<PAGE> 60
Exhibit 10.15
to Form 10-K
AGREEMENT Agreement#__________________
PARTIES: OLSSON INDUSTRIAL ELELECTRIC, INC. "Contractor"
P.O. Box 70413
Eugene, Oregon 97401
And
Synthetech, Inc.
1290 Industrial Way
Albany, OR 97321
"OWNER"
1. SCOPE OF WORK: CONTRACTOR agrees to furnish al
supervision, tools, equipment, labor and materials necessary to
fully complete the following project in a workmanlike manner,
within the times and in accordance with the drawings and
documents specified below and the scope of work contained in
CONTRACTOR'S letter to OWNER dated October 13, 1998.
(a) Drawings and Documents: Furnished by Owner; see
attached specification/drawing list. cbw
(b) Begin work: 12-21-98 Complete work: 2-28-99
(c) Description of Project: Chemical Storage Expansion Project
2. PAYMENT. Owner agrees to pay CONTRACTOR compensation based
on published labor rates and material markup as follows:
COMPENSATION CATEGORY METHOD
--------------------- ------
A. Contractor owned rental equipment At "best" published price
B. Third party rental equipment Actual Invoice plus 10%
C. Small tools valued at $750 or less No charge, included in labor rates
D. Materials that become part of the
installation Actual invoice amount plus 10%
E. Subcontractors Actual invoice amount plus 10%
F. Hourly wages $ per attached rate schedule
G. Subsistence $ None
3. INDEMNITY. Each party agrees to defend, indemnify and save
harmless the other party and its agents and employees against any
and all uninsured loss, damage, liability, claims demands or
costs (including attorneys fees) resulting from injury or harm to
persons or property (including without limitation, the
indemnifying parties agents, employees or property) arising out
of or in any way connected with the acts or omissions or breach
of this Agreement by the indemnifying party and its employees and
agents except for injuries or harm caused in substantial part by
the indemnified party or its employees or agents.
4. INSURANCE. Prior to commencement of work, CONTRACTOR shall
obtain and maintain in lull force and effect during the term
hereof, at Contractor's sole expense the following insurance
coverage upon CONTRACTOR'S operations hereunder.
(a) Comprehensive General Liability, including contractual,
XCU, products and completed operations with minimum limits of
$500,000 per person and $1,000,000 per occurrence bodily injury
and $500,000 property damage or combined single limit of
$1,000,000.
(b) Comprehensive Automobile Liability covering owned, hired
and non-owned vehicles with minimum limits of $500,000 per person
and $1,000,000 per occurrence the bodily injury and $500,000
properly damage or
AGREEMENT - PAGE 1 OF 2
<PAGE> 61
combined single limit of $1,000,000.
(c) Worker's Compensation insurance as required by law,
including Employer's Liability.
OWNER shall be designated as an additional insured under the
policies described in (a) and (b) above if OWNER requests in
writing. CONTRACTOR shall furnish OWNER with Certificates of
Insurance evidencing compliance herewith upon request CONTRACTOR
shall obtain an endorsement, if requested by OWNER, requiring
thirty (30) days written notice prier to any material change of
coverage or cancellation or termination of coverage
5. CHANGE ORDERS. OWNER may increase, decrease or alter work to
be done and materials furnished hereunder with CONTRACTORS prior
written consent. Any changes and the adjustment of the fixed fee
resulting from the change shall be agreed to in writing prior to
performance of the changed scope of work. See Addendum. cbw
6. WARRANTY. All work and materials furnished hereunder shall
meet the requirements of section I above. CONTRACTOR shall
repair or replace, at CONTRACTOR'S expense any material furnished
by CONTRACTOR which fails to meet the requirements of section I
if the defect or non conformity is reported to CONTRACTOR in
writing within one year after final payment. CONTRACTOR MAKES NO
OTHER WARRANTY EITHER EXPRESS OR IMPLIED AND NO WARRANTY OF
MERCANTABILITY OR SUITABILITY FOR ANY PARTICULAR PURPOSE.
CONTRACTOR SHALL, NOT BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL
DAMAGES.
7. COMPLIANCE AND INTERFERENCE. CONTRACTOR shall comply with all
public laws, ordinances, and requirements respecting the work,
obtain all required permits. All work shall be done in a manner
which minimizes interference with OWNERS ongoing operation to the
extent CONTRACTOR can reasonably do so.
8. DISPUTES. All disputes between the parties arising out of or
related to this Agreement or the work described in section I
shall be resolved by arbitration in accordance with the rules of
the American Arbitration Association unless joinder of a third
party is necessary for a complete resolution of all issues in
dispute, in that case either party may resort to litigation to
resolve such dispute so long as the third party is joined in such
litigation. Any arbitration award shall be final and binding and
may be registered as a final Judgment in any court with
jurisdiction. Arbitration off trial litigation shall be in Lane
County Oregon. The prevailing party us any arbitration or
litigation shall be awarded such parties attorney's fees, cost
and all expanses incurred therein and in any appeal therefrom and
in enforcing and collecting any judgment or award.
DATED this 10th day of December, 1998
CONTRACTOR : OWNER:
Synthetech, Inc.
By: Elliot Olsson By: Charles B. Williams
Title: President Title: VP & CFO
AGREEMENT PAGE 2 OF 2
<PAGE> 62
Olsson Industrial Electric
1919 LAURA P.O.Box 70413
SPRINGFIELD, OREGON 97477 EUGENE,OREGON 97401
(541) 747-8460 FAX (541) 747-4846
October 13, 1998
Synthetech Inc.
1290 Industrial Way
Albany, Oregon 97321
Attention: Mitch McVay
Subject: Chemical Storage Expansion Project Phase II - Electrical.
Dear Sir:
In response to your request and in accordance with Drawings and
Specifications received, we are pleased to offer our estimate for
the subject project.
Olsson Industrial Electric would like to note the following
clarifications to the bidding documents:
1. All excavation, backfill, and overlay will be furnished by others.
2. Included in this estimate, but not in the bidding documents
is a temporary service for construction trailer use.
3. Conduit related to lighting in the Chemical Storage
Building is EMT. All other conduit related to this
project will be GRC.
4. Provisions for the (6) Crouse Hinds EVP Series
Fixtureshave been included in this proposal.
Installation and wiring of these fixtures have not been
included in this proposal.
Our estimate for the above described electrical installation is
Sixty Nine Thousand, Eight Hundred Ten and no/100 Dollars,
($69,810.00).
We would like to thank you for the opportunity of offering this
proposal and look forward to hearing from you whenever we may be
of service.
Sincerely,
Olsson Industrial Electric, Inc.
Ike Olsson
synthe8.ike
<PAGE> 63
Synthetech, Inc.
Peptide Building Blocks Specialty Amino Acids
December 23,1998
Olsson Industrial Electric
P.O. Box 70413
Eugene, Or. 97401
Attn. : Ike Olsson
Dear Ike:
Re: Contract Addendum's
The following contract addendum's apply to the Chemical
Storage Expansion Project which includes a new bulk tank farm and
chemical storage warehouse.
Section 1. - Scope of Work
- Refer to the Industrial Design Corporation (IDC) `Technical
Specifications' dated September 29, 1998 for the applicable
electrical specifications (Table of Contents Attached) .
- Refer to the attached list of Drawings provided by IDC for
the project.
Section 5. - Change Orders
- Changes Orders require written authorization by the Owner
prior to starting the work. A written cost estimate of the
`Change Order' work shall be given to the Owner within three
working days of the work commencing or the final cost is subject
to negotiation.
Respectfully,
Mitchell R. McVay
Director of Engineering
cc : Charlie Williams - CFO Synthetech, Inc.
<PAGE> 64
SECTION 00075
TABLE OF CONTENTS
Specifications Rev. Date
-------------- ---- ----
DIVISION 01 GENERAL REQUIRMENTS
01110 Summary of Work 0 September 28, 1998
DIVISION 13 INSTRUMENTATION AND CONTROLS
13850 Life Safety Systems 0 September 28, 1998
13851 Fire Alarm and Smoke Detection
Systems 0 September 28, 1998
13854 Gas Detection Equipment 0 September 28, 1998
13930 Automatic Sprinkler Systems 0 September 28, 1998
13955 Deluge Foam-Water Fire
Extinguishing System 0 September 28, 1998
DIVISION 15 MECHANICAL
15050 Basic Mechanical Requirements 0 September 28, 1998
15190 Mechanical Identification 0 September 28, 1998
15335 CO2 Fire Suppression System 0 September 28, 1998
DIVISION 16 ELECTRICAL
16010 Basic Electrical Requirements 0 September 28, 1998
16011 Basic Electrical Construction
Materials and Methods 0 September 28, 1998
END OF SECTION
5151 PM September 29, 1998
SECTION 00075 Issued for Construction
TABLE OF CONTENTS
Rev. 0
<PAGE> 65
9.1.5 The Drawings are as follows and are dated 9/25/98 unless a different
date is shown below (either list the Drawings here or refer to an exhibit
attached to this Agreement:)
Number Title Date
STC-0001 Cover Sheet and Legend
STC-0701 Underground Utilities
STC-0702 Grading and Site Surfaces
STC-7601 Details
STS-0000 Legend and Notes
STS-1-0- Foundation Plan
STS-2-0- Framing Plan
STS-7600 Concrete Details
STS-7601 Conc/Steel Details
STS-7602 Conc/Steel Details 9/28/98
STA-1-0- Floor Plan
STA-2-0- Roof Plan
STA-7400 Elevations and Sections
STA-7600 Chemical Storage Details
STE-0000 Electrical Legend
STE-7600 Electrical Details
STEL 1-0- Electrical Lighting Plan
Step 1-0- Power Plan
STM-1-0- HVAC Plan
STMP 1-0- Piping Plan
STLS 1-0- Floor Plan
9.1.6 The addenda, if any, are as follows:
Number Date Pages
N/A
Portions of addenda relating to bidding requirements are not part
of the Contract Documents unless the bidding requirements are
also enumerated in this Article 9
AIA DOCUMENT A101 - OWNER-CONTRACTOR AGREEMENT-TWELFTH EDITION-AIA
<PAGE> 66
Olsson Industrial Electric
1919 LAURA P.O.Box 70413
SPRINGFIELD, OREGON 97477 EUGENE, OREGON 97401
(541) 747-8460 FAX (541) 747-4846
December 10, 1998
Synthetech Inc.
1290 Industrial Way
Albany, Oregon 97321
Attention: Mitch McVay
Subject: 1999 Labor Rates
Dear Mitch:
Following are hourly labor rates that will apply to time and
material projects for you during 1999:
Straight Time
-------------
SUPERINTENDENT 61.00
GENERAL FOREMAN 56.00
FOREMAN 52.00
JOURNEYMAN 46.00
8TH STAGE APPRENTICE 37.00
4TH STAGE APPRENTICE 29.00
Overtime
--------
SUPERINTENDENT 90.00
GENERAL FOREMAN 82.00
FOREMAN 77.00
JOURNEYMAN 67.00
8TH STAGE APPRENTICE 55.00
4TH STAGE APPRENTICE 42.00
We are enclosing our executed agreement along with Ike's letter
dated October 13 1998 for the Chemical Storage Expansion Project.
Please let me know if you have any questions.
Sincerely,
Olsson Industrial Electric, Inc.
Elliott (Ole) T. Olsson
Synthe1.ole
