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Classification Ca.llCend

czirNk4y br7

. ‘.... yrr 'I&( CO1 4

I l?Exm Am ccl!?DiTioNs

1. TITLE AND ADMINISTRATION

It is understood and agreed that this Purchase Order is entered into by the Company dr and on behalf of the nvernment; that title to all supplies furnished hereunder by the Seller shall pass directly from the Seller to the

vernment, as purchaser, at the point of delivery; that the Company is authorized to and will make payment hereunder m Gove;nment funds advanced and agreed to be advanced to it by the Commission and not from its own assets, and

inister this Purchase Order in other respects for the Commission, unless otherwise specifically provided for herc- .

hat administration of thrs Purchase Order may be transferred from the Company to the Commission or its designee, in case of such transfer and notice thereof to the Seller the Company shall have no further responsisilities here-

&r; and that nothing herein shall preclude liability of the Government for any payment properly due hereunder if r any reason wch payment is not made by the Company from such Government funds,

t 2. PAYMENTS

Except as otherwise provided herein the Seller shall be paid upon the submission of invoices or vouchers, prices stipulated herein for supplies delivered and accepted or services rendered and accepted, less deductions, if

as herein provided. Unless otherwise specified, payment will be made on partial deliveries accepted by the when the amount due on such deliveries so warrants; or when requested by the Seller, payment for accepted

deliveries shall be made whenever such payment would equal or exceed either $1,000 or SO per cent of the amount of this Order.

I 3. CHANGES_

c by written instructions make changes, within the general scope of this order, (1) drawings, designs, or specifications; (2) method of shipment or packing; and

(xmancc of this ally such change causes an increase or dccrcasc in the cost of, or the time required for,

Order, an cquitablc adjustment shall be made in the order price or delivery schedule, or both, the Order shall be modified in writing accordingly. Any claim by the Seller for adjustment under this paragraph

t be asserted within ten (10) days from the date of receipt by the Seller of the notification of change; provided, approval of the Commission, if it decides that the facts justify such action,

claim asserted at any time prior to final payment under this Order, Failure to ispute concerning a question of fact within the meaning of the paqgaph entitled

However, nothing in this paragraph shall excuse the Seller..Com proceeding with the Order as changed.

Except as otherwise provided in this Order, no payment for extras shall be made unless such extras and the e thercfor have been authorized in writing by the Comptiy.

The Seller warrants that the supplies delivered under this Order shall be free from all defects in design as design provided by the Company), material and workmanship and shall comply with all the requirements of ,rr; and the Seller agrees to repair or replace, f-0-b. site of installation, free of charge, any such supplies or

hoOf which proves to be defective in design, material or. workmanship or otherwise fails to comply with the mears of &is Order within one year from the date such supplies are placed in operation, but in no event to

twenty-four (24) months from the date of delivery of such supplies; provided however, that this warranty nend to any damage to such supplies attributable to causes beyond the control of the Seller aftei delivery. mo+es that because of operational requirements it may become necessar; for corrective work in ful-

d this Warranty to be performed at the Commission’s installation by the Company, and the Seller agrees, pany*s and,‘or the Commission’s determination and notice to the Seller that such corrective action must said installation, to reimburse the Company for. all cost encountered in taking such corrective action,

+J\ ti be liable for consequential damages.

. . .

6. INSPECTION

/

nents, (a) All supplies (which term throughout this paragraph includes without limitation iaw materials, CO”,~~-

intermediate assemblies, and end products) shall be subject to inspection and test by or for the Camp’ c and/or the Commission, to the extent practicable at all times and places including the period of manufacture,

3 WI, UIG

any event prior to final acceptance. y ‘Ci

, rforf (b) In case any supplies are defective in material or workmanship or otherwise_not in conformity with.

requirements of this Order, the Company and/or the Commission shall have the right either to reject them (wid lr without instructions as to their disposition) or to require their correction. Supplies which have been rejectei required to be corrected shall be removed or corrected in place, as requested by the Company and/or the Commissi, s , by and at the expense of the Seller promptly after notice, and shall not again be tendered for acceptance unless

e.

former tender and either the rejection or requirement of correction is disclosed. If the Seller fails promptly to rem such supplies, when requested by the Company and/or the Commission, and to proceed promptly with the rcplarcin ment or correction thereof; the Company either (1) may be contract or otherwise replace or correct such supplies charge to the Seller the cost, occasioned the Company thereby, or (2) may terminate this Order for default as provic in the paragraph entitled “Default.” Unless the Seller elects to correct or replace the supplies which the Corn~~~~~ and/or the Commission has a right to reject and is able !o make such correction or replacement within the requi,, re delivery schedule, the Company may require the delivery of such supplies at a reduction in price which is equitl under the circumstances. Failure to agree to such reduction of price shall be a dispute concerning a question off

uses within the meaning of the paragraph entitled “Disputes.” ricted

(c) If any inspection or test is made by or for the Company and/or the Commission on the premises oi:ikcs Seller or a subcontractor, the Seller without additional charge shall provide all reasonable facilities and assists Co; for the safety and convenience of the inspectors in the performance of their duties. If Company and/or Commis;,, sc inspection or test is made at a point other than the premises of the Seller or a subcontractor, it shall be wid expense to the Seller: Provided, that in case of rejection neither the Company nbr the Commission shall be Ii: .for any reduction in value of samples used in connection with such inspection or test. All inspectiofis and.tes$ COi . or for the Company andJor the Commiss;on shall be performed in such a manner as not to unduly delay the PJces The Company reserves the iight to charge to the Seller any additional cost of Company and/or Commission inspe$i!ar and test when supplies are not ready at the time slich inspection and test is requested by. the Seller. Final acccptrmlnat oi rejection of the supplies shall be made as promptly as practicable after delivery except as otherwise provide this Order; but failure to inspect and accept or reject supplies shall neither ielieve the Seller from responsih&, F for such supplies as are not in accordance with the Order requirements nor impose liability on the company Oriner Commission therefor. aplies

(d) The inspection and test by or for the Company or the Commission of any supplies does not relievcer ca’ Seller from any responsibility regarding defects or other failure to meet the Order requirements which may berformar covered prior to final acceptance. Except as otherwise provided in this Order, final acceptance shall be conclu!tcct l

except as regards latent defects, fraud, or such gross mistakes as amount to fraud, but shall not relieve the 311 pa, of its responsibility under the paragraph entitled “Warranty of Supplies.” Ount ;

----. ._ _. _ V=ny (e) The Seller shall provide and maintain an inspection system acceptable to the Company and the (fact wi covering the supplies to be furnished hereunder.‘ .Records of all inspection work by the Seller shall beE .

le to the Company and the Commission during the performance of this Order and for such.1 ified elsewhere in this Order.

Order, (1) the Seller shall be responsible for the supplies COVQ elivery point, regardless of the point of inspection; and (2) the r notice of rejection.

8. ASSIGNMENT *

-- Neither Jhis Order, nor ally interest therein nor claim thereunder, shall be assigned or transferred.

Seller to any party or parties, except on the prior written approval %f the Company.

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I 9. DELAY BY COMPANY OR COMMISSION

If completion of the work to be performed under the terms of this Order is delayed by reason of delay by the in the furnishing of materials required td be furnished by the Company or delay by the Company in perform-

wo.rk required to be performed by the Company pursuant to this Order, such delay shall nqt constitute a basis for claim against the Company, provided, however, if such delays on the part of the Company cause delays in the

ormance of the Seller’s work, ,the time for performance shall be extended for a period eqZa1 to the.Seller’s delay.

(a) The Company may, subject to the provisions of paragraph (b), below, by written Notice of Default to Seller terminate the whole or any part of this Order in any one of the following circumstances:

(1) If the Seller fails to make delivery of the supplies or perform the services within the time specified ein or any extension thereof; or

(2) If the Seller fails to petform any of the other provisions of this Order, or so fails to make progress to endanger performance of this Order in accordance with its terms, and in either of these two circumstances does cure such failure within a period of ten (10) days (or such longer period as the Company may authorize in writing) r receipt of notice from the Company specifying such failure.

(b) The Seller shall not be liable for any excess costs if any failure to perform the Order arises ou; of . ses ‘beyond the control and without the fault or negligence of the Seller. Such causes include, but are not re-

iclcd . , to, acts of God or of the public enemy, acts of the Government, frres,floods, epidemics, quaratine restrictions, *kes, freight embargoes, unusually severe weather, and defaults of subcontractors due to any of such causes unless

Company shall determine that the supplies or services to be furnished by the Subcontractor were obtainable from r sources in sufficient time to permit the Seller to meet the required delivery schedule.

(c) In the event the Company terminates this Order in whole or in part as provided in (a) of this paagra$h, Company may procure,.. upon such terms and in such manner as the Company, may deem appropriate, supplies or ices similar to those SO terminated, and the Seller shall be liable to the Comapny for any excess’costs for such lar supplies or services; Provided, that the Seller shall continue the performance of this Order to &e extent not inated under the provisions of this paragraph 10.

(d) If this Order is’ terminated as provided in (a). of this paragraph, the Company, in addition to any o&& 1s provided i.n this paragraph 10, may require the Seller to transfer title and deliver to the Government, in the ner and to the extent ‘directed by the Company, (1) any completed supplies, and (2) such partially compIeted

es and mateiials, parts, tools, dies, jigs, fixtures, plans, drawings, information, and conwacf rights (herein- called “manufacturing materials”) as the Seller has specifically produced or specifically acquired for tbe mace of such pait of this Order as has been terminated: and the Seller shall, upon direction of the Company,

e property in possession of the Seller in which the Government has an interest.The Conipany eller the order price for completed supplies delivered to and accepted by the Company, and the

agreed upon by the Seller and the Company for manufacturing materials delivered to and accepted by the * md for the protection arid preservation of property. Failure to agree shall be a dispute concerning a question

ithin he meaning of the paragraph of this Order entitled “Disputes.” . .

(e) If, after notice of termination of this Order under the provisions of (a) of this p’za’graph, it isdetermined h f~jl~e to perform this Order is due to causes beyond the control and without the fault or negligence of the

cI prrsuant to the provisions of (b) of this paragraph, such Notice of Default’ shall be deemed to have been d Wsuar,t to the paragraph of this Order entitled “Termination for Convenience of the. Government,” and the

4 dligations of the parties hereto shall in such event be goveriled by such article. . . . . .

WRc’ATION FOR CONVENIENCE OF THE GOVERNMENT

rmance of work under this’ Order may be terminated by the Company in accordance with this ia u%olc, or from time to time in part, whenever the Company, with the approval of the Commission, shall &a~ such termination is in the best interests of the Government. Any such termination shall be effected

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COMFI TIAL Y

by delivery to the Seller of a NotiFe of Termination specifying the extent to which performance of work under Order is terminated, and the date upon which such termination becomes effective. i

shall (1) (b) After receipt of a Notice of Termination, and except as otherwise directed by the Company, the SE

stop work under the Order on the date and to the extent specified in the Notice of Termination; (2) pi no further orders or subcontracts for materials, services, or facilities except as may be necessLy for cospletid such portion of the work under the Order as is not terminated; (3) terminate all orders agd subcontracts to the eal they relate. to, the performance of work terminated by the Notice of Termination; (4) assikn to the Company act the Government,. in the manner, at the times, and to the extent directed by the Company, with the approval of- Commission, all of the right, title and interest of the Seller under the orders and subcontracts so terminated; se;tle, subject to the approval of the Company and the Commission, all outstanding liabilities and all claims a+ out of such termination of orders and subcontracts; (6) transfer title and deliver to the Government, in the maat at the times, and to the extent, if any, directed by the Company, (i) the fabricated or upfabricated pms, WB process, completed work, supplies, and other material produced as a part of, or acquired in concection wti~i performance of, the work terminated by the Notice of Termination, and (ii) the completed or partially compie plans, drawings, information and other property which, if the Order had been completed, would have been require be furnished to the Government; (7) use its best efforts to sell, in the manner, at the times, to the extent, and ai price or prices directed or authorized by the Company, with the approval of the Commission, any property ofr types referred to in provision (6) of this subparagraph, provided, however, that the Seller (i) shall not be requ&l extend credit to any purchaser, and (ii) may acquire any such property under the conditions, prescribed by and. price or prices approved by the Company and the Commission; and provided further that the proceeds of any I transfer or disposition shall be applied in reduction of any payments to be made by the Company to the Seller 2 this Order or shall otherwise be credited to the price or cost of the work covered by this Order or paid in such ,I manner .as the Company, with the approval of the Commission, may direct; (8) complete performance of such pa’ the work as shaI1 not have been terminated by the Notice of Termination; and (9) take such action as may be!F essary, or as the Company may direct, for the protection and preservation of the property related to this Order $ is in the possession of the Seller and in which the Company and/or the Government has or may acquire an interr

(c) After.feceipt of a Notice of Termination the Seller shall submit to the Company its termination cfi in the form and with the certification prescribed by the Company. Such claim shall be submitted promptly but ‘dL event later than six months from the effective date of termination, unless one or more extensions in writing granted by the Company, with the approval of the Commission, upon request of the Seller made in writing wi: such six months period or authorized extension thereof. However, if the Company, with the approval of the CommisRt determines that the facts justify such action, it may receive and act upon any such termination claim at my i after such six months period or any extension thereof. Upon failure of the Seller to submit its termination & within the time allowed, the Company, with the approval of the Commission, may determine, on the basis of2 mation available to it, the amount, if any, due to the Seller by reason of the termination and shall thereupon p the Seller the amount so determined.

(d) Subject to the provisions of subparagraph (c) the Company and the SeIler may agree upon the whd, any part of the amount or amounts to be paid to the Seller by reason of the total or partial termination of workit suant to this paragraph, which amount or amounts may include a reasonable allowance for profit on work done, Order shall be amended accordingly, and the Seller shall be paid the agreed amount. Nothing in subparag:aph(\c this paragraph 11, prescribing the amount to be paid to the Seller in the event of failure of the Seller and the Cqn to agree upon the whole amount to be paid to the Seller by reason of the termination of work pursuant to this bF graph 11, shall be deemed to limit, restrict, or otherwise determine or affect the amount or amounts which m$l agreed upon to be paid to the Seller pursuant to this subparagraph (d). n

(e) In the event of the failure of the Seller and the Company to agree -as provided in subparagraph (d)! the whole amount to be paid to the Seller by reason of the termination of work pursuant to this paragraph 11, Company shall determine, on the basis of information available to it, the amount, if any, due to the Seller by ICI ( of the termination and shall pay the Seller the amounts determined as follows:

. ai

(1) For completed supplies’accepted by the Company (or sold or”acquired as provided in subparab’a (b) above) and not theretofore paid for, a sum equivalent to the aggregate price for such supplies computed in atiS ante with the price or prices specified in the Order, appropriately adjusted for any saving of freight or other ch

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(2) The total of (i) the costs incurred in the performance of the work terminated, including initial costs expense allocable thereto, but exclusive of any costs attributable to supplies paid or to be paid for

subparagraph (e) (1) h ereof; (ii) the cost of settling and paying claims arising out of the termination of work subcontracts or Orders, as provided in sunparagrap!l (b), above, which are properly chargeable to the terminated

of the Order (exclusive of amounts paid or payable on account of supplies or materiafs delivered or sen-ices by subcontractors or vendors prior to the effective .date of the Notice of Termination, which amounts shall

included in the costs payable under (i), above); and (iii) a sum equal to 2% of that part of the amount determined dcr (i) which represents the cost of articles and materials not processed by the Seller, plus a sum equal to gyO of

remainder of SUC~I amount, but the aggregate of such sums shall not exceed 6% of the whole of the amount deter- subdivision (i) above, which amount for the purpose of this subdivision (iii) shall exclude any charges

interest on borrowings; provided, however, that if it appears that the Seller would have sustained a loss on the r had it been completed, no profit shall ‘be included or allowed under this subdivision (iii) and an appro-

te adjustment shall be made reducing the amount of the settlement to reflect the indicated rate of loss.

(3) The reasonable costs of settlement, including accounting, legal, clerical, and other expenses sonably necessary for the preparation of settlement claims and supporting data with respect to the terminated

nation and settlement of subcontracts thereunder, together with reasonable and other costs incurred in connection with the protection or disposition of property a]locabIe

The total sum to be paid to the Seller under (1) and (2) of this subparagraph (e) shall not exceed the order price as reduced by the amount of payments otherwise made. and as further reduced by the order price of not terminated. Except for normal spoilage, and except to the extent that the Company shall have otherwise

assumed the risk of loss, there shall be excluded from the amounts payable to the Seller as provided in aph (e) (1) and subparagraph (e) (2) (i), h f t e air value, as determined by the Company, of property which is

as to become undeliverable to the Government, or to a buyer pursuant to

dispute concerning a question of fact within the meaning of the paragraph

(f) If the termination hereunder be partial, prior to the settlement of the terminated portion of this Order cllcr may file with the Company a request in writing for an equitable adjustment of the price or prices specified e Order relating to the continued portion of the Order (the portion not terminated by the Notice of Termination), subject to the approval of the Commission, such equitable adjustment as may be agreed upon shall be made in

Except as otherwise provided herein, . khenever the Company and the Seller are unable to agree on any stion of fact arising under thrs Purchase Order, the dispute shall be submitted for arbitration and determination the Manager, Oak Ridge Operations Office, United States Atomic Energy Commission, whose decision, or that of

designated representative, representatives, or board, duly authorized to decide such dispute, shall be final and elusive upon the parties hereto, unless such decision is determined by a coufl of competent jurisdiction to have

fraudulent or’ capricious or arbitrary or so grossly erroneous as necessarily to imply bad faith or not to be ted by substantial evidence. Pending final decision of a dispute hereunder, and if performance has not been

gently with the performance of the Purchase Order in accordance with the

13. Phl’lQCi- INUEMNITY

es to indemnify the Company, the Government, their officers, agents, servants and employees _ 0 costs and expenses incurred) for the use of any invention or discovery and for

t (not including liability, arising pursuant to Section 183, U.S.C., Title 35 + to issuance of Letters Patent) occurring in the.performance of-this Order or arising by reason of the use

*El b,- or [or the account of the Company and/or the Government of items manufactured or supplied under this

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14. REPORTING OF ROYALTIES iitcd !

If this Order involves any royalty payments or if the amount of any royalty payments is reflected iqerniqc price of this Order, the Seller agrees to r.eport in writing to the company during the performance of this Order’ suific prior to its completion or final settlement the amount of any royalties or other license payments paid or to be pairh it directly to others in connection with the performance of this Order together with the names and addressq,ziz licensers to whom such payments are made and either the patent numbers involved or such &her information as&ffici permit identification of the patents or other basis on which.the royalties are to be paid.JI’he approval by the (, ih,!] mission of any individual payments or royalties SO reported shall not cstop the Government at any time from\ Unite testing the enforceability, validity or scope :>f, made.

or title to, any patent under which such royalties or payments 18.

15. SECURITY r enpi

(a) In the performance of the work under this Order, the Seller shall, in accordance with the Commissiill inc security regulations and requirements, be responsible for safeguarding restricted data and other classified m;,,itme and protec:ing against sabotage, espionage, etc.,

and theft, the classified documents, materials, equipment, prOCesi],,ding as well as such other material of high and intrinsic value as may be in the Seller’s possession in conne41icanc

with performance of work under this Order. iion cl, (b) The Seller agrees to conform to all security regulations and requirements of the Commission.

i 19 (c) The term “restricted data” as used in this paragraph means all data concerning the design, manufac

_ ._

or utilization of atomic weapons, the production of special nuclear material, or the use of special nuclear mate in the production of energy, but shall not include data declassified or removed from the Kestricted Data catt 6 Ordc

pursuant to Section 142 of the Atomic Energy Act of 1954. ier if n

shall (d) Except as the Commission may authorize, in accordance with the Atomic Energy Act of 1954, the S: 20.

not permit any individual to have access to restricted data until the designated investigating agency ! ,

have made an investigatipn and report to the Commission upon the character, associations and loyalty of such in: ,

dual, and the Commission -shall have determined that permitting such person to have access to restricted data’ Orde not endanger the common dcfcnsc and security. agency” means the United States Civil

As used in this subparagraph, the term “designated investigja fidc Service Commission or the Federal Bureau of Investigation,

determined pursuant to the provisions of the Atomic Energy Act of 19.54. or boti,;lech~~

(e) It is understood that disclosure of information relating to the work or services ordered hereunder to tion th

person not entitled to :eceive it or failure to safeguard any restricted data or any top secret, secret or confide 21. j matter that may come to the Seller or any person under the Seller’s control in connection with work under this Q may subject the Seller, its agents, employees, and subcontractors to criminal liability under the laws of the Q ( States. (See the Atomic Energy Act of 1954, Public Law 703, 83rd Congress, Title 42 U.S.C., Section 1801, et Itativez See also Title 18 U.S.C. Section 791-797, and Executive Order 10104 of February 1, 1950, 15 F. R. 597.) ‘;rhe Se

(f) Except as otherwise authorized in writing by the Company the Seller shall insert provisions la hctu

the foregoing in all subcontracts under this Order. ( - S~IXtiO

16. CONVICT LABOR

In connection with the performance of work under this Order, the Seller agrees not to employ any undergoing sentence of imprisonment at hard labor.

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17. BUY AMERICAN ACT

The Seller agrees that there will be delivered under this Order only such unmanufactured articles and supplies (which term “artiC!es, materials and supplies” is hereinafter referred to in this clause as “su as have been mined or produced in the United States, and only such mahufactured supplies as have been ma in the United States substantially all from supplies mined, produced, or manufactured, as the case m United States. The foregoing provisions shall not apply (i) with respect to supplies exempted by the from the application of the Buy American Act (41 U.S.C. IO ad), (ii) with respect to supplies for use out

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ited States, or (iii) with respect to the supplies to be delivered under this Order which are of a class or kind ,ermined by the Commission not to be mined, produced, or manufactured, as the case may be, in the United States sufficient and reasonably available commercial quantities and of a satisfactory quality, or (iv) with respect to

:h supplies, from which the supplies to be delivered under this Order are manufactured, as are,of a class or kind lermined by the Commission lot to be mined, produced, or manufactured, as the case may be, in the United States sufficient and reasonably available commercial quantities and of a satisfactory quality, provide&that this exception $11 not permit delivery of supplies manufactured outside the United States if such supplies are manufactured in

! Usited,States in sufficient and reasonably available commercial quantities and of a satisfactory quality.

18. NONDISCRIMINATION IN EhlPLOYMENT

In conzection with the performance of work under this Order, the Seller agrees not to discriminate against because of race, religion,

to, the following: color, or national origin. The aforesaid provision

Employment, upgrading, demotion, or transfe:; reciui:ment 9r layoff or termination; rates of pay or other forms of compensation; and selection for training,

to post hereafter in c,onspicuous places, available for employees and by the Commission setting forth the provisions of the nondiscrimi-

shall not apply if this Order is for standard commercial supplies or raw materials.

19. OFFlCIA,L_~~~O~~~ BENEFIT --

No member of or delegate to Congress, or resident commissioner, shall be admitted to any sha,re or pm of Order, or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this

r if made with a corporation for its general benefit.

20. COVENANT AGAINST CONTINGENT FEES

The Seller warrants that no person or selling agency has been employed or retained to solicit or secure Order upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting fide employees or bona fide established commercial or selling agencies maintained by the Seller for the purpose curing business. For breach or violation of this warranty the Company, with the approval of the Commission

11 have the right to annul .this Order without liability or in its discretion to deduct from the order price or consid- ion the full amount of such commission, percentage, brokerage, or contingent fee.

I. I3iAh~lNATION OF RECORDS .

(a) The Seller agrees that the Comptroller General of the United States oi any of his duly authorized repre- atives shall have access to and the right to examine any directly pertinent books, documents, papers and-records he Seller involving transactions related to this Order for a period of three years after final payment under this cr between the Company and the Government.

(b) Nothing in this Order shall be deemed to preclude an audit by the Genera! Accounting Office of any nsaction under this Order.

22. FEDERAL, STATE AND LOCAL TAXES

(a) (1) The term “direct tax” means any tax or duty directly applicable to the completed supplies or *ices covered by this Order,or any other tax or duty from which the Seller or this transaction is exempt. It include& tu 0~ duty directly applicable to the importation, production, processing, manufacture, construction, sale, or use ocb supplies or services; it also includes any tax levied on, with respect to, or measured by sales, receipt from .

use of the supplies or services covered by this Order. The term does not include transportation taxes, unem- -pen&on taxes, social security taxes, income taxes, excess-profit taxes, capital stock taxes, property d such ahcr taxes as are not within the definition of the term “direct tax” as set forth in this paragraph.

The tam “contract date” means the effective date of this Order if it is a negotiated Order, or the t& Fning of bids, if it is an Order entered into as a result of formal advertising.

.’ c@if\ w- pd;* (b) Federal Taxes& Except as may be otherwise provided

cable Federal taxes in effect on the contract date.

(c) State or Local Taxes. Except as may be otherwise include any State or local direct tax in effect on the contract date.

in this Order, the Order price includes al1 2 ‘: 24. i

provided in this Order, the order price doet’ ‘Set1

(d) Evidence of Exemption. The Company agrees, upon request of the* Seller, ‘to furnish a tax exe 2; 25. .certificate or other similar evidence of examption with respect to any direct tax no& included in the Order; pursuant to this clause; and the Seller agrees, in the event of the refusal of the applicable taxing authority to actgje such evidence of exemption, (1) promptly to notify the Company of such refusal, (2) to cause the tax in questiont ’ paid in such manner as to preserve all rights to refund thereof, and (3) ‘f I so directed by the Company, to tab necessary action, in cooperation with and for the bcncfit of the Government, to secure a refund of such tax (in aislat event the Company agrees to reimburse the Seller for any and all reasonable expenses incurred at its direction). rplic

(e) Price Adjustment. *\ St If, after the contract date, the Federal Government or any State.or Iocal govmi either (1) imposes or increases (or removes an exemption with respect to) any direct tax, or any tax directly 2, 3-I)’

ISC r cable to the materials or components used in the manufacture or furnishing of the completed supplies or sen covered by this Order, or (2) refuses to accept the evidence of exemption, furnished under paragraph (d), hereof,. respect to any direct tax excluded from the order price, and if under either (1) or (2) the Seller is obliged to andi.C. pay or bear the burden of any such tax (and does not secure a refund thereof), the order price shall be correspond3 reg increased. If, after the contract date, the Seller is relieved in whole or in part from the payment or the burden dappl direct tax included in the. order price, or any tax directly applicable to th e materials or components used it manufacture or furnishing of the completed supplies or services covered by this Order, the Seller agrees prompti notify the Company of such relief, and the order price shall be correspondingly decreased or the amount of: ,Ip:

relief paid over to the Company for the benefit of the Government. Invoices or vouchers covering any increx decrease in the order price pursuant to the provisions of this paragraph shall state the amount thereof, as a seppbc: added or deducted item, and shall identify the particular tax imposed, increased, eliminated, or decreased. ;

(f) Refund or Drawback. If any tax or duty has been included in the order price or the price as adj&on, under paragraph (c) of this clause, and if the Seller is entitled to a refund or drawback by reason of the export&ir=, export of supplies covered by this Order, or of materials or components used in the manufacture or furnishing cbego completed supplies or services covered by this Order, the Seller agrees that he will promptly notify the Co% thereof and that the amount of any such refund or drawback obtained will be paid over to the Company for the hi 26. of the Government or credited against amounts due from the Company under this Order: Provided, however, t,hr Seller shall not be required to apply for such refund or drawback unless so requested by the Company. I 2;

23. EIGHT-HOUR LAW OF 1912. L F’s

This Order, to the extent that it is of a character specified in the Eight-Hour Law of 1912 as arr$ce, (40 U.S.C. 324-326) d an is not covered by the Walsh-Healey Public Contracts Act (41 U.S.C. 35-45), is s&j5

the following provisions and exceptions of said Eight-flour Law of 1912 as amended, and to all other provk 26 and exceptions of said law: i

No laborer or mechanic doing any part of the work contemplated by this Order, in the employ of the SeIlr I or any subcontractor contracting for any part of the said work, shall be required or permitted to -work more

‘I than eight hours in any one calendar day upon such work, except upon the condition that compensationi. paid to such laborer or mechanic in accordance with the provisions of this clause. The wages of every sue* ‘t laborer and mechanic employed by the Seller or any subcontractor engaged in the performance of this Ord3 shall be computed on a basic day rate of eight hours per day; and work in excess of eight hours per permitted only upon the condition that every such laborer and mechanic shall be compensated for all worked in excess of eight hours per day at not less than one and one- half times the basic-rate o For each violation of the requirements of this clause a penalty of five dollars shall be imposad up Seller for each such laborer.or mechanic for every calendar day in which scch employee is required or mitted to labor more than eight hours upon said work without receiving.compensation computed in accord with this clause; and all pcnaltics thus imposed shall be withheld for the use and benefit of the Govern

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24. NOTICE OF LABOR DISPUTES

Cc ‘Oes Whenever an actual or potential labor dispute is delaying or threatens to delay the performance of this Order,

Seller shall immediately notify the Company in writing.

1 ‘:. cxemp 25. MISCELLANEOUS Ord& pr (a) Seller agrees that the work hereunder will be performed in accordance with the FaYr Labor Standards Act

938, as amended.

(b) In the event that the Government, pursuant to the Defense Production Act of 1950 or other applicable slation, or by valid order, rule or regulation issued thereunder, shall establish a maximum price for any of +&e

on). pplies purchased under this Order which is lower than the price stated herein, the price to be paid hereunder for h supplies shall be such maximum price in effect as of the date of delivery of such supplies. The establishment 3~ such maximum price shall not otherwise affect the rights of the parties hereunder nor shall it constitute a

usc for termination o: avoidance of this Order by any of the parties hereto.

(c) To the extent that this Order is subject to the Walsh-Healey Public Contracts Act, as amended (41 ,C. j5 - 45), there are hereby incorporated by reference all representations and stipulations required by said Act regulations issued thereunder by the Secretary of Labor, such representations and stipulations being subject to

applicable rulings and interpretations of the Secretary of Labor which are now or may hereafter be in effect. .

(d) If this Order is subject to the Renegotiation Act of 1951, as amended, the following provisions shall

crc asc (1) This Order is subject to the Renegotiation Act of 1951, as ainended (65 Stat. 7; P. L. 764, 83rd separ ongress) and shall be deemed to contain all the provisions required by Section 104 of said Act.

(2) The Seller agrees to insert the provisions of this paragraph including this subparagraph (2), in all ad jus JhCOntracts

“ired specified in .$.ection 103 (g) of the Renegotiation Act of 1951; provided, that the Seller shall not be

to insert the provlslons of this paragraph in any subcontract exempted by or pursuant to Section 106 of the egotiation Act of 1951, as amended.

26. It is understood and agreed that time is of the essence of this Order.

’ t’latl 27. ENTIRE AGREEMENT

28. The following changes were made in this Order before it was signed by the parties hereto:

(a) Parapash 29, belov, Is hereby deleted, -

(b) !Fhree ahditional pages of Term6 and Conditions, nunibered paragraphs "W', “31” and n32n are hereby attached hereto and made a part hereof.

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3. EmITIoNS: . . . . . ..__

As used'herein the words:

(4 "p=chaBe order" OY “OUZEL*” s&11 rc.zal "sIL'Dc~~~Tz.c-~" l t

(b) "6e7er" 6?3&Ll m5;11 "6ubcontrector"; a3

(c) "Capany" ~h.zll mm "contrxtor~~.

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Letter Subcontract # ‘S-?cx,

Dated: bcccmber20,1~5

Under Prime Contract AT( 30-l)-1156

K! : A660ddt3AL~ Toal'& l&~.uifactUrin&C~, Inc.

Zentlemen:

1. Tlris letter, subject to your written acceptance and the approval cf ;he Atomic Energy Commission (hereinafter called the "Commission"), sets forth the :nitial agreement between the Rational Lead Company of Ohio (hereinafter referred to is the "Contractor") and Aesocintc Aircrd% Tool 81 bltu~uf~tu.r;zne Canlpsfly, Inc. 'hereinafter referred to as the "Subcontractor"), in anticipation of a definitive subcontract under which the Subcontractor shall perform the work., which involves

(=) ema cbacbinkg of ~ont.ractor Furnished zderial in =corQance vlth fho instntctfon6 of the contractor's representQt2~-e.

(b) Plant EBod+ffcntion &/or re ammganents at3 epproveil by tha Con- trector 8 Z-epresentQtim.

2. This letter subcontract is being entered into by the Contractor under its prime contract No. AT(30-1)-l& with the Commission. Pending the txecution of a definitive subcontract referred to in paragraph 1 above, the suh-

ntractor shall enter upon and continue performance of the work outlined above, o the extent requested by the Contractor from time to time.

3. All applicable articles and provisions required by law, regulation or xecutive order to be included in subcontract6 under government prime contracts for be type of work described in paragraph 1 above are incorporated herein by reference.

4. Negotiations h&e been undertaken and will be continued for the execution :f a definitive subcontract which will supersede this letter subcontract. it will

de all provisions and articles mentioned in paragraph 3 hereof and such other; taIled term6 and conditions as the parties a

f ee upon and the Commission approves

ch may or may not be at variance with this etter subcontract. Y,

5- Pending the execution of said definitive subcontract:

(a) The subcontractor's expenditures, purchase orders, sub-subcontracts or other commitments in its performance hereunder shall not exceed $5,~.00 in the aggregate. 4

(b) Payments, not in excess of the subcontractor's actual. expenses in such performance, may be made from time to time by the contractor to the subcontractor with the approval of the Commission.

(a) In case said definitive subcontract is not executed by February 20, w5G or any subsequent date mutually agreed upon and approved by the Commission),

this letter'subcontract will terminate on the stated date or such subsequent date, as the case may be.

(b) The contractor, at the request of the Commission, may, by written ' notice at any.time, terminate this letter subcontract for the convenience of the

government.

(c) In the event of termination pursuant to either sub-paragraph (a) or (b) of this pa&graph 6, the contractor, sub,ject to the approval of the Commission, will pay the subcontractor en amount equal to the sum of its actual expenditures Fn . the performance of this letter subcontract (less payments previously made), plus an amount equal to the sum paid or to be paid,in settling, with the approval of the contractor and the commission, the subcontractor's obligations for commitments made in such performance. The contractor or the government may assume any such obliga- tlons. In no event-&all payments under this paragraph 6 exceed the amount set forth in paragraph 5 (a) hereof as said paragraph may be amended from time to time.

7. (a) All property furnished by the contractor to the subcontractor i for use in the performance of this letter subcontract shall remain the property of

the government.

(b) Title to all property specifically procured,by the subcontractor in or for performance of this letter subcontract shall pass directly from.the

I

vindors or other suppliers to the government at the respective points of deli- thereof to the subcontractor and shall remain the property of the government.

(c) All technical data (including, without restrictions, draws designs, specifications, memoranda and notes) of whatsoever kind or natm &fur-' nished or prepared by the subcontractor pursuant to or developed In connectioQ with its performance,under this letter subcontract, shall be and remain a property of the government.

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8'. (a) Whenever any invention or discovery is made or conceived by the ontractor or its cmployecs in the course of any of the work under this letter ontract, the subcontractor shsJl furnish the contractor with complete information a0I2; and the commission shall have the sole power to detern&ne whether or not and 2 a patent application shall be filed and to determine the disposition of the title ld the rights under any application or patent that may result. The judgmclt of co11~~Lss1on on this matter shall be accepted a8 final; and the subcontractor for If and its cmployccs agrees that the inventor or investors will execute al$ zents and do all thing0 ncccsoary or proper to carry out the juwmt of the .!ssion.

(b) No claim for pecuniary award or compcncatidn under the provisions d

1c Atuic Energy Act of 1946 shell be nssertcd by the subcontractor or ita oyeec with rcopcct to any invention or discovery made or ccnceived in the course -J OI m the work umdcr this letter subcontract.

(c) Except, as othcruisc nuthorlzcd In writing by the contractor and mcd by the commi~slon, the subcontractor till obtain patent agreements to ztuatc the purpose of sub-paragraph (a) and (b) of this paragraph from all XIW who perform any psrt of the work under this letter subcontract except

clerical and manual labor personnel as will not have access to tc&nical data. (d) Except ao authorized in writing by the contractor and approved by

commission, the subcontractor will insert in all sub-subcontracts provisions rg this psrrgraph 8 applicable to the sub-subcontractor and ito employees.

9. (a) It is understood that uuthorized disclosure of sny, or failure to wsrd all, material marked as "Security Information" that may come to the 6ub- Tactor, or any person under its control, in connection with the work under this &ract‘may subject the Subcontractor, its agents, and cmployccs to criminal .lity under the laws of the United Staten. See the Atomic Energy Act of 1946, .&. 755, as amended, Title 42, United States Code, Sec. 1801, et seq. See Title 18, United Staten,,Codc, Seco. 79lto 798, both inclusive, rsd Executive

l Ho. 10,104, February 1,‘3950, 15 F.R. 797. (b) The Subcontractor agrees to conform to all security regulations and

zcmcntn of the Comissiom. Except as the Comi~uion may authorize, In accord&cc the At&c Energy Act of 1946, as amended, the Subcontractor shall not permit any .idual to have access to restricted data until the designated invcntigatiag agcacy

have made sn investigation and report to the ComurLssion on the character, associa- J and loyalty of such individual, and the Commission shall have determined that ttlng such person to have access to restricted data till not cndaigcr the common .oc or security. As used ia this subparagraph the term "designated Investigating yn mesnu the United States Civil Scrvicc Commleolon or the Federal Bureau of tlgatloa, or both, as determined pursuant to the provisions of the A$omic Energy f 1946, an amended by the Act of April 5, 1952, Public LCLW 298, 82nd Co~grcsa at. 43. The term "restricted date" ns used in this nubpuagraph means all da;, iaing the manufacture or utilizatioa of atomic weapons, the production of fis- Xc material, or the use of fissionable material in the production of power, but

not include any date which the Commission from time to time determines may be uhcd without adversely effecting the common defense and security.

(c) The subcoatractor shall insert in all sub-subcontracts under this letter I-tract and in other apcemcnto entered lmto by the subcontractor under this letter atract if the scope thereof includes classified data provisions olmilar to the af sub-psragraph (a) and (b) above.

10. (a) The contractor and the comnlaalon shall have the right to inspect ti mer and at such times es thoy'dcem appropriate all activities of %he subcor- lr arising In the course of the work under thio letter subcontract.

b-al- -.

:n~~iosion with respect to the'subcontractor's activities under this letter subcon- ,rct as the contractor may require'from time to time.

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1 (b) The subcontractorzixzll mati such rcpartS to the contractor and the.-

ll. The subcontractor agrees to conform to all health an& safety regulations .d requirements of the commiosion. The subcontractor shall take all reasonable steps *a precautionsto protect health and minimize danger from all hazards to life ma ropcrty and shall make all reports and permit all inspections as provided% such

; &rtioao ma requiremcnto. ): Thc,subcontractor shall not sub-subcontract any part of the work it is to perform under this letter subcontract except as ia authorized 42 writing

contractor and approved by the comieslon. No purchase in cxcc~s of @%.m or placed by the subcontractor in its performance hereunder kitbout prior

approval of the co=ltractor and the cormiosion.

! 13. This letter eubcontract does not bind or purport to bind the government or r$e commission but'it ia assignable by the contractor to the government. !Ric terms ./Atomic Energy Comio~ion" and "Commiaaioa" au used herein mean the United Gtataa atomic Energy Cornmission or its duly muthorized representative or representatives.

14. Except as otherwise specifically provided in this letter subcontract, all &puteo which may arise under this letter subcontract, df Which ICC nOt'diopO8ed Of by ipeement, shall be decided by the Manager, Fcrnald Area Office of Commission, who shall &ce hio detiision to writing oad mail a copy thereof to the Contract= ud 8ubcontractor.

Within thirty (30) days frm receipt of such notice of a decisior the oubcon- I mctor may appeal in writing to the commission, whose written decision or that of its >,brignrted representative or representatives or board phall be final and conclurive; if 10 such appeal iu taken/the decision of the Manager, UlX be fina a&l conclusive.

Fernald.A.rea Office of Cmmisoioa, Pending decision of any dispute, the subcontractor ehall

jligently proceed with the performance of the work under this subcontract.

x5* This letter, executed in quadruplicate, Is fo2-wrrded to you for ycmr con- @ration; if sitiefactory, it is requested that the following acceptance form be pecuted in behalf of your company and that such coplce 1, 2 and 3 hereof be returned $0 this office as promptly us possible. Copy 4 is for.your rotcation. I;t Is undcr- jtood ud agreed that this letter subcontract in not binding unlceo It hao been approv- - iaby the U. S. Atomic Energy Commission in the space provided below.

As OF m eixth January 1956

DATEf /k-W- SC .

,S. ATOMIC ENEXGY COMMISSION

Very truly youri;.

NATION&L YJUD COMPANY q OEIO

A TRUE COPY C

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