. . L,. ~~ffective this da?e, the following terms and conditions will apply to any loans of craft made in the future by the Navy Deprtment to the Atomic Energy Commission. Tn additio% these term and conditions will be aPP2icable to Nav CZ’af t in the custody of the Atomic Energy commission as of this date, insofar as appl.iaable~ The Navy Department9 upon request of the Atomic Energy commission,will lend to the AEC such craft as can be made available and as are required in the prosecution of projects which are the responsibili~ of the AEC. Loan of such craft shall be made on custody receipt without charge for the capital value of the craft. The AEC will provide funds on request by the Navy for activation, if required, and for preparing for operation and tows if necessaxy$ any craft made available to the AEC~ including funds to procure additional spare parts and accessories required for operation of the craft. Normal overhead will be charged for this work. Delivery of craft that are loaned to theAEC under this agreement will be on a ‘where is” basis. Where practicable available Navy transport willbe used to redeploy craft. Ho~ever, any expenses beyond normal Navy operating expenses, incurred in redeployment of craft, will be borne by AEC. Return deuvery of these craft will be at the point of original transfer or at a point mutually agreed upon. a. ‘lheAtomic Energy Commission Aallberespcnsible for the operation, protection, aecuri~j repair, and maintenance of all craft loaned to it by the Navy while such craft are in its custo~ or the custody of others actir~ for the Commission. b. To assure that craft’in the custow of the Atomic Energy commission under tl,eterms of this agreement are maintained at satisfactoryNavy standards~ they will be subject to the routine material inspection normally conducted by the Navy for naval oraft. The schedulir? of these inspections willbe mutually agreed uponby representatives of the Navy a!xitheAEC in the fiald. a. Upon transfer of Naval craft from the Navy to the AEC and return of such craft to the Navyby theAEC, joint inspections of oraft so transferred or returned will be conducted. S’~chinspections will be conducted 2