The undersigned, individually and as an authorized representative of the contractor, certifies that he has examined this Settlement Proposal and that, to the best of his knowledge and belief: (1) AS TO CONTRACTOR'S OWN CHARGES-The Proposed Settlement (exclusive of charges set forth in Item 14) and supporting schedules and explanations have been prepared from the books of account and records of the contractor in accordance with recognized commercial accounting practices; they include only those charges allocable to the terminated portion of this contract; they have been prepared with knowledge that they will, or may, be used directly or indirectly as the basis of settlement of a claim or claims against the United States or an agency thereof; and that charges as stated are fair and reasonable. (2) AS TO SUBCONTRACTORS' CHARGES-(a) The contractor has examined, or caused to be examined, to an extent it considers adequate in the circumstances, the claims of its immediate subcontractors (exclusive of claims filed against such immediate subcontractors by their subcontractors); (b) the settlements on account of immediate subcontractors' own charges are fair and reasonable, said charges are allocable to the terminated portion of this contract and said settlements were negotiated in good faith and are not more favorable to its immediate subcontractors than those which the contractor would make if reimbursement by the Government were not involved; (c) the contractor has received from all its immediate subcontractors appropriate certificates with respect to their claims, which certificates, in the claims are for more than $1,000, are substantially in the form of this certificate; and (d) the contractor has no knowledge leading it to doubt (i) the reasonableness of the settlements with more remote subcontractors or (ii) that the charges for them are allocable to this contract. Upon receipt by the contractor of amounts covering settlements with its immediate subcontractors, the contractor will pay or credit them promptly with the amounts so received, to the extent that it has not previously done so. The term subcontractor as used above includes suppliers. YOUNG MANUFACTURING COMPANY (Name of contractor).

When the space provided for any information is insufficient, attach separate supporting schedules. [JTR 962.1]

§ 849.962-2 Proposal Form 1 (reverse).

SCHEDULE A-ANALYSIS OF INVENTORY COST (Items 4 and 6)

Furnish the following information (unless not reasonably available) in respect of inventories of finished components and work in process included in this proposal:

1 Cincinnati 12′′ x 36′′ cylindrical grinder, Type KK-Total cost $2,700. Cost applicable to terminated portion of contract:

960 2.400

x $2,700

This machine was purchased specifically for and is usable only on this contract. It was sold for $250 as approved by the contracting officer. The disposal credit is reported on Schedule C, below.

Amount

Leave Blank

$1,080

Profit rate contemplated in bid proposal.

5%

Ed. Note: If profit is otherwise computed under the authority of General Regulation No. 7 of the Office of Contract Settlement, an appropriate explanation will be given.

SCHEDULE F-SETTLEMENTS WITH IMMEDIATE SUBCONTRACTOrs and SuppLIERS (ITEM 14)

(If practicable, show separately amount of disposal credits applicable to acceptable finished product included in Item 15)

When the space provided for any information is insufficient, attach separate supporting schedules.

[JTR 962.2]

§ 849.962-3 Certificate for termination inventory schedules.

YOUNG MANUFACTURING COMPANY, SETTLEMENT PROPOSAL CONTRACT W-001-sc-100, TERMINATION INVENTORY SCHEDULE CERTIFICATE

The contractor hereby certifies that the attached Termination Inventory Schedules, pages 1 to 43, inclusive, have been prepared in
accordance with applicable instructions; that the inventory described therein is allocable to the designated contract and is located at the
places specified; that the quantities are not in excess of the reasonable quantitative requirements of the termination portion of the con-
tract; and that the prices shown in column 8 (contractor's offer or proceeds of authorized sale) are fair and reasonable and comply with
Government price regulations.

The attached Schedules constitute the contractor's statement showing the materials claimed to be termination inventory which, if not
otherwise disposed of, the contractor desires to have removed by the Government within 60 days from the receipt hereof by the Govern-
ment, or such shorter period as may be prescribed under the Contract Settlement Act of 1944, or such other period as may be agreed upon.
Subject to such prior disposition, title to such materials is hereby tendered to the Government and is warranted to be free and clear of all
liens and encumbrances.

Upon request of the Government, the contractor will negotiate to store at the Government's expense all or part of the inventory
listed in the attached Schedules.

YOUNG MANUFACTURING COMPANY,
By HENRY MYERS, President.

The supervisory accounting official is:

J. Gilon, Controller.

NOVEMBER 20, 1944.

[JTR 962.3]

§ 849.962-4 Termination Inventory Schedule Form 2a (Metals).

NOTE: Forms printed in the FEDERAL REGISTER are for information only, and do not follow the exact format prescribed by the issuing agency.

TERMINATION INVENTORY Schedule-METALS (IN MILL PRODUCT FORM)

(Product covered by terminated contract or order)

Govt. Prime Contract No. W-001-sc-100. Contractor's Ref. No. YB411.

Young Manufacturing Company. 1234 South East Street

Dayton 12, Ohio.

Location of material: Same.