ARTICLE X.--SECURITY

:

i. 10 CFR Part 795 sets forth the ERDA requirements for safeguarding "Restricted Data" received under an Access Permit issued pursuant to 10 CFR Part 725. JNAI is not an Access Permittee and therefore neither Part 725 nor Part 795 has any application to it. Nevertheless, for purposes of this Agreement and to the extent not inconsistent with the terms of this Agreement, JNAI agrees to follow the requirements of 10 CFR Part 795, to the extent set forth in the sections incorporated into Appendix B--Supplement (Requirements for Safeguarding Restricted Data). The procedures set forth in Appendix B--Supplement (Requirements for Safeguarding Restricted Data), are hereby determined by ERDA to satisfy the requirements of Part 795 for the safeguarding of data deemed by ERDA to be "Restricted Data." JNAI shall, in accordance with said Appendix B--Supplement, be responsible for safeguarding against sabotage, espionage, loss, and theft, Classified Material which is in JNAI's possession in connection with the performance of its laser isotope separation program.

2. JNAI will use its best efforts not to permit any individual to have access to Classified Material, except in accordance with Appendix B-Supplement.

3. ERDA agrees to promptly process for security clearance all personnel (including employees of JNAI's contractors and consultants) for whom JNAI requests such clearance. JNAI agrees to reimburse ERDA, at the same price as established by ERDA with respect to its Access Permit Program, for the costs of processing the clearances of the individuals for whom JNAL has requested clearance and JNAI shall have no obligation to reimburse FRDA for any costs incurred in the investigation or clearance of any other personnel:

46 The criteria and procedures set forth in 10 CFR Part 710 shall be fully applicable for resolution of questions concerning the eligibility for security clearance of personnel for whom JNAI' requests clearance. Any such proceeding shall be conducted without any monetary obligation on JNAI's part.

5. Subject to Paragraph 3 of Article III, JNAI agrees that it will nevertheless mark or stamp on the front cover and on the top and bottom of each page of any document which contains "Restricted Data," the assigned classification thereof determined pursuant to the JNAI Local Classification Guide (Appendix A), and affix the following legend to the front cover and the first page:

6.

This document contains Restricted Data, as that term is used in the ERDA/JNAI Classification and Security Agreement. Its dissemination or disclosure to any unauthorized person is prohibited.

In the event of conflict between the provisions of Appendix B (JNAI Security Guide) and the provisions of Appendix B--Supplement (Requirements for Safeguarding Restricted Data), the provisions of Appendix B--Supplement shall govern whenever "Restricted Data" is involved.

7. Contracts, subcontracts, and purchase orders issued by JNAI involving Classified Material shall include appropriate security provisions based on the provisions of this Article X.

ARTICLE XI.--CLASSIFICATION

1. JNAI shall assign classification to documents, material, and equipment originating in the JNAI laser isotope separation program

subsequent to January 1, 1976, in accordance with the "JNAI Classification Guide for Laser Isotope Separation" (Appendix A), as such Guide may be modified by mutual agreement from time to time. JNAI agrees to pay the costs associated with compliance with the classification criteria. 2. Contracts, subcontracts, and purchase orders issued by JNAI involving Classified Material shall include a provision requiring the contractor or subcontractor to assign classification in conformance with. guidance furnished by JNAI consistent with Appendix A.

3. All information, data, and documents, including "JNAI Proprietary Information," inventions, patent applications, material, or equipment in existence prior to January 1, 1976, shall be deemed unclassified or declassified, and the terms and conditions of the Classification Guide (Appendix A) and of the Requirements for Safeguarding Restricted Data, Appendix B--Supplement, shall not apply thereto; provided, however, that.identification of such information, data, and documents, with the JNAI experimental or commercial facilities. may be classified in accordance with Appendix A, notwithstanding the fact that such information, data, and documents were generated prior to January 1, 1976, and that such information, data, and documents remain unclassified or declassified when not so identified. Notwithstanding the foregoing, JNAI agrees not to publish or release such information, data, and documents without first submitting the same to ERDA for review.

ERDA may, if the subject matter submitted for clearance is within one of the classified categories of the Classification Guide (Appendix A), request AI to treat the same as if it were classified information under said Guide, and JNAI agrees to do so.

However, if ERDA requests such classified treatment, JNAI will not be

required to review its files to identify similar information or data, but will identify and mark such similar information or data when reviewed in the usual course of business.

4. All information, data, and documents including "JNAI

Proprietary Information," inventions, patent applications, material,

or equipment generated subsequent to January 1, 1976, but prior to the date of execution of this agreement, shall be classified in accordance with the terms and conditions of the Classification Guide (Appendix A). Subject to the provisions of Article XII, paragraph 5, for the first nine months following the date of execution of this agreement, while JNAI is reviewing for proper classification al1 JNAI information, material, equipment, etc., originated, generated, or in being subsequent to January 1, 1976, but prior to said date of execution that in accordance with the classification guidance in Appendix A may involve "Restricted Data", such information, etc., shall be subject to "Company Proprietary" controls and shall not be further disseminated to persons who do not have ERDA security clearance without prior classification review. At the end of the nine month period, the classification review of said information shall be completed.

5. ERDA shall have the right to review for classification purposes in accordance with Appendix A any documents or material intended for publication or public presentation prior to said publication or presentation 6. Amendments to the Classification Guide (Appendix A) and the Requirements for Safeguarding Restricted Data (Appendix B--Supplement) shall be made only by mutual agreement of the parties hereto except as provided in Paragraph 7 of this Article XI.

Interpretations of the

provisions of the Classification Guide made by JNAI shall be subject to

review and approval by the Division of Classification, which shall alsɔ provide such additional interpretations of the provisions of the Classification Guide as may be requested by JNAI.

7. ERDA agrees to review the Classification Cuide (Appendix A) and the Requirements for Safeguarding Restricted Data (Appendix 3-Supplement) periodically, but no less frequently than once each year, and at the request of JNAI to reexamine the classification of any JNAI document. ERDA will notify JNAI of any downgrading or liberalization of the classification or security standards and of the result of any reexamination made at the request of JNAL.

8. ERDA will use its best efforts to notify JNAI within ten (10) working days after submittal of a document for classification review as to ERDA's views thereon. If ERDA determines that such document is classified, it will advise JNAI of the basis for classification, citing the pertinent section of the Classification Guide (Appendix A).

ARTICLE XII.--MISCELLANEOUS

1. In order that classification guidance and security procedures are appropriately updated to reflect the current state of development of JNAI's laser isotope separation program, JNAI agrees to permit inspection of its facilities and its contractors' facilities at reasonable

intervals by ERDA classification and security personnel during working hours upon ten (10) days' written notice. ERDA will furnish to JNAI written reports of che inspections and appraisals. Representatives of JNAI may accompany ERDA personnel during such inspections.