W. "revenue unit": a unit of measure with respect to irradiaved reactor material to be chemically processed hereunder. Except as otherwise provided in Article XI, a processing lot will be equivalent to a number of revenue units determined by the following formulae: 4/3 of W/P, where W/P is 24 or more. The terms W and P are defined for any given processing lot in accordance with X. "source material": (i) uranium, thorium, or any other material which is determined by the Commission pursuant to the provisions of section 61 of the Act to be source material; or (ii) ores containing one or more of the foregoing materials, in such concentration as the Commission may by regulation determine from time to time. Y. "special nuclear material": (1) plutonium, uranium enriched in the isotope 233 or in the isotope 235, and any other material which the Commission, pursuant to the provisions of section 51 of the Act, determines to be special nuclear material, but does not include source material; or (ii) any material artificially enriched by any of the foregoing, but does not include source material. Z. "specification material": irradiated reactor material which conforms to the General Specifications and the particular specifications for that Material Category which the Commission shall designate for chemical processing hereunder, and which also conforms to the Specific Material Description supplied by the Commission hereunder, General Specifications and Material Categories for irradiated reactor material to be delivered under this contract, as well as the form for a Specific Material Description, are set forth in Appendix A as the same may be amended from time to time. AA. "uniform rounding practice": when the number to the right of the relevant number is 4 or less, the relevant number remains unchanged; when the number to the right is 6 or more, the relevant number is increased to the next higher number; when the number to the right is 5 and the relevant number is odd, the relevant number is increased to the next higher number; when the number to the right is 5 and the relevant number is even, including zero, the relevant number remains unchanged. CC, "value": (1) with respect to uranium (excluding U-233, and mixtures of U-235 and U-233 as defined by the Commission and published in the Federal Register from time to time) the dollar amount determined by multiplying the applicable base charge by the weight of such material involved, regardless of the chemical form or purity of such material. (2) With respect to (i) U-233, (ii) mixtures of U-233 and U-235 as defined by the Commission and published in the Federal Register from time to time, or (iii) plutonium, the dollar mount determined by multiplying the Commission's price by the weight of such material involved, regardless of the chemical form or purity of such material. DD. "waste": any solid, liquid or gaseous waste material resulting from the chemical processing in the Plant of irradiated reactor material, including but not limited to source material, special nuclear material and byproduct material. ARTICLE II STATEMENT OF WORK A. The Commission agrees to deliver to the Contractor for chemical processing, and the Contractor agrees to furnish all labor, services, materials, supplies, tools, utilities, machinery and equipment, and shall perform all work necessary to chemically process the following: (1) An amount of specification material equivalent to approximately 625, but not less than 622 nor more than 650, revenue units; and (2) Subject to the provisions of Article II.G., the amount of B. The number of revenue units which the Commission will be obligated to deliver for chemical processing as provided in paragraph A.(1) of this Article II shall be reduced, at the option of the Commission, to the extent that the Contractor shall have chemically processed during the term of this contract for all customers (including the Commission) an amount of irradiated reactor material in excess of 1500 revenue units, except as otherwise provided below. (1) The number of revenue units chemically processed by the Contractor shall be determined as follows ! (a) The number of revenue units of specification material chemically processed for the Commission shall be determined in accordance with the formulae set forth in the definition of revenue unit and in accordance with Article XII. (b) The amount of irradiated reactor material chemically processed for other customers of the Contractor, the turnaround charges related thereto, idle Plant time charges and charges for special services (for the Commission and others) shall be converted into revenue units in accordance with a formula to be mutually agreed upon. (c) For any processing year in respect of which an adjustment in charges is made as provided in Article XXVI, the number of revenue units chemically processed during such year, determined as provided in (a) and (b) above, shall be adjusted, for the purposes of this Article II, as follows: (1) If the number of revenue units is in excess of 300 but not in excess of 350, the number of revenue units chemically processed in such processing year shall be deemed to be 300 plus 10% of the excess over 300; (11) If the number of revenue units is in excess of 350, the number of revenue units chemically processed in such year shall be deemed to be 305 plus 90% of the excess over 350. (2) If the Contractor shall have chemically processed any small processing lot (as defined in Article XI) as a separate processing lot or if the Contractor combines small processing lots into a processing lot containing less than 8 processing units, the 1500 revenue unit base referred to in the first sentence of this Article II B, shall be increased by a number equivalent to the difference between (1) the number of revenue units represented by such processing lot if determined in accordance with the formula set forth in paragraph W. of Article I and (ii) the number of revenue units represented by such processing lot if determined in accordance with the formula set forth in paragraph H. of Article XI; provided, however, that to the extent that the 1500 revenue units base is increased as provided above, it shall be decreased if the Contractor combines any small processing lot into a processing lot containing a total of 8 or more processing units by a number equal to (i) the difference between the total number of revenue units represented by such combined processing lot for which the Contractor has been paid, computed by adding the number of revenue units represented by each component thereof, minus (ii) the number of revenue units represented by such combined processing lot if determined in accordance with paragraph W. of Article I. C. The Contractor shall separate and recover the recoverable uranium and plutonium contained in specification material delivered to it hereunder in the form of recovered product. D. The Contractor shall receive, unload and store at the Plant, as provided herein, all specification material delivered by the Commission in accordance with the provisions of this contract, and shall perform all other duties and obligations hereinafter expressly set forth, including but not limited to routine decontamination and repair of Commission-furnished containers, reshipment of Commission-furnished containers used to deliver material, measurements, chemical and isotopic analyses, furnishing of data and reports, delivery of recovered product, and provision for storage, disposal and perpetual maintenance of waste. E. The Contractor shall, in addition to its other obligations hereunder, provide a chemical processing service for persons licensed by the Commission, and others, in accordance with the provisions of Article XIII. F. The services, or any part thereof, provided for under this Article II may be subcontracted by the Contractor only with the prior written consent of the Contracting Officer and upon such conditions as the Contracting Officer may impose. This Article II F. shall not apply to any subcontract for standard commercial products, equipment or supplies. G. If the irradiated reactor material in Material Categories 1 and 4 delivered to the Commission for financial settlement prior to January 1, 1966, referred to in Article II.A.(2), does not meet the General Specifications set forth in Appendix A hereto, the Commission shall so advise the Contractor in writing within 60 days after delivery to the Commission, or the date of this contract, whichever is later. The Contractor shall, as soon as practicable thereafter, deliver to the Commission a written statement of the charges, terms and conditions upon which the Contractor shall chemically process such material. The Contractor's proposed charges shall not exceed those determined in accordance with the following principles which have been established by the Contractor in its dealings with other customers: 1. The size of a processing unit shall be adjusted to reflect differences in the rate of processing; ii. The Processing Charge set forth in Article VI hereof shall be adjusted, if necessary, to reflect changes in operating costs and expenses by reason of the deviation of such material from the General Specifications; iii. The cost of any new capital additions and improvements shall be borne by the Commission (the necessary capital to be provided in a manner to be mutually agreed upon); ive V. If the Contractor shall make use of such capital additions The Commission shall, as soon as practicable, make a determination as to whether the Contractor's charges, terms and conditions for the processing of such material are reasonable or unreasonable and shall advise the Contractor in writing of its determination. Notwithstanding any of the foregoing principles, the Commission may determine, in its sole discretion, that the Contractor's charges, terms and conditions are reasonable or unreasonable; in making such determination, the Commission may apply such criteria as it shall, in its sole discretion, deem advisable. If the Commission determines that the Contractor's charges, terms and conditions are reasonable, such material shall be delivered pursuant to Article II A.(2) and this contract shall be modified accordingly. If the Commission determines that such charges, terms and conditions are unreasonable, the Commission shall not be obligated to deliver such material to the Contractor for chemical processing hereunder. Any determinations of reasonableness or unreasonableness pursuant to this Article II G. shall be made by a quorum of the members of the Atomic Energy Commission (or any successor of such Atomic Energy Commission established by statute). ARTICLE III EXCHANGE OF INFORMATION; DELIVERY SCHEDULE; DELIVERY; STORAGE A. Exchange of Information As soon as practicable after the effective date of this contract, the Commission and the Contractor will establish a plan for keeping the Contractor currently and fully informed as to the projected mounts of specification material to be made available by the Commission for chemical processing under this contract, the schedules for delivery of material to the Contractor, and such other matters as may be reasonably required to permit the efficient scheduling of the chemical processing provided for herein. Pursuant to such plan the parties hereto will keep each other fully and currently informed with respect to all matters relating to the proposed chemical processing of the Commission's material hereunder so as to permit the parties the greatest practicable degree of flexibility, consistent with the provisions of this contract, in carrying out their respective duties and obligations hereunder. Such plans shall provide that the Commission will advise the Contractor in writing, approximately 90 days prior to the commencement of each processing year, or approximately 90 days prior to January 1, 1965, if this date occurs prior to commencement of the first processing year, of the amount of material which the Commission tentatively proposes to deliver to the Contractor in the ensuing processing year, (or în calendar year 1965) a description of such material by Material Category and the tentative delivery schedule with respect to such material. B. Delivery Schedule: Delivery (1) Not later than 30 days prior to the commencement of each processing year, or 30 days prior to January 1, 1965, the parties hereto will establish a mutually acceptable shipping schedule with respect to all irradiated reactor material to be delivered by the Commission to the Contractor in the ensuing processing year (or in calendar year 1965). All irradiated reactor material to be delivered to the Contractor during the ensuing processing year, or in calendar year 1965, shall be shipped in accordance with such schedule, provided that the Commission may unilaterally amend this shipping schedule with respect to any particular |