APPENDIX "JA'' - REIMBURSEMENT

I.

Definitions

Only for purposes of this agreement, "Commission" means the U.S.
Atomic Energy Commission or any duly authorized representative
thereof, and ''Agency'' means Trust Territory of the Pacific

Islands or any duly authorized representative thereof.

II.

Costs Chargeable to Commission Funds
Subject to limitations and conditions specified in the agreement
incorporating this Appendix, the Agency may charge the Commission,
except as otherwise provided in Articles VIII and IX hereof, the

actually incurred costs necessary or incident to the performance
of the work, except that no charge shall be made for general
administrative or central agency overhead except to the extent
otherwise provided in the agreement.
III.

Financing

Upon presentation by the Agency of proper vouchers, the Commission
will reimburse the Agency for costs actually incurred on Commission
work subject to any limitations on costs otherwise provided in this
agreement. Requests for reimbursement shall show separately the

amounts to be reimbursed for (a) operating costs, (b}) capital equipment (as defined in VIII below), and (c) acquisition or condemnation

of any real property or any facility or for plant or facility
acquisition, construction, or expansion.

IV. Notice of Costs Approaching Total Estimated Costs
Whenever the Agency has reason to believe that the total cost of the
work under this agreement will be substantially greater or less than
the presently estimated cost of the work, the Agercy shall promptly

notify the Commission in writing. The Agency shall also notify the
Commission, in writing, when the aggregate of costs incurred and

outstanding commitments allowable under this agreement is equal to
ninety percent (90%) (or such other percentage as the Commission may

from time to time establish by notice to. the Agen. ’) of the. presently
estimated total costs under this agreement. When .ne costs incurred
and outstanding commitments equal one hundred percent (100%) of such

estimated total costs, the Agency shall make no further commitments

or expenditures

(except to meet existing commitments) and shall be

excused from further performance of the work unless and until the

Commission shall increase the total estimated costs to be incurred

with respect to this agreement.

500840 eae

OCT 31 1974

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