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I. DESCRIPTION OF CONTRACT1. Contract Number:

Agency Name: DEPARTMENT OF CORRECTIONSAgency Code: 440Appropriation Unit: 3719.00Is budget authority Yesavailable?:If “No’ please explain: Not Applicable

9. Were quotes or proposals solicited?Was the solicitation (RFP) done by the PurchasingDivision?a. If yes, lIst the names of vendors that submItted proposals:

I Not Applicableb. Soliclation Waiver: Not Applicablec, Why was this contractor chosen in preference to other?

Coniracl#: TBD-Set upon submI5sIon Page 1 of 2

FoDate:

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2A37 CONTRACT SUMMARY(This form must accompany all contracts submitted to the Board of Examiners (BCE) for review and approval)

Legal EntityName:Contractor Name:Address:

Alpine Steel, LLC

Alpine Steel, LLC4071 Ponderosa Way

City/State/Zip Las Vegas, NV 89118

ContactlPhone: Randy Bulloch 702-367-8335Vendor No.: T27025112NV Business ID: 1006117-240

To what State Fiscal Year(s) will the contract be charged? 2011-2014What Is the source of funds that will be used to pay the contractor? Indicate the percentage of each funding source ifthe contractor will be paid by multiple funding sources.

General Funds 0.00 % Fees 0.00 %Federal Funds 0.00 % Bonds 0.00 %Highway Funds 0.00 % X Other funding 100.00 % Revenue Generating Contract

2. Contract start date:a. Effective upon Board of Yes or b. other effective date:

Examiner’s approval?Anticipated BCE meeting date 05/2011

Retroactive? NoIf ‘Yes, please explain

[Not Anolicable

NA

RECEWEDADD -I 1

3. Termination Date: 0510912014Contract term: 3 years and 9 days

suGT AND PLANNING OIVISIQ144. Type of contract: Revenue ContractContract description: Specialty Services

5. Purpose ofThis is a new contract to lease approxImately 19,000 square feet of manufacturing space to Alpine Steel at $5,000per month. Alpine will hire an Inmate workforce of 20 to 50 inmates to fabricate various steel products at I-UghDesert State Prison.

6. NEW CONTRACTThe maximum amount of the contract for the term of the contract is: $500,000.00Other basis for payment: $5,000 monthly lease payments, reimbursement of costs and services related to working inmates.

II. JUSTIFICATiON

7, What conditions requIre that this work be done?Prison Industries Is charged with providing employment for Inmates. Alpine Steel will, under this contract, work 20 or morelinmates.

8. Explain why State employees In your agency or other State agencies are not able to do this work:[N/A--Revenue generating contract.

NoNo

Exhibit B

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C CLNo ether company has committed to work inmates in this space.d. Last bid date: Anticipated re-bid date:

10. Does the contract contain any IT components? No

III. OTHER IN FORMATION11. a. Is the contractor a consultant that is providing an opinion or advice as defined in S.A.M. Chapter 300? (SAM. states “aconsultant is a person that provides information, an opinion, or advice for a fee’)

No

b. Is the contractor a current employee of the State of Nevada?No If “Yes’, is contractor planning to render services while on annuai leave, compensatory time, sick leave, or onhis own time? (Please explain)

Not Appiicabie

c. Was the contractor formerly employed by the State of Nevada within the past one (1) year?No If “Yes”, please provide employment termination date.

d. Is the contractor employed by any of Nevada’s political subdivisions or by any other government?No If “Yes’, please explain

Not Applicable

12. Has the contractor ever been engaged under contract by any State agency?Yes If “Yes’, specify when and for which agency and indicate if the quality of service provided to the Identifiedagency has been verified as satisfactory:

I April 2006 to present leases space from Prison industries and works inmates in that space. Satisfactory performance. 113. Is the contractor currently involved in litigation with the State of Nevada?

No lf”Yes”, please provide details of the litigation and facts supporting approval of the contract:INot Applicable

14. The contractor Is registered with the Nevada Secretary of State’s Office as a:LLC

15. a. Is the Contractor Name the same as the legal Entity Name?Yes

16. a. Does the contractor have a current Nevada State Business LIcense (SBL)?Yes

17. a. is the legal entity active and in good standing with the Nevada Secretary of State’s Office?Yes

18, Agency Field Contract Monitor:Brian Connett, Deputy Director, Industrial Programs Ph: 702-486-9997

19. Contract Status:Contract Approvals:

Approval Level User Signature Date

Contract #: TSD-Set upon submission Page 2 of 2

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A Contract Between the State of NevadaActing By and Thràugh Its

DEPARTMENT OF CORRECTIONS—SILVER STATE IIDUSTRIES3955 West Russell Road

Las Vegas, NV 89118Telephone: (702) 486-9997: Fax (702) 486-9908

and

ALPINE STEEL, LLC4071 Ponderosa WayLas Vegas, NV 89118

Telephone (702) 367-8335

WHEREAS, NRS 209.111 and NRS 209.461(5)(a) authorize the State of Nevada Department of Corrections, by and through itsDirector, to lease spaces within any institution or land of the department to private employers to be used for the vocationaltraining and employment of offenders, subject to the approval of the Board of State Prison Commissioners; and

WHEREAS, NRS 284.173 and NRS 209.461(1)Q) authorize the Director to contract with private employers for the employmentof offenders, subject to the approval of the Board of State Prison Commissioners and the State Board of Examiners; and

WHEREAS, SILVER STATE INDUSTRIES (“PRISON INDUSTRIES”) is an agency within the State of Nevada Departmentof Corrections; and

WHEREAS, ALPINE STEELS LLC (ALPINE STEEL) intends to engage in the business of fabricating metal constructioncomponents and other related activities.

WHEREAS, this Contract is made in the best interests of the State of Nevada;

NOW, THEREFORE, in consideration of the aforesaid premises, the parties mutually agree as follows:

1. REQUIRED APPROVAL. This Contract shall not become effective until and unless approved by the Nevada State Board ofExaminers.

2. DEFINITIONS. “State” means the State of Nevada and any state agency identified herein, its officers, employees andimmune contractors as defined in NRS 41.0307.

3. CONTRACT TERM. This Contract shall be effective from, subject to Board of Examiners’ approval (anticipated to be May10. 2011) to May 9,2014, unless sooner terminated by either party as specified in paragraph fifteen (15).

4. NOTICE. Unless othei-wise specified, termination shall not be effective until ninety (90) calendar days after a party has servedwritten notice of default, or without cause upon the other party. All notices or other communications required or permitted to begiven under this Contract shall be in writing and shall be deemed to have been duly given if delivered personally in hand, bytelephonic facsimile with simultaneous regular mail, or mailed certified mail, return receipt requested, postage prepaid on the dateposted, and addressed to the other party at the address specified above.

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5. DEMiSED PREMISES.

5.1. The State hereby leases to ALPINE STEEL, AND ALPINE STEEL hereby leases from the State the following describedproperty: approximately nineteen thousand (19,000) square feet. of commercial premises within High Desert State Prison (HDSP,)located in Indian Springs, Nevada. The Department of Corrections reserves to its PRISON INDUSTRIES the use of the roof,exterior walls, and the area above and below the leased property, together with the right to install, maintain, use, repair, andreplace pipes, ducts, conduits, wires, and structural elements, now or in the future leading through the Leased Property, and whichshall serve other parts of HDSP. This Contract shall be effective for a period of three (3) years from the date of approval by theState Board of Examiners, unless sooner terminated by either party as specified in paragraph 15 or renewed as specified in thissection five.

5.2. This contract shall automatically convert to a month-to-month tenancy, with 30 days written notice of termination, shouldthe tenant not exercise its right to renew. In the event this lease becomes a month-to-month tenancy, at anytime the price may berenegotiated within sixty (60) days thereof.

5.3 ALPINE STEEL shall have the option to renew this Contract twice in three (3)year increments by giving written notice of itsintention to renew at least sixty (60) days prior to the expiration of the lease term or any renewal period hereunder, except theprice per square foot may be renegotiated. The exercise of the option shall, however, not be effective nor binding on the State orALPINE STEEL unless and until the same has been approved by Prison Industries, ALPINE STEEL, and the State Board ofExaminers. ALPINE STEEL shall have a right of first refusal subsequent to said renewal.

6. INCORPORATED DOCUrvIENTS. The parties agree that the scope of work shall be specifically described. This Contractincorporates the following attachments in descending order of constructive precedence:

ATTACHMENT AA: INSURANCE SCHEDULE; ANDATTACHMENT BB: SCOPE OF WORK

A Lessees Attachment shall not contradict or supersede any State specifications, terms or conditions without written evidence ofmutual assent to such change appearing in this Contract.

7. CONSIDERATION.ALPINE STEEL shall pay to the Department of Corrections, by and through its PRISON INDUSTRIES, as minimum rental forsaid premises of five thousand dollars ($5,000) per month, upon receipt of an invoice from Prison industries. Lease payments aredue in advance of upcoming month and are due by the last day of previous month. Terms of all other invoice items (not includinglease payments which are due prior to the first of the month) are net thirty (30) days. Any and all payments made to PRISONINDUSTRIES shall be made by bank wire transfer if the amount of payment exceeds ten-thousand dollars ($10,000) or lesseramounts by check within thirty (30) days of receipt of invoice, Check payments shall be made to Prison Industries, in care of theDeputy Director for Industrial Programs, 3955 W Russell Rd, Las Vegas, NV 89118. Bank wire information will be provided bythe Prison Industries’ accounting departmenL

The total of the Contract will not exceed five hundred thousand dollars ($500,000). The State does not agree to reimburse Lesseefor expenses unless otherwise specified in the incorporated attachments. Any intervening end to a biennial appropriation periodshall be deemed an automatic renewal (not changing the overall Contract term) or a termination as the results of legislativeappropriation may require.

8. USE OP LEASED PROPBRT’r

8.1 ALPINE STEEL represents and warrants that it is duly licensed to conduct business in the State of Nevada. ALPINE STEELintends to engage in the business of fabricating metal construction components and other related activities. ALPINE STEELaffirmatively covenants and agrees to do business from the Leased Property throughout the term of this Contract. ALPINESTEEL shall not use or suffer to be used the Leased Property, or any portion thereof, for any other purpose or purposeswhatsoever, without PRISON INDUSTRIES’ written consent first had and obtained. ALPINE STEEL and/or its officers, agents,and employees shall not do or omit to do any act or thing which results in a nuisance or offensive or illegal condition, or whichcauses or threatens to cause a security risk, damage, or injury to life, limb, or property, and if such condition exists, PRISON

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INDUSTRIES shall have the right to re-enter the Leased Property and take possession thereof, and to suspend all rights ofALPINE STEEL, hereunder.

8.2 AlPINE STEEL shall not use the Leased Property or any portion thereof as living quarters, sleeping quarters, or lodgingrooms.

8,3 ALPINE STEEL shall not conduct or permit any fire, bankruptcy or auction sale in or about the Leased Property.

8.4 ALPINE STEEL hereby covenants and agrees that it, its agents, employees, servants, contractors, subtenants, assigns, andlicensees shall abide by any and all rules and regulations as PRISON INDUSTRIES and the Department of Corrections may,from time to time, adopt for the security, safety, care, and cleanliness of the Leased Property or for the preservation of good orderthereon.

8.5 Designated managerial personnel of ALPINE STEEL shall be provided with guest identification, allowing them access to theleased site at HDSP. Prospective customers of ALPINE STEEL who have first been approved by the Warden or his designeewill be authorized to tout the operating site at HDSP.

8.6 ALPINE STEEL shall be required to provide for the direct and related costs of staff required for security, liability, cost forworkers’ compensation insurance premiums paid for inmates worked by ALPINE STEEL, inmate wages, and/or other costsdirectly attributable to the presence of ALPINE STEEL at HDSP, and in accordance herewith. Inmates will be paid at least theprevailing wage rate for the locality and type of work being performed as determined by the Employment Security Division of theNevada Department of Employment, Training, and Rehabilitation,

9. UTILITIES AND SERVICES.

9.1 ALPINE STEEL shall pay all charges for electrical service and water usage to PRISON INDUSTRIES within thirty (30) daysof receipt of notice from PRISON INDUSTRIES as to the amount owed. Refuse removal will be the responsibility of ALPINESTEEL.

9.2 ALPINE STEEL shall provide its own telephones and computers, with certain restrictions. Computers with modems orinternet connectivity wilL not be permitted in any location accessible to inmates within the Leased Property and must be approvedby the MIS staff of the Department. ALPINE STEEL shall pay for all costs related to the use of telephones on the LeasedProperty.

10. RE1’AIR AND MAINTENANCE.ALPINE STEEL shall keep and maintain in good order, condition, and repair (including such replacement and restoration as isrequired for that purpose) any special equipment, fixtures, or facilities on the Leased Property. ALPINE STEEL shall replace orrestore every part of the Leased Property and all appurtenances thereto which are destroyed or damaged as a result of ALPINESTEEL’s actions and/or presence at HDSP.

11. ALTERATIONS. ADDITIONS AND IMPROVEMENTS.ALPINE STEEL shall, at its expense, make any and all improvements necessary for ALPINE STEEL to do business on theLeased Property not otherwise required by PRISON INDUSTRIES. Any improvements made by ALPINE STEEL shall be madepromptly, in good workmanlike manner, and in compliance with all insurance requirements and with all applicable permits nowor hereafter required by federal, state, or local government agencies in effect pertaining to the Leased Property or AI..PINESTEEL’s use thereof. Any permanent fixtures, installations, and improvements related to the business of fabricating metalconstruction components, or other related activities, made by ALPINE STEEL shall either become the property of the State ormay be removed if the Leased Property is restored to its original condition, less normal wear and tear, at ALPINE STEEL’sexpense.

12. USE OF INMATE LABOR AND STAFF.

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12.1 PRISON INDUSTRIES shall provide ALPINE STEEL access to an available workforce of inmates from which to choose itsworkers. The inmate workers’ duties shall entail the business of fabricating metal construction components and other relatedactivities and shall be supervised by civilian employees of ALPINE STEEL The inmate workers worked by ALP[NE STEELshall be employees of ALPINE STEEL. ALPINE STEEL shall pay inmate wages pursuant to the Department of Corrections’policies and procedures pursuant to paragraph 8.6 above plus other administrative costs. ALPINE STEEL shall issue W-2s toinmate workers as required by the federal government.

12.2 All current and future civilian employees of ALPINE STEEL who will perform employment-related activities at HDSP shallbe required to complete at least a one-week training program presented by the Department of Corrections within six (6) months ofbeginning employment at F{DSP.

13. ASSENT. The parties agree that the terms and conditions listed on incorporated attachments of this Contract are alsospecifically a part of this Contract and are limited only by their respective order of precedence and any limitations specified.

14. INSPECTION & AUDIT.a. Books and Records. Lessee agrees to keep and maintain under generally accepted accounting principles (GAAP) full, trueand complete records, contracts, books, and documents as are necessary to fully disclose to the State or United StatesGovernment, or their authorized representatives, upon audits or reviews, sufficient information to determine compliance withall state and federal regulations and statutes.b. Inspection & Audit. Lessee agrees that the relevant books, records (written, electronic, computer related or otherwise),including, without limitation, relevant accounting procedures and practices of Lessee or its subcontractors, financial statementsand supporting documentation, and documentation related to the work product shall be subject, at any reasonable time, toinspection, examination, review, audit, and copying at any office or location of Lessee where such records may be found, withor without notice by the State Auditor, the relevant state agency or its contracted examiners, the Department of Administration,Budget Division, the Nevada State Attorney General’s Office or its Fraud Control Units, the State Legislative Auditor, and withregard to any federal funding, the relevant federal agency, the Comptroller General, the General Accounting Office, the Officeof the Inspector General, or any of their authorized representatives. All subcontracts shall reflect requirements of thisparagraph.c. Period of Retention. All books, records, reports, and statements relevant to this Contract must be retained a minimum three(3) years, and for five (5) years if any federal funds are used pursuant to the Contract. The retention period runs from the dateof payment for the relevant goods or services by the State, or from the date of termination of the Contract, whichever is later.Retention lime shall be extended when an audit is scheduled or in progress for a period reasonably necessary to complete anaudit and/or to complete any administrative and judicial litigation which may ensue.

15. CONTRACT TERMINATION.a. Termination Without Cause. Any discretionary or vested right of renewal notwithstanding, this Contract may be terminatedupon written notice by mutual consent of both parties, or unilaterally by either party without cause.b. State Termination for Non-appropriation. The continuation of this Contract beyond the current biennium is subject to andcontingent upon sufficient funds being appropriated, budgeted, and otherwise made available by the State Legislature and/orfederal sources, The State may terminate this Contract, and Lessee waives any and all claim(s) for damages, effectiveimmediately upon receipt of written notice (or any date specified therein) if for any reason the Contracting Agency’s fundingfrom State and/or federal sources is not appropriated or is withdrawn, limited, or impaired.c. Cause Termination for Default or Breach. A default or breach may be declared with or without termination. This Contractmay be terminated by either party upon written notice of default or breach to the other party as follows

I. If Lessee fails to provide or satisfactorily perform any of the conditions, work, deliverables, goods, or services called forby this Contract within the time requirements specified in this Contract or within any granted extension of those timerequirements; orii. If any state, county, city or federal License, authorization, waiver, permit, qualification or certification required by statute,ordinance, law, or regulation to be held by Lessee to provide the goods or services required by this Contract is for any reasondenied, revoked, debarred, excluded, terminated, suspended, lapsed, or not renewed; oriii. If Lessee becomes insolvent, subject to receivership, or becomes voluntarily or involuntarily subject to the jurisdiction ofthe bankruptcy court; or

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iv. If the State materially breaches any material duty under this Contract and any such breach impairs Lessee’s ability to perform; orv. If it is found by the State that any quid pro quo or gratuities in the form of money, services, entertainment, gifts, orotherwise were offered or given by Lessee, or any agent or representative of Lessee, to any officer or employee of the Stateof Nevada with a view toward securing a contract or securing favorable treatment with respect to awarding, extending,amending, or making any determination with respect to the performing of such contract; orvi. If it is found by the State that Lessee has failed to disclose any material conflict of interest relative to the performance ofthis Contract.

d. Time to Correct. Termination upon a declared default or breach may be exercised only after service of formal written noticeas specified in paragraph four (4), and the subsequent failure of the defaulting party within fifteen (15) calendar days of receiptof that notice to provide evidence, satisfactory to the aggrieved party, showing that the declared default or breach has beencorrected.e. Winding Up Affairs Upon Termination. In the event of termination of this Contract for any reason, the parties agree that theprovisions of this paragraph survive termination:

i. The parties shall account for and properly present to each other all claims for fees and expenses and pay those which areundisputed and otherwise not subject to set off under this Contract. Neither party may withhold performance of winding upprovisions solely based on nonpayment of fees or expenses accrued up to the time of termination;ii. Lessee shall satisfactorily complete work in progress at the agreed rate (or a pro rats basis if necessary) if so requested bythe Contracting Agency;iii, Lessee shall execute any documents and take any actions necessary to effectuate an assignment of this Contract if sorequested by the Contracting Agency;iv. Lessee shall preserve, protect and promptly deliver into State possession aU proprietary information in accordance withparagraph twenty-one (21).

16. REMED[ES. Except as otherwise provided for by law or this Contract, the rights and remedies of the parties shall not beexclusive and are in addition to any other rights and remedies provided by law or equity, including, without limitation, actualdamages, and to a prevailing party reasonable attorneys’ fees and costs. It is specifically agreed that reasonable attorneys feesshall include without limitation one hundred and twenty-five dollars ($125.00) per hour for State-employed attorneys. The Statemay set off consideration against any unpaid obligation of Lessee to any State agency in accordance with NRS 353C,190.

17. LIMITED LIABILITY. The State will not waive and intends to assert available NRS chapter 41 liability limitations in allcases. Contract liability of both parties shall not be subject to punitive damages. Liquidated damages shall not apply unlessotherwise specified in the incorporated attachments, Damages for any State breach shall never exceed the amount of fundsappropriated for payment under this Contract, but not yet paid to Lessee, for the fiscal year budget in existence at the time of thebreach. Damages for any Lessee breach shall not exceed one hundred and fifty percent (150%) of the contract maximum “not toexceed” value. Lessee’s tort liability shall not be limited. The state, Nevada Department of Corrections, and Prison Industriesshall not be liable to ALPINE STEEL or third parties for damage caused by ALPINE STEEL’s products or services.

18. FORCE MAJEURE. Neither party shall be deemed to be in violation of this Contract if it is prevented from performing anyof its obligations hereunder due to the security needs of the Department of Corrections, strikes, failure of public transportation,civil or military authority, act of public enemy, accidents, fires, explosions, or acts of God, including without limitation, earthquakes, floods, winds, or storms. In such an event the intervening cause must not be through the fault of the party asserting suchan excuse, and the excused party is obligated to promptly perform in accordance with the terms of the Contract after theintervening cause ceases.

19. INDEMNIFICATION. To the fullest extent permitted by law Lessee shall indemnify, hold harmless and defend, notexcluding the State’s right to participate, the State from and against all liability, claims, actions, damages, losses, and expenses,including, without limitation, reasonable attorneys fees and costs, arising out of any alleged negligent or willful acts or omissionsof Lessee, its officers, employees and agents.

20. INDEPENDENT CONTRACTOR, Lessee is associated with the State only for the purposes and to the extent specified inthis Contract, and in respect to performance of the contracted services pursuant to this Contract, Lessee is and shall be anindependent contractor and, subject only to the terms of this Contract, shall have the sole right to supervise, manage, operate,

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control, and direct performance of the details incident to its duties under this Contract, Nothing contained in this Contract shall bedeemed or construed to create a partnership or joint venture, to create relationships of an employer-employee or principal-agent,or to otherwise create any liability for the State whatsoever with respect to the indebtedness, liabilities, and obligations of Lesseeor any other party. Lessee shall be solely responsible for, and the State shall have no obligation with respect to: (1) withholdingof income taxes, FICA or any other taxes or fees; (2) industrial insurance coverage; (3) participation in any group insurance plansavailable to employees of the State; (4) participation or contributions by either Lessee or the State to the Public EmployeesRetirement System; (5) accumulation of vacation leave or sick leave; or (6) unemployment compensation coverage provided bythe State. Lessee shall indemnity and hold State harmless from, and defend State against, any and all losses, damages, claims,costs, penalties, liabilities, and expenses arising or incurred because of, incident to, or otherwise with respect to any such taxes orfees. Neither Lessee nor its employees, agents, nor representatives shall be considered employees, agents, or representatives ofthe State. The State and Lessee shall evaluate the nature of services and the term of the Contract negotiated in order to determine“independent contractor” status, and shall monitor the work relationship throughout the term of the Contract to ensure that theindependent contractor relationship remains as such. To assist in determining the appropriate status (employee or independentcontractor), Lessee represents as follows:

Lgggs Initipl

YES NO

1. Does the Contracting Agency have the right to require control of when whereand how the independent contractor is to work?

___________ ___________

2. Will the Contracting Agency be providing training to the independentcontractor?

3. Will the Contracting Agency be furnishing the independent contractor withworkers space equipment, tools, supplies or travel expenses?

4. Are any of the workers who assist the independent contractor in performance ofhis/her duties employees of the State of Nevada?

___________ ___________

5. Does the arrangement with the independent contractor contemplate continuing /,or recurring work (even if the services are seasonal, part-time, or of short

____________ ____________

duration)7

6. Will the State of Nevada incur an employment liability if the independent i’i 1contractor is terminated for failure to perform?

___________

it

7. Is the independent contractor restricted from offering his/her services to the,.general public while engaged in this work relationship with the State? J,f’ fr,7

21. INSURANCE SCHEDULE. Unless expressly waived in writing by the State, Lessee, as an independent contractor and not anemployee of the State, must carry policies of insurance and pay all taxes and fees incident hereunto. Policies shall meet theterms and conditions as specified within this Contract along with the additional limits and provisions as described inAttachment AA, incorporated hereto by attachmenL The State shall have no liability except as specifically provided in theContract.

The Lessee shall not commence work before:1) Lessee has provided the required evidence of insurance to the Contracting Agency of the State, and2) The State has approved the insurance policies provided by the Lessee.

Prior approval of the insurance policies by the State shall be a condition precedent to any payment of consideration under thisContract and the State’s approval of any changes to insurance coverage during the course of performance shall constitute anongoing condition subsequent this Contract. Any failure of the State to timely approve shall not constitute a waiver of thecondition.

Insurance Coverage: The Lessee shall, at the Lessee’s sole expense, procure, maintain and keep in force for the duration ofthe Contract insurance conforming to the minimum limits as specified in Attachment AA, incorporated hereto by attachment,Unless specifically stated herein or otherwise agreed to by the State, the required insurance shall be in effect prior to thecommencement of work by the Lessee and shall continue in force as appropriate until:

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1. Final acceptance by the State of the completion of this Contract; or2. Such time as the insurance is no longer required by the State under the terms of this Contract;Whichever occurs later.

Any insurance or self-insurance available to the State shall be in excess of, and non-contributing with, any insurance requiredfrom Lessee. Lessee’s insurance policies shall apply on a primary basis, Until such time as the insurance is no longer requiredby the State, Lessee shall provide the State with renewal or replacement evidence of insurance no less than thirty (30) days beforethe expiration or replacement of the required insurance. If at any time during the period when insurance is required by theContract, an insurer or surety shall fail to comply with the requirements of this Contract, as soon as Lessee has knowledge of anysuch failure, Lessee shall immediately notify the State and immediately replace such insurance or bond with an insurer meetingthe requirements.

General Requirements:a. Additional Insured: By endorsement to the general liability insurance policy evidenced by Lessee, the State of Nevada,

its officers, employees and immune lessees as defined in NRS 41.0307 shall be named as additional insureds for allliability arising from the Contract,

b. Waiver of Subrogation: Each insurance policy shall provide for a waiver of subrogation against the State of Nevada, itsofficers, employees and immune lessees as defined in NRS 41.0307 for losses arising from work/materials/equipmentperformed or provided by or on behalf of the Lessee.

c. Cross-Liability: Ail required liability policies shall provide cross-liability coverage as would be achieved under thestandard ISO separation of insureds clause,

d. Deductibles and Self-Insured Retentions: Insurance maintained by Lessee shall apply on a first dollar basis withoutapplication of a deductible or self-insured retention unless otherwise specifically agreed to by the State. Such approvalshall not, relieve Lessee from the obligation to pay any deductible or self-insured retention. Any deductible or self-insuredretention shall not exceed fifty thousand dollars ($50,000.00) per occurrence, unless otherwise approved by the RiskManagement Division.

e. Policy Cancellation: Except for ten (10) days notice for non-payment of premium, each insurance policy shall beendorsed to state that without thirty (30) days prior written notice to the State of Nevada, do Contracting Agency, thepolicy shall not be canceled, non-renewed or coverage and br limits reduced or materially altered, and shall provide thatnotices required by this paragraph shall be sent by certified mailed to the address shown on page one (1) of this contract:

f. Approved Insurer: Each insurance policy shall be:1) Issued by insurance companies authorized to do business in the State of Nevada or eligible surplus lines insurers

acceptable to the State and having agents in Nevada upon whom service of process may be made; and2) Currently rated by A.M. Best as “A-Vu” or better.

Evidence of Insurance:

Prior to the start of any Work, Lessee must provide the following documents to the contracting State agency:

1) Certificate of Insurance: The Acord 25 Certificate of Insurance form or a form substantially similar must be submittedto the State to evidence the insurance policies and coverages required of Lessee. The certificate must name the State ofNevada, its officers, employees and immune lessees as defined in NRS 41.0307 as the certificate holder. The certificateshould be signed by a person authorized insurer to bind coverage on its behalf. The state project/contract number;description and contract effective dates shall be noted on the certificate, and upon renewal of the policies listed Lessee shallfurnish the State with replacement certificates as described within Insurance Coverage. section noted above.

Mail all required insurance documents to the State Contracting Agency identified on page one of the contract,

2) Additional Insured Endorsement: An Additional Insured Endorsement (CO 20 10 11 85 or CO 20 26 11 85) , signedby an authorized insurance company representative, must be submitted to the State to evidence the endorsement of the Stateas an additional insured per eneral Requirements. subsection a above.3) Schedule of Underlying Insurance Policies: If Umbrella or Excess policy is evidenced to comply with minimum limits,a copy of the Underlyer Schedule from the Umbrella or Excess insurance policy may be required.

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Review and Approval: Documents specified above must be submitted for review and approval by the State prior to thecommencement of work by Lessee. Neither approval by the State nor failure to disapprove the insurance furnished byLessee shall relieve Lessee of Lessee’s full responsibility to provide the insurance required by this Contract. Compliancewith the insurance requirements of this Contract shall not limit the liability of Lessee or its sub-contractors, employees oragents to the State or others, and shall be in addition to and not in lieu of any other remedy available to the State under thisContract or otherwise. The State reserves the right to request and review a copy of any required insurance policy orendorsement to assure compliance with these requirements.

22. COMPLIANCE WITH LEGAL OBLIGATIONS. Lessee shall procure and maintain for the duration of this Contract anystate, county, city or federal license, authorization, waiver, permit, qualification or certification required by statute, ordinance,law, or regulation to be held by Lessee to provide the goods or services required by this Contract. Lessee will be responsible topay all taxes, assessments, fees, premiums, permits, and licenses required by law. Real property and personal property taxes arethe responsibility of Lessee in accordance with NRS 361.157 and NRS 361.159. Lessee agrees to be responsible for payment ofany such government obligations not paid by its subcontractors during performance of this Contract. The State may set-offagainst consideration due any delinquent government obligation in accordance with NRS 353C.190.

23. WAIVER OF BREACH. Failure to declare a breach or the actual waiver of any particular breach of the Contract or itsmaterial or nonmaterial terms by either party shall not operate as a waiver by such party of any of its rights or remedies as to anyother breach.

24. SEVERABILITY. If any provision contained in this Contract is held to be unenforceable by a court of law or equity, thisContract shall be construed as if such provision did not exist and the non-enforceability of such provision shall not be held torender any other provision or provisions of this Contract unenforceable.

25. ASSIGNMENT/DELEGATION. To the extent that any assignment of any right under this Contract changes the duty ofeither party, increases the burden or risk involved, impairs the chances of obtaining the performance of this Contract, attempts tooperate as a novation, or includes a waiver or abrogation of any defense to payment by State, such offending portion of theassignment shall be void, and shall be a breach of this Contract. Lessee shall neither assign, transfer nor delegate any rights,obligations nor duties under this Contract without the prior written consent of the State’s Deputy Director of Prison Industries.

26. STATE OWNERSHIP OF PROPRIETARY INFORMATION. Any reports, histories, studies, tests, manuals, instructions,photographs, negatives, blue prints, plans, maps, data, system designs, computer code (which is intended to be considerationunder the Contract), or any other documents or drawings, prepared or in the course of preparation by Lessee (or itssubcontractors) in performance of its obligations under this Contract shall be the exclusive property of the State and all suchmaterials shall be delivered into State possession by Lessee upon completion, termination, or cancellation of this Contract.Lessee shall not use, willingly allow, or cause to have such materials used for any purpose other than performance of Lessee’sobligations under this Contract without the prior written consent of the State. Notwithstanding the foregoing, the State shall haveno proprietary interest in any materials licensed for use by the State that are subject to patent, trademark or copyright protection.

27. PUBLIC RECORDS. Pursuant to NRS 239.010, information or documents received from Lessee may be open to publicinspection and copying, The State has a legal obligation to disclose such information unless a particular record is madeconfidential by law or a common law balancing of interests. Lessee may label specific parts of an individual document as a “tradesecret” or ‘confidential” in accordance with NRS 333.333, provided that Lessee thereby agrees to indemnify and defend the Statefor honoring such a designation. The failure to so label any document that is released by the State shall constitute a completewaiver of any and all claims for damages caused by any release of the records.

28, CONFIDENTIALITY. Lessee shall keep confidential aU information, in whatever form, produced, prepared, observed orreceived by Lessee to the extent that such information is confidential by law or otherwise required by this Contract.

Approied 05/08/02

Revised 11/07

PageS of 10

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29. FEDERAL FUNDING. In the event federal funds are used for payment of all or part of this Contract:a. Lessee certifies, by signing this Contract, that neither it nor its principals are presently debarred, suspended, proposed fordebarment, declared ineligible or voluntarily excluded from participation in this transaction by any federal department oragency This certification is made pursuant to the regulations implementing Executive Order 12549, Debarment andSuspension, 28 C.F.R. Pt. 67, § 67.5 10, as published as pt. VII of the May 26, 1988, Federal Register (pp. 19160-19211), andany relevant program-specific regulations. This provision shall be required of every subcontractor receiving any payment inwhole or in part from federal funds.b. Lessee and its subcontractors shall comply with all terms, conditions, and requirements of the Americans with DisabilitiesAct of 1990 (P.L. 101-136), 42 U.S.C. 12101, as amended, and regulations adopted thereunder contained in 28 C.F.R. 26,101-36.999, inclusive, and any relevant program-specific regulations.c. Lessee and its subcontractors shall comply with the requirements of the Civil Rights Act of 1964, as amended, theRehabilitation Act of 1973, P.L 93-112, as amended, and any relevant program-specific regulations, and shall not discriminateagainst any employee or offeror for employment because of race, national origin, creed, color, sex, religion, age, disability orhandicap condition (including AIDS and AIDS-related conditions.)

30. LOBBYING. The parties agree, whether expressly prohibited by federal law, or otherwise, that no funding associated withthis contract will be used for any purpose associated with or related to lobbying or influencing or attempting to lobby or influencefor any purpose the following:

a. Any federal, state, county or local agency, legislature, commission, counsel or board;b. Any federal, state, county or local legislator, commission member, counsel member, board member, or other elected official;orc. Any officer or employee of any federal, state, county or local agency; legislature, commission, counsel or board.

31. PROPER AUTHORITY. The parties hereto represent and warrant that the person executing this Contract on behalf of eachparty has full power and authority to enter into this Contract. Lessee acknowledges that as required by statute or regulation thisContract is effective only after approval by the State Board of Examiners and only for the period of time specified in the Contract.Any services performed by Lessee before this Contract is effective or after it ceases to be effective are performed at the sole riskof Lessee.

32. NO PARTNERSHIP. Nothing contained in this Contract shall be deemed or construed to create a partnership or jointventure, to create relationships of an employer-employee or principal-agent, or to otherwise create any liability for the Statewhatsoever with respect to the indebtedness, liabilities, and obligations of ALPINE STEEL or any other party.

33. GOVERNING LAW: JURISDICTION. This Contract and the rights and obligations of the parties hereto shall be governedby, and construed according to, the laws of the State of Nevada, without giving effect to any principle of conflict-of-law thatwould require the application of the law of any other jurisdiction. The parties consent to the exclusive jurisdiction of the FirstJudicial District Court, Carson City, Nevada for enforcement of this Contract.

34. ENTIRE CONTRACLA.ND MODIFICATION. This Contract and its integrated attachment(s) constitute the entireagreement of the parties and as such are intended to be the complete and exclusive statement of the promises, representations,negotiations, discussions, and other agreements that may have been made in connection with the subject matter hereof. Unless anintegrated attachment to this Contract specifically displays a mutual intent to amend a particular part of this Contract, generalconflicts in language between any such attachment an&this Contract shall be construed consistent with the terms of this Contract.Unless otherwise expressly authorized by the terms of this Contract, no modification or amendment to this Contract shall bebinding upon the parties unless the same is in writing and signed by the respective parties hereto and approved by the Office ofthe Attorney General and the State Board of Examiners.

Approved 05/08/02Revised 11/07

Page 9 of 10

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IN WITNESS WHEREOF, the parties hereto have caused this Contract to be signed and intend to be legally bound thereby.

Approved 05/08/02

Revised 11/07

Page 10 of 10

F r.Lc8secitI?Lcsee’s Sigature—Alpinc Steel, LIC Dale

aturrianC:nnett

Signature Date

Signature Dale

Signature - Board of Examiners

Approved as to form by:

c€4AADeputy Attorney General for Attorney General

/J//?/ •7,’ 4/f

Deputy Director, Silver Slate tndustries“Datç’ Title

Title

Title

APPROVED BY BOARD OF EXAMLNERS

On(Date)

On(Date)

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ATTACHMENT AAINSURANCE SCHEDULE

INDEMNIFICATION:Lessee shall indemnify, hold harmless and, not excluding the States right to participate, defend the State and Itsofficers, officials, agents, and employees (hereinafter referred to as ‘State”) from and against any and all liabilities,claims, actions, damages, losses, or expenses including without limitation reasonable attorneys’ fees and costs,(hereinafter referred to as ‘claims’) for bodily injury or personal injury including death, or loss or damage totangible or Intangible property caused, or alleged to be caused, In whole or in part, by the negligent or willful actsor omissions of Lessee or any of its owners, officers, directors, agents, employees or contractors, arising out of orrelated to Lessee’s occupancy and use of the Leased Premises, It is the specifIc intention of the parties that theState shall, in all instances, except for claims arising solely from the negligent or willful acts or omissions of theState, be indemnified by Lessee from and against any and all claims. It is agreed that Lessee will be responsiblefor primary loss investigation, defense and judgment costs where this indemnification is applicable. Inconsideration for the use and occupancy of the Leased Premises, the Lessee agrees to waive all rights ofsubrogation against the state, its officers, officials, agents and employees for losses arising from the use,occupancy or condition of the Leased Premises.

INSURANCE REQUIREMENTS:Lessee shall procure and maintain for the duration of the Lease, insurance against claims for injury to persons ordamage to property which may arise from or in connection with this Lease.

The insurance requirements herein are minimum requirements for this Lease and in no way limit the indemnitycovenants contained in this Lease, The State in no way warrants that the minimum limits contained herein aresufficient to protect the Lessee from iiabilities that might arise out of this Lease. Lessee is free to purchase suchadditional insurance as Lessee determines necessary.

A. MINIMUM SCOPE AND LIMITS OF INSURANCE: Lessee shall provide coverage with limits of liability notless than those stated below. An excess liability policy or umbrella liability policy may be used to meet theminimum liability requirements provided that the coverage is written on a “following form” basis.

1. Commercial General Liability — Occurrence FormPolicy shall include bodily injury, property damage and broad form contractual liability coverage.* General Aggregate $2,000,000• Products — Completed Operations Aggregate $1 000,000• Personal and Advertising Injury $1,000,000• Each Occurrence $1,000,000• Fire Damage (Damage to Rented Premises) $100,000a, The policy shall be endorsed to include the following additional insured language: “The State of

Nevada shall be named as an additional insured with respect to liability arising out of the use and/oroccupancy of the property subject to this Lease.

2. Property InsuranceCoverage for Lessee’s tenant improvements Replacement Value

a. Property insurance shall be written on an all risk, replacement cost coverage, including coveragefor flood and earth movement.

b. The State of Nevada shall be named as a loss payee on property coverage for tenantimprovements.

c. If property coverage on the building is required, “the State of Nevada shall be named as a losspayee”.

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d. Policy shall contain a waiver of subrogation against the State of Nevada.

3. Worker’s Compensation and Employers’ LiabilityWorkers’ Compensation StatutoryEmployers’ Liability

Each Accident $100,000Disease — Each Employee $100,000Disease — Policy Limit $500,000

a. Policy shall contain a waiver of subrogation against the State of Nevada.

4. Automobile LiabilityBodily Injury and Property Damage for any owned, hired, and non-owned vehicles,Combined Single Limit (CSL) $1 000,000a, The policy shall be endorsed to include the following additional insured language: The state of

Nevada shall be named as an additional Insured with respect to liability arising out of the activitiesperformed by, or on behalf of the Sponsor, including automobiles owned, leased, hired orborrowed by the Sponsor.”

B. ADDITIONAL INSURANCE REQUIREMENTS; The policies shall include, or be endorsed to include, thefollowing provisions:

1, On Insurance policies where the State of Nevada is named as an additional insured, the State ofNevada shall be an additional insured to the full limits of liability purchased by the Lessee even if thoselimits of liability are in excess of those required by this Lease.

2. The Lessee’s insurance coverage shall be primary insurance and non-contributory with respect to allother available sources.

C. NOTICE OF CANCELLATION: Each insurance policy required by the insurance provisions of this Contractshall provide the required coverage and shall not be suspended, voided or canceled except after thirty (30)days prior written notice has been given to the State, except when cancellation is for non-payment ofpremium, then ten (10) days prior notice may be given. Such notice shall be sent directly to DeputyDirector of Industrial Programs, Prison Industries, 3955W Russell Rd, Las Vegas, NV 89118.

D. ACCEPTABILITY OF INSURERS: Insurance is to be placed with insurers duly licensed or authorized to dobusiness in the state of Nevada and with an “A.M. Best” rating of not less than A- VII, The State in no waywarrants that the above-required minimum Insurer rating is sufficient to protect the Contractor from potentialinsurer insolvency.

E. VERIFICATION OF COVERAGE: Lessee shall furnish the State with certificates of insurance (ACORDform or equivalent approved by the State) as required by this Lease. The certificates for each insurancepolicy are to be signed by a person authorized by that insurer to bind coverage on Its behalf.

All certificates and any required endorsements are to be received and approved by the State before theLease commences. Each Insurance policy required by this Lease must be in effect at or prior tocommencement of this Lease and remain in effect for the duration of the Lease. Failure to maintain theinsurance policies as required by this Lease or to provide evidence of renewal is a material breach ofcontract.

All certificates required by this Lease shall be sent directly to Deputy Director of Industrial Programs,PRISON INDUSTRIES, 3955 W Russell Rd, Las Vegas, NV 89118. The State Department, Leaseagreement number and location description are to be noted on the certificate of insurance. The State

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reserves the right to require complete, certified copies of all insurance policies and endorsements requiredby this Lease at any time. DO NOT SEND CERTIFICATES OF INSURANCE TO THE STATES RISKMANAGEMENT DIVISION.

F. APPROVAL: Any modification or variation from the insurance requirements in this Lease must have priorapproval from the State of Nevada Attorney Generals Office or the Risk Manager, whose decision shall befinal. Such action will not require a lormai lease amendment, but may be made by administrative action.

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be signed and intend to be legally bound thereby.

Lessees Stgnature---Alpine Steel, LLC

Signature.-Brian Connett

RMlns rev 03/08

r. s LLDate Title

,/y//,,/Deputy Director. Silver State Industries

Dte / Title

Attachment AA Page 3of3

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AflACHMENTBB: SCOPE OF WORK Page 1 of 2

Services of Independent Contractor

Purpose

The purpose of this contract is for PRISON INDUSTRIES to lease industrial space within HighDesert State Prison (HDSP) to ALPINE STEEL LLC (Alpine Steel) whereby ALPINE STEELwill work inmates fabricating metal construction components and other related activities.

Objective

Create a safe and mutually profitable operation for both ALPINE STEEL and PRISONINDUSTRIES.

Rponsibilities

A. Prison Industries:

1. Provide all inmate labor needed (Alpine Steel agrees to pay inmates directly via PrisonIndustries.)

2. Provide approximately 19,000 square feet of commercial premises for fabrication ofmetal construction components and other related activities.

3. Provide the water and electrical service (to be reimbursed by Alpine Steel.)

4. Provide correctional officer coverage (to be reimbursed by Alpine Steel.)

5. Provide workers’ compensation insurance (to be reimbursed by Alpine Steel.)

B. Alpine Steel:

1. Train inmates, as needed, on fabrication of metal construction components and relatedactivities. All such training shall occur within HDSP. Alpine Steel will provide hiringand wage evaluation processes.

2. Supply all equipment needed for the operation.

3. Pay Silver State Industries $5,000 per month for the duration of this contract for the leaseof the premises.

4. Accepts responsibility for direct payment of inmate labor wages. (Prison Industries willinvoice Alpine Steel for inmate workers’ compensation, correctional officer coverage,and administrative costs.)

5. Pay Prison Industries for use of any of its equipment. Fees are to be agreed upon prior touse. Alpine Steel’s use of Prison Industries’ equipment will only occur if the AlpineSteel operator is certified and licensed to use such equipment.

6. Pay for refuse removal and telephone service. Reimburse Prison Industries for electricityand water usage in connection with the project.

7. All Alpine Steel employees are required to complete an NDOC sponsored training withinsix (6) months of employment and attend annual refresher courses.

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KITACHMENT BB: SCOPE OF WORK Page 2 of 2

8. Alpine Steel will adhere to all prison security including but not limited to vehicle, hazmatand tool rules, and sign in/out procedures of HDSP.

Mutual AgreementDuring the term of this agreement, both parties agree that:

1. All manufactured products are the personal property of Alpine Steel.2. Such products may be marketed and sold at prices established exclusively by Alpine

Steel.

3. The Deputy Director of Prison Industries must approve any Alpine Steelequipment/items/effects, prior to them being brought onto HDSP property. Inventoriesstored at HDSP will be reviewed by the Deputy Director annually for justification forcontinued storage at HDSP,

4. Upon termination of this contract, Alpine Steel agrees to return premises used by them tothe original state including cost of testing, if applicable.

N WITNESS WHEREOF, the parties hereto have caused this Contract to be signed and intend to be legally boundthereby.

_________________

Lesse&s Sigaturc-.Alpine Stee’, LLC Date fltte

Deputy Director, Silver State IndusLd5Signature--Brian Conncti Date’ Title

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