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(b) Classified matter, other than documents, may be destroyed only by a method that assures complete obliteration, removal, or destruction of the classified contents. A permanent record of Secret material shall be maintained.

11. ELECTRICAL TRANSMISSION OF CLASSIFIED INFORMATION

Classified information shall not be transmitted electrically unless

a system approved by the Director, Division of Safeguards and Security, is used.

12. TELEPHONE CONVERSATIONS

No discussion of classified information is permitted during a telephone conversation except over secure telephone systems approved by the Director, Division of Safeguards and Security.

13. REMOVAL OF RESTRICTED DATA DOCUMENTS TO PRIVATE RESIDENCES

for work purposes.

"Restricted Data" documents shall not be taken to private residences This does not preclude the possession of "Restricted Data" documents in private residences when such possession is incidental to official travel. The removal to private residences in connectica

with official travel must be approved by JNAI Management.

14.

SECURITY OF AUTOMATIC DATA PROCESSING SYSTEMS

Classified information shall not be processed or produced on an

ADP system unless the system has been approved by the Director, Division of Safeguards and Security.

15.

SUSPENSION OR REVOCATION OF SECURITY CLEARANCE

In any case where the security clearance of an individual subject

to the regulations in this Supplement is suspended or revoked, such in

dividual shall, upon due notice from ERDA of such suspension or revocation deliver any and all classified documents or material in his possession

to the JNAI Security Officer for safekeeping.

16.

TERMINATION OF EMPLOYMENT OR CHANGE OF DUTIES

JNAI or its contractors, subcontractors, or vendors shall furnish promptly to the Director, Division of Safeguards and Security written notification of the termination of employment of each individual who possesses a security clearance under the Agreement, or whose duties are changed so that access to classified information is no longer needed.

17. CONTINUED APPLICABILITY OF THE REGULATIONS IN THIS DOCUMENT

The expiration, suspension, revocation, or other termination of security clearance shall not relieve any person from compliance with the provisions of this Supplement.

18. REPORTS

JNAI or its contractors, subcontractors, or vendors shall report promptly to the JNAI Security Officer who shall report to the Director, Division of Safeguards and Security:

(a) All losses of "Restricted Data" documents or material.

(b) Statutory violations, i.e., any alleged or suspected violation

of the Atomic Energy Act or the Espionage Act. An immediate report

shall also be made to the nearest office of the Federal Bureau of Investigation

(c) Proposed foreign travel to Soviet-bloc countries at least

thirty (30) days in advance of proposed travel by any of their employees,

who has had access to Secret information, and inform ERDA when the

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ERDA may make such inspections of the premises, activities, records, and procedures of JNAI or its contractors, subcontractors, or vendors as provided for in Article XII, paragraph 1 of the Agreement.

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An injunction or other court order may be obtained prohibiting any violation of any provision of the Act or any regulation or order issued thereunder. Any person who willfully violates, attempts to violate

or conspires to violate any provision of the Atomic Energy Act of 1954, as amended, may be guilty of a crime and upon conviction may be punished by fine or imprisonment, or both, as provided by law.

APPENDIX C

ERDA personnel (by position and/or office) permitted access to "JNAI Proprietary Information":

A. ERDA personnel who ordinarily and in the regular course of business handle and process classification actions:

(1) As to all information:

Division of Classification

Director, Division of Classification

Associate Director, Division of Classification

Chief, Isotope Separation Branch

Assistant Chief, Isotope Separation Branch

Classification Analysts, Isotope Separation Branch
Secretary, Isotope Separation Branch

Mail and Records Clerk, Division of Classification

(2) As to inventions and patent applications:

Office of Assistant General Counsel for Patents
Chief, Patent Office Referral Branch

Secretary to Chief, Patent Office Referral Branch
Technical Advisor to Assistant General Counsel

for Patents

Mail and Records Clerk, Office of Assistant General
Counsel for Patents

B. ERDA personnel who become involved only in unusual classifiction actions, in policy issues or problems raised in connection with classification of a document, invention report, or patent application:

Administrator

Deputy Administrator

Assistant Administrator for National Security

Deputy Assistant Administrator for National Security
General Counsel

Deputy General Counsel

Assistant General Counsel for Patents

Assistant General Counsel for Administration

Mail and Records Clerk, Office of General Counsel

Deputy Director, Division of Nuclear Research and
Applications

Director, Division of Safeguards and Security

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Assistant Director for Security Affairs, Division of
Safeguards and Security

Physical Security Officer, Headquarters Security Sranch

Mail and Records Clerk, Division of Safeguards and Security

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Pursuant to a Classification and Security Agreement between Jersey Nuclear-Avco Isotopes, Inc. ("JAI") and the United States Energy Research and Development Administration ("ERDA"), you will be given access to certain information which is proprietary to JNAI, solely for the purpose of carrying out ERDA's classification function. In order to protect JAI's proprietary interest in this information, you will be required as a condition for receiving such access to observe the following terms and conditions:

1. As used in this letter agreement, the term "JNAI Proprietary Information" means any and all information of a business or technical nature relating to laser isotope separation or the JNAI program which is disclosed to ERDA, directly or indirectly, by JNAI in connection with the Classification and Security Agreement, in writing or otherwise; provided, however, that "JNAI Proprietary Information" shall not include information:

8. Which at the time of disclosure was not identified as proprietary to JNAI;

b. Which at the time of disclosure is, or thereafter becomes through no fault of yours or of ERDA, generally known or publicly available from other sources by publication or otherwise, but only after and to the extent that such information is generally known or publicly available; or

c. Which ERDA can show was in its possession prior to the time of such disclosure and was not, directly or indirectly, disclosed to ERDA by NAI under an obligation of confidence.

Information which is made available to you in the course of visits to facilities operated by JNAI or its contractors will be deemed to be information disclosed to ERDA for purposes of this letter agreement. Further, with respect to the exceptions stated above, specific technical information shall not be deemed to fall within such exceptions simply because it is encompassed by more general descriptive information which falls within the exceptions above, unless and to the extent that such specific technical information itself falls within the exceptions. The fact that particular information, data, or material is or is not "Restricted Data," or has been classified or declassified, has no bearing on the

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