material or supplies owing to causes beyond the control and without the fault or negligence of such subcontractor or supplier, including but not restricted to the foregoing enumerated causes, unless the contractor could have procured the materials or supplies from other sources. In the event that a Default Notice of Termination has been delivered to the contractor and it thereafter is determined that the default or failure is due to causes beyond the control and without the fault or negligence of the contractor, performance of work under this

contract shall be deemed to have been terminated, effective as of the effective date of the Default Notice of Termination, pursuant to the Article entitled Termination at the Option of the Government. The Government shall in case of such determination promptly cancel the notice under this Article and shall issue the notice provided for in paragraph (a) of the Article entitled Termination at the Option of the Government; and the rights and obligations of the parties shall in such event be governed by the latter Article.

Directive Order Number 2 of the Office of War Mobilization and Reconversion excepted the following contracts from the Termination Program of the Joint Contract Termination Board:

a. Contracts for an amount of less than $50,000 regardless of the date of delivery;

b. Contracts for an amount of less than $500,000 providing for delivery within six months;

c. Letters of intent and other preliminary contractual arrangements which contemplate the subsequent execution of formal contracts;

d. Contracts of Governmental departments, agencies and instrumentalities with instrumentalities of the Government or with States or subdivisions or instrumentalities thereof;

e. Contracts for the purchase of a material which is manufactured either as a by-product

or a co-product in an integrated operation from a common raw material source in such manner that the cost of its manufacture is not susceptible of separate determination;

f. Contracts or purchase orders made in the name of and on behalf of the Government, by a contractor under a cost or cost-plus contract with the Government, for the purchase of materials, supplies and equipment required for or in connection with the construction of Government-owned plants and facilities;

g. Contracts, including so-called pool orders and commitment contracts, for the production of materials, supplies and equipment which provide that completed items produced under the contract and furnished to the Government shall be paid for at a price intended to exclude profit;

h. Requirement or open end contracts.

ernment, in the manner and to the extent directed by the contracting officer, all of the right, title and interest of the contractor under orders or subcontracts to the extent that they relate to the performance of any work terminated by the Default Notice of Termination; (3) to the extent not required for the performance of work under this contract not terminated by the Default Notice of Termination transfer title and deliver to the Government in the manner, to the extent and at the times directed by the contracting officer (i) the fabricated or unfabricated parts, work in process, completed work, supplies and other material produced as a part of, or acquired in respect of the performance of, the work terminated in the Default Notice of Termination, (ii) the plans, drawings, information and other property which, if the contract had been completed, would be required to be furnished to the Government and (iii) jigs, dies, fixtures and other special tools and tooling acquired or manufactured for the performance of this contract; (4) complete performance of such part of the work as shall not have been terminated by the Default Notice of Termination; and (5) take such action as may be necessary or as the Contracting Officer may direct for protection and preservation of the property, which is in the possession of the contractor and in which the Government has or may acquire an interest.

(c) In addition to its other remedies, the Government may, with respect to work terminated as permitted in this Article, purchase in the open market, or otherwise obtain articles of a character similar to those called for under the contract and in a quantity which, together with the completed articles delivered by the contractor and accepted by the Government, shall not exceed the total quantity called for under this contract. If the cost to the Government of the articles so procured exceeds the price fixed for such articles under this contract, the contractor, and its surety, if any, shall be liable for such excess.

(d) Upon termination of work pursuant to this Article the Government shall pay to the contractor the following amounts:

(1) For completed articles delivered to and accepted by the Government and not theretofore paid for, a sum equivalent to the aggre

gate price for such articles computed in accordance with the price or prices specified in the contract;

(2) For parts, work, supplies, material, plans, drawings, information, jigs, dies, fixtures, special tools and tooling, and other property, title to which is transferred and delivery of which is made pursuant to paragraph (b) (3), the amount agreed upon by the contractor and the contracting officer, or, in the event of failure to agree upon an amount, the costs of such property at the adjusted basis thereof for Federal income tax purposes or its fair value, whichever is the lesser;

(3) The reasonable cost of the preservation and protection of property incurred pursuant to paragraph (b) (5) hereof.

(e) The obligation of the Government to make any payments under this Article (1) shall be subject to deductions in respect of (i) all unliquidated partial or progress payments, payments on account theretofore made to the contractor and unliquidated advance payments, (ii) any claim which the Government may have against the contractor in connection with this contract, and (2) in the discretion of the contracting officer shall be subject to deduction in respect of the amount of any claim of any subcontractor or supplier whose subcontract or order is related to the performance of this contract.

(f) This contract shall not be terminated and the contractor shall not be charged with any liability to the Government under the provisions of this Article where the default or failure of the contractor is due to causes beyond the control and without the fault or negligence of the contractor, including but not restricted to (1) acts of God or of the public enemy, (2) acts of the Government of the United States or any state or political subdivision thereof, (3) fires, floods, explosions, earthquakes, or other catastrophes, (4) epidemics, (5) quarantine restrictions, (6) strikes, (7) freight embargoes, (8) unusually severe weather, (9) inability of the contractor to obtain equipment or material due to the operation of Governmental priorities, preferences or allocations of equipment or material, or (10) delays of a subcontractor or supplier in furnishing

material or supplies owing to causes beyond the control and without the fault or negligence of such subcontractor or supplier, including but not restricted to the foregoing enumerated causes, unless the contractor could have procured the materials or supplies from other sources. In the event that a Default Notice of Termination has been delivered to the contractor and it thereafter is determined that the default or failure is due to causes beyond the control and without the fault or negligence of the contractor, performance of work under this

contract shall be deemed to have been terminated, effective as of the effective date of the Default Notice of Termination, pursuant to the Article entitled Termination at the Option of the Government. The Government shall in case of such determination promptly cancel the notice under this Article and shall issue the notice provided for in paragraph (a) of the Article entitled Termination at the Option of the Government; and the rights and obligations of the parties shall in such event be governed by the latter Article.

Directive Order Number 2 of the Office of War Mobilization and Reconversion excepted the following contracts from the Termination Program of the Joint Contract Termination Board:

a. Contracts for an amount of less than $50,000 regardless of the date of delivery;

b. Contracts for an amount of less than $500,000 providing for delivery within six months;

c. Letters of intent and other preliminary contractual arrangements which contemplate the subsequent execution of formal contracts;

d. Contracts of Governmental departments, agencies and instrumentalities with instrumentalities of the Government or with States or subdivisions or instrumentalities thereof;

e. Contracts for the purchase of a material which is manufactured either as a by-product

or a co-product in an integrated operation from a common raw material source in such manner that the cost of its manufacture is not susceptible of separate determination;

f. Contracts or purchase orders made in the name of and on behalf of the Government, by a contractor under a cost or cost-plus contract with the Government, for the purchase of materials, supplies and equipment required for or in connection with the construction of Government-owned plants and facilities;

g. Contracts, including so-called pool orders and commitment contracts, for the production of materials, supplies and equipment which provide that completed items produced under the contract and furnished to the Government shall be paid for at a price intended to exclude profit;

h. Requirement or open end contracts.

ernment, in the manner and to the extent directed by the contracting officer, all of the right, title and interest of the contractor under orders or subcontracts to the extent that they relate to the performance of any work terminated by the Default Notice of Termination; (3) to the extent not required for the performance of work under this contract not terminated by the Default Notice of Termination transfer title and deliver to the Government in the manner, to the extent and at the times directed by the contracting officer (i) the fabricated or unfabricated parts, work in process, completed work, supplies and other material produced as a part of, or acquired in respect of the performance of, the work terminated in the Default Notice of Termination, (ii) the plans, drawings, information and other property which, if the contract had been completed, would be required to be furnished to the Government and (iii) jigs, dies, fixtures and other special tools and tooling acquired or manufactured for the performance of this contract; (4) complete performance of such part of the work as shall not have been terminated by the Default Notice of Termination; and (5) take such action as may be necessary or as the Contracting Officer may direct for protection and preservation of the property, which is in the possession of the contractor and in which the Government has or may acquire an interest.

(c) In addition to its other remedies, the Government may, with respect to work terminated as permitted in this Article, purchase in the open market, or otherwise obtain articles of a character similar to those called for under the contract and in a quantity which, together with the completed articles delivered by the contractor and accepted by the Government, shall not exceed the total quantity called for under this contract. If the cost to the Government of the articles so procured exceeds the price fixed for such articles under this contract, the contractor, and its surety, if any, shall be liable for such excess.

(d) Upon termination of work pursuant to this Article the Government shall pay to the contractor the following amounts:

(1) For completed articles delivered to and accepted by the Government and not theretofore paid for, a sum equivalent to the aggre

gate price for such articles computed in accordance with the price or prices specified in the contract;

(2) For parts, work, supplies, material, plans, drawings, information, jigs, dies, fixtures, special tools and tooling, and other property, title to which is transferred and delivery of which is made pursuant to paragraph (b) (3), the amount agreed upon by the contractor and the contracting officer, or, in the event of failure to agree upon an amount, the costs of such property at the adjusted basis thereof for Federal income tax purposes or its fair value, whichever is the lesser;

(3) The reasonable cost of the preservation and protection of property incurred pursuant to paragraph (b) (5) hereof.

(e) The obligation of the Government to make any payments under this Article (1) shall be subject to deductions in respect of (i) all unliquidated partial or progress payments, payments on account theretofore made to the contractor and unliquidated advance payments, (ii) any claim which the Government may have against the contractor in connection with this contract, and (2) in the discretion of the contracting officer shall be subject to deduction in respect of the amount of any claim of any subcontractor or supplier whose subcontract or order is related to the performance of this contract.

(f) This contract shall not be terminated and the contractor shall not be charged with any liability to the Government under the provisions of this Article where the default or failure of the contractor is due to causes beyond the control and without the fault or negligence of the contractor, including but not restricted to (1) acts of God or of the public enemy, (2) acts of the Government of the United States or any state or political subdivision thereof, (3) fires, floods, explosions, earthquakes, or other catastrophes, (4) epidemics, (5) quarantine restrictions, (6) strikes, (7) freight embargoes, (8) unusually severe weather, (9) inability of the contractor to obtain equipment or material due to the operation of Governmental priorities, preferences or alloca tions of equipment or material, or (10) delays of a subcontractor or supplier in furnishing

material or supplies owing to causes beyond the control and without the fault or negligence of such subcontractor or supplier, including but not restricted to the foregoing enumerated causes, unless the contractor could have procured the materials or supplies from other sources. In the event that a Default Notice of Termination has been delivered to the contractor and it thereafter is determined that the default or failure is due to causes beyond the control and without the fault or negligence of the contractor, performance of work under this

contract shall be deemed to have been terminated, effective as of the effective date of the Default Notice of Termination, pursuant to the Article entitled Termination at the Option of the Government. The Government shall in case of such determination promptly cancel the notice under this Article and shall issue the notice provided for in paragraph (a) of the Article entitled Termination at the Option of the Government; and the rights and obligations of the parties shall in such event be governed by the latter Article.

Directive Order Number 2 of the Office of War Mobilization and Reconversion excepted the following contracts from the Termination Program of the Joint Contract Termination Board:

a. Contracts for an amount of less than $50,000 regardless of the date of delivery;

b. Contracts for an amount of less than $500,000 providing for delivery within six months;

c. Letters of intent and other preliminary contractual arrangements which contemplate the subsequent execution of formal contracts; d. Contracts of Governmental departments, agencies and instrumentalities with instrumentalities of the Government or with States or subdivisions or instrumentalities thereof;

e. Contracts for the purchase of a material which is manufactured either as a by-product

or a co-product in an integrated operation from a common raw material source in such manner that the cost of its manufacture is not susceptible of separate determination;

f. Contracts or purchase orders made in the name of and on behalf of the Government, by a contractor under a cost or cost-plus contract with the Government, for the purchase of materials, supplies and equipment required for or in connection with the construction of Government-owned plants and facilities;

g. Contracts, including so-called pool orders and commitment contracts, for the production of materials, supplies and equipment which provide that completed items produced under the contract and furnished to the Government shall be paid for at a price intended to exclude profit;

h. Requirement or open end contracts.