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CONTRACT

between

the UNITED STATES OF AMERICA (hereinafter called
the "Government"),

acting through

the UNITED STATES ATOMIC ENERGY COMMISSION
(hereinafter called the "Commission"),

and

KMS INDUSTRIES, INC. (hereinafter called the
"Contractor"), a Delaware corporation with
principal offices in Ann Arbor, Michigan.

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'It is the purpose of this contract to authorize the Contractor to pursue work, in the area described by certain proposals it has submitted to the Commission, under proper security controls and controls designed to assure the work is directed exclusively toward the potential peaceful application of the technology developed. The Contractor is willing to undertake the performance of such work entirely at its own expense without the provision or use of any Government funds, technical data, facilities or

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a. The term "Contracting Officer" means the person executing this contract on behalf of the Government,

and any

83-362 081 40

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civilian employee who is a 'properly designated Contracting

Officer; and the term includes, except as otherwise pro

vided in this contract, the authorized representative of a Contracting Officer acting within the limits of his

authority.

b. The term "Commission" means the United States Atomic Energy Commission or any duly authorized representative thereof, including the Contracting Officer except for the purpose of (i) deciding an appeal under the article entitled "Disputes", (ii) determining the resources devoted

to the contract under the article entitled "Termination", (iii) determining that a contract activity will`result in a violation of Section 92 of the Atomic Energy Act under the article entitled "Termination", and (iv) determining that Defense Information is relevant to this contract under the article entitled "Access Restrictions".

c.

The term "proprietary information" means informa

tion concerning secret processes, technical information, and

know-how which :

1. the Contractor has protected from others;

2.

3.

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is specifically identified by written notice
to the Commission as proprietary at the time it
is made available to the Commission or is dis-

closed in a patent application (but only until
that patent issues); and

is not substantially the same as information
otherwise available to the Commission.

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The Contractor shall, at its facility in La Jolla, California, or such other locations as the Contracting Officer may approve, perform research and development (including the construction of prototype equipment) designed to demonstrate the technical feasibility of developing a fusion reactor utilizing laserinduced irradiation of pellets of thermonuclear material and the various peaceful applications of such reactor developments. Each stage in the Contractor's research shall be preceded by and in conformance with a written report to the Contracting Officer identifying the work to be undertaken. tractor's activities under this contract shall be conducted at No Government technical data, facili

no cost to the Government

All of the Con

ties or equipment will be made available to the Contractor in

connection with the performance of the work hereunder, except as may otherwise be agreed.

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The period of performance under this contract shall commence on the date of execution hereof, and shall expire on June 30, 1975, unless sooner terminated in accordance with the article entitled "Termination".

ARTICLE V- INSPECTION AND REPORTS

The Contractor's activities under this contract and all drawings, sketches, designs, design data, specifications, notebooks, technical and scientific data, photographs, negatives, reports, findings, recommendations, data and memoranda of every description relating to the work or any part thereof shall be subject to inspection by the Commission at such reasonable times as the Contracting Officer deems appropriate (for which inspection the proper facilities shall be afforded the Commission by the Contractor).. The Contractor will make such reports to the Commission respecting the work hereunder as the Con

tracting Officer may reasonably request.

ARTICLE VI

TERMINATION

a. The Contractor may discontinue work and terminate

this contract at any time by written notice to the Commission.

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