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Mutual Agreement

Between

The U.S.Department of Energy

and Frontier

This Mutual Agreement is by and between the U.S. Department of Energy (Department) and Tom Johansen and Sandra Johansen, husband and wife, individually, and doing business as Frontier Car Corral and/or Frontier Salvage (collectively referred to as Frontier) and is effective upon signing by the parties.

Witnesseth That:

Whereas, on June 11, 1993, the Department of Energy (Department) through its management and operating contractor EG&G Idaho, Inc., offered for sale under Invitation No. EG&G 25-93, certain lots of surplus property identified as lots 1-6; and,

Whereas, on July 12, 1993, Frontier was awarded a contract for sale for lots 1-6 of said property, a copy of which is attached and made part hereof by this reference; and,

Whereas, the subject invitation did not contain a notification as to export or resale restrictions, or any other limitations on resale or use of the subject property; and,

Whereas, the subject property is subject to export controls prescribed by the Nuclear
Regulatory Commission; and,

Whereas, Frontier has represented that it has received offers up to $8,300,000.00 for purchase of the subject properties by foreign-owned companies, but because of export controls, it has been unable to finalize such sales; and,

Whereas, Frontier has submitted a claim for compensation for its investment, marketing, time and effort, storage costs, loss of sales, and other expenses; and,

Whereas, the Department and Frontier mutually agree that, in the interests of the national security and public health and safety, the referenced personal property should be rendered unfit for use for any purpose other than for scrap; and,

Whereas, the Department has determined that it is in the public interest to provide for the maintenance and the safeguarding of the subject property, and to oversee the reduction of said property to scrap; and,

To: m. Silianman

Whereas, this Agreement is executed by the Department under the authority of the Atomic Energy Act of 1954, as amended (including sections 3(c), 43, 161(g) and 161(j)), the Department of Energy Organization Act (including section 646), and other applicable law.

Now therefore, it is agreed by the parties as follows:

ARTICLE I

1.

2.

The Department shall be given and shall assume direct responsibility, as determined appropriate by the Department, for the maintenance, supervision and safeguarding of the subject property from the date of this agreement until such time as the Department determines that the subject property has been reduced to a form unfit for use except as

scrap.

The Department shall be permitted to monitor all work performed by Frontier to reduce subject property to a form unfit for use, except as scrap, for the purpose of ensuring that such work has been performed and such status has been achieved to the Department's satisfaction. The Department shall provide Frontier a written determination that the subject property has been rendered unfit for use. The manner, techniques, and conduct of the work shall be the sole responsibility of Frontier.

ARTICLE II

1.

2.

3.

The Department shall provide a representative to review the subject property with Frontier to assess Frontier's plan for an initial cutting and follow-on cutting and shall mutually agree as to the nature and extent of such cutting. Within ninety-six hours of the delivery of all documents as required by Article II.3, Frontier shall render the equipment unusable for its originally designed purpose by cutting using a plasma torch or similar technology. Frontier shall then, at the earliest possible date, commence follow-on work to reduce all of the subject property unfit for any use, except as scrap.

Frontier shall complete the work described in paragraph 1 above on or before August 25, 1994. Frontier shall assume sole responsibility for reducing the subject property to scrap, and will indemnify and hold harmless the Department and its contractors and subcontractors with respect to any liabilities resulting from such activity.

Frontier shall immediately return to the Department all documents, papers, books, manuals, technical drawings and any other materials received by any means from the Department or any of its management and operating contractors or any other source that relates to the functioning, repair, testing, maintenance, use, manufacture, or transportation of the subject property, or for any other purpose associated with the subject property, and any copies or reproductions thereof. Frontier shall provide an inventory of all such documents upon execution of this agreement and a certification to

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