Document OJ1OzgnQvkjVoydKDE5RzR6xp

HOECHST CEXAKESK CHEKICAJL GROCP. IKC. CONTRACT/AGREEMENT ABSTRACT SUPPLIER/CONTRACTOR Arthur Brothers, Inc. CONTRACT NO 014-456 CONTRACT DATE J V?-in-R5 ' REVISION NO j i REVISION DATE GOODS/SERVICES Maintenance and Misc. construction Services FACILITY Bav Citv. Rishnn. Oimw Christi. Pamna CONTRACT TERM'' ` Through 4/30/89 TERMINATION RIGHTS No changes PRICES/PRICE CHANGES See below - changes effective 3/1/89 TOTAL AMOUNT PAYMENT TERMS FOB REMARKS A) Federal & State Employment Taxes billed at cost. B) Revised markups: 1) 1st $8,212,564 direct wages, excluding premium portion of overtime. a) Payroll costs - 27% d) Overtime - 8.5% on the premium portion b) Insurance - 1% c) Profit overhead - 2% 30% 2) Over $8,212,564 - direct labor - same as above, but no insurance Total: 29% DISTRIBUTION W/DOCUMENT COPY j -DISTRIBUTION W/0 DOCUMENT COTT~ Executive Files - Dallas (original) | Bay Citv: A. C. Enlcw R. E. Allen N. V. Smith Bishop: D. L. Yancey H. A. Wilmeth D. D. Siemonsma Corpus ChristiS. W. Eason L. W. Hartman Pampa: T. R. Iowrie t E. Moore R . Jones j J ! 1 I PURCHASING AGENT/BUYER : PURCHASING MANAGER DATE________________________________ /__ /__ 16730 < ' -- : 1 : D P. O BOX 79; TELEPHONE 592-64)6 ARTHUR BROTHERS INCORPORATED HIWAY 77 BYPASS KINGSVILLE. TEXAS 78363 November 21, 1988 AFS-73 Hoechst Ceianese Chemical Group 1250 W. Mockingbird Lane P.O. Box 569320 Dallas., Texas 75356-9320 Attention: Mr. T. R. Shandley Re: Maintenance and Construction Service Agreement December 3.0, 1985 Through April 30, 1989 Dear Rogers: In response to our meeting of November 14, 1988 and our best effort to remain competitive in the fulfillment of the referenced agreement, we resubmit our letter of September 26, 1988, concerning an amendment to Article 10 of the referenced contract to cover increased tax and insurance costs. We propose to forego the 2.2% fee increase, requested for September 5, 1988, if we can remove the rates from our fee for both State and Federal Unemployment taxes and bill you quarterly, in 1989, at cost. We feel this is important to both of us in light of the uncertainties we face for 1989 and the difficulties in establishing a percentage rate that is equitable in covering these costs. Attached is the proposed amendment to Article 10 of the referenced contract. We request this amendment be effective December 26, 1988. Please indicate your acceptance of this amendment by signing the attached document. Return the executed copy to Arthur Brothers, Incorporated and keep the original for your files. Thank you for your understanding in this matter Very truly yours, ART.HUR BROTHERS, INCORPORATED Aa ron F. ' S'barks Vice-President 16731 R E C F. 1V r T MOV 2 8 V/fi laan aanmcT AaiinucifisT Effective December 26, L538 ARTICLE in. CONTRACTOR'S FEE. (a), eov providing Labor and spuropveidrveidsioinn Athrteicrelefor9e heCreoonft,raactoFer e. swhhailclh bce opnasiidstsm oaf dtdhriteioe.ncotmoptohneenatms,ouonft In 0% At the'direct wage cost attributable to (i)actual straight-time hours worked (ii) the straight-time portion of any overtime hours worked. The Fee consists of three components (i) 27.0?i for all payroll costs, (excluding all State and Federal Unemployment Taxes),employees benefits and small tools (ii) 2.0% for profit and overhead. and (iii) 1.0% for Umbrella Liability Insurance Coverage, as per the following schedule: Total Annual Direct Wage Cost (Exclusive of Premium Portion of Overtime) $8,212,564.00 or less Payroll costs .(excluding all state and federal unemp l&yment taxes),employee benefits, and small tools 27.0% Umbrella Liability Insurance Coverage 1 (September 5, 1988 through September 3, 1989) (Renegotiated each like period thereafter) 1.0% Overhead and Profit 2.0% Total Fee: 30.0% 3,212,564.00 or more (including other all 5mm coverage) Payroll costs,(excluding all state and federal umemployemnt taxes),employee benefits, and small tools clients requiring 27.0% Umbrella Liability Insurance Coverage 0.0% Overhead and Profit 2.0% Total Fee: 29.0% Contractor shall be paid a markup equal to 8.5 percent of that portion of Contractor's total direct wage cost attributable to the premium portion of wages paid for overtime hours worked by its authorised employees on authorised work hereunder. At,_.,,end of each quarter, beginning December 26, 1983, Contractor shall bill Company at cost for all State and Federal Unemployment taxes applicable to authorised work hereunder. It is understood that Company may, in the future, wish Contractor to perform similar work at other Company plants. Such other plants may be added to -this Agreement using the same conditions and percentage Fee and markups described herein. The annual period for the work performed at such other plant shall be deemed to have the same commencement date as the annual period hereunder. Hoechst Celan^d'Q. leal Group, Inc, Arthup^Broth ncorporated By: Title: Vice Pf5>?>A/r By: Tit le: Pyc- Date: / - V ~ IT 9 Date: if- 16732 AFS-73 Page 2 cc: Bay City: C. R. Pennington; A. C. Enlow; R. E. Allen S. R. Starks Bishop: B. G. Pausky B. L. Yancey; B. B. Siemonsma R. C. Seawright; J. J. Starks Corpus Christi: R. R. Graham; L. W. Hartman; S. W. Eason; W. E. Clark Pampa: R. G. Guard; L. E. Moore; L. T. Johnston; C. R. Jones; P. D. Ley i 16733