1.

SUSPENSION OF WORK

1.1 COMPANY may at any time, with or without cause, suspend performance
of the WORK or any part thereof by giving CONTRACTOR prior notice
specifying the WORK to be suspended and the effective date of such
suspension. CONTRACTOR shall cease all activity on suspended WORK
on the effective date of suspension but shall continue to prosecute any
unsuspended WORK. CONTRACTOR shall take all actions necessary to
maintain and safeguard the suspended WORK. COMPANY shall not be
liable for loss of anticipated profits or for any damages or any other costs
incurred with respect to suspended WORK during the period of suspension,
provided that when the suspension is without cause, COMPANY shall pay
reasonable, auditable and verifiable costs which:

1.1.1 Are incurred for the purpose of safeguarding the WORK and
materials and equipment in transit or at the WORK Site;

1.1.2 Are incurred for such CONTRACTOR or Subcontractor personnel

or equipment, which CONTRACTOR continues to maintain, at
COMPANY’s request, at the WORK Site; or

1.1.3 Are otherwise reasonable and unavoidable costs of suspending the

WORK and of reassembling personnel and equipment.

COMPANY may, at any time, authorize resumption of all or any part of the suspended
WORK by giving notice to CONTRACTOR specifying the part of WORK to be resumed
and the effective date of the resumption. Suspended WORK shall be promptly resumed
by CONTRACTOR after receipt of such notice. Upon resumption of the suspended
WORK, COMPANY shall initiate a WER revision pursuant to Schedule “A” or an
Amendment, as appropriate, describing any required adjustments to the Scheduled
Completion Dates, Critical Milestone Date or compensation to CONTRACTOR that
result from suspension of the WORK under this Paragraph.