the amount of consideration prescribed in Article III of this agreement as follows:

(1) A maximum of an additional 45 percent of the new funds as set forth in Article A-III(b) of this agreement following execution of this agreement (and following the effectuation of each extended period) upon receipt of a request, or requests, in writing from the

contractor.

(2) A maximum of an additional 45 percent of the new funds as set forth in Article A-III(b) of this agreement upon receipt of a request or requests from the contractor evidencing that the amount requested is then required in connection with the work under the

agreement.

NOTE: Subparagraphs (1) and (2) of this paragraph (a) may be revised, as deemed appropriate by the field office, in accordance with $9-4.5112-3(a).

(3) If, following submission of an annual progress report, the agreement is to be extended for an additional period of performance, an additional payment may be made at the time of execution of the extension which, when added to the payments already made under (1) and (2) above for the expiring period, will not exceed the new funds set forth in Article A-III(b) for the expiring period; a concluding payment for the pertinent period, if appropriate, may be made following submission of a certified statement showing ERDA support cost and evidencing the contractor's performance under the agreement.

(4) If the agreement is not to be extended, the final payment of the consideration provided for in Article III shall be made following submission by the contractor of a final report required by Article B-XXI, in form and content satisfactory to ERDA and submission of a certified statement showing ERDA support cost and evidencing the contractor's performance and compliance by the contractor with the patent provisions.

(b) The payments made pursuant to paragraph (a) above shall not prejudice or otherwise affect adversely any of the Government's rights under the agreement. For purposes of settlement in the event of termination pursuant to Article B-X hereof, these payments shall not be construed as evidentiary, and any excess payment in the light of Article B-X shall be promptly returned to ERDA.

(c) ERDA, at its option, may invoke the following with respect to any amount of consideration remaining to be paid at any given time:

(1)

ERDA shall issue a letter of credit as provided for by

Treasury Fiscal Requirements Manual, Part IV, section 1020, under which payments to the contractor with respect to the amount of consideration provided for in Article III be made. The contractor agrees that the first ninety (90) percent of the new funds as set forth in Article A-III(b) will be under the letter of credit and will be subject to the submission by the contractor of a Payment Voucher on Letter of Credit (TUS 5401), in accordance with procedures based upon Treasury Fiscal Requirements Manual, Part VI, section 1020, which are agreed to by the parties. Following submission by the contractor of a final report provided for in Article B-XXI, in form and content satisfactory to ERDA and submission of a certified statement showing the total expenditures and evidencing the contractor's performance, and upon submission by the contractor to ERDA of such invoices or vouchers as are satisfactory to ERDA, ERDA shall pay the contractor the concluding payment of the consideration provided for in Article III, or said concluding payment will be included under the letter of credit and will be subject to submission by the contractor of a payment voucher on letter of credit, in accordance with the procedure described above. If, following submission of an annual report, the agreement is extended for an additional period of performance, and additional payment may similarly be made at the time of execution of the extension which, when added to the payments already made for the expiring period, will not exceed the new funds as set forth in Article A-III(b) for the expiring period; a concluding payment for the pertinent period, if appropriate, may be made following submission of a certified statement showing ERDA support cost for the pertinent period and evidencing the contractor's performance.

(2) ERDA reserves the right to increase, decrease, or cancel the amount covered by the letter of credit, provided that such action is required because of a change in the amount of consideration provided for in Article III or is taken pursuant to paragraph (c)(1) of this article. The issuance and use of a letter of credit and receipt of

funds pursuant thereto shall not prejudice or otherwise adversely

affect any of the Government's rights under the agreement.

Article B-XII-Equal Opportunity

Insert FPR 1-12.803-2.

Article B-XIII-Convict Labor

Insert FPR 1-12.204.

Article B-XIV-Contract Work Hours Standards
Act-Overtime Compensation

Insert the clause set forth in FPR 1-12.303.

Article B-XV-Disputes

Insert the clause in FPR 1-7.102-12.

Article B-XVI-Officials Not To Benefit

Insert the clause in FPR 1-7.102-17.

Article B-XVII-Covenant Against Contingent Fees

Insert the clause in FPR 1-1.503.

Article B-XVIII-Examination of Records

Insert FPR 1-7.103-3 modified as follows: substitute the words

"Unless ERDA authorizes their prior disposition" for the words "for such lesser time specified in either Appendix M of the Armed Services Procurement Regulation or the Federal Procurement Regulations Part 1-20 as appropriate". The examination of records clause is not required in contracts with any foreign government or agency thereof or in contracts with foreign producers.

Article XIX-Buy American Act

Insert the clause in FPR 1-7.102-14.

Article B-XX-Assignment: Subcontracting

Neither this agreement nor any interest therein nor claim thereunder shall be assigned or transferred by the contractor, except as expressly authorized in writing by the contracting officer. The contractor shall not subcontract any research or development work under this agreement, except as expressly authorized in writing by the contracting officer.

Article B-XXI-Reports and Renewal Proposals

The contractor shall furnish six (6) copies of the following reports to the appropriate field office.

(a) Progress report. The progress report shall briefly describe the scope of investigations undertaken and the significant results obtained. It shall also indicate compliance with the agreement requirements and any failures to comply. The report shall indicate the approximate percentage of time or effort which the principal investigator(s) has devoted to the project since the beginning of the current term of the agreement and indicate the amount of effort which is expected to be devoted during the remainder of the current term.

Technical reports, preprints, and articles prepared for publication shall be listed with bibliographical references. Reprints of all such material not previously submitted shall be appended and material contained therein need not be duplicated in the report. Progress reports shall be submitted approximately 3 months in advance of the expiration of the current agreement term and shall give the contractor's best estimate of the probable events and occurrences in regard to the remainder of the current term. Except as ERDA may otherwise request, no further progress report will be required for any agreement year unless there has been a significant change in scientific results or compliance between the latest progress report by the contractor and its actual experience: this shall be reported promptly.

(b) Final report. Upon termination or expiration of the total period of performance, the contractor shall submit, promptly, a summary of its activities for the entire period, including a list of publications issued during the entire period and copies of any reprints not previously submitted, as well as a comprehensive evaluation of progress in the area of research supported by the agreement.

(c) Renewal proposals. A renewal proposal, if any, shall be submitted along with the technical progress report, and each of the two documents shall be separately bound. Renewal proposals are submitted to a central point within the office of the senior procurement official, headquarters.

Article B-XXII-Foreign Travel

Foreign travel shall be subject to the prior approval of the contracting officer for each separate trip regardless of whether funds for such travel are contained in an approved budget. Foreign travel is defined as any travel outside of Canada and the United States and its territories and possessions.

Article B-XXII-Reserved.

Article B-XXIV-Utilization Of Concerns In Labor Surplus Areas Insert the clause in FPR 1-1.805-3(a) under the conditions prescribed therein.

Article B-XXV-Utilization of Small Business Concerns

Insert the clause in FPR 1-1.710-3(a) under the conditions prescribed therein.

Article B-XXVI-Utilization of Minority Business Enterprises Insert the clause in FPR 1-1.1310-2(a) under the conditions prescribed therein.

Article B-XXVII-Soviet-Bloc Controls

Insert the clause set forth in §9-7.304-52 under the conditions prescribed therein.

Article B-XXVIII-Disabled Veterans and Veterans
of the Viet Nam Era

Insert the clause in FPR Temporary Regulation 39.

Article B-XXIX-Determination Of Support Costs

1(a) The term "support cost" as used in this agreement means ERDA's share of the sum of costs incurred by the contractor for items included under Article A-11(a) of Appendix A which are in furtherance of the work hereunder, which are incurred in accordance with the provisions of this agreement, and which are reported to ERDA in accordance with (b) below. The term "cumulative support cost" as used in this agreement means the total of the support cost incurred during the initial agreement period plus any extension periods.

(b) Within 3 months after the end of each agreement period set forth in Appendix A, and within 3 months after the termination or

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

an educational institution or a research foundation established by an education institution, this article should be revised to provide that the commercial cost principles (FPR 1-15.2) will be used in determining actual cost.

2In those cases in which there is no proportionate sharing of costs, ERDA's "share" will be 100 percent. With respect to any period in which proportionate cost sharing is applicable pursuant to Article A-III, it is understood that the support cost for that specified period will equal the stipulated percent of the sum of costs incurred by the Contract or during the stated period for items under A-II(a) of Appendix A, not shown in Appendix A of the agreement for the pertinent period. The costs for the pertinent period shall be consistent with the principles of FMC 73-8 as constituted on the effective commencement date of said period. The certified statement shall be in the form set forth in Appendix C.