reasonable allowance For profit on work done and the Contractor shall pay
the agreed amount or amounts: PROVIDED,

Chat such agreed amount or amounts,

exclusive of settlement costs, shall not exceed the total Subcontract price

as reduced by the amount of payments otherwise made and as. further reduced
by the Subcontract price of work not terminated. Nothing in paragraoh e
below prescribing the amount to be paid to the Subcontractor in the event

of the failure of the Subcontractor and the Contractor to agree upon the

whole amount to be paid to the Subcontractor by reason of the termination

of work pursuant to this Article, shall be deemed to limit, restrict, or

othervise determine or affect the amount or amounts which may be agreed
upon to be paid to the Subcontractor pursuant to this paragraph d.

e. In the event of the failure of the Subcontractor and the Contractor to
agree as provided in paragraph d upon the whole amount to be paid to the

Subcontractor by reason of the termination of work pursuant to this Article,

' the Contractor, but without duplication of any amounts agreed upon in
,
accordance with paragraph d, shall pay to the Subcontractor the folloving
amounts :

1.

.

For completed supplies accepted by the Contractor (or sold or acquired
as provided in paragraph b

7 above)

and not theretofore paid for,

forthwith a sum equivalent to the aggregate price for such supplies
computed in accordance with the price or prices specified in the Subcontract, appropriately adjusted for any saving of freight or other

charges;
2.

In respect of the work terminated as permitted by this Article,

total (without duplication of any items) of:

the

(a) The cost of such work, including initial costs and preparatory

expenses allocable thereto, exclusive of any costs attributable
to supplies paid or to be paid for under 1 above; and

(b) The cost of settling and paying claims arising out of the termnina~
tion of work under subcontracts or orders as provided in paragraph
b 5 above, exclusive of the amounts paid or payable on account of

supplies or materials delivered or services furnished by the sub-

contractor prior to the effective date of the Notice of Termination
of work under this Subcontract, which amount shall be included in

the cost on account of which payment is made under (a) above; and

(c) A sum, as profit on (a) above, determined by the Contractor

pursuant to paragraph 1-8.303 of the Federal Procurement Regulations
(41 CFR 1-8.303), in effect as of the date of execution of this
Subcontract, to be falr and reasonable: PROVIDED, however, that if
it appears that che Subcontractor would have sustained a loss on
the entire Subcontract had it been complated, no profit shall be
included or allowed under this subdivision (c) and an appropriate

adjustment shall be made reducing the amount of the settlement to
reflect the indicated rate of loss; and

I008bb0

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