April 28, 2000
Cyanotech Corporation
Hawaii Ocean Science Technology Park
00-0000 Xxxxx Xxxxxxxxx Xxx. #000
Xxxxxx-Xxxx, Xxxxxx 00000
Attn: Xxxxxx Xxxxx
Executive Vice President
Re: Project Closeout Costs and Suspension Agreement for the Astaxanthin
Expansion Project
This letter is being sent as a follow up to the meeting we had yesterday
regarding the closeout agreement between Kiewit Pacific Co. and Cyanotech
Corporation for the Astaxanthin Expansion project.
Based on your desire to extend our contract suspension, we are agreeable to
revising our previous suspension agreement dated September 17, 1999. That
agreement addressed the payment of the $338,335.00 balance due on the contract.
The terms of the suspension agreement will be modified as follows:
1. Kiewit Pacific Co. agrees to further suspend work on the
construction contract until December 1, 2000. In consideration
for this, Cyanotech will pay Kiewit Pacific Co. $85,000.00 of
the amount remaining due on the contract now. An additional
payment of $85,000.00 will be made on or before December 1,
2000.
2. In the event Cyanotech Corporation chooses to proceed with
construction on or before December 1, 2000, Kiewit Pacific Co.
will be allowed to renegotiate the price for the work to be
done.
3. If the parties cannot come to agreement for the completion of
the work, Cyanotech Corporation may proceed with an alternate
contractor after paying Kiewit Pacific Co. the remaining
$168,335.00 due plus interest as allowed by the contract.
If these provisions are acceptable to Cyanotech Corporation please sign this
document and return it to our office. We hope to resume construction on your
site in the near future.
Sincerely, Cyanotech Corporation
/s/Xxxxx Xxxxxxxxxx By:/s/ Xxxxxx X. Xxxxx
-------------------- --------------------
Xxxxx Xxxxxxxxxx Its Exec. V.P./CFO
Hawaii Area Manager Date: 5/1/2000
