support cost" is defined in Article B-XXIX2. Provided however, and

notwithstanding any other provision of this agreement, that the Government's monetary liability under this agreement shall not exceed the support ceiling or an amount equal to the cumulative support cost whichever is less. The Contractor shall be obligated to perform under this agreement throughout the agreed-upon period of performance, and to bear all costs which ERDA has not agreed to pay; provided however, that the Contractor shall have the right to cease to perform the research provided for in this agreement, upon written notice to ERDA to that effect, at any time, when or after the cumulative support cost equals or exceeds the support ceiling.

(c) The support ceiling specified in (a) above may be increased unilaterally by ERDA by written notice to the Contractor and may be increased or decreased by written agreement of the parties (whether or not by formal modification to this agreement). In the event the stated period of performance is extended, the support ceiling will be revised to reflect any increased ERDA support for the extended period or periods.

(d) Upon termination, or expiration of the total period of performance, the Contractor shall promptly refund to ERDA (or make such deposition as ERDA may in writing direct) any sums paid by ERDA to the Contractor under this agreement, through direct payment ΟΙ under letter of credit, in excess of the cumulative support cost incurred in performance under the agreement.

2The term cumulative support cost refers to the cost of items under A-II(a) of Appendix A, for the initial agreement period plus any extension period that may be properly chargeable to ERDA. If proportionate cost sharing is involved, the support cost is ERDA's share of such costs, and it does not include the cost of items excluded from Article II-(a), such as items to be contributed solely by the Contractor or property to be furnished by the Government. Charges to ERDA will be reported after the conclusion of each agreement period set forth in Appendix A (generally an annual period); in addition to the limitations on charges to ERDA provided for by this Article III, charges to ERDA for a specified agreement period may not exceed 110 percent of the estimated support cost for that agreement period except as approved by ERDA (see Article B-XXX). The estimated support cost for each pertinent period of performance will be set forth in Article A-III. If Article A-III of Appendix A provides that the cost of the items listed under Article II-(a) is to be proportionately shared by the parties, the charges to ERDA shall be determined by applying ERDA's sharing percentage set forth in Article A-III to the cost for items under Article A-II(a) incurred during the specified agreement period. Such charges to ERDA shall also be subject to the 110 percent limitation mentioned above as well as to the provisions of this Article III.

Article IV-Government Property

The following items of property procured or fabricated by the Contractor are hereby listed as "Government Property". (List all property and equipment, title to which is to remain in the Government. Insert the word "none" if title to all of the property is to be vested in the Contractor. If title to property procured or fabricated by the Contractor is to remain in the Government, add appropriate provisions for payment for such property from plant and equipment funds. Such funds should be in addition to, and not a part of, the "Support Ceiling" funds provided under Article III).

Article V-Appendices

Appendix A, Appendix B General Provisions and Appendix C Statement of Costs, are hereby attached to and made a part of this agreement.

In witness whereof, the parties have executed this agreement.

Article A-I. Research to be performed by the contractor. [Insert description of research activity and state the appropriate

percentage of time or effort which the principal investigator(s) expects to devote to the work].

Article A-II. Ways and means of performance. [The listing under (a), (b), and (c) below should be in a form to permit determination of which items of cost are to be chargeable to ERDA or proportionately shared, and which items are to be contributed solely by the contractor or solely by ERDA. The listing should also permit application of the approval requirements of the agreement. Excessive detail in listing

should be avoided.

(a) Items for which support will be provided as indicated in A-III below. [Do not include in this paragraph (a) any items which are to be contributed solely by the contractor. See $9-4.5107-1(d)].

(1) Salaries and wages. [State total dollar amount. If any stipulated salary support amounts for professional staff members are established in accordance with $9-4.5106-4, the stipulated amounts, along with any limitations or requirements on the use of such stipulated amounts (see $9-4.5106-4(c)) should be provided for in the agreement.]

(2) Equipment to be purchased or fabricated by the contractor. [List equipment to be purchased or fabricated by the contractor and for which title is to remain in the contractor and state the total dollar amount budgeted for such equipment. Such equipment may be set forth in general classifications as specifically as possible if it is not feasible to list them individually. However, any individual piece of equipment, the estimated cost of which is over $1,000 will be separately identified. Except where the agreement may otherwise specifically provide, equipment for the purpose of this paragraph A-II shall me an an item of personal property having a useful life expectancy in excess of 1 year and an acquisition cost in excess of $200.] (3) Travel. (Show amounts for both foreign and domestic. If none, state none).

Domestic

Foreign

(4) Other direct costs.

(5) Indirect costs based on a predetermined rate of percent based on contractor fiscal year(s). [Show factor or factors of cost to which rate applies generally direct salaries and wages.]

(b) Items, if any, significant to the performance of this

agreement, but excluded from computation of support cost and from consideration in proportioning costs. (See $9-4.5107-2(c).)

(1) Items to be contributed by the contractor. In accordance with Article B-II(c), if a proposed contractor contribution is included in this paragraph (b)(1), the contractor shall maintain records adequate to permit ERDA to determine the extent of the contribution. If the time or effort of the principal investigator(s) is to be contributed by the contractor and excluded from A-II(a) and A-II(b), the contributed time or effort should be listed under A-II(c).

(2) Items to be contributed by the Government.

(c) Time or effort of principal investigator(s) contributed by contractor but excluded from computation of support cost and from consideration in proportioning costs. [Where covered under A-II(a) or A-II(b)(1) above, state: "None". See $9-4.5107-1(e).]

Article A-III. The total estimate cost of items under A-II(a) above for the agreement period stated in this Appendix A is $ ERDA will pay percent of the actual costs of these items incurred during the agreement period stated in the Appendix A, subject to the provisions of Article III and Article B-XXIX. The estimated ERDA support cost for the agreement period stated in this Appendix A is $

The estimated ERDA support cost is funded as follows:

(a) Estimated unexpended balance from the prior period(s)

(b) New funds for the current period

$

The new funds being added in A-III(b) constitute the basis for advance payments provided under Article B-XI.

Appendix B-General Provisions

For the agreement period

through

Article B-I-Definitions

(a) The term "ERDA" means the Energy Research and Development Administration or any duly authorized representative thereof, including the contracting officer except for the purpose of deciding an appeal under the article entitled "Disputes".

(b) The term "contracting officer" means the person executing

this agreement on behalf of the Government and includes his successors or any duly authorized representative of any such person.

(c) Except as otherwise provided in this agreement, the term "subcontracts" includes purchase orders under this agreement.

Article B-II-Inspection, Reports, Records and Accounts1

(a) ERDA shall have the right to inspect, in such manner and at all reasonable times as it deems appropriate, all activities of the contractor arising in the course of its undertakings under this agreement.

(b) The contractor shall make progress and other reports in such manner and at such times as specified in Article B-XXI. The contractor shall also make such other reports to ERDA with respect to its activities under this agreement, as ERDA may reasonably require from time to time.

(c) The contractor agrees to keep records and books of account, in accordance with generally accepted accounting principles and practices, and consistent with the requirements of Federal Management Circular (FMC) 73-8, as constituted on the effective commencement date of the agreement period, covering its costs and expenditures for items included under Article A-II(a) of Appendix A and which are in furtherance of the research work under this agreement. In the event a contractor contribution is listed in Article A-II(b), the contractor shall maintain records adequate to permit ERDA to determine the extent of the contribution. If professional staff members are included under Article A-II(b), the contractor shall maintain records on such personnel in accordance with the payroll distribution procedure of section J.7.b. of FMC 73-6.

to

(d) ERDA shall at all reasonable times be afforded access the premises and to these books and records and to related correspondence receipts, vouchers, memoranda, and other data of the contractor; and the contractor shall preserve such books and papers, without additional compensation therefor, in accordance with the retention requirements referenced in Article B-XVII, Examination of Records.

1If the agreement is with a not-for-profit organization other

than an educational institution, this article should be revised to provide that the commercial cost principles (FPR 1-15.2) will be used in determining actual cost.