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shall be determined in accordance with the unit price in Paragraph I herein, for <br /> Useable Active Storage Capacity of each Cell, based on an appropriate detailed <br /> survey of the final water Storage capacity of each Cell ("Final Survey"). For <br /> purposes of this Construction Agreement, Useable Active Storage Capacity shall <br /> be defined as that volume of water below the Normal Maximum Water Surface <br /> being two feet below the lowest point of the crest of the reservoir or spillway; less <br /> any Dead Storage, being any volume of water that will not gravity drain to the <br /> reservoir's pump inlet with an invert at the elevation of the Reservoir bottom; less <br /> any Passive Storage being any water absorbed into the walls or bottom of the <br /> Reservoir; and, less any additional reduction in storage capacity as required by <br /> the State Engineer's Office. Within ninety (90) days of Contractor's notification of <br /> the completion of mining, the Owner at its sole cost will have the Final Survey <br /> performed by a registered professional engineer who will certify the exact <br /> quantity of Useable Active Storage Capacity available in each Cell delivered and <br /> said volume will be used for calculation of the Contract Amount of each Cell. The <br /> capacity for the purposes of calculating the Contract Amount will be based upon <br /> the Useable Active Storage Capacity. Owner will provide Contractor at the <br /> Delivery of each Cell with a copy of the Final Survey and the corresponding <br /> calculation of the Useable Active Storage Capacity and an area-capacity chart. <br /> Contractor and Owner shall agree on a Delivery Date pursuant to paragraph 16 <br /> of this Construction Agreement. On the Delivery Date Owner shall pay <br /> Contractor the Contract Amount calculated for the Cell and Contractor shall <br /> relinquish control of the Cell to Owner, notwithstanding contractual obligations <br /> beyond delivery set forth herein. The Contractor shall deliver the smaller cell first. <br /> If the larger cell is completed prior to the smaller cell, the Contractor will not be <br /> paid for the larger cell until such time that the smaller cell is delivered, unless the <br /> smaller cell cannot be delivered due to circumstances totally beyond the control <br /> of the Contractor. <br /> 12. Contractor Representations and Warranties-: <br /> Contractor represents and warrants as follows: <br /> a. Encumbrances. Contractor agrees that it will not encumber the Property in <br /> any way including, but not limited to mechanics liens, nor grant any property or <br /> contract right relating to the Property or other interests without the prior written <br /> consent of Owner. Contractor further agrees that if any encumbrances are <br /> created by actions of Contractor, Contractor will cause any and all such <br /> encumbrances to be removed, released, and cleared prior to the Delivery Date of <br /> the Reservoir or any Cell. <br /> b. Compliance with Government Regulations. Contractor warrants that there <br /> are no orders or directives of any city, county, state, federal or other <br /> governmental authority for repairs, maintenance work, or improvements to be <br /> performed on the Property. To the best of Contractors current, actual <br /> knowledge, Contractor has received no written notice from any municipal, state, <br /> Construction Agreement—Zadel(v.4-24-08) <br /> 17 <br />