(2) Domestic travel exceeding the amount allocated for such travel by $500 or 25 percent whichever is greater.

(3) Personnel movements of a special or mass nature not approved in the budget.

(4) Purchase of general purpose equipment not itemized in the approved budget. (5) Purchase of permanent research equipment costing $1,000 or more and not itemized in the approved budget.

(6) Expenditures for nonexpendable property exceeding the amount allotted for the nonexpandable property category by 25 per

cent.

(7) Expenditures for the acquisition of land or any interest therein.

[35 FR 12604, Aug. 7, 1970, as amended at 36 FR 5849, Mar. 30, 1971; 38 FR 5639, Mar. 2, 1973]

§ 4-7.5101-12 Payment.

PAYMENT

Advance payments or reimbursement of costs incurred will be made at scheduled intervals by the Authorized Departmental Officer. The frequency of the payment interval will be based upon cash needs. [36 FR 5849, Mar. 30, 1971]

§ 4-7.5101-13 Disbursing funds.

DISBURSING FUNDS

Federal employees are prohibited from receiving funds of or disbursing funds of the Institution unless otherwise provided for in this agreement.

§ 4-7.5101-14 Convict labor.

CONVICT LABOR

In connection with the performance of the research work under this agreement the Institution agrees not to employ any person undergoing sentence of imprisonment at hard labor.

§ 4-7.5101-15 Covenant against contingent fees.

COVENANT Against ContINGENT FEES

The Institution warrants that no person or selling agency has been employed or retained to solicit or secure this agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Institution for the purpose of securing business. For breach or violation of this warranty the Government shall have the right to annul this agreement without liability, or in its discretion to deduct from the cost or consideration, or otherwise recover, the full

amount of such Commission, percentage, brokerage, or co. ngent fee.

84-7.5101-16 Officials not to benefit.

OFFICIALS NOT TO BENEFIT

No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this agreement, or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this agreement if made with a corporation for its general benefit.

§ 4-7.5101-17 Patent provisions and publication of results.

PATENT PROVISIONS AND PUBLICATION OF
RESULTS

(a) General. With respect to the publication of any results of the research conducted under this agreement, it is agreed that the results may be made known to the public by either party after due notice and submission of the proposed manuscript to the other, with such credit or recognition as may be mutually agreed upon: Provided, That full responsibility is assumed by such party for any statements on which there is a difference of opinion: And provided further, That no copyrights shall subsist in any such publication.

(b) For agreements documenting cooperative arrangements with Public Institutions. Any invention resulting from this cooperative work and made jointly by an employee or employees of the U.S. Department of Agriculture and the Cooperator or an employee or employees of the Cooperator shall be fully disclosed, either by publication or by patenting in the United States, and any such U.S. patent shall either be dedicated to the free use of the people in the territory of the United States or be assigned to the United States of America or be assigned to the Cooperator, as may be mutually agreed upon by the parties hereto: Provided, That in the event of assignment to the Cooperator, the Government shall receive an irrevocable, nonexclusive, royalty-free license under the patent, throughout the world, to practice the invention for all governmental purposes: And provided further, That nonexclusive, royalty-free licenses shall be issued by the Cooperator to any and all applicants technically competent to make use of the patent: Provided, That where the assignment is to the Government, it shall be of the domestic patent rights. Where the domestic patent rights are so assigned, the U.S. Department of Agriculture shall have an option to acquire the foreign patent rights in the invention on which an application for a U.S. patent is filed, for any particular foreign country, said option to expire in the event that the Government fails to

cause an application to be filed in any such country on behalf of the Government or determines not to seek a patent in such country within 6 months after the filing of the application for a U.S. patent on the invention. Where the domestic patent rights are assigned to the Government, but the foreign patent rights are retained by an employee, the employee shall grant to the Government a nonexclusive, irrevocable, royalty-free license in any patent which may issue thereon in any foreign country, including the power to issue sublicenses for use in behalf of the Government and/or in furtherance of the foreign policies of the Government, and said license shall also include the power to sublicense American licensees under Government-owned U.S. patents to practice the invention without payment of royalty or other restriction in any foreign country wherein a corresponding patent may issue to the employee or his foreign assignee. Any invention made independently by an employee or employees of the U.S. Department of Agriculture or by the Cooperator or an employee or employees of the Cooperator shall be disposed of in accordance with the policy of the U.S. Department of Agriculture or the Cooperator, respectively: Provided, That in the event the invention is made solely by an employee or employees of the Cooperator, the Cooperator shall grant or shall obtain from the assignee of any patent issued on said invention an irrevocable, nonexclusive, worldwide, royalty-free license for the Government, for all governmental purposes: And provided further, In the event the invention is made solely by an employee or employees of the Cooperator, that unless the Cooperator or his assignee has taken effective steps within 3 years after a patent issues on the invention to bring the invention to the point of practical application or has made the invention available for licensing royaltyfree or on terms that are reasonable in the circumstances, or can show cause why he should retain the principal or exclusive rights for a further period of time, the Government shall have the right to require the granting of a license to an applicant on a nonexclusive, royalty-free basis.

(c) For agreements documenting cooperative arrangements with Private Institutions. Any invention resulting from this cooperative work and made jointly by an employee or employees of the U.S. Department of Agriculture and a Cooperator or an employee or employees of a Cooperator shall be fully disclosed, either by publication or by patenting in the United States. The domestic patent rights in any such U.S. patent shall either be dedicated to the free use of the people in the territory of the United States or be assigned to the Government of the United States of America, as represenced by the Secretary of Agriculture. Where the do

mestic patent rights are assigned to the Government, the J.S. Department of Agriculture shall have an option to acquire the foreign patent rights in the invention on which an application for a U.S. patent is filed, for any particular foreign country, said option to expire in the event that the Government fails to cause an application to be filed in any such country on behalf of the Government or determines not to seek a patent in such country within 6 months after the filing of the application for a U.S. patent on the invention. Where the domestic patent rights are assigned to the Government, but the foreign patent rights are retained by an employee, the employee shall grant to the Government a nonexclusive, irrevocable, royalty-free license in any patent which may issue thereon in any foreign country, including the power to issue sublicenses for use in behalf of the Government and/or in furtherance of the foreign policies of the Government, and said license shall also include the power to sublicense American licensees under Government-owned U.S. patents to practice the invention without payment of royalty or other restriction in any foreign country wherein a corresponding patent may issue to the employee or his foreign assignee. Any invention made independently by an employee or employees of the U.S. Department of Agriculture or by a Cooperator or an employee or employees of a Cooperator shall be disposed of in accordance with the policy of the U.S. Department of Agriculture or a Cooperator, respectively: Provided, That in the event the invention is made solely by an employee or employees of the Cooperator, the Cooperator shall grant or shall obtain from the assignee of any patent issued on said invention an irrevocable, nonexclusive, worldwide, royalty-free license for the Government, for all governmental purposes: And provided further, In the event the invention is made solely by an employee or employees of the Cooperator, that unless the Cooperator or his assignee has taken effective steps within 3 years after a patent issues on the invention to bring the invention to the point of practical application or has made the invention available for licensing royalty-free or on terms that are reasonable in the circumstances, or can show cause why he should retain the principal or exclusive rights for a further period of time, the Government shall have the right to require the granting of a license to an applicant on a nonexclusive, royaltyfree basis.

(d) For agreements documenting grants or contracts. The public shall be granted all benefits of any patentable results of all research and investigations conducted and all information, data, and findings developed under this agreement, through dedication, assignment to the Secretary, publication, or

60-119 0-80--24

such other means as may be determined by the Authorized Departmental Officer.

(1) With respect to patentable results and in accordance with this clause the Institution agrees:

(i) To cooperate in the preparation and prosecution of any domestic and foreign patent application which the Department I may decide to undertake covering the subject.

(ii) To execute all papers requisite in the prosecution of such patent application including assignment to the United States and dedications.

(iii) To secure the cooperation of its employees in the preparation and the execution of all such papers as may be required in the prosecution of such patent applications or in order to vest title in the subject matter involved in the United States, or to secure the right of free use in public. It is understood, however, that the making of prior art searches, the preparation, filing, and prosecution of patent applications, the determination of questions of novelty, patentability, and inventorship, as well as other functions of a patent attorney, are excluded from these duties.

(2) With respect to nonpatentable results of research and investigations and information concerning the research work, which the Authorized Department Officer determines will not form a basis of a patent application, it is agreed that results may be made known to the public by either party after due notice and submission of the proposed manuscript to the other, with such credit or recognition as may be mutually agreed upon: Provided, That full responsibility is assumed by such party for any statements on which there is a difference of opinion; And provided further, That no copyrights shall subsist in any such publication.

§ 4-7.5101-18 Termination for convenience of the Government.

TERMINATION FOR CONVENIENCE OF THE
GOVERNMENT

(a) The performance of the research work under this Agreement may be terminated, in whole or from time to time in part, by the Government whenever for any reason the Authorized Departmental Officer shall determine that such termination is in the best interest of the Government. Termination of the research work hereunder shall be effected by delivery to the Institution of a Notice of Termination specifying the extent to which performance under this Agreement is terminated and the date upon which such termination becomes effective.

(b) After receipt of the Notice of Termination the Institution shall cancel its outstanding commitments hereunder covering

the procurement of materials, supplies, equipment, and .scellaneous items. In addition, the Institution shall exercise all reasonable diligence to accomplish the cancellation or diversion of its outstanding commitments covering personal services and extending beyond the date of such termination to the extent that they relate to the performance of any work terminated by the notice. With respect to such canceled commitments the Institution agrees to (1) settle all outstanding liabilities and all claims arising out of such cancellation of commitments, with the approval or ratification of the Authorized Departmental Officer, to the extent he may require, which approval or ratification shall be final for all purposes of this clause, and (2) assign to the Government, in the manner, at the time, and to the extent directed by the Authorized Departmental Officer, all of the rights, title, and interest of the Institution under the orders and subcontracts so terminated, in which case the Government shall have the right, in its discretion, to settle or pay any or all claims arising out of the termination of such orders and subcontracts.

(c) The Institution shall submit its termination claim to the Authorized Departmental Officer promptly after receipt of a Notice of Termination, but in no event later than 1 year from the effective date thereof, unless one or more extensions in writing are granted by the Authorized Departmental Officer upon written request of the Institution within such 1-year period or authorized extension thereof. Upon failure of the Institution to submit its termination claim within the time required by the Department's procedures in effect as of the date of execution of this agreement, the Department shall determine on the basis of information available to it, the amount, if any, due the Institution by reason of the termination, and shall thereupon pay to the Institution the amount so determined.

(d) Any determination of costs under paragraph (c) shall be governed by the cost principles set forth in OMB Circular A-21 (revised).

(e) Subject to the provisions of paragraph (c) above, and subject to any review required by the Department's procedures in effect on the date of execution of this agreement, the Institution and the Authorized Departmental Officer may agree upon the whole or any part of the amount or amounts to be paid to the Institution by reason of the termination under this clause, which amount or amounts may include any reasonable cancellation charges thereby incurred by the Institution and any reasonable loss upon outstanding commitments for personal services which it is unable to cancel: Provided, however, That in connection with any outstanding commitments for personal services which the Institution is

unable to cancel, the Institution shall have exercised reasonable diligence to divert such commitments to its other activities and operations. Any such agreement shall be embodied in an amendment to this agreement and the Institution shall be paid the agreed amount.

(f) The Government may from time to time, under such terms and conditions as it may prescribe, make partial payments against costs incurred by the Institution in connection with the terminated portion of this agreement, whenever, in the opinion of the Authorized Departmental Officer, the aggregate of such payments is within the amount to which the Institution will be entitled hereunder. If the total of such payments is in excess of the amount finally agreed upon or determined to be due under this clause, such excess shall be payable by the Institution to the Government upon demand: Provided, That if such excess is not so paid upon demand, interest thereon shall be payable by the Institution to the Government at the rate of 6 percent per annum, beginning 30 days from the date of such demand.

(g) The Institution agrees to transfer title to the Government and deliver in the manner, at the times, and to the extent, if any, directed by the Authorized Departmental Officer, such information and items which, if this agreement had been completed, would have been required to be furnished to the Government, including:

(1) Completed or partially completed plans, drawings, and information; and

(2) Material or equipment produced or in process or acquired in connection with the performance of the work terminated by the notice. Other than the above, any termination inventory resulting from the termination of this agreement may, with the written approval of the Authorized Departmental Officer, be sold or acquired by the Institution under the conditions prescribed by and at a price or prices approved by the Authorized Departmental Officer. The proceeds of any such disposition shall be applied in reduction of any payments to be made by the Government to the Institution under this agreement or shall otherwise be credited to the cost of the research work covered by this agreement or paid in such other manner as the Authorized Departmental Officer may direct. Pending final disposition of property arising from the termination, the Institution agrees to take such action as may be necessary, or as the Authorized Departmental Officer may direct, for the protection and preservation of the property related to this agreement which is in the possession of the Institution and in which the Government has or may acquire an interest.

(h) Any disputes as to questions of fact which may arise hereunder shall be subject to the "Disputes" clause of this agreement. [35 FR 12604, Aug. 7, 1970, as amended at 38 FR 5640, Mar. 2, 1973]

84-7.5101-19 Equal opportunity.

EQUAL OPPORTUNITY

This clause shall be applicable as required by rules, regulations, and relevant orders of the Secretary of Labor (41 CFR, ch. 60).

(a) The Institution will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. The Institution will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising: layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Institution agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Authorized Departmental Officer setting forth the provisions of this Equal Opportunity clause.

(b) The Institution will, in all solicitations or advertisements for employees placed by or on behalf of the Institution, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin.

(c) The Institution will send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice, to be provided by the Authorized Departmental Officer, advising the labor union or workers' representative of the Institution's commitments under this Equal Opportunity clause, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

(d) The Institution will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

(e) The Institution will furnish all information and reports required by Executive Order No. 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and accounts by the Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

(f) In the event of the Institution's noncompliance with the Equal Opportunity

clause of this agreement or with any of the said rules, regulations, or orders, this agreement may be canceled, terminated, or suspended, in whole or in part, and the Institution may be declared ineligible for further Government research projects in accordance with procedures authorized in Executive Order No. 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order No. 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

(g) The Institution will include the provisions of paragraphs (a) through (g) in every subcontract or purchase order unless exempted by the rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order No. 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Institution will take such action with respect to any subcontract or purchase order as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance: Provided, however, That in the event the Institution becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the Department, the Institution may request the United States to enter into such litigation to protect the interests of the United States.

§ 4-7.5101-20 Certification of nonsegregated facilities.

CERTIFICATIon of NonsegREGATED FACILITIES

This clause shall be applicable as required by rules, regulations, and relevant orders of the Secretary of Labor (41 CFR, ch. 60).

By the execution of this agreement, the Institution certifies that it does not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not permit its employees to perform their services at any location, under its control, where segregated facilities are maintained. It certifies further that it will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it will not permit its employees to perform their services at any location, under its control, where segregated facilities are maintained. The Institution agrees that a breach of this certification is a violation of the Equal Opportunity clause in this agreement. As used in this certification, the term "segregated facilities" means any waiting rooms, work areas, rest rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertain

ment areas, transportation, and housing facilities provided for employees which are segregated by explicit directive or in fact segregated on the basis of race, creed, color, or national origin, because of habit, local custom, or otherwise. It further agrees that (except where it has obtained identical certifications from proposed subcontractors for specific time periods) it will obtain identical certifications from proposed subcontractors prior to the award of subcontracts exceeding $10,000 which are not exempt from the provisions of the Equal Opportunity clause; that it will retain such certifications in its files; and that it will forward the following notice to such proposed subcontractors (except where the proposed subcontractors have submitted identical certifications for specific time perioc's):

NOTICE TO PROSPECTIVE SUBCONTRACTORS OF REQUIREMENT FOR CERTIFICATIONS OF NONSEGREGATED FACILITIES

A Certification of Nonsegregated Facilities, as required by the May 9, 1967 order (32 FR 7439, May 19, 1967), on Elimination of Segregated Facilities, by the Secretary of Labor, must be submitted prior to the award of a subcontract exceeding $10,000 which is not exempt from the provisions of the Equal Opportunity Clause. The certification may be submitted either for each subcontract or for all subcontracts during a period (i.e., quarterly, semiannually, or annually). § 4-7.5101-21 Disputes.

(a) Except as otherwise provided in this research agreement any dispute concerning a question of fact arising under this research agreement, not disposed of by agreement, shall be decided by the authorized departmental officer, who shall reduce his decision to writing and furnish a signed copy to the institution. Such decision shall be final and conclusive unless, within 30 days from the date or receipt thereof the institution mails or otherwise furnishes to the authorized departmental officer a written appeal, addressed to the Secretary of Agriculture. The institution shall be afforded an opportunity to be heard and to offer evidence. The decision of the Secretary or his duly authorized representative for the determination of such appeals, shall be final and conclusive unless fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. Pending final decision of a dispute hereunder, the institution shall proceed diligently with