faith upon any order, judgment, certification, demand, notice, instrument
or other writing delivered to it hereunder without being required to determine
the authenticity or the correctness of any fact stated therein or the propriety
or validity of the service thereof.  The
Escrow Agent may act in reliance upon any instrument or signature believed by
it to be genuine and may assume that the Person purporting to give receipt or
advice or make any statement or execute any document in connection with the
provisions hereof has been duly authorized to do so.  The Escrow Agent may act pursuant to the
advice of counsel with respect to any matter relating to this Agreement and shall
not be liable for any action taken or omitted by it in good faith in accordance
with such advice.

Section 5.4               No Interest. 
The Escrow Agent does not have any interest in the Escrow Account other
than as Escrow Agent.  Any payments of
income from the Escrow Fund shall be subject to withholding regulations then in
force with respect to taxes.  Buyer and
Seller will provide the Escrow Agent with a duly completed Internal Revenue
Service form for tax identification number certification.

Section 5.5               No
Representations.  The Escrow Agent
makes no representation as to the validity, value, genuineness or
collectability of any security held by or delivered to it.

Section 5.6               No
Advice.  The Escrow Agent shall not
be called upon to advise any party as to the wisdom of selling or retaining any
securities or other property deposited hereunder or taking or refraining from
any action with respect to the Escrow Account.

Section 5.7               Resignation.  The Escrow Agent may resign and be discharged
from its duties or obligations hereunder by giving thirty days’ prior written
notice of such resignation to Buyer and Seller specifying a date under which
such resignation shall take effect; provided, however, that no
such resignation shall be effective until a successor escrow agent shall have
been appointed and the Escrow Agent shall have delivered to such successor
escrow agent the Escrow Fund, all relevant books and records (including any
Escrow Claim Notice) relating thereto and any instruments in which the Escrow
Fund has been invested in accordance with this Agreement.  In the event of the Escrow Agent’s
resignation, Buyer and Seller shall jointly designate a new escrow agent.  Notwithstanding anything to the contrary in
this Section 5.7, if Buyer and Seller are unable to agree upon a successor
escrow agent within thirty days after receipt of a resignation notice signed by
the Escrow Agent, the Escrow Agent may, in its sole discretion, apply to a
court of competent jurisdiction for the appointment of a successor escrow agent
or for other appropriate relief.  Any
such successor to the Escrow Agent

 10
 

 

 

shall agree to be bound
by the terms of this Agreement and shall, upon receipt of the Escrow Fund, all
relevant books and records (including any Escrow Claim Notice) relating thereto
and any instruments in which the Escrow Fund has been invested in accordance
with this Agreement, become the Escrow Agent hereunder.

Section 5.8               Compensation.  Seller and Buyer shall share equally all costs
relating to the compensation (as payment in full) of the Escrow Agent for its services hereunder,
payable annually in advance in accordance with the fee schedule attached hereto
as Exhibit A.  Seller and
Buyer agree, severally and not jointly (on an equal basis), to reimburse the
Escrow Agent for all reasonable expenses, disbursements and advances incurred
or made by Escrow Agent in performance of its duties hereunder (including
reasonable fees, expenses and disbursements of its counsel, which fees and
expenses shall not exceed $5,000 or, in the case of legal fees incurred in
connection with litigation not arising due to the negligence or willful
misconduct of the Escrow Agent, shall not exceed $375,000).

Section 5.9               Depository.  Buyer and Seller authorize the Escrow Agent,
for any securities held hereunder, to use the services of any United States
central securities depository it reasonably deems appropriate, including,
without limitation, the Depositary Trust Company and the Federal Reserve Book
Entry System.

Section 5.10             Indemnification.  Buyer and Seller, severally and not jointly,
shall indemnify and hold harmless the Escrow Agent from and against any
expenses (including reasonable counsel fees and disbursements), liabilities,
damages or losses suffered by the Escrow Agent in connection with any action,
suit or other proceeding involving any claim, or in connection with any claim
or demand, which in any way, directly or indirectly, arises out of this Escrow
Agreement, unless such claim or demand arises out of the gross negligence,
willful misconduct or bad faith of the Escrow Agent.  Each of Buyer and Seller (the “Contributing
Party”) agrees to contribute to the other party (the “Indemnifying Party”)
any amounts such other party pays the Escrow Agent in connection with the
indemnification obligations contained in this Section 5.10 in proportion to the
Contributing Party’s contribution to the overall fault for such indemnification
obligation as compared to the Indemnifying Party’s contribution to the overall
fault for such indemnification obligation, as agreed between Buyer and Seller
or, in the absence of agreement, as finally determined by a court of competent
jurisdiction; it  being  understood  that to the
extent neither Buyer nor Seller is at fault for such indemnification
obligation, the Contributing Party shall contribute to the Indemnifying Party
an amount equal to 50% of such indemnification obligation.

ARTICLE VI

TAX TREATMENT

Section 6.1               Taxes.  Except to the extent otherwise required by
Law, Seller shall include in its income, for tax purposes, all income, gains
and losses realized

 11
 

 

 

with respect to the
Escrow Fund and timely pay all taxes due with respect thereto.  As soon as practicable after December 31 of
each calendar year, the Escrow Agent shall report to Seller the amount of all
income, gains and losses realized during such calendar year with respect to the
Escrow Fund (and shall provide a copy of such report to Buyer).

ARTICLE VII

MISCELLANEOUS

Section 7.1               Notices.  All notices, requests, demands, approvals, consents
and other communications hereunder shall be in writing, signed by an authorized
Person and shall be deemed to have been duly given and made if served by
personal delivery upon the party for whom it is intended or delivered by
registered or certified mail, return receipt requested, or if sent by
telecopier or email, provided that the telecopy or email is promptly confirmed
by telephone confirmation thereof, to the Person at the address set forth
below, or such other address as may be designated in writing hereafter, in the
same manner, by such Person:

	
  To Buyer:

  
	
   

  
	
  Comcast Corporation

  
	
  1500 Market Street

  
	
  Philadelphia, PA 19102

  
	
  Telephone:

  	
  (215) 665-1700

  
	
  Telecopy:

  	
  (215) 981-7794

  
	
  Email:

  	
  ablock@comcast.com

  
	
  Attention:

  	
  General Counsel

  
	
   

  
	
  With a copy to:

  	
   

  
	
   

  	
   

  
	
  Davis Polk &
  Wardwell

  
	
  450 Lexington Avenue

  
	
  New York, NY 10017

  
	
  Telephone:

  	
  (212) 450-4000

  
	
  Telecopy:

  	
  (212) 450-3800

  
	
  Email:

  	
  william.taylor@dpw.com

  
	
  Attention:

  	
  William L. Taylor

  
	
   

  
	
  -and-

  	
   

  
	
   

  
	
  Time Warner Cable Inc.

  
	
  290 Harbor Drive

  
	
  Stamford, CT 06902-6732

  
			

 

 12
 

 

 

	
  Telephone:

  	
  (203) 328-0670

  
	
  Telecopy:

  	
  (203) 328-3295

  
	
  Email:

  	
  glenn.britt@twcable.com

  
	
  Attention:

  	
  Chief Executive Officer

  
	
   

  
	
  -and-

  
	
   

  
	
  Legal Department

  
	
  Time Warner Cable Inc.

  
	
  290 Harbor Drive

  
	
  Stamford, CT 06902-6732

  
	
  Telephone:

  	
  (203) 328-0631

  
	
  Telecopy:

  	
  (203) 328-4094

  
	
  Email:

  	
  marc.lawrence-apfelbaum@twcable.com

  
	
  Attention:

  	
  General Counsel

  
	
   

  
	
  -and-

  	
   

  
	
   

  
	
  Time Warner Inc.

  
	
  One Time Warner Center

  
	
  New York, NY 10019

  
	
  Telephone:

  	
  (212) 484-7980

  
	
  Telecopy:

  	
  (212) 258-3172

  
	
  Email:

  	
  Paul.Cappuccio@timewarner.com

  
	
  Attention:

  	
  General Counsel

  
	
   

  
	
  -and-

  
	
   

  
	
  Paul, Weiss, Rifkind,
  Wharton & Garrison LLP

  
	
  1285 Avenue of the
  Americas

  
	
  New York, NY 10019-6064

  
	
  Telephone:

  	
  (212) 373-3000

  
	
  Telecopy:

  	
  (212) 757-3990

  
	
  Email:

  	
  kparker@paulweiss.com

  
	
   

  	
  rschumer@paulweiss.com

  
	
  Attention:

  	
  Kelley D. Parker

  
	
   

  	
  Robert B. Schumer

  
			

 

 13
 

 

 

	
  To Escrow Agent:

  
	
   

  
	
  Deutsche Bank Trust
  Company Americas

  
	
  60 Wall Street, 27th
  Floor

  
	
  Mail Stop: NYC60-2710

  
	
  New York, NY 10005

  
	
  Telephone:

  	
  (212) 250-4660

  
	
  Telecopy:

  	
  (732) 578-4593

  
	
  Email:

  	
  aldrin.m.bayne@db.com

  
	
  Attention:

  	
  Aldrin Bayne, Escrow Team

  
	
   

  
	
  To Seller:

  
	
   

  
	
  Adelphia Communications
  Corporation

  
	
  5619 DTC Parkway

  
	
  Greenwood Village, CO
  80111

  
	
  Telephone:

  	
  (303) 268-6458

  
	
  Telecopy:

  	
  (303) 268-6662

  
	
  Email:

  	
  brad.sonnenberg@adelphia.com

  
	
  Attention:

  	
  Brad Sonnenberg

  
	
   

  
	
  With a copy to:

  
	
   

  
	
  Sullivan & Cromwell
  LLP

  
	
  125 Broad Street

  
	
  New York, NY 10004

  
	
  Telephone:

  	
  (212) 558-4000

  
	
  Telecopy:

  	
  (212) 558-3588

  
	
  Email:

  	
  korrya@sullcrom.com

  
	
  Attention:

  	
  Alexandra D. Korry

  

 

Section 7.2               Amendment;
Waiver.  Any provision of this
Agreement may be amended or waived if, and only if, such amendment or waiver is
in writing and signed, in the case of an amendment, by the Escrow Agent, Buyer
and Seller, or in the case of a waiver, by the party against whom the waiver is
to be effective.  No failure or delay by
any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any other right, power
or privilege.  The rights and remedies
herein provided shall be cumulative and not exclusive of any rights or remedies
provided by Law.

Section 7.3               No
Assignment or Benefit to Third Parties. 
This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors, legal representatives and
permitted assigns.  No party to this
Agreement may assign any of its rights or transfer or delegate any of its
obligations under this Agreement, by operation of Law or otherwise, without the
prior written consent of

 14
 

 

 

the
other parties hereto, except, in whole or in part, (a) with respect
to Seller, to a limited number of entities acting on behalf of Seller’s estate
that are designated by Seller and reasonably acceptable (including in terms of
the number of entities and the form and identity of each such entity) to Buyer
(each a “Permitted Assignee”); provided that (i) each such
Permitted Assignee shall agree in writing to be bound by the obligations and
liabilities of the Seller set forth in this Agreement and (ii) such
assignment by Seller under this Section 7.3 shall relieve Seller of any of
its obligations or liabilities under this Agreement if, but only if, Seller
provides Buyer with an indemnification agreement (in form and substance
reasonably acceptable to Buyer, it  being  understood that
the amount or nature of the remaining assets or liabilities of Seller shall not
be a factor in such determination) indemnifying Buyer for any breach of the
obligations and liabilities of the Permitted Assignee, in which case such
assignee or transferee shall be substituted for Seller for all purposes of this
Agreement, (b) with respect to Buyer, (i) to Time Warner NY Cable LLC or
its Affiliates under the Exchange Agreement (subject to further assignment by Time
Warner NY Cable LLC to its Affiliates) or (ii) to any Affiliate of Buyer; provided,
that no such assignment pursuant to clause (b)(ii) or, with respect to an assignment
by Time Warner NY Cable LLC to its Affiliates or by Buyer to any Affiliate of
Comcast Corporation, clause (b)(i) of this sentence shall relieve the assignor
of its obligations hereunder; provided, further, that in the case
of any such assignment pursuant to clause (b) other than to Time Warner NY
Cable LLC, the assignee shall appoint either Buyer or Time Warner NY Cable LLC
as its agent under the Escrow Agreement and such agent shall be the only party
entitled to take action on behalf of such assignee pursuant to this
Agreement.  In connection with any
assignment, transfer or delegation by Buyer to Time Warner NY Cable LLC or any
Affiliate of Time Warner NY Cable LLC as permitted above, Buyer shall be
relieved of any liability or obligation so assigned, transferred or delegated
to the extent Seller has the right to enforce in full against Time Warner NY
Cable LLC any such liability or obligation.  Any assignment or transfer
permitted hereunder shall be evidenced in writing signed by the assignor and assignee,
a copy of which shall be delivered to the other parties hereto.  Nothing in this Agreement, express or
implied, is intended to confer upon any Person other than Buyer, Seller, the
Escrow Agent and their respective successors, legal representatives and
permitted assigns, any rights or remedies under or by reason of this Agreement.

Section 7.4               Entire
Agreement.  This Agreement contains
the entire agreement among the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements and understandings, oral or
written, with respect to such matters among the parties hereto; it  being
understood that nothing herein is intended to conflict with the Purchase
Agreement.

Section 7.5               Expenses.  Except as otherwise expressly provided in
this Agreement, all costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be borne by the party
incurring such costs and expenses.

 15
 

 

 

Section 7.6               GOVERNING
LAW; SUBMISSION TO JURISDICTION; SELECTION OF FORUM; WAIVER OF TRIAL BY JURY.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAW.  Each
party hereto agrees that it shall bring any action or proceeding in respect of
any claim arising out of or related to this Agreement exclusively in (i) the
United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy
Court”) so long as the jointly administered case of Seller and certain Affiliates as debtor
and debtors in possession pending under Chapter 11 of the United States
Bankruptcy Code in the Bankruptcy Court (the “Reorganization Case”) remains open
and (ii) after the completion of the Reorganization Case or in the event that
the Bankruptcy Court determines that it does not have jurisdiction, the United States District Court for the
Southern District of New York or any New York State court sitting in New York
City (together with the Bankruptcy Court, the “Chosen Courts”), and solely in
connection with claims arising under this Agreement (i) irrevocably submits to
the exclusive jurisdiction of the Chosen Courts, (ii) waives any objection to
laying venue in any such action or proceeding in the Chosen Courts, (iii)
waives any objection that the Chosen Courts are an inconvenient forum or do not
have jurisdiction over any party hereto and (iv) agrees that service of process
upon such party in any such action or proceeding shall be effective if notice
is given in accordance with Section 7.1 of this Agreement.  Seller hereby irrevocably designates The
Corporation Trust Company as its agent and attorney-in-fact for the acceptance
of service of process and making an appearance on its behalf in any such claim
or proceeding and for the taking of all such acts as may be necessary or
appropriate in order to confer jurisdiction over it before the Chosen Courts
and Seller stipulates that such consent and appointment is irrevocable and
coupled with an interest.  Each party
hereto irrevocably waives any and all right to trial by jury in any legal
proceeding arising out of or relating to this Agreement.

Section 7.7               Counterparts.  This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original and all of which,
when taken together, shall constitute one and the same Agreement.

Section 7.8               Headings.  The headings of sections in this Agreement
are provided for convenience purposes only, and shall not be deemed to limit or
affect any of the provisions hereof.

Section 7.9               Severability. 
The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity
or enforceability of the other provisions hereof.  If any provision of this Agreement, or the application
thereof to any Person or any circumstance, is invalid or unenforceable, (a) a
suitable and equitable provision shall be substituted therefor in order to
carry out, so far as may be valid and enforceable, the intent and purpose of
such invalid or unenforceable provision and (b) the remainder of this Agreement
and the application of such provision to other Persons or circumstances shall
not be affected by such invalidity or unenforceability, nor shall such
invalidity or unenforceability affect the

 16
 

 

 

validity or
enforceability of such provision, or the application thereof, in any other
jurisdiction.

Section 7.10             Termination. 
This Agreement shall terminate upon the release of all funds from the
Escrow Fund in accordance with this Agreement and the Purchase Agreement.  The provisions of the second sentence of
Section 4.4 hereof (and, for purposes of such sentence, the remainder of Article
IV hereof to the extent related thereto), Article V hereof and this Article VII
shall survive the termination of this Agreement or, as to the Escrow Agent, the
earlier resignation or removal of the Escrow Agent.  Nothing in this Section 7.10 shall relieve
any party from liability for any breach of this Agreement prior to the
termination of this Agreement.

Section 7.11             Instructions. 
For purposes of sending and receiving instructions or directions
hereunder, all such instructions or directions shall be, and the Escrow Agent
may conclusively rely upon such instructions or directions, delivered and
executed by representatives of Buyer or Seller designated on Schedule I
attached hereto and made a part hereof, which such designation shall include
specimen signatures of such representatives, as such Schedule I may be
updated from time to time.

Section 7.12             No Set-Off.  The Escrow
Fund is intended for the purposes set forth herein and in the Purchase
Agreement.  No party hereto or any of its
assignees or their respective Affiliates shall have any right of set off with
respect to any portion of the Escrow Fund with respect to any claims other than
those claims against the Escrow Fund permitted by the Purchase Agreement.

 17
 

 

 

IN WITNESS WHEREOF, the
parties have executed and delivered this Agreement as of the date first written
above.

	
  

  	
  DEUTSCHE BANK TRUST COMPANY 

  AMERICAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Richard
  L. Buckwalter

  	
   

  
	
   

  	
   

  	
  Name: Richard L.
  Buckwalter

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Aldrin M.F. Bayne

  	
   

  
	
   

  	
   

  	
  Name: Aldrin M.F. Bayne

  
	
   

  	
   

  	
  Title: Assistant
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COMCAST CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   /s/ Robert
  S. Pick

  	
   

  
	
   

  	
   

  	
  Name: Aldrin M.F. Bayne

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  ADELPHIA COMMUNICATIONS 

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Vanessa
  Wittman

  	
   

  
	
   

  	
   

  	
  Name: Vanessa
  Wittman

  
	
   

  	
   

  	
  Title: Executive Vice President and

  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged and
  Agreed:

  	
   

  
	
   

  	
   

  
	
  TIME WARNER NY
  CABLE LLC

  	
   

  
	
   

  	
   

  
	
   

  
	
  By:

  	
   /s/ David E. O’Hayre

  	
   

  
	
   

  	
  Name: David E.
  O’Hayre

  
	
   

  	
  Title: Executive
  Vice President, Investments

  
						

 18
 

 

 

Annex I

CERTIFICATE OF INSTRUCTION

 

to

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Escrow Agent

The
undersigned, Comcast Corporation (“Buyer”), pursuant
to Section 4.1(b) of the Escrow Agreement, dated as of July 31, 2006,
as amended from time to time in accordance with its terms (the “Escrow
Agreement”), by and among Buyer, Adelphia Communications Corporation and
Deutsche Bank Trust Company Americas, as escrow agent (terms defined in the
Escrow Agreement have the same meanings when used herein), hereby certifies
that [       ] is entitled to
indemnification pursuant to [Section [7.2(a)] of the Purchase Agreement]] [in
respect of the [Group 1 Business] [Group 2 Business] [Buyer is entitled to a
purchase price adjustment pursuant to Section [2.8(f)] of the Purchase
Agreement] in an amount equal to (a) $       
(the “Claim Amount”) plus (b) the Escrow Earnings on the Claim Amount.

In
accordance with the Escrow Agreement, if you have not received a timely
Objection Certificate from Seller, you are hereby instructed to release and pay
the Claim Amount and Escrow Earnings thereon from the Escrow Account to Buyer
[(for payment by Buyer to        )].

	
  Dated:
         , 200 .

  	
   

  
	
   

  	
  [COMCAST CORPORATION](1)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  	
   

  
	
   

  	
   

  	
   Title:

  	
   

  
	
   

  	
   

  
	
   

  
	
  cc:

  	
  Adelphia Communications

  
	
   

  	
  Corporation

  
					

 

(1)           If Buyer has
assigned the Escrow Agreement pursuant to Section 7.3 of this Agreement, such
certificate may be executed by Time Warner NY Cable LLC on behalf of such entity
if such entity has designated Time Warner NY Cable LLC as its agent.

 19
 

 

 

Annex
II

OBJECTION CERTIFICATE

to

DEUTSCHE BANK TRUST COMPANY
AMERICAS,

as Escrow Agent,

and

COMCAST CORPORATION

The
undersigned, Adelphia Communications Corporation (“Seller”), pursuant to Section 4.1(c) of the Escrow
Agreement, dated as of July 31, 2006, as amended from time to time in
accordance with its terms (the “Escrow Agreement”), by and among Comcast
Corporation (“Buyer”), Seller and Deutsche Bank Trust Company Americas,
as escrow agent (terms defined in the Escrow Agreement have the same meanings
when used herein), hereby:

(a)          disputes that [a portion of] the Claim
Amount (and Escrow Earnings thereon) referred to in the Certificate of
Instruction dated        , 200   
is owed by Seller to [        pursuant to
Section [7.2] of the Purchase Agreement] [in respect of the [Group 1
Business] [Group 2 Business] [Buyer pursuant to Section [2.8(f)] of the
Purchase Agreement];

(b)          certifies that the undersigned has
sent to Buyer a written statement dated        ,
200 , a copy of which is attached hereto, disputing [a portion of] the
liability to [       ] [Buyer] for the Claim
Amount; [and]

(c)          objects to you making payment to Buyer
from the Escrow Account as requested in such Certificate of Instruction [in
full] [in part, to the extent of $        of
the Claim Amount and any related Escrow Earnings]; [and]

(d)          [instructs
you to make a payment to Buyer from the Escrow Account in an amount equal to $       
of the Claim Amount (the “Partial Claim Amount”) plus the Escrow
Earnings on the Partial Claim Amount.](2)

 

(2)           If applicable.

 20
 

 

 

	
  Dated:
         , 200 .

  	
   

  
	
   

  	
  [ADELPHIA COMMUNICATIONS 

  CORPORATION](3)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  cc: Comcast
  Corporation

  	
   

  

 

(3)           If Seller has
assigned the Escrow Agreement to an entity acting on behalf of Seller’s estate,
such certificate may be executed by such entity.

 

 21
 

 

 

Annex
III

JOINT CERTIFICATION

to

DEUTSCHE BANK TRUST COMPANY
AMERICAS,

as Escrow Agent

The
undersigned, Comcast Corporation (“Buyer”) and Adelphia Communications
Corporation (“Seller”), pursuant to
Section 4.1[(c)][(d)] of the Escrow Agreement, dated as of July 31,
2006, as amended from time to time in accordance with its terms (the “Escrow
Agreement”), by and among Buyer, Seller and Deutsche Bank Trust Company
Americas, as escrow agent (terms defined in the Escrow Agreement have the same
meanings when used herein), hereby jointly:

(a)    certify that [a portion of] the Claim Amount
with respect to the matter described in the Certificate of Instruction dated        ,
200    in the amount of $       
is owed to Buyer; and

(b)   instruct you to release to Buyer from the
Escrow Account $        [insert amount
pursuant to paragraph (a)] plus the Escrow Earnings thereon.

	
  Dated:
         , 200 .

  	
   

  
	
   

  	
   

  
	
   

  	
  [COMCAST CORPORATION](4)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [ADELPHIA COMMUNICATIONS 

  CORPORATION](5)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

(4)           If Buyer has
assigned the Escrow Agreement pursuant to Section 7.3 of this Agreement, such
certificate may be executed by Time Warner NY Cable LLC on behalf of such entity
if such entity has designated Time Warner NY Cable LLC as its agent.

(5)           If Seller has
assigned the Escrow Agreement to an entity acting on behalf of Seller’s estate,
such certificate may be executed by such entity.

 

 22
 

 

 

Annex IV

ORDER CERTIFICATE

to

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Escrow Agent

The
undersigned, Comcast Corporation (“Buyer”), pursuant to Section 4.1(d)
of the Escrow Agreement, dated as of July 31, 2006, as amended from time to
time in accordance with its terms (the “Escrow Agreement”), by and among
Buyer, Adelphia Communications Corporation (“Seller”) and Deutsche Bank
Trust Company Americas, as escrow agent (terms defined in the Escrow Agreement
have the same meanings when used herein), hereby:

(a)          certifies that (i) attached hereto is
[a final judgment or order of a court of competent jurisdiction in the United
States] [a final and non-appealable determination of an arbitration or like
panel] resolving in [whole] [part] the dispute between Buyer and Seller as to the
matter described in the Certificate of Instruction dated        ,
200   and the related Objection Certificate dated        ,
200   , and (ii) the [portion of the] Claim Amount set forth in
such Certificate of Instruction that is owed to Buyer, as provided in such
order, is $       ; and

(b)      instructs you to release from the Escrow
Account the aggregate amount pursuant to paragraph (a) of this certificate plus
the Escrow Earnings thereon, as soon as practicable following your receipt of
this Order Certificate and, in any event, no later than two Business Days
following the date hereof.

	
  Dated:
         , 200 .

  	
   

  
	
   

  	
   

  
	
   

  	
  [COMCAST CORPORATION](6)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:

  

 

(6)           If Buyer has
assigned the Escrow Agreement pursuant to Section 7.3 of this Agreement, such
certificate may be executed by Time Warner NY Cable LLC on behalf of such entity
if such entity has designated Time Warner NY Cable LLC as its agent.

 23
 

 

 

Schedule I

Authorized
Representatives of Buyer

	
  Name

  	
   

  	
  Title

  	
   

  	
  Specimen Signature

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

Authorized
Representatives of Seller

	
  Name

  	
   

  	
  Title

  	
   

  	
  Specimen Signature

  
	
  Vanessa Wittman

  	
   

  	
  Executive Vice President and Chief Financial Officer

  	
   

  	
   

  
	
  Christine Morris

  	
   

  	
  Treasurer

  	
   

  	
   

  
	
  Constance
  Campbell

  	
   

  	
  Senior Vice President

  	
   

  	
   

  

 

 24
 

 

 

Exhibit A

SCHEDULE
OF FEES FOR

Deutsche Bank as Escrow Agent

Escrow Agreement

Escrow
Agent Fees

	
  Acceptance Fee (1x only):

  	
   

  	
  Waived

  

 

Covers the acceptance of
Deutsche Bank Trust Company Americas to act as Escrow Agent; the study and
consideration of the Agency documents and other Transaction Documents and the
establishment of the necessary accounts and procedures.

	
  Annual Administration Fee:

  	
   

  	
  $5,000

  

 

(Payable annually in advance for each year / no
pro-ration)

Annual
fee that covers the safekeeping of assets, normal administrative functions of
the Agent, maintenance of the records, follow-up of the agreement’s provisions,
generation of monthly reports, daily transaction confirmation, management of
the accounts, tax reporting etc.  Also,
any other duties required by the Escrow Agent under the terms of the agreement.  We assume that if money market funds are used
they will be “Qualified Funds” offered by Deutsche Bank.

Transaction Charges:

	
  Investment transactions 

  	
   

  	
  $100 per trade**

  
	
  Physical Check Payments:

  	
   

  	
  Waived

  
	
  Wire Transfers:

  	
   

  	
  Waived

  

 

**
Please note that charges will be waived so long as “Qualified Funds” are used
to invest any monies in the accounts. 
Qualified Funds include Blackrock, JP Morgan, Federated, Evergreen or
Deutsche Bank.

 25
 

 

 

	
  Legal Review Fee (if necessary)- 

  	
   

  	
  $5,000/$375,000

  

 

To
the extent provided pursuant to Section 5.8 of the Escrow Agreement.

 26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]