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11. COSTS RELATED TO TEMPORARY FIXES A. Background Section 3.2 of the Wastewater Treatment Agreement and the DOR provide that both during the Start-up Phase and during the Operating Term, the District will be responsible for, among other things: (i) supplying to the Evaporation Plant (a) Wastewater for treatment which will be stored in the District Storage Tank, and (b) landfill gas that needs to be routed into the Evaporation Plant in sufficient quantities and quality for the Company to treat the Wastewater. For reasons outside of IRSC's control, the District informed IRSC that (i) it will not be ready to make the District Storage Tank available to IRSC during the planned Start Up Phase and for some time following COD (the "Tank Issue"); and (ii) it will not complete the work for the landfill gas transfer system during the Start Up Phase or for some time following COD (the "Gas Line Issue"). As a result, IRSC has worked with the District to develop a plan to complete certain temporary fixes to the Tank Issue and the Gas Line Issue in order not to further delay the Start Up Phase or COD (collectively, the "Temporary Fixes"). These Temporary Fixes will be paid for and implemented by the District in accordance with the Parties' mutually agreed to plan for the Temporary Fixes; putting them in place will give the District time to complete work as contemplated originally under the Wastewater Treatment Agreement (the "Originally Planned Work"). B. Breakdown of Costs Related to Temporary Fixes Unfortunately, installation by the District of the Temporary Fixes and completion of the Originally Planned Work as contemplated will result in the need for IRSC to devote certain previously unbudgeted engineering time and complete two separate recommissioning exercises (each an "Occurrence" and collectively, the "Additional IRSC Work"). The time spent by IRSC engineers to support the District in development of the Temporary Fixes, and to validate and confirm the workability of the proposed Temporary Fixes was extensive. That said, IRSC proposes charging the District for only 22 hours or $2,640 ("Supplemental Engineering Cost"). The following is a cost breakdown for the Additional IRSC Work per Occurrence that will be required each time Evaporation Plant is ready to be recommissioned: 1. Engineering Support ..................................................................................................... $960 per day 2. Site Installation and Support by Heartland Field Crew......................................................$840 per day 3. Travel and Per Diem (Lodging, Food & local transportation) . ..........................................Billed at Cost If due to circumstances on the ground, additional time is needed for IRSC to complete the required work of any Occurrence beyond that described above, IRSC will change the District on a T&M basis at the rates listed below: Service Manager: $150 per hour Engineering: $120 per hour Service Technician: $105 per hour Travel and Per Diem (Lodging, Food & local transportation): Billed at Cost During the period while IRSC is operating the Evaporation Plant with the Temporary Fixes in place, any rights of the District (under the Wastewater Treatment Agreement or otherwise) to penalize IRSC for failure Page 3 of 6