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2. JNAI will provide ERDA with semi-annual written reports

setting forth the highlights of program developments during the report

ing period.

3.

Notwithstanding the provisions of paragraph 2, JNAI is not

required to render any detailed technical report to ERDA.

4. No contract provision or contract requirement of any ERDA or other federal regulation. shall be deemed to be incorporated into this Agreement unless such provision or requirement is attached hereto or specifically incorporated herein by reference.

5. While this Agreement is effective as of the date of execution, neither JNAI nor its contractors and their employees will be deemed to be in violation of any provision thereof (1) by reason of any acts prior to execution of the Agreement or (2) by reason of disclosures made to personnel for whom clearance will be sought until there has been opportunity for appropriate security safeguards to be installed and personnel security clearances to be granted for such personnel. JNAI will use its best efforts to complete transmittal of requests for security clearances for its present personnel within sixty (60) days of execution of this Agreement.

6. All notices pursuant to or relating to this Classification and Security Agreement shall be in writing. All notices shall be sent by United States mail or personal delivery to the addresses shown below:

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Attention Director, Division of Classification

Either party may change its address, or the individual to whom notices are directed, by written notice given to the other party.

7. In the event of any express inconsistency between the provisions of this Agreement and those of the Appendices, the provisions of this Agreement shall govern.

IN WITNESS WHEREOF, the parties have executed this Classification

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CORPORATE CERTIFICATE

I,

certify that I am the

who sign

of the corporation named as JNAI herein; that

this agreement on behalf of said corporation was then

of said corporation; and that this agreement was duly signed for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers.

(SEAL)

Date

APPENDIX A

JNAI LOCAL CLASSIFICATION GUIDE
FOR LASER ISOTOPE SEPARATION

This document has been omitted as it contains information that is proprietary to Jersey Nuclear-Avco Isotopes, Inc. If necessary, requests for access to this document should be made through John A. Griffin, Director, Division of Classification.

APPENDIX B

"JNAI SECURITY GUIDELINES"

This document has been omitted as it contains information that is proprietary to Jersey Nuclear-Avco Isotopes, Inc. If necessary, requests for access to this document should be made through John A. Griffin, Director, Division of Classification.

83-362 081 43

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