Pg 1 of 14 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ------------------------------------------------------------- x : In re : : WESTINGHOUSE ELECTRIC : COMPANY LLC, et al., : : Debtors. 1 : ------------------------------------------------------------- x Chapter 11 Case No. 17-10751 (MEW) (Jointly Administered) STIPULATION, AGREEMENT AND ORDER BETWEEN DEBTORS, MPANY, GREGORY ELECTRIC COMPANY, INC., AND CA MURREN & SONS CO., INC. ADDRESSING OMNIBUS MOTION OF DEBTORS FOR ENTRY OF ORDER AUTHORIZING DEBTORS TO REJECT CERTAIN EXECUTORY CONTRACTS RELATED TO THE VC SUMMER PROJECT Westinghouse Electric Company LLC ( WEC ), WECTEC Global Project Services. ( WECTEC ),., and certain of their affiliates, as debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the Debtors or Westinghouse ), Blanchard Machinery Company, Gregory Electric Company,., and CA Murren & Sons Co.,. (collectively, the Vendors ), by and through their respective counsel, hereby enter into this stipulation, agreement and proposed order (this Stipulation ) and represent and agree as follows: 1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor s federal tax identification number, if any, are: Westinghouse Electric Company LLC (0933), CE Nuclear Power International,. (8833), Fauske and Associates LLC (8538), Field Services, LLC (2550), Nuclear Technology Solutions LLC (1921), PaR Nuclear Holding Co.,. (7944), PaR Nuclear,. (6586), PCI Energy Services LLC (9100), Shaw Global Services, LLC (0436), Shaw Nuclear Services,. (6250), Stone & Webster Asia. (1348), Stone & Webster Construction. (1673), Stone & Webster International. (1586), Stone & Webster Services LLC (5448), Toshiba Nuclear Energy Holdings (UK) Limited (2348), TSB Nuclear Energy Services. (2348), WEC Carolina Energy Solutions,. (8735), WEC Carolina Energy Solutions, LLC (2002), WEC Engineering Services. (6759), WEC Equipment & Machining Solutions, LLC (3135), WEC Specialty LLC (N/A), WEC Welding and Machining, LLC (8771),. (4168), WECTEC Global Project Services. (8572), WECTEC LLC (6222), WECTEC Staffing Services LLC (4135), Westinghouse Energy Systems LLC (0328), Westinghouse Industry Products International Company LLC (3909), Westinghouse International Technology LLC (N/A), and Westinghouse Technology Licensing Company LLC (5961). The Debtors principal offices are located at 1000 Westinghouse Drive, Cranberry Township, Pennsylvania 16066.
Pg 2 of 14 RECITALS A. Vendors and certain Debtors are party to the prepetition subcontracts and purchase orders listed on Exhibit A hereto (the Summer Subcontracts ), related to the construction of two AP1000 nuclear reactor units (the VC Summer Project ) at the Virgil C. Summer Generating Station located in Fairfield County, South Carolina (the VC Summer Site ). B. The VC Summer Site is owned by South Carolina Electric & Gas Company ( SCE&G ), a subsidiary of SCANA Corporation, for itself and as agent for South Carolina Public Service Authority (also known as Santee Cooper) (collectively, the VC Summer Owners ). C. On March 29, 2017 (the Petition Date ), the Debtors each commenced a voluntary case under chapter 11 of title 11 of the United States Code in the Bankruptcy Court for the Southern District of New York (the Court ). D. Pursuant to that certain Interim Assessment Agreement among WEC, WECTEC, and the VC Summer Owners dated as of March 28, 2017 (as amended from time to time, the IAA ), the VC Summer Owners agreed to, inter alia, (a) pay all costs and administrative claims accrued by the Debtors during the Interim Assessment Period (as defined therein) pursuant to any agreement related to the VC Summer Project, and (b) indemnify the Debtors against any administrative expenses they may incur under any agreement related to the VC Summer Project, regardless of whether the administrative expenses arise during or after the Interim Assessment Period. IAA, 6, 11. E. By letter dated July 31, 2017, the VC Summer Owners notified Vendors that the VC Summer Project was being abandoned (the Abandonment Notice ). By letter
Pg 3 of 14 dated August 1, 2017, Westinghouse notified Vendors that all work on the VC Summer Project should be stopped effective immediately. F. On August 7, 2017, the Debtors filed the Omnibus Motion of Debtors Pursuant to 11 U.S.C. 365(a) and 105(a) for Entry of Order Authorizing Debtors to Reject Certain Executory Contracts Related to the VC Summer Project [Docket No. 1099] (the Motion ), seeking to reject the Summer Subcontracts, nunc pro tunc to August 7, 2017. G. On August 17, 2017, Vendors filed the Limited Objection to Omnibus Motion of Debtors Pursuant to 11 U.S.C. 365(a) and 105(a) for Entry of Order Authorizing Debtors to Reject Certain Executory Contracts Related to the VC Summer Project [Docket No. 1180] (the Objection ). H. On September 6, 2017, the Court entered the Order Pursuant to 11 U.S.C. 365(a) and 105(a) Authorizing Debtors to Reject Certain Executory Contracts Related to the VC Summer Project [Docket No. 1099] (the Rejection Order ), approving the rejection of certain other executory contracts related to the VC Summer Project. The Rejection Order provides that the Objection remains outstanding. I. The Debtors and Vendors now wish to agree to the rejection of the Summer Subcontracts and defer any disputes concerning the effective date of rejection of certain Summer Subcontracts and the priority of any claim Vendors have under the Summer Subcontracts arising from the cessation of work at the VC Summer Project. J. This Stipulation shall serve as notice of a consensual resolution to the Objection pursuant to paragraph 7 of the Rejection Order.
Pg 4 of 14 NOW, THEREFORE, UPON THE FOREGOING RECITALS, WHICH ARE INCORPORATED AS THOUGH FULLY SET FORTH HEREIN, IT IS HEREBY STIPULATED AND AGREED, BY AND AMONG THE PARTIES, THROUGH THEIR UNDERSIGNED COUNSEL, AND UPON COURT APPROVAL HEREOF, IT SHALL BE ORDERED THAT: 1. The Objection is deemed withdrawn, and subject to any other pending objections to the rejection of the Summer Subcontracts, the Debtors are authorized to reject the Summer Subcontracts, and such executory contracts are hereby deemed rejected. are as follows: 2. The effective dates of the Debtors rejection of the Summer Subcontracts a. Blanchard Machinery Company s Summer Subcontracts are rejected effective as of August 7, 2017; b. Gregory Electric Company,. s Summer Subcontracts are rejected effective as of a date to be determined, but in any event no later than the date of this Stipulation; and c. C.A. Murren and Sons Co.,. s Summer Subcontracts are rejected effective as of a date to be determined, but in any event no later than the date of this Stipulation. 3. Vendors shall file proofs of claim for any damages relating to the rejection of the Summer Subcontracts no later than 30 days after the date the Court approves this Stipulation. 4. Vendors reserve all rights to seek reimbursement on an administrative expense basis for any and all costs and charges incurred at or relating to the VC Summer Project following the Petition Date. The Debtors reserve and retain all of their rights to object to or otherwise challenge any such administrative expense application, as well as to seek reimbursement and/or indemnification from the VC Summer Owners pursuant to the IAA of any administrative expenses payable to Vendors.
Pg 5 of 14 5. Except as modified herein, the Rejection Order is fully applicable to the Summer Subcontracts, shall continue to apply in full force and effect, and is incorporated herein by reference as if fully set forth herein. 6. This Stipulation may be changed, modified or otherwise altered in a writing executed by the Parties to this Stipulation. Oral modifications are not permitted. Court. 7. This Stipulation shall be effective immediately upon approval by the 8. The Court shall retain jurisdiction to hear any matters or disputes arising from or relating to this Stipulation. Dated: January 22, 2018 New York, New York /s/ Garrett A. Fail Gary T. Holtzer Robert J. Lemons Garrett A. Fail WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, New York 10153 Telephone: (212) 310-8000 Facsimile: (212) 310-8007 /s/ Michael M. Beal Michael M. Beal, Esq. Adam J. Floyd, Esq. BEAL, LLC 1301 Gervais Street, Ste. 1040 Columbia, SC 29201 Telephone: (803) 728-0803 Attorneys for Vendors Attorneys for Debtors and Debtors in Possession SO ORDERED, this 7 th day of February, 2018 s/michael E. Wiles HONORABLE MICHAEL E. WILES UNITED STATES BANKRUPTCY JUDGE
Pg 6 of 14 Exhibit A Summer Subcontracts Line # Contract ID SPMAT PO SAP PO Number Debtor Counterparty Contract Description 363 12760 132177F002741 WSPM002071 Water Wagon for Dust Control 364 12762 132177F002827 WSPM002263 Unit 3 N.I. CVBH - 1 Month Rental - Blanchard CAT Recommended Vendor - Target date 6/09/14 365 12768 132177F012632 WSPM002773 Tractor needed to backfill 40,000 yards of soil east of pump structure 2 366 12773 WVS2000222 WVS2000222 SOS Oil Sample Pumps for Mechanics at Bldg. 11 367 12769 132177F012877 WSPM002779 Replacement Paddle Teeth and Keepers for 320E Excavator_102655 368 600432 WVS2000720 WVS2000720 Replacement Cutting Edges and Hardware for Cat Rental 12M Motor Grader_M18388 369 600426 132177F013126 WSPM010212 Replacement Cutting Edges and Hardware for 279C Skidsteers 370 608057 None 4500724762 Repair parts for company owned equipment 371 608065 None 4500725428 WECTEC Global Project Services Repair parts for company owned equipment
Pg 7 of 14 372 600438 WVS2002985 WVS2002985 Rental Equipment -Blanchard Machine 373 12763 132177F011046 WSPM002294 Property Damage CS Ch. 4 - Replacement Glass for Rental Water Truck (Blanchard) 374 600427 132177F005964 WSPM010248 Project Damage Const. Services Ch. 4 Replace Work Light Assy. on 320_102654 375 600436 WVS2002764 WVS2002764 Project Damage Const. Service Ch. 4, Replace Damaged Parts on Trenching Attachment C13469 376 12775 WVS2001304 WVS2001304 Project Damage Const Services Ch. 4, replace broken cab window on rental 336F_M21094 377 12772 WVS2000178 WVS2000178 Project Damage Const Service Ch. 4 Replace Impacted Engine Cover Hinges 308E_102653 378 600437 WVS2002930 WVS2002930 Pay Blanchard invoices for PM Service on HLD Engines 379 600396 4500715682 4500715682 380 600411 4500716599 4500716599 381 600403 4500715737 4500715737 382 600404 4500715793 4500715793 383 600405 4500715794 4500715794
Pg 8 of 14 384 600406 4500715807 4500715807 385 600407 4500715810 4500715810 386 600408 4500715893 4500715893 387 600394 4500714287 4500714287 388 600410 4500716552 4500716552 389 600400 4500715687 4500715687 390 600412 4500716625 4500716625 391 600413 4500716633 4500716633 392 600414 4500717404 4500717404 WECTEC Global Project Services 393 600415 4500717516 4500717516 394 600416 4500717523 4500717523 395 600417 4500717555 4500717555
Pg 9 of 14 396 600418 4500717558 4500717558 397 600409 4500716551 4500716551 398 600391 4500714182 4500714182 399 600386 4500713376 4500713376 400 600387 4500714081 4500714081 401 600388 4500714146 4500714146 402 600402 4500715703 4500715703 403 600390 4500714181 4500714181 404 600401 4500715701 4500715701 405 600392 4500714225 4500714225 406 600393 4500714228 4500714228 407 600395 4500714384 4500714384 WECTEC Global Project Services
Pg 10 of 14 408 600397 4500715684 4500715684 409 600398 4500715685 4500715685 410 600399 4500715686 4500715686 411 600389 4500714173 4500714173 412 12886 4500717513 4500717513 413 600419 4500717559 4500717559 414 12729 4500713333 4500713333 415 12731 4500713359 4500713359 416 12735 4500714150 4500714150 417 12736 4500714214 4500714214 WECTEC Global Project Services 418 12739 4500714280 4500714280 419 12740 4500714337 4500714337
Pg 11 of 14 420 12743 4500715688 4500715688 421 12744 4500715689 4500715689 422 12746 4500715692 4500715692 423 12748 4500715723 4500715723 424 12750 4500715740 4500715740 425 12751 4500715760 4500715760 426 12755 4500716107 4500716107 427 12754 4500716099 4500716099 428 12753 4500715896 4500715896 429 12759 4500716655 4500716655 WECTEC Global Project Services 430 600420 4500717869 4500717869 431 600424 4500724466 4500724466 WECTEC Global Project Services
Pg 12 of 14 432 600423 4500721600 4500721600 WECTEC Global Project Services 433 600422 4500718283 4500718283 434 600421 4500717877 4500717877 435 600429 132177F010176 WSPM010472 Paddle Teeth and Keepers for Cat Excavators 436 12764 132177F008865 WSPM002376 Motor Grader to Grade and Maintain Parking Lots and Roads 437 600439 WVS2003124 WVS2003124 Mechanic Shop-Filters and Oil for Stationatry Cat Generator PM Services 438 600441 WVS2003369 WVS2003369 Mechanic Shop - Project Damage Replacement Glass and Rollers for Blanchard Rental 336E_M17256 439 12771 132177F013224 WSPM002939 Invoice for Project Damage to Motor Grader - M18388 440 600434 WVS2001904 WVS2001904 Hot! Cutting Edges and Hardware for D6K Dozers 441 600425 132177F007207 WSPM010063 Ground Engaging Teeth for 329E Ecavator_103028/ SN-ZCD00163 442 12765 132177F008151 WSPM002391 Ground Engaging Parts for Site Owned Cat Trencher Attachment_C13469
Pg 13 of 14 443 12776 WVS2001937 WVS2001937 Extend Rental for Trench Rollers, Move JDE PO 633904 to a SPMAT PO 444 12777 WVS2002358 WVS2002358 Excavators (2) - Blanchard Machinery - Mark Wills 445 12778 WVS2002379 WVS2002379 Excavator - CAT 336E 446 600435 WVS2002204 WVS2002204 Cutting Edges and Hardware for Cat Rental Motor Grader_M18388 447 600433 WVS2001406 WVS2001406 Cutting Edges and Hardware for Cat Rental Motor Grader_M18388 448 600440 WVS2003276 WVS2003276 Cutting Edge/Hardware for Rental Motor Grader_N9R00108 449 600428 132177F008657 WSPM010343 CATERPILLAR 308E CR Series II Mini Excavator (5-9.9 Tons) Rental for U2 and U3 Turbine Civil Dirt Crew 450 600430 132177F001354 REL 2 WSPM011199 BLANKET PO FOR SERVICE AND REPAIR NOT TO EXCEED $25,000- FOR CAT STATIONARY GENERATORS (5-FIBER HUTS)S/N'S GLD01333, D4B02434, NCD00840, D4B01697 AND GLD00242 451 600431 132177F001354 REL 5 WSPM011200 BLANKET PO FOR SERVICE AND REPAIR NOT TO EXCEED $25,000- FOR CAT STATIONARY GENERATORS (5-FIBER HUTS)S/N'S GLD01333, D4B02434, NCD00840, D4B01697 AND GLD00242 452 12767 132177F007747 WSPM002667 Articulating Water Truck for Site Dust Control
Pg 14 of 14 453 12770 132177F005359 WSPM002907 Articulating Dump Trucks for Civil Dirt Work 454 12967 None W1558 GREGORY ELECTRIC CO INC Temporary Electric 455 13606 None W1788 CA MURREN AND SONS CO INC Mechanical Stabilized Walls 456 13605 None W1779 CA MURREN AND SONS CO INC HDEP Piping