Award Contract Between Office of Naval Research and Summus Ltd for Research Services (N00014-01-C-0217)

Summary

This contract is between the Office of Naval Research (U.S. Navy) and Summus Ltd. Summus Ltd will provide research services, specifically conducting a field test of side scan sonar image segmentation software, as described in their proposal. The contract is valued at $146,046 and covers work from the contract's effective date through July 31, 2001. Summus Ltd must deliver reports and data according to the agreed schedule, and the Navy will inspect and accept the final work within 30 days of delivery.

EX-10.14 11 y50884ex10-14.txt EX-10.14 AWARD CONTRACT 1 EXHIBIT 10.14 - -------------------------------------------------------------------------------- AWARD/CONTRACT 1. THIS CONTRACT IS A RATED ORDER UNDER RATING PAGE OF PAGES DPAS (15 CFR 350) DO-C9 1/16 - -------------------------------------------------------------------------------- CONTRACT 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQUEST/PROJECT (Proc.Inst. See Box 20C NO. 01PRO6693-00 Ident.) No. N00014-01-C-0217 - -------------------------------------------------------------------------------- 5. ISSUED BY CODE N00014 6. ADMINISTERED BY (If other than Item 5) CODE S1103A OFFICE OF NAVAL RESEARCH DCM Atlanta ONR 251-GBP Geoffrey B. Pennoyer 805 Walker St. Suite ###-###-#### Marieta, GA 30060-2789 ***@*** 800 NORTH QUINCY STREET ARLINGTON, VA ###-###-#### - -------------------------------------------------------------------------------- 7. NAME AND ADDRESS OF CONTRACTOR 8. DELIVERY (No., street, city, county, State and Zip Code.) Summus Ltd SEE SECTION F OF SCHEDULE 434 Fayetteville Street Mall Suite 600 FOB OTHER Raleigh, NC 27601 / / ORIGIN / / See below ---------------------------- 9. DISCOUNT FOR PROMPT PAYMENT N.A. ---------------------------- 10. SUBMIT INVOICES ITEM (4 copies unless See otherwise specified) Section TO THE ADDRESS G.1 - ----------------------------------------------------SHOWN IN Code 7Y794 FACILITY CODE - -------------------------------------------------------------------------------- 11. SHIP TO/MARK FOR CODE N00014 12. PAYMENT WILL BE MADE BY CODE HQ0338 Program Officer, See Section F DFAS Columbus Center DFAS-CO/Southeast Division POB 182225 Columbus, OH 43128-2225 - -------------------------------------------------------------------------------- 13. AUTHORITY FOR USING OTHER THAN 14. ACCOUNTING AND APPROPRIATION DATA FULL AND OPEN COMPETITION: / / 10 U.S.C. 2304(c)( ) SEE ATTACHED FINANCIAL ACCOUNTING / / 41 U.S.C. 253(c)(5) DATA SHEET(S) - -------------------------------------------------------------------------------- 15A. ITEM 15B. SUPPLIES/ 15C. 15D. UNIT 15E. UNIT 15F. NO. SERVICES QUANTITY PRICE AMOUNT - -------------------------------------------------------------------------------- SEE SECTION B OF SCHEDULE - -------------------------------------------------------------------------------- 15G. TOTAL AMOUNT $ SEE SECTION B OF CONTRACT OF SCHEDULE - -------------------------------------------------------------------------------- 16. TABLE OF CONTENTS - --------------------------------------------------------------------------------

CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE - -------------------------------------------------------------------------------- 17. /X/ CONTRACTOR'S NEGOTIATED AGREEMENT 18. / / AWARD (Contractor is (Contractor is required to sign not required to sign this document and return 2 copies this document.) Your to issuing office.) Contractor agrees to offer on Solicitation Number furnish and deliver all items or perform _____. including the additions all the services set forth or otherwise or changes made by you which identified above and on any continuation additions or changes are set sheets for the consideration stated forth in full above, is hereby herein. The rights and obligations of the accepted as to the items listed parties to this contract shall be subject above and on any continuation to and governed by the following documents: sheets. This award consummates (a) this award/contract, (b) the solicitation, the contract which consists of if any, and (c) such provisions, the following documents: (a) representations, certifications, and the Government's solicitation specifications, as are attached or incorporated and your offer, and (b) this by reference herein. (Attachments are listed award/contract. No further herein.) contractual document is necessary. - -------------------------------------------------------------------------------- 19A. NAME AND TITLE OF SIGNER 20A. NAME OF CONTRACTING OFFICER (Type or print) /s/ Gary E. Ban C.O.O. Wade D. Wargo (Stamped) Contracting Officer - -------------------------------------------------------------------------------- 19B. NAME OF CONTRACTOR 19C. DATE 20B. UNITED STATES OF AMERICA 20C. DATE SIGNED SIGNED BY /s/ GARY E. BAN 3/13/01 BY /s/ Wade D. Wargo 13 MAR 2001 __________________ _____________________ (Signature of person authorized to sign) (Signature of Contracting Officer) - -------------------------------------------------------------------------------- 2 SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT 1. The research effort to be performed hereunder shall be subject to the requirements and standards contained in Exhibit A and the following paragraph(s). 2. The Contractor shall conduct the research effort in accordance with the sections entitled, "Test Data and Test Plan" and "Schedules and Deliverables" in the Contractor's proposal entitled "Side Scan Sonar Image Segmentation Software Field Test," dated 19 JAN 2001, Pages 4 and 5 of the proposal. These sections are incorporated herein by reference. SECTION D - PACKAGING AND MARKING Preservation, packaging, packing and marking of all deliverable contract line items shall conform to normal commercial packing standards to assure safe delivery at destination. SECTION E - INSPECTION AND ACCEPTANCE Inspection and acceptance of the final delivery under this contract will be accomplished by the Program Officer designated in Section F of this contract, who shall have at least thirty (30) days after contractual delivery for acceptance. SECTION F - DELIVERIES OR PERFORMANCE 1. The research effort performed under this contract shall be conducted during the period from the effective date of the contract through 31 JUL 2001. A final report will be prepared, submitted, reproduced and distributed by sixty days thereafter unless the contract is extended, in which case, the final report will be prepared in accordance with the terms of such extension. a. Item No. 0002 of Section B (Reports and Data) shall be delivered within the time periods stated in Exhibit A, F.O.B. Destination. CONTRACT NUMBER: N00014-01-C-0217 Page 2 3 2. Distribution, consignment and marking instructions for all contract line items shall be in accordance with the following: a. Item No. 0002 shall be shipped F.O.B. Office of Naval Research, Arlington, Virginia ###-###-####, consigned to: Program Officer Office of Naval Research Ballston Tower One 800 North Quincy Street Arlington, Virginia ###-###-#### Attn: Dr. Richard Lau, Code 311, Telephone ###-###-#### Ref: Contract N00014-01-C-0217 SECTION G - CONTRACT ADMINISTRATION DATA 1. NAPS ###-###-#### SUBMISSION OF INVOICES (COST REIMBURSEMENT, TIME-AND- MATERIALS, LABOR-HOUR, OR FIXED PRICE INCENTIVE) (JUL 1992) (a) "Invoice" as used in this clause includes contractor requests for interim payments using public vouchers (SF 1034) but does not include contractor requests for progress payments under fixed price incentive contracts. (b) The Contractor shall submit invoices and any necessary supporting documentation, in an original and 4 copies, to the contract auditor at the following address: Audit Agency Name: Defense Contract Audit Agency North Carolina Branch Office, Eastern Region Address: 415 N. Edgeworth St., Suite A Greensboro, NC ###-###-#### Telephone: (336) 333-5501 unless delivery orders are applicable, in which case invoices will be segregated by individual order and submitted to the address specified in the order. In addition, an information copy shall be submitted to the Program Officer identified in Section F.2a of this contract. Following verification, the contract auditor* will forward the invoice to the designated payment office for payment in the amount determined to be owing, in accordance with the applicable payment (and fee) clause(s) of this contract. (c) Invoices requesting interim payments shall be submitted no more than once every two weeks, unless another time period is specified in the Payments clause of this contract. For indefinite delivery type contracts, interim payment invoices shall be submitted no more than once every two weeks for each delivery order. There shall be a lapse of no more than 30 calendar days between performance and submission of an interim payment invoice. (d) In addition to the information identified in the Prompt Payment clause herein, each invoice shall contain the following information, as applicable: (1) Contract line item number (CLIN) CONTRACT NUMBER: N00014-01-C-0217 Page 3 4 (2) Subline item number (SLIN) (3) Accounting Classification Reference Number (ACRN) (4) Payment terms (5) Procuring activity (6) Date supplies provided or services performed (7) Costs incurred and allowable under the contract (8) Vessel (e.g., ship, submarine or other craft) or system for which supply/service is provided. (e) A DD Form 250, "Material Inspection and Receiving Report", ----- is required with each invoice submittal. ** ----- is required only with the final Invoice. ----- is not required. (f) A Certificate of Performance ** ----- shall be provided with each invoice submittal. ----- is not required (g) The Contractor's final invoice shall be identified as such, and shall list all other invoices (if any) previously tendered under this contract. (h) Costs of performance shall be segregated, accumulated and invoiced to the appropriate ACRN categories to the extent possible. When such segregation of costs by ACRN is not possible for invoices submitted with CLINS/SLINS with more than one ACRN, an allocation ratio shall be established in the same ratio as the obligations cited in the accounting data so that costs are allocated on a proportional basis. * In contracts with the Canadian Commercial Corporation, substitute "Administrative Contracting Officer" for "contract auditor". ** Check appropriate requirements. 2. Submission of Invoices Direct to Payment Office ----------------------------------------------- a. Pursuant to DFARS 242.803(b)I)(C), if the cognizant Government auditor has notified the contractor of its authorization to do so, the contractor may submit interim vouchers under this contract direct to the payment office shown in Block 12 of SF-26 instead of to the address shown in subparagraph (b) of section G.1 above. b. Such authorization does not extend to the first and final vouchers. The contractor shall continue to submit first vouchers to the cognizant auditor shown in subparagraph (b) of section G.1. above. The final voucher shall be submitted to the Administrative Contracting Officer (SF-26 block 6) with a copy to the cognizant auditor. 3. Method of Payment ----------------- As consideration for the proper performance of the work and services required under this contract, the Contractor shall be paid as follows: a. Costs, as provided for under the contract clause entitled "Allowable Cost and Payment," not to exceed the amount set forth as "Estimated Cost" in Section B, subject to the contract clause entitled "Limitation of Cost" or "Limitation of Funds" whichever is applicable. CONTRACT NUMBER: N00014-01-C-0217 Page 4 5 b. A fixed fee in the amount set forth as "Fixed Fee" in Section B, in accordance with the contract clause entitled "Fixed Fee", which shall be paid upon completion of the work and services required under this contract and upon final acceptance by the Contracting Officer; however, the Contractor may bill on each voucher the amount of the fee bearing the same percentage to the total fixed fee as the amount of cost billed bears to the total estimated cost. 4. Procuring Office Representatives a. In order to expedite administration of this contract, the Administrative Contracting Officer should direct inquiries to the appropriate office listed below. Please do not direct routine inquiries to the person listed in Item 20A on Standard Form 26. Contract Negotiator - Geoffrey B. Pennoyer, ONR 251, (703) 696-3130, DSN 426,3130, E-Mail Address ***@*** Inspection and Acceptance - Dr. Richard L. Lau, ONR 311, (703) 696-4316, DSN ###-###-#### Security Matters - Ms. Jennifer Ramsey, ONR 43, (703) 696-4618, DSN ###-###-####. Patent Matters - Mr. Tom McDonnell, ONR 00CC, (703) 696-4000, DSN ###-###-####. b. The Administrative Contracting Officer will forward invention disclosures and reports directly to Corporate Counsel (Code 00CC), Office of Naval Research, Department of the Navy, Arlington, Virginia ###-###-####. The Corporate Counsel will return the reports along with a recommendation to the Administrative Contracting Officer. The Corporate Counsel will represent the Contracting Officer with regard to invention reporting matters arising under this contract. 5. Type of Contract This is cost-plus-fixed-fee completion contract. SECTION H - SPECIAL CONTRACT REQUIREMENTS 1. ONR ###-###-#### REPORT PREPARATION (DEC 1988) Scientific or technical reports prepared by the Contractor and deliverable under the terms of this contract will be prepared in accordance with format requirements contained in ANSI Z39.18, Scientific and Technical Reports: Organization, Preparation and Production. [NOTE: ANSI Z39.18 may be obtained for NISO Press Fulfillment Center, P.O. Box 338, Oxon Hill, MD 20750-0338. Telephone: 1 ###-###-####] 2. ONR ###-###-#### METRICATION REQUIREMENTS (DEC 1988) (a) All scientific and technical reports delivered pursuant to the terms of this contract shall identify units of measurement in accordance with the International System of Units (SI) commonly referred to as the "Metric System". Conversion to U.S. customary units may also be given where additional clarity is deemed necessary. Guidance for application of the metric CONTRACT NUMBER: N00014-01-C-0217 Page 5 6 system is contained in the American Society of Testing Materials document entitled "Standard Practice for Use of the International System of Units (The Modernized Metric System)" (ASTM Designation E 380-89A) (b) This provision also applies to journal article preprints, reprints, commercially published books or chapters of books, theses or dissertations submitted in lieu of a scientific and/or technical report. 3. INVENTION DISCLOSURES AND REPORTS The Contractor shall submit all invention disclosures and reports required by the Patent Rights clause of this contract to the Administrative Contracting Officer. 4. ONR ###-###-#### TECHNICAL DIRECTION (DEC 1988) (a) Performance of the work hereunder is subject to the technical direction of the Program Officer/COR designated in this contract, or duly authorized representative. For the purposes of this clause, technical direction includes the following: (1) Direction to the Contractor which shifts work emphasis between work areas or tasks, requires pursuit of certain lines of inquiry, fills in details or otherwise serves to accomplish the objectives described in the statement of work; (2) Guidelines to the Contractor which assist in the interpretation of drawings, specifications or technical portions of work description. (b) Technical direction must be within the general scope of work stated in the contract. Technical direction may not be used to: (1) Assign additional work under the contract; (2) Direct a change as defined in the contract clause entitled "Changes"; (3) Increase or decrease the estimated contract cost, the fixed fee, or the time required for contract performance; or (4) Change any of the terms, conditions or specifications of the contract. (c) The only individual authorized to in any way amend or modify any of the terms of this contract shall be the Contracting Officer. When, in the opinion of the Contractor, any technical direction calls for effort outside the scope of the contract or inconsistent with this special provision, the Contractor shall notify the Contracting Officer in writing within ten working days after its receipt. The Contractor shall not proceed with the work affected by the technical direction until the Contractor is notified by the Contracting Officer that the technical direction is within the scope of the contract. (d) Nothing in the foregoing paragraphs may be construed to excuse the Contractor from performing that portion of the work statement which is not affected by the disputed technical direction. 5. ONR ###-###-#### KEY PERSONNEL (DEC 88) (a) The Contractor agrees to assign to the contract tasks those persons whose resumes were submitted with its proposal and who are necessary to fulfill the requirements of CONTRACT NUMBER: N00014-01-C-0217 Page 6 7 the contract as "key personnel". No substitutions may be made except in accordance with this clause. (b) The Contractor understands that during the first ninety (90) days of the contract performance period, no personnel substitutions will be permitted unless these substitutions are unavoidable because of the incumbent's sudden illness, death or termination of employment. In any of these events, the Contractor shall promptly notify the Contracting Officer and provide the information described in paragraph (c) below. After the initial ninety (90) day period the Contractor must submit to the Contracting Officer all proposed substitutions, in writing, at least [60] days in advance ([90] days if security clearance must be obtained) of any proposed substitution and provide the information required by paragraph (c) below. (c) Any request for substitution must include a detailed explanation of the circumstances necessitating the proposed substitution, a resume for the proposed substitute, and any other information requested by the Contracting Officer. Any proposed substitute must have qualifications equal to or superior to the qualifications of the incumbent. The Contracting Officer or his/her authorized representative will evaluate such requests and promptly notify the Contractor in writing of his/her approval or disapproval thereof. (d) In the event that any of the identified key personnel cease to perform under the contract and the substitute is disapproved, the contract may be immediately terminated in accordance with the Termination clause of the contract. The following are identified as key personnel: Dr. Jiangying Zhou 6. CONSULTANTS The services of the following consultants have been identified as necessary for performance of this contract:

The above listing shall constitute the written consent of the Contracting Officer required by Paragraph (c) of the contract clause entitled "Subcontracts (Cost Reimbursement and Letter Contracts)" unless (i) the services are to be acquired under a cost-reimbursement, time-and-materials, or labor-hour type subcontract or agreement estimated to exceed $10,000.00, including any fee, (ii) the subcontract or agreement is proposed to exceed $100,000.00, or (iii) the services are to be acquired under one of a number of subcontracts or agreements with a single subcontractor or consultant, under this contract, for the same or related services that, in the aggregate, are expected to exceed $100,000.00. 7. ONR ###-###-#### INDIRECT COST CEILING (DEC 88) For purposes of billing and provisional payment under the contract, the rate of 230% Overhead shall be used. Final payment shall be based on the application of the applicable audited rates. However, in no event shall rates in excess of 230% Overhead be allowed. CONTRACT NUMBER: N00014-01-C-0217 Page 7 8 SECTION I - CONTRACT CLAUSES Cost-Plus-Fixed Fee (JAN 2001)(1) * Applies when contract action exceeds $10,000 ** Applies when contract action exceeds $100,000 + Applies when contract action exceeds $500,000 ++ Applies when contract action exceeds $500,000 and subcontracting possibilities exist. Small Business Exempt. x (DD 250) (A) FAR 52.252-02 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address: http://www.arnet.gov/far/ I. FEDERAL ACQUISITION REGULATION (FAR) (48 CFR CHAPTER 1) CLAUSES: - ------------------------------------------------------------------------------------------- ** FAR 52.202-1 Definitions (OCT 1995) - ------------------------------------------------------------------------------------------- ** FAR 52.203-3 Gratuities (APR 1984) - ------------------------------------------------------------------------------------------- ** FAR 52.203-5 Covenant Against Contingent Fees (APR 1984) - ------------------------------------------------------------------------------------------- ** FAR 52.203-6 Restrictions on Subcontractor Sales to the Government (JUL 1995) - ------------------------------------------------------------------------------------------- ** FAR 52.203-7 Anti-Kickback Procedures (JUL 1995) - ------------------------------------------------------------------------------------------- ** FAR 52.203-8 Cancellation, Rescission, and Recovery of Funds for Illegal or Improper Activity (JAN 1997) - ------------------------------------------------------------------------------------------- ** FAR 52.203-10 Price or Fee Adjustment for Illegal or Improper Activity (JAN 1997) - ------------------------------------------------------------------------------------------- ** FAR 52.203-12 Limitation on Payments to Influence Certain Federal Transactions (JUN 1997) - ------------------------------------------------------------------------------------------- ** FAR 52.204-4 Printing/Copying Double-Sided on Recycled Paper (JUN 1996) - ------------------------------------------------------------------------------------------- FAR 52.211-15 Defense Priority and Allocation Requirements (SEP 1990)- - ------------------------------------------------------------------------------------------- ** FAR 52.215-2 Audit and Records - Negotiation (JUN 1999) and Alternate II (APR 1998) (Alternate II is only applicable with cost reimbursement contracts with State and local Governments, educational institutions, and other non-profit organizations.) - ------------------------------------------------------------------------------------------- FAR 52.215-8 Order of Precedence - Uniform Contract Format (OCT 1997) - ------------------------------------------------------------------------------------------- + FAR 52.215-10 Price Reduction for the Defective Cost or Pricing Data (OCT 1997) (The clause is applicable to subcontracts over $500,000.) - ------------------------------------------------------------------------------------------- + FAR 52.215-12 Subcontractor Cost or Pricing Data (OCT 1997) (Applicable to subcontracts over $500,000 only) - -------------------------------------------------------------------------------------------

CONTRACT NUMBER: N00014-01-C-0217 Page 8 9
** FAR 52.215-14 Integrity of Unit Prices (OCT 1997) and Alternate I (OCT 1997)(Alternate I is applicable if the action is contracted under Other Than Full and Open Competition) + FAR 52.215-15 Pension Adjustments and Asset Reversions (DEC 1998) + FAR 52.215-18 Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other than Pensions (OCT 1997) + FAR 52.215-19 Notification of Ownership Changes (OCT 1997) (Applicable when Cost or Pricing Data is required) FAR 52.216-7 Allowable Cost and Payment (MAR 2000) FAR 52.216-8 Fixed Fee (MAR 1997) ** FAR 52.219-4 Notice of Price Evaluation Preference for HUBzone Small Business Concerns (JAN 1999) ** FAR 52.219-8 Utilization of Small Business Concerns (OCT 2000) ++ FAR 52.219-9 Small Business Subcontracting Plan (OCT 2000) ++ FAR 52.219-16 Liquidated Damages - Subcontracting Plan (JAN 1999) FAR 52.222-1 Notice to the Government of Labor Disputes (FEB 1997) ** FAR 52.222-2 Payment for Overtime Premiums (JUL 1990)(Note: The word "zero" is inserted in the blank space indicated by an asterisk) FAR 52.222-3 Convict Labor (AUG 1996)(Reserved when FAR 52.222-20 Walsh Healy Public Contracts Act is applicable) ** FAR 52.222-4 Contract Work Hours and Safety Standards Act - Overtime Compensation (SEP 2000) FAR 52.222-21 Prohibition of Segregated Facilities (FEB 1999) FAR 52.222-26 Equal Opportunity (FEB 1999) * FAR 52.222-35 Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era (APR 1998) * FAR 52.222-36 Affirmative Action for Workers with Disabilities (JUN 1998) * FAR 52.222.37 Employment Reports on Disabled Veterans and Veterans of the Vietnam Era (JAN 1999) ** FAR 52.223.14 Toxic Chemical Release Reporting (OCT 2000) FAR 52.225-13 Restrictions on Certain Foreign Purchases (JUL 2000) ** FAR 52.227-1 Authorization and Consent (JUL 1995) ** FAR 52.227-2 Notice and Assistance Regarding Patent and Copyright Infringement (AUG 1996) FAR 52.228-7 Insurance Liability to Third Persons (MAR 1996)(Further to paragraph (a)(3), unless otherwise stated in this contract, types and limits of insurance required are as stated in FAR 28.307-2) FAR 52.232-9 Limitation on Withholding of Payments (APR 1984) ** FAR 52.232-17 Interest (JUN 1996) FAR 52.232-23 Assignment of Claims (JAN 1986) and Alternate I (APR 1984) FAR 52.232-25 Prompt Payment (JUN 1997)(The words "the 30th day" are inserted in lieu of "the 7th day" at (a)(5)(I). FAR 52.232-33 Payment by Electronic Funds Transfer - Central Contractor Registration (MAY 1999)
CONTRACT NUMBER N00014-01-C-0217 Page 9 10 - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.233-1 Disputes (DEC 1998) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.233-3 Protest After Award (AUG 1996) and Alternate I (JUN 1985) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.242-1 Notice of Intent to Disallow Costs (APR 1984) - ---------------------------------------------------------------------------------------------------------------------------------- + FAR 52.242-3 Penalties for Unallowable Costs (OCT 1995) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.242-4 Certification of Final Indirect Costs (JAN 1997) - ---------------------------------------------------------------------------------------------------------------------------------- ** FAR 52.242-13 Bankruptcy (JUL 1995) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.242-15 Stop Work Order (AUG 1989) and Alternate I (APR 1984) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.244-2 Subcontracts (AUG 1998) and Alternate I (AUG 1998) - ---------------------------------------------------------------------------------------------------------------------------------- ** FAR 52.244-5 Competition in Subcontracting (DEC 1996) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.244-6 Subcontracts for Commercial Items and Commercial Components (OCT 1998) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.245-5 Government Property (Cost-Reimbursement, Time-and-Materials, or Labor-Hour Contracts) (JAN 1986) and ALT I (JUL 1985) (As modified by DoD Class Deviation 99-00008 dated 13 July 1999) (ALT I is applicable if the contractor is a nonprofit organization whose primary purpose is the conduct of scientific research) - ---------------------------------------------------------------------------------------------------------------------------------- ** FAR 52.247-64 Preference for Privately Owned U.S. Flag Commercial Vessels (JUN 2000) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.249-6 Termination (Cost-Reimbursement) (SEP 1996) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.249-14 Excusable Delays (APR 1984) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.251-1 Government Supply Sources (APR 1984) - ---------------------------------------------------------------------------------------------------------------------------------- FAR 52.253-1 Computer Generated Forms (JAN 1991) - ----------------------------------------------------------------------------------------------------------------------------------

II. DEPARTMENT OF DEFENSE FAR SUPPLEMENTAL (DFARS) (48 CFR CHAPTER 2) CLAUSES: - ---------------------------------------------------------------------------------------------------------------------------------- ** DFARS ###-###-#### Prohibition On Persons Convicted of Fraud or Other Defense-Contract-Related Felonies (MAR 1999) - ---------------------------------------------------------------------------------------------------------------------------------- DFARS ###-###-#### Control of Government Work Product (APR 1992) - ---------------------------------------------------------------------------------------------------------------------------------- DFARS ###-###-#### Required Central Contractor Registration (MAR 2000) - ---------------------------------------------------------------------------------------------------------------------------------- ** DFARS ###-###-#### Acquisition from Subcontractors subject to On-Site Inspection under the Intermediate Range Nuclear Forces (INF) Treaty (NOV 1995) - ---------------------------------------------------------------------------------------------------------------------------------- ** DFARS ###-###-#### Subcontracting with Firms That Are Owned or Controlled by the Government of a Terrorist Country (MAR 1998) - ---------------------------------------------------------------------------------------------------------------------------------- + DFARS ###-###-#### Pricing Adjustments (DEC 1991) - ---------------------------------------------------------------------------------------------------------------------------------- ++ DFARS ###-###-#### Small, Small Disadvantaged and Women-owned Small Business Subcontracting Plan (DoD Contracts) (APR 1996) - ---------------------------------------------------------------------------------------------------------------------------------- ** DFARS ###-###-#### Preference for Certain Domestic Commodities (MAY 1999) - ---------------------------------------------------------------------------------------------------------------------------------- DFARS ###-###-#### Secondary Arab Boycott of Israel (JUN 1992) - ----------------------------------------------------------------------------------------------------------------------------------

CONTRACT NUMBER: N00014-01-C-0217 Page 10 11 - -------------------------------------------------------------------------------- DFARS ###-###-#### Rights in Technical Data - Noncommercial Items (NOV 1995), and Alternate I (JUN 1995) - -------------------------------------------------------------------------------- DFARS ###-###-#### Rights In Noncommercial Computer Software and Noncommercial Computer Software Documentation (JUN 1995) - -------------------------------------------------------------------------------- DFARS ###-###-#### Rights in Bid or Proposal Information (JUN 1995) - -------------------------------------------------------------------------------- DFARS ###-###-#### Validation of Asserted Restrictions - Computer Software (JUN 1995) - -------------------------------------------------------------------------------- DFARS ###-###-#### Limitations on the Use or Disclosure of Government-Furnished Information Marked with Restrictive Legends (JUN 1995) - -------------------------------------------------------------------------------- DFARS ###-###-#### Technical Data or Computer Software Previously Delivered to the Government (JUN 1995) - -------------------------------------------------------------------------------- DFARS ###-###-#### Technical Data - Withholding of Payment (MAR 2000) - -------------------------------------------------------------------------------- DFARS ###-###-#### Declaration of Technical Data Conformity (JAN 1997) - -------------------------------------------------------------------------------- DFARS ###-###-#### Validation of Restrictive Markings on Technical Data (SEP 1999) - -------------------------------------------------------------------------------- DFARS ###-###-#### Supplemental Cost Principles (DEC 1991) - -------------------------------------------------------------------------------- DFARS ###-###-#### Post-Award Conference (DEC 1991) - -------------------------------------------------------------------------------- ** DFARS ###-###-#### Requests for Equitable Adjustment (MAR 1998) - -------------------------------------------------------------------------------- DFARS ###-###-#### Reports of Government Property (MAY 1994) - -------------------------------------------------------------------------------- X DFARS ###-###-#### Material Inspection and Receiving Report (DEC 1991) - -------------------------------------------------------------------------------- DFARS ###-###-#### Ordering from Government Supply Sources (MAY 1995) - -------------------------------------------------------------------------------- ** DFARS ###-###-#### Transportation of Supplies by Sea (MAR 2000) - -------------------------------------------------------------------------------- ** DFARS ###-###-#### Notification Of Transportation Of Supplies By Sea (MAR 2000) (Applicable when the Contractor has made a negative response to the inquiry in the representation at DFARS ###-###-####.) - -------------------------------------------------------------------------------- DFARS ###-###-#### Ordering from Government Supply Sources (MAY 1995) - --------------------------------------------------------------------------------

CONTRACT NUMBER: N00014-01-C-0217 Page 11 12 (B) ADDITIONAL FAR AND DFARS CLAUSES This contract incorporates one or more clauses by reference as indicated by the mark of (X), with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address: http://www.arnet.gov/far/ FAR 52.204-2 Security Requirements (AUG 1996) (Applicable if contract will generate or require access to classified information and DD Form 254, Contract Security Classification Specification, is issued to the contractor) X FAR 52.209-6 Protecting the Government's Interest when Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (JUL 1995) (Applicable to contracts exceeding $25,000 in value.) X FAR 52.215-17 Waiver of Facilities Capital Cost of Money (OCT 1997) (Applicable if the Contractor did not propose facilities capital cost of money in the offer) FAR 52.215-20 Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data (OCT 1997) (Applicable if cost or pricing data or information other than cost or pricing data are required) FAR 52.215-21 Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data - Modifications (OCT 1997) (Applicable if cost or pricing data or information other than cost or pricing data will be required for modifications) FAR 52.217-9 Option to Extend the Term of the Contract (MAR 2000) (In paragraph (a), insert "XX", and in paragraph (c), insert "XX")(Applicable if contract contains line item(s) for option(s)) (Complete the spaces in parentheses) FAR 52.219-3 Notice of Total HUBZone Set-Aside (JAN 1999) FAR 52.219-5 Very Small Business Set-Aside (MAR 1999) (For actions between $2,500 and $50,000) FAR 52.219-6 Notice of Total Small Business Set-Aside (JUL 1996), and Alternate I (OCT 1995) (Applicable to total small business set-asides, including SBIR) FAR 52.219-7 Notice of Partial Small Business Set-Aside (JUL 1996) and Alternate I (OCT 1995) FAR 52.219-10 Incentive Subcontracting Program (FEB 2000) (Applicable to contract actions exceeding $500,000 and when subcontracting possibilities exist. The clause is small business exempt) (In paragraph (b), insert the appropriate number between 0 and 10 - "XX") (Complete the space in the parentheses) FAR 52.219-25 Small Disadvantaged Business Participation Program - Disadvantaged Status and Reporting (OCT 1999) (Applicable if contract includes FAR 52.219-24) FAR 52.219-26 Small Disadvantaged Business Participation Program - Incentive Subcontracting Program (FEB 2000) (Applicable to contract actions exceeding $500,000 and

CONTRACT NUMBER: N00014-01-C-0217 Page 12 13 - ------------------------------------------------------------------------------------------ when subcontracting possibilities exist. The clause is small business exempt) (In paragraph (b), insert the appropriate number between 0 and 10 - "XX") (Complete the space in the parentheses) - ------------------------------------------------------------------------------------------ FAR 52.222-20 Walsh Healy Public Contracts Act (DEC 1996) (Applicable if the contract includes deliverable materials, supplies, articles or equipment in an amount that exceeds or may exceed $10,000) - ------------------------------------------------------------------------------------------ X FAR 52.223-5 Pollution Prevention and Right-to-Know Information (APR 1998) (Applicable if contract provides for performance, in whole or in part, on a Federal facility) - ------------------------------------------------------------------------------------------ X FAR 52.223-6 Drug-Free Workplace (JAN 1997) (Applies when contract action exceeds $100,000 or at any value when the contract is awarded to an individual) - ------------------------------------------------------------------------------------------ FAR 52.226-1 Utilization of Indian Organizations and Indian-Owned Economic Enterprises (JUN 2000) (Applicable if contract is subject to FAR 52.219-9 Small Business Subcontracting Plan) - ------------------------------------------------------------------------------------------ FAR 52.230-2 Cost Accounting Standards (APR 1998) (Applicable when contract amount is over $500,000, if contractor is subject to full CAS coverage, as set forth in 48 CFR Chapter 99, Subpart 9903.201-2(a) (FAR Appendix B) - ------------------------------------------------------------------------------------------ FAR 52.230-3 Disclosure and Consistency of Cost Accounting Practices (APR 1998) (Applicable when contract amount is over $500,000 but less than $25 million, and the offeror certifies it is eligible for and elects to use modified CAS coverage as set forth in 48 CFR Chapter 99, Subpart 9903.201-2 (FAR Appendix B) - ------------------------------------------------------------------------------------------ FAR 52.230-6 Administration of Cost Accounting Standards (NOV 1999) (Applicable if contract is subject to either clause at FAR 52.230-2 or the clause at FAR 52.230-3 and FAR 52.230-5) - ------------------------------------------------------------------------------------------ X FAR 52.232-20 Limitation of Cost (APR 1984) (Applicable only when contract action is fully funded) - ------------------------------------------------------------------------------------------ FAR 52.232-22 Limitation of Funds (APR 1984) (Applicable only when contract action is incrementally funded) - ------------------------------------------------------------------------------------------ FAR 52.239-1 Privacy or Security Safeguards (AUG 1996) (Applicable to contracts for information technology which require security of information technology, and/or are for the design, development, or operation of a system of records using commercial information technology services or support services.) - ------------------------------------------------------------------------------------------ FAR 52.245-18 Special Test Equipment (FEB 1993) (Applicable when it is anticipated that the contractor will acquire or fabricate special test equipment but the exact identification of the equipment is not known) - ------------------------------------------------------------------------------------------ DFARS ###-###-#### Display of DoD Hotline Poster (DEC 1991) (Applicable only when contract action exceeds $5 million or when any modification increases contract amount to more than $5 million) - ------------------------------------------------------------------------------------------

CONTRACT NUMBER: N00014-01-C-0217 Page 13 14 - -------------------------------------------------------------------------------- X DFARS ###-###-#### Disclosure of Information (DEC 1991) (Applies when Contractor will have access to or generate unclassified information that may be sensitive and inappropriate for release to the public) - -------------------------------------------------------------------------------- DFARS ###-###-#### Oral Attestation of Security Responsibilities (AUG 1999) (Applicable if FAR 52.204-2, Security Requirements Applies) - -------------------------------------------------------------------------------- DFARS ###-###-#### Provision of Information to Cooperative Agreement Holders (DEC 1991) (Applicable only when contract action exceeds $500,000 or when any modification increases total contract amount to more than $500,000) - -------------------------------------------------------------------------------- DFARS ###-###-#### Cost Estimating System requirements (Oct 1998) (Applicable only to contract actions awarded on the basis of certified cost or pricing data) - -------------------------------------------------------------------------------- DFARS ###-###-#### Drug-Free Work Force (SEP 1988) (Applicable (a) if contract involves access to classified information: or (b) when the Contracting Officer determines that the clause is necessary for reasons of national security or for the purpose of protecting the health or safety of performance of the contract. - -------------------------------------------------------------------------------- X DFARS ###-###-#### Prohibition on Storage and Disposal of Toxic and Hazardous Materials (APR 1993) (Applicable if work requires, may require, or permits contractor performance on a DoD installation) - -------------------------------------------------------------------------------- DFARS ###-###-#### Buy American Act and Balance of Payments Program (MAR 1998) (Applicable if the contract includes deliverable supplies) (This clause does not apply if an exception to the Buy American Act or Balance of Payments Program is known or if using the clause at ###-###-####, 252 ###-###-####, or ###-###-####.) - -------------------------------------------------------------------------------- DFARS ###-###-#### Qualifying Country Sources as Subcontractors (DEC 1991) (Applicable when clause at DFARS ###-###-####, 252 ###-###-####, 252 ###-###-####, or ###-###-#### applies) - -------------------------------------------------------------------------------- DFARS ###-###-#### Buy American Act - Trade Agreements - Balance of Payments Program (APR 2000)(Use instead of FAR 52.225-5, Trade Agreements (Include in contracts valued at $186,000 or more, if the Trade Agreements Act applies (see 25.401 and 25.403) and the agency has determined that the restrictions of the Buy American Act or Balance of Payments Program are not applicable to U.S.-made end products, unless the acquisition is to be awarded and performed outside the United States in support of a contingency operation or a humanitarian or peacekeeping operation and does not exceed the increase simplified acquisition threshold of $200,000.) The clause need not be used where purchase from foreign sources is restricted (see 225.401 (b)(ii)). The clause may be used where the contracting officer anticipates a waiver of the restriction.) - --------------------------------------------------------------------------------

CONTRACT NUMBER: N00014-01-C-0217 Page 14 15 - -------------------------------------------------------------------------------- DFARS ###-###-#### Supplies to be Accorded Duty-Free Entry (MAR 1998) (Applicable when the contract provides for duty-free entry and includes FAR 52.225-8 -- Duty-Free Entry) - -------------------------------------------------------------------------------- DFARS ###-###-#### Duty-Free Entry -- Qualifying Country Supplies (End Products and Components) (MAR 1998) (Applicable if contract includes deliverable supplies) - -------------------------------------------------------------------------------- DFARS ###-###-#### Duty-Free Entry -- Additional Provisions (MAR 1998) (Applicable when FAR 52.225-8 -- Duty-Free Entry is included in the contract.) - -------------------------------------------------------------------------------- DFARS ###-###-#### Restriction On Acquisition Of Ball And Roller Bearings (AUG 1998) (Applicable if contract includes deliverable supplies, unless Contracting Officer knows that items being acquired do not contain ball or roller bearings) - -------------------------------------------------------------------------------- DFARS ###-###-#### Reporting of Contract Performance Outside the United States (MAR 1998) (Applicable only when contract value exceeds $500,000 or when any modification increases contract value to more than $500,000) - -------------------------------------------------------------------------------- DFARS ###-###-#### Rights in Noncommercial Technical Data and Computer Software -- Small Business Innovation Research (SBIR) Program (JUN 1995) (Applicable when technical data or computer software will be generated during performance of contracts under the SBIR Program) - -------------------------------------------------------------------------------- DFARS ###-###-#### Material Management and Accounting System (DEC 2000) (Applicable to contract actions X exceeding $100,000) (Not applicable to contracts set aside for exclusive participation by small business and small disadvantaged business concerns) - -------------------------------------------------------------------------------- D. COST-PLUS-FIXED-FEE-RESEARCH AND DEVELOPMENT CLAUSES The following FAR and DFARS clauses apply to Cost-Plus-Fixed-Fee-Research and Development Contracts and are either required by regulation or are required when the circumstances of the contract warrant that they apply: (** -- applies to contract actions exceeding $100,000) - -------------------------------------------------------------------------------- FAR 52.225-16 Sanctioned European Union Country Services (FEB 2000) - -------------------------------------------------------------------------------- ** FAR 52.227-1 Authorization and Consent (JUL 1995) and Alternate I (APR 1984) - -------------------------------------------------------------------------------- FAR 52.243-2 Changes -- Cost Reimbursement (AUG 1987) and Alternate V (APR 1984) - -------------------------------------------------------------------------------- FAR 52.246.9 Inspection of Research and Development (Short Form) (APR 1984) - -------------------------------------------------------------------------------- FAR 52.246-23 Limitation of Liability (FEB 1997) - -------------------------------------------------------------------------------- DFARS ###-###-#### Animal Welfare (DEC 1991) - -------------------------------------------------------------------------------- DFARS ###-###-#### Final Scientific or Technical Report (SEP 1999) - -------------------------------------------------------------------------------- The following FAR and DFARS clauses for Cost-Plus-Fixed-Fee-Research and Development Contracts only apply when specifically marked with a check (x): CONTRACT NUMBER: N00014-01-C-0217 Page 15 16 - ------------------------------------------------------------------------------------------- FAR 52.227-10 Filing of Patent Applications -- Classified Subject Matter (APR 1984) (Applicable if contract is subject to FAR clause 52.204-02 and either 52.227-11 or 52.227-12) - ------------------------------------------------------------------------------------------- FAR 52.227-11 Patent Rights -- Retention by the Contractor (Short Form) X (JUN 1997) (Applicable if contractor is a small business or non profit organization) - ------------------------------------------------------------------------------------------- OR - ------------------------------------------------------------------------------------------- FAR 52.227-12 Patent Rights -- Retention by the Contractor (Long Form) (JAN 1997) (Applicable if contractor is a large business) - ------------------------------------------------------------------------------------------- DFARS ###-###-#### Patents -- Subcontracts (APR 1984) (Applicable when FAR X 52.227-11 applies) - ------------------------------------------------------------------------------------------- DFARS ###-###-#### Patents -- Reporting of Subject Inventions (APR 1990) X (Applied when FAR 52.227-11 applies) - -------------------------------------------------------------------------------------------

SECTION J - LIST OF ATTACHMENTS 1. Exhibit A, entitled "Contract Data Requirements List" (DD Form 1423) - 1 page(s) with Enclosure Number 1, entitled "Contract Data Requirements List - Instructions for Distribution." 2. Exhibit B, entitled, "Financial Accounting Data Sheet." SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFEROR 1. The Contractor's Representations and Certifications, dated 31 JAN 2001, are hereby incorporated into this contract by reference. CONTRACT NUMBER: N00014-01-C-0217 Page 16