Document:

Exhibit
      10.1

    
 

    Employment
      Agreement

    

    This
      Employment Agreement (the “Agreement”)
      is
      made and entered into effective as of August 27, 2007 (the “Effective
      Date”),
      by
      and between g8wave Holdings, Inc., a Delaware corporation whose executive office
      is located at 126 Brookline Avenue, 2nd Floor, Boston, MA 02215 (the
“Company”),
      and
      William E. Duke, Jr. (the “Executive”),
      an
      individual residing at 33 Olde Colony Drive, Shrewsbury, MA 01545. The Company
      and the Executive are hereinafter collectively referred to as the “Parties,”
and
      individually referred to as a “Party.”

    

    Recitals

    

    WHEREAS,
      the Company desires to hire the Executive as its Chief Financial Officer, and
      the Executive desires to be employed by the Company in such capacity, on the
      terms and subject to the conditions set forth in this Agreement.

    

    NOW,
      THEREFORE, in
      consideration of the foregoing and the mutual promises and covenants herein
      contained, and for other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, the
      Parties, intending to be legally bound, agree as follows: 

    

    Agreement

    

    1. EMPLOYMENT.

    

    1.1 Term.
      The
      Company hereby employs the Executive as the Company’s Chief Financial Officer,
      and the Executive hereby accepts such employment by the Company, for a period
      commencing on the date hereof and expiring on the first to occur of (a) the
      termination of the Executive’s employment pursuant to Section
      4
      hereof,
      and (b) October 1, 2009 (as such date may be extended in accordance with this
      Agreement, the “Expiration
      Date”).
      The
      Executive’s employment pursuant to this Agreement shall automatically renew for
      additional one (1) year periods, unless either party notifies the other party
      in
      writing of its desire not to renew the Executive’s employment under this
      Agreement at least ninety (90) days prior to the then current Expiration Date.
      The period beginning on the date hereof and ending on October 1, 2009 is
      hereinafter referred to as the “Initial
      Term.”
The
      period of time during which the Executive is employed by the Company pursuant
      to
      this Agreement, is hereinafter referred to as the “Term.”
      

    

    1.2 Title.
      During
      the Term, the Executive shall have the title of Chief Financial Officer of
      the
      Company.

    

    1.3 Duties.
      During
      the Term, the Executive shall do and perform all lawful services, acts or things
      necessary or advisable to manage and conduct the business of the Company and
      which are normally associated with the position of Chief Financial Officer
      for
      similar companies, consistent with the bylaws of the Company and as required
      or
      directed by the Company’s Chief Executive Officer its Board of Directors (the
“Board”).

     

    1.4 Policies
      and Practices.
      The
      Executive shall abide by the policies and practices established by the Company
      and the Board.

    

    
      
        2.
          LOYAL
          AND CONSCIENTIOUS PERFORMANCE; NONCOMPETITION.

      

    

    

    2.1 Loyalty.
      During
      the Term, the Executive shall (a) devote the Executive’s full business energies,
      interest, abilities and productive time (excluding vacations and other leaves
      of
      absence taken in accordance with this Agreement and the policies and procedures
      of the Company) to the business of the Company and the proper and efficient
      performance of the Executive’s duties under this Agreement, (b) use his efforts
      to promote the interests of the Company, and (c) shall report directly to the
      Chief Executive Officer. Except as otherwise expressly provided in this
      Agreement, during the Term the Executive shall not engage in any other
      businesses or pursuits whatsoever, or directly or indirectly render any services
      of a business or commercial nature to any other person or entity, whether for
      compensation or otherwise, without the prior written consent of the Chief
      Executive Officer. Nothing in this Agreement, however, will prevent the
      Executive from (i) serving as a director to other companies with the prior
      written approval of the Chief Executive Officer, (ii) serving as a director
      or a
      member of networking or industry associations, or (iii) engaging in any
      charitable, political or other not-for-profit activity, provided that the
      activities described in clauses
      (i)
      through
(iii)
      do
      not
      materially interfere with the performance by the Executive of his duties under
      this Agreement. 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.2 Covenant
      not to Compete.
      The
      Executive acknowledges that he has established, and will continue to establish,
      favorable relations with the customers, clients and accounts of the Company,
      and
      will have access to trade secrets and other proprietary information of the
      Company. Therefore, in consideration of such relations and access and the
      entering into of this Agreement by the Company, and to further protect such
      trade secrets and proprietary information, the Executive agrees that at all
      times during his employment with the Company through the twelfth (12) month
      anniversary of the date of termination or expiration of the Executive’s
      employment, the Executive will not, directly or indirectly, without the express
      written consent of the Chief Executive Officer:

    

    (A) own
      or
      have any interest in, or act as an officer, director, partner, principal,
      employee, agent, representative, consultant or independent contractor of, or
      in
      any way assist in, any business which is engaged, directly or indirectly, in
      any
      business competitive with the Company in those markets and/or product lines
      and
      within those jurisdictions in which the Company competes at any time during
      the
      Term, or become associated with or render services to any person, firm,
      corporation or other entity so engaged (“Competitive
      Businesses”);
      provided,
      however, that the Executive may own without the express written consent of
      the
      Company not more than two percent (2%) of the issued and outstanding securities
      of any company or enterprise whose securities are listed on a national
      securities exchange or actively traded in the over the counter market;

    

    (B) solicit
      clients, customers or accounts of the Company for, on behalf of, or otherwise
      related to, any such Competitive Businesses or any products related thereto;
      or

     

    (C) solicit
      any person who is, or shall be, in the employ or service of the Company to
      leave
      such employ or service for employment with the Executive or an affiliate of
      the
      Executive.

    

    Notwithstanding
      the foregoing, if any court of competent jurisdiction determines that the
      covenant not to compete, or any part thereof, is unenforceable because of the
      duration of such provision or the geographic area or scope covered thereby,
      such
      court shall have the power to reduce the duration, area or scope of such
      provision to the extent necessary to make the provision enforceable and, in
      its
      reduced form, such provision shall then be enforceable and shall be enforced.
      The Company shall pay and be solely responsible for any attorney’s fees,
      expenses, costs and court or arbitration costs incurred by the Executive in
      any
      matter or dispute between the Executive and the Company which pertains to this
      Section
      2.2
      if the
      Executive prevails in the contest in whole or in part.

    

    3. COMPENSATION
      OF THE EXECUTIVE.

    

    3.1 Base
      Salary.
      During
      the Term, the Company shall pay the Executive a base salary of $175,000 per
      year
      (said amount, together with any increases as may be determined from time to
      time
      by the Chief Executive Officer, in his or her sole discretion, being hereinafter
      referred to as the “Base
      Salary”),
      less
      payroll deductions and all required withholdings payable in regular periodic
      payments in accordance with Company policy. Such Base Salary shall be prorated
      for any partial year of employment on the basis of a 365-day fiscal year.

    

    3.2 Annual
      Bonus Compensation. In
      addition to the annual Base Salary, the Executive shall be eligible to receive
      an annual performance bonus (the “Annual
      Bonus”)
      of up
      to 20% of the then current Base Salary (the “Target”).
      The
      amount of the Annual Bonus shall be determined by the Chief Executive Officer,
      in his or her sole discretion, shall be based upon the Executive’s performance
      in meeting targets determined by the Chief Executive Officer, and shall be
      prorated for any partial year of employment on the basis of a 365-day fiscal
      year. The Target may not be decreased during the Term. The Executive’s bonus
      shall be payable on or before February 1 of each year following the year in
      which it is earned, beginning in February 2008. The Company may require Board
      and stockholder approval of any performance based compensation payable to the
      Executive under this Agreement to the extent necessary or advisable under
      applicable law or the rules of any exchange or market on which the Company’s
      shares are then listed.

    

    3.3 Increases
      in Compensation.
      Except
      as otherwise provided herein, increases to the Executive’s Base Salary and
      Annual Bonus will be subject to the sole discretion of the Chief Executive
      Officer.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    3.4 Employment
      Taxes.
      All of
      the Executive’s compensation shall be subject to customary withholding taxes and
      any other employment or other taxes that are required to be collected or
      withheld by the Company under applicable law. 

    

    3.5 Benefits.
      The
      Executive shall, in accordance with Company policy and the terms of the
      applicable plan documents, be entitled to participate in any and all employee
      benefits plans, medical insurance plans, life insurance plans, disability
      insurance plans, retirement plans, 401(k), vacation plans, health insurance
      plans and any other benefit plans or arrangements which the Company may from
      time to time have in effect for a senior executive. The Company further agrees
      that Executive shall be entitled to 15 days of vacation per calendar year.
      To
      the extent accrued vacation time is unused in any given year, it may be carried
      over in accordance with the policies of the Company then in effect; provided,
      that
      the Executive shall not be entitled to carry over any unused vacation for a
      period exceeding two (2) years (i.e., 30 days).

    

    3.6 Expense
      Reimbursement. The
      Company shall reimburse the Executive for any and all reasonable business
      expenses incurred by the Executive in the performance of his duties hereunder,
      including, without limitation, those incurred in connection with business
      related travel (coach for flights less than 6 hours, business class for flights
      6 hours or more), telecommunications and entertainment expenses, so long as
      such
      expenses have been incurred for and promote the business of the Company.
      Notwithstanding the above, the Company shall not pay or reimburse the Executive
      for the costs of any membership fees or dues for private clubs, civic
      organizations, and similar organizations or entities, unless such organizations
      and the fees and costs associated therewith have first been approved in writing
      by the Chief Executive Officer, in his or her sole discretion. As a condition
      to
      reimbursement under this Section
      3.6,
      the
      Executive shall furnish to the Company adequate records and other documentary
      evidence required by federal and state statutes and regulations for the
      substantiation of each expenditure. The Executive acknowledges and agrees that
      failure to furnish the required documentation may result in the Company denying
      all or part of the expense for which reimbursement is sought.

    

    3.7 Restricted
      Stock Unit Grant.
      Promptly
      following the registration of the Company’s Common Stock issuable under its 2007
      Equity Incentive Plan (the “Plan”)
      with
      the Securities and Exchange Commission and any applicable state securities
      regulatory agencies (to the extent required for the Common Stock or RSUs to
      be
      issuable under the Plan), the Company shall grant under the Plan restricted
      stock units (the “RSUs”)
      to
      Executive covering 166,725 shares of the Company’s Common Stock (the
“Common
      Stock”).
      25% of
      the RSUs shall vest on the one year anniversary of Executive’s employment
      hereunder, and the remaining 75% shall vest ratably in monthly installments
      over
      the next three years of Executive’s employment hereunder. All shares of Common
      Stock underlying the RSUs shall be issued promptly after the RSUs have vested.
      The RSUs will be subject to the terms and conditions of the Plan. Executive’s
      right to receive new equity incentives in the future will be determined and
      approved by the Chief Executive Officer, in his or her sole discretion, in
      connection with ongoing executive compensation reviews. The
      Company may require Board and stockholder approval of any performance based
      compensation payable to the Executive under this Agreement to the extent
      necessary or advisable under applicable law or the rules of any exchange or
      market on which the Company’s shares are then listed.

    

    3.8 Change
      of Control. For
      purposes of this agreement, “Change
      of Control”
shall
      mean, (i) a sale, lease of other disposition of all or substantially all of
      the
      assets of the Company (which shall mean the business assets responsible for
      85%
      or more of the revenues of the Company), or (ii) any consolidation or merger
      of
      the Company or a subsidiary of the Company with or into any other corporation
      or
      other entity or person, or any other corporate reorganization, in which, and
      as
      a result of which, the stockholders of the Company immediately prior to such
      consolidation, merger or reorganization, own less than a majority of the
      Company’s voting power immediately after such consolidation, merger or
      reorganization, or any transaction or series of related transactions in which,
      and as a result of which, the stockholders of the Company immediately prior
      to
      such transaction or series of related transactions own less than a majority
      of
      the Company’s voting power after such transaction or series of related
      transactions. In the event of Change of Control during the Term, the Executive
      shall be entitled to (1) 100% vesting acceleration of all the Executive’s RSUs
      and prompt issuance of the Common Stock underlying such RSUs, and (2) a
      severance payment equal to 12 months of the Base Salary and the Annual Bonus
      at
      the Target amount; provided,
      that if
      the person or entity that acquires the Company or its assets as part of the
      Change of Control requests that the Executive continue as an employee of the
      Company (or its successor) on substantially the terms set forth herein, the
      Company’s obligation to pay the severance payment set forth in clause
      (2)
      above
      shall be conditioned on the Executive agreeing to continue such employment
      for a
      period of ninety 90 days from the date of the Change of Control, or such lesser
      period of time as the person or entity shall request.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4. TERMINATION.
      

    

    4.1 Termination
      of Employment and Compensation Upon Termination.

    

    4.1.1 Death
      or Disability.
      The
      Executive’s employment with the Company shall terminate effective upon the date
      of the Executive’s death or “Complete Disability” (as defined in Section
      4.2.1).
      If the
      Executive’s employment shall be terminated by death or Complete Disability, the
      Company shall pay to the Executive or the Executive’s estate (i) the Executive’s
      accrued Base Salary, (ii) the Executive’s accrued and unused vacation benefits,
      (iii) any of the Executive’s incentive compensation, including his Annual Bonus,
      earned through the date of termination, in each case, subject to required
      deductions and withholdings
      and
      payable within fifteen (15) days of the date of termination,
      (iv)
      in
      the event of death, six (6) months’vesting acceleration of the Executive’s RSUs
and
      prompt issuance of the Common Stock underlying such RSUs,
      and (v)
      in the event of disability, six (6) months’ vesting acceleration of the
      Executive’s RSUs and
      prompt issuance of the Common Stock underlying such RSUs,
      continuation for 6 months of the Base Salary and benefits, including health
      insurance, life insurance, and pension benefits in effect at the time of
      termination,
      and
      (vi) the Executive shall have the opportunity to review and comment upon any
      press release announcing his departure from the Company,
      and the
      Company shall thereafter have not further obligations to the Executive (or
      his
      estate). 

    

    4.1.2 Termination
      for Cause.
      The
      Company may terminate the Executive’s employment under this Agreement for
“Cause” (as defined in Section
      4.2.2)
      by
      delivery of written notice to the Executive specifying the Cause or Causes
      relied upon for such termination. If the Executive’s employment shall be
      terminated by the Company for Cause, the Company shall promptly issue the Common
      Stock underlying the Executive’s RSUs that have vested through the date of
      termination, pay the Executive’s accrued Base Salary and accrued and unused
      vacation benefits earned through the date of termination at the rate in effect
      at the time of the notice of termination to Executive, in each case, subject
      to
      required deductions and withholdings, and the Company shall thereafter have
      no
      further obligations to the Executive.

     

    4.1.3 Termination
      Without Good Reason.
      The
      Executive may terminate his employment with the Company without Good Reason
      upon
      twenty (20) business days’ written notice to the Company. If the Executive’s
      employment shall be terminated by the Executive without Good Reason, the Company
      shall promptly issue all of shares of Common Stock underlying the Executive’s
      RSUs that have vested through the date of termination and pay the Executive
      (i)
      the accrued Base Salary, (ii) the Executive’s accrued and unused vacation
      benefits, and (iii) any of the Executive’s incentive compensation, including his
      Annual Bonus, earned through the date of termination, in each case, subject
      to
      required deductions and withholdings,
      and
      payable within fifteen (15) days of the date of termination, and (iv)
the
      Executive shall have the opportunity to review and comment upon any press
      release announcing his departure from the Company and
      the
      Company shall thereafter have no further obligation to the Executive.
      

    

    4.1.4 Termination
      Without Cause or for Good Reason.
      The
      Company may terminate the Executive’s employment under this Agreement without
      Cause upon written notice of such termination to the Executive. In addition,
      the
      Executive may terminate his employment with the Company for Good Reason (as
      defined in Section
      4.2.3)
      upon
      ten (10) days written notice to the Company specifying the Reason or Reasons
      relied upon for such termination. If the Executive’s employment is terminated
      (a) by the Company for any reason other than Cause, Death or Disability, or
      (b)
      by the Executive for Good Reason, then the Executive shall be entitled to the
      following; (i) the Executive’s Base Salary and accrued and unused vacation
      earned through the date of termination, subject to standard deductions and
      withholdings; (ii) continuation of the Executive’s annual Base Salary, health
      insurance, life insurance, and pension benefits and vacation accruals in effect
      at the time of termination for a period of six (6) months after the date of
      termination, subject to standard deductions and withholdings and paid according
      to the Company’s standard payroll schedule (in the event that entitlement to the
      health and welfare benefits is not allowed by law, the Executive shall be
      entitled to the cash equivalent of the benefit); (iii) a pro rata percentage
      of
      the Executive’s Annual
      Bonus at the Target amount payable by the Company within fifteen (15) days
      of
      the date of termination;
      (iv)
      six (6) month vesting acceleration and prompt issuance of the Executive’s
RSUs
      vested through the date of termination;
      and (v)
      the
      Executive shall have the opportunity to review and comment upon any press
      release announcing his departure from the Company and
      the
      Company shall thereafter have no further obligation to the
      Executive.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.2 Definitions.
      For
      purposes of this Agreement, the following terms shall have the following
      meanings:

    

    4.2.1 Complete
      Disability. “Complete
      Disability”
shall
      mean the inability of the Executive to perform the Executive’s duties under this
      Agreement because the Executive has become permanently disabled within the
      meaning of any policy of disability income insurance covering executives of
      the
      Company then in force. In the event the Company has no policy of disability
      income insurance covering executives of the Company in force when the Executive
      becomes disabled, the term “Complete Disability” shall mean the inability of the
      Executive to perform the Executive’s duties under this Agreement by reason of
      any incapacity, physical or mental, for a period of at least one hundred twenty
      (120) days during a twelve (12) month period.

    

    4.2.2 For
      Cause.“Cause”
for
      the
      Company to terminate Executive’s employment hereunder shall mean the occurrence
      of any of the following events: (i) any material breach of this Agreement by
      the
      Executive which is not cured by the Executive within
      30
      days after the receipt of notice from the Chief Executive Officer of such
      breach, which notice shall state in reasonable detail the facts and
      circumstances claimed to be a breach and of the intent of the Company to
      terminate the Executive’s employment upon the failure of the Executive to cure
      such breach;
      (ii)
      the conviction of, or pleading of nolo contendre by, the Executive of any
      felony; (iii) the material violation by the Executive of any statutory or
      fiduciary duty to the Company; (iv) any willful misconduct of the Executive
      which has a materially injurious effect on the business of the Company; or
      (v)
      the willful and gross dishonesty of the Executive which has a materially
      injurious effect on the business of the Company. For purposes of this Agreement,
      no act or failure to act, on the part of the Executive, shall be considered
      “willful” if it is done, or omitted to be done, by the Executive in good faith
      or with reasonable belief that his action or omission was in the best interest
      of the Company. 

    

    4.2.3 For
      Good Reason. “Good
      Reason”
for
      the
      Executive to terminate his employment hereunder shall mean any of the following
      events, (i) any material breach of this Agreement by the Company that is not
      cured by the Company within
      30
      days after the receipt of written notice from the Executive of such breach,
      which notice shall state in reasonable detail the facts and circumstances
      claimed to be a breach and of the intent of the Executive to terminate the
      Executive’s employment upon the failure of the Company to cure such
      breach;
      (ii)
      without Executive’s written consent, a decrease in the then-current Base Salary
      or maximum rate of the Target, pursuant to Section
      3.2
      hereof;
      (iii) without Executive’s written consent, requiring Executive to regularly
      report to work at a facility outside of a thirty (30) mile radius from
      Executive’s current personal residence. 

    

    4.3 Survival.
      Upon
      the expiration of the Term or, if earlier, in the event that Executive’s
      employment is terminated, this Agreement shall terminate and no longer have
      any
      further force or effect, except that the following provisions shall survive:
      Sections 2.2,
      4.3,
      5,
      and
7
      through
16.
      In
      addition, the termination or expiration of this Agreement shall not affect
      the
      rights of any Party that accrued prior to such termination or expiration,
      including, but not limited to, any rights to acceleration of RSUs or other
      equity compensation and any payment obligations, as provided herein.

    

    
      
        5.
          CONFIDENTIAL
          AND PROPRIETARY INFORMATION

      

    

    

    5.1 Confidentiality.
      The
      Executive recognizes that Executive’s employment with the Company will involve
      contact with information of substantial value to the Company, which is not
      generally known in the trade, and which gives the Company an advantage over
      its
      competitors who do not know or use it, including but not limited to, techniques,
      designs, drawings, processes, inventions know how, strategies, marketing, and/or
      advertising plans or arrangements, developments, equipment, prototypes, sales,
      supplier, service provider, vendor, distributor and customer information, and
      business and financial information relating to the business, products, services,
      practices and techniques of the Company (hereinafter referred to as
“Confidential
      and Proprietary Information”).
      The
      Executive will at all times regard and preserve as confidential such
      Confidential and Proprietary Information obtained by the Executive from whatever
      source and will not, either during Executive’s employment with the Company or
      thereafter, publish or disclose any part of such Confidential and Proprietary
      Information in any manner at any time, or use the same except on behalf of
      the
      Company, without the prior written consent of the Chief Executive Officer.
      Executive understands, in addition, that the Company has received and in the
      future will receive from third parties confidential or proprietary information
      (“Third Party Information”)
      subject to a duty of the Company to maintain the confidentiality of such
      information and to use it only for certain limited purposes. During the Term
      and
      thereafter, Executive will hold Third Party Information as confidential and
      will
      not disclose to anyone (other than Company personnel who need to know such
      information in connection with their work for the Company) or use, except in
      connection with Executive’s work for the Company, Third Party Information unless
      expressly authorized by the Chief Executive Officer in writing. When Executive
      leaves the employ of the Company, Executive will deliver to the Company any
      and
      all drawings, notes, memoranda, specifications, devices, formulas, and
      documents, together with all copies thereof, and any other material containing
      or disclosing any Third Party Information or Confidential and Proprietary
      Information of the Company.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.2 Specific
      Performance. Recognizing
      that irreparable damage will result to the Company in the event of the breach
      or
      threatened breach of any of covenants and assurances by the Executive contained
      in Sections
      2.2
      or this
Section
      5.2,
      and
      that the Company’s remedies at law for any such breach or threatened breach may
      be inadequate, the Company and its successors and assigns, in addition to such
      other remedies which may be available to them, shall, upon making a sufficient
      showing under applicable law, be entitled to an injunction to be issued by
      any
      court of competent jurisdiction ordering compliance with this Agreement or
      enjoining and restraining the Executive, and each and every person, firm or
      company acting in concert or participation with him, from the continuation
      of
      such breach. 

    

    6. INDEMNIFICATION

    

    The
      Company shall enter into a reasonable and customary indemnification agreement
      with the Executive, which agreement, to the fullest extent permitted by the
      Company’s charter documents and applicable law, shall require the Company to
      defend and indemnify Executive and hold Executive harmless against any liability
      that Executive incurs within the scope of his employment with Company. Such
      indemnification agreement shall be on substantially similar terms as those
      entered into by the Company with its Chief Financial Officer. In addition,
      the
      Company shall maintain sufficient Directors and Officers liability insurance
      covering its directors and officers consistent with prevailing commercial
      practices of similarly situated companies.

    

    7. ASSIGNMENT
      AND BINDING EFFECT. 

    

    This
      Agreement shall be binding upon and inure to the benefit of the Executive and
      the Executive’s heirs, executors, personal representatives, administrators and
      legal representatives. Because of the unique and personal nature of the
      Executive’s duties under this Agreement, neither this Agreement nor any rights
      or obligations under this Agreement shall be assignable by the Executive. This
      Agreement shall be binding upon and inure to the benefit of the Company and
      its
      successors, assigns and legal representatives. 

    

    8. NOTICES. 

    

    All
      notices or demands of any kind required or permitted to be given by the Company
      or the Executive under this Agreement shall be given in writing and shall be
      personally delivered (and receipted for), faxed (with written evidence of
      successful transmission) during normal business hours, or mailed by certified
      mail, return receipt requested, postage prepaid, addressed as follows:

    

    If
      to the
      Company: G8wave, Inc. 126 Brookline Ave, Boston, MA 02216, fax number (617)
      859-8328, with a copy to Eisner & Frank, 9601 Wilshire Boulevard, Suite 700,
      Beverly Hills, CA 90210, Attention Keith Sutton, Esq.

    

    If
      to the
      Executive: William E. Duke, Jr., 33 Olde Colony Drive, Shrewsbury, MA
      01545.

    

    Either
      Party may change its address for notices by giving notice to the other Party
      in
      the manner specified in this section.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    9. CHOICE
      OF LAW

    

    This
      Agreement and all amendments hereto shall be governed by and construed in
      accordance with the laws of the State of Massachusetts, without reference to
      conflict of law rules thereof.

    

    10. AMENDMENT.

    

    This
      Agreement cannot be amended or modified except by a written agreement signed
      by
      the Executive and the Company. 

    

    11. WAIVER.

    

    No
      term,
      covenant or condition of this Agreement or any breach thereof shall be deemed
      waived, except with the written consent of the Party against whom the wavier
      is
      claimed, and any waiver or any such term, covenant, condition or breach shall
      not be deemed to be a waiver of any preceding or succeeding breach of the same
      or any other term, covenant, condition or breach. 

    

    12. SEVERABILITY.

    

    The
      finding by a court of competent jurisdiction of the unenforceability, invalidity
      or illegality of any provision of this Agreement shall not render any other
      provision of this Agreement unenforceable, invalid or illegal.

    

    13. REPRESENTATIONS
      AND WARRANTIES.

    

    The
      Executive represents and warrants that Executive is not restricted or
      prohibited, contractually or otherwise, from entering into and performing each
      of the terms and covenants contained in this Agreement, and that Executive’s
      execution and performance of this Agreement will not violate or breach any
      other
      agreements between the Executive and any other person or entity.

    

    14. COUNTERPARTS.

    

    This
      Agreement may be executed in two counterparts and by facsimile or electronic
      signature, each of which shall be deemed an original, all of which together
      shall constitute one and the same instrument.

     

    15. Developments.
      The
      Executive hereby assigns to the Company his entire right, title and interest
      in
      all know-how, inventions, designs, discoveries and improvements, customer lists,
      trade secrets and ideas, writings and copyrightable and other material, which
      may be conceived by the Executive or developed or acquired by him during the
      Term and which is reasonably related to the business in which the Company is
      then engaged or planning to engage (“Developments”).
      The
      Executive agrees to promptly and fully disclose in writing to the Company all
      such Developments. The Executive will, upon the Company's request, execute,
      acknowledge and deliver to the Company all instruments and do all other acts
      which are necessary or desirable to entitle the Company to all rights in and
      to
      the foregoing and enable the Company to file and prosecute applications for,
      and
      to acquire, maintain and enforce all letters, trademark registrations or
      copyrights with respect to and otherwise protect the foregoing in all
      countries.

    

    16. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding between the Parties
      related to the subject matter hereof, and supersedes all prior or
      contemporaneous agreements or understandings between the Parties related to
      the
      subject matter hereof, whether oral or written.

    

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    In
      Witness Whereof,
      the
      Parties have executed this Agreement as of the date first above
      written.

    

    
      	
              g8wave
                Holdings, Inc.

            	
              Executive:

            
	 	 
	 	 
	
              By: /s/ 
                Habib
                Khoury                                           
                

            	
              By:/s/ 
                William E. Duke,
                Jr.                                        
                

            
	
              Name:  
                Habib Khoury

            	
                           
                William E. Duke, Jr.

            
	
              Its:        President
                & Chief Executive OfficerUnassociated Document

     

    
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Section
        B
        - Supplies or Services and Prices

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0001

              	 	
                2,558,261

              	
                Dollars,
                  U.S.

              	
                $1.00

              	
                $2,558,261.00
                  EST

              
	 	
                BASE
                  EFFORT - UIS PROTOTYPE

                FFP

                The
                  contractor, Coda Octopus, Inc., shall develop, build and deliver
                  three (3)
                  complete prototype Underwater Inspection Systems (UISs) as per
                  U.S. Coast
                  Guard requirements and in accordance with the Statement of Work
                  dated 14
                  June 2007 and IAW with their proposal (Tasks 1 through 14) dated
                  15 June
                  2007.

                 

                Period
                  of Performance: Date of Award 02 July 2007 through to 01 January
                  2008 NTE:
                  6 Months

                 

                 

                 

                FOB:
                  Destination

                PURCHASE
                  REQUEST NUMBER: WITSWG71155207

                 

              	 
	 	 	 
	 	 
	 
	 	
                NET
                  AMT

              	
                $2,558,261.00
                  (EST.)

              
	 
	 	
                ACRN
                  AA

                CIN:
                  0001

              	 	
                $2,558,261.00

              

      

       

       

      

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0002

              	 	 	
                Dollars,
                  U.S.

              	 	 
	 	
                TRAVEL
                  EXPENSES

                 

                COST

                 

                The
                  contractor, Coda Octopus, Inc. shall separate travel expenditures
                  from
                  CLIN 0001 and bill under CLIN 0002 actual expenses in accordance
                  with the
                  JTR.

                 

                 

                 

                FOB:
                  Destination

                 

                PURCHASE
                  REQUEST NUMBER: WITSWG71155207

                 

              	 
	 	
                ESTIMATED
                  COST

                 

              	
                $39,149.00

                 

              
	 	
                ACRN
                  AA

                CIN:
                  0002

              	
                $39,149.00

              

      

       

      
        
          
          

        

        
          Page
            2 of
            37

          
            

          

        

        
          
          

        

      

       

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0003

              	 	
                634,065

              	
                Dollars,
                  U.S.

              	
                $1.00

              	
                $634,065.00
                  EST

              
	
                OPTION

              	
                OPTION
                  1: RANGE RESOLUTION ENHANCEMENT

                FFP

                If
                  and when this option is executed, the contractor, Coda Octopus,
                  Inc.,
                  shall develop core beam forming hardware and FPGA technology to
                  improve
                  the current 3 or 4cm range resolution to 1 or 2cm, and increase
                  target
                  detection of objects on harbor walls and other close range
                  applications.

                 

                Period
                  of Performance: NTE 6 months from execution of option.
                  

                 

                FOB:
                  Destination

                PURCHASE
                  REQUEST NUMBER: WITSWG71155207

                 

              	 
	 	 	 
	 	 
	 
	 	
                NET
                  AMT

              	
                $634,065.00
                  (EST.)

              
	 
	 	 	 	 

      

       

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0004

              	 	 	
                Dollars,
                  U.S.

              	 	 
	
                OPTION

              	
                TRAVEL
                  EXPENSES

                 

                COST

                 

                The
                  contractor, Coda Octopus, Inc. shall separate travel expenditures
                  and bill
                  under this CLIN for actual expenses in accordance with the
                  JTR.

                 

                 

                 

                FOB:
                  Destination

                 

              	 
	 	
                ESTIMATED
                  COST

                 

              	
                $10,000.00

                 

              
	 	 	 

      

       

      
        
          
          

        

        
          Page
            3 of
            37

          
            

          

        

        
          
          

        

      

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0005

              	 	
                378,084

              	
                Dollars,
                  U.S.

              	
                $1.00

              	
                $378,084.00
                  EST

              
	
                OPTION

              	
                OPTION
                  2: INCREASE ECHOSCOPE FREQUENCY

                FFP

                If
                  and when this option is executed, the contractor, Coda Octopus,
                  Inc.,
                  shall develop new transducer and channel board hardware to allow
                  operation
                  at higher frequencies (up to 500KHz). Given the modular design
                  of the
                  Echoscope, it would then be feasible to allow dual transducers
                  to be
                  mounted simultaneously and provide multiple target returns at different
                  frequencies (375KHz and 500KHz). Increasing the frequency of operation
                  to
                  500KHz would also increase the resolution of the data and reduce
                  the
                  volume to approximately 25 x 25deg - effectively doubling the lateral
                  resolution.

                 

                Period
                  of Performance: NTE 6 months from execution of option.
                  

                 

                FOB:
                  Destination

                PURCHASE
                  REQUEST NUMBER: WITSWG71155207

                 

              	 
	 	 	 
	 	 
	 
	 	
                NET
                  AMT

              	
                $378,084.00
                  (EST.)

              
	 
	 	 	 	 

      

       

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0006

              	 	 	
                Dollars,
                  U.S.

              	 	 
	
                OPTION

              	
                TRAVEL
                  EXPENSES

                 

                COST

                 

                The
                  contractor, Coda Octopus, Inc. shall separate travel expenditures
                  and bill
                  under this CLIN for actual expenses in accordance with the
                  JTR.

                 

                 

                 

                FOB:
                  Destination

                 

              	 
	 	
                ESTIMATED
                  COST

                 

              	
                $10,000.00

                 

              
	 	 	 

      

       

      
        
          
          

        

        
          Page
            4 of
            37

          
            

          

        

        
          
          

        

      

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0007

              	 	
                1,122,948

              	
                Dollars,
                  U.S.

              	
                $1.00

              	
                $1,122,948.00
                  EST

              
	
                OPTION

              	
                OPTION
                  3: AUTOMATED CHANGE DETECTION

                FFP

                If
                  and when this option is executed, the contractor, Coda Octopus,
                  Inc.,
                  shall develop Automated Change Detection algorithms for on-line
                  detection
                  and post-processing analysis of captured Echoscope data. The data
                  post-mission would reside on a large-scale SQL database allow several
                  over-time analysis to be generated as well as know-good baseline
                  surveys
                  for real time analysis. Algorithm would be backwards compatible
                  with
                  existing UIS systems to enable all users to add this additional
                  software
                  capability on a per license basis. 

                 

                Period
                  of Performance: NTE 18 months from execution of option.
                  

                 

                FOB:
                  Destination

                PURCHASE
                  REQUEST NUMBER: WITSWG71155207

                 

              	 
	 	 	 
	 	 
	 
	 	
                NET
                  AMT

              	
                $1,122,948.00
                  (EST.)

              
	 
	 	 	 	 

      

       

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0008

              	 	 	
                Dollars,
                  U.S.

              	 	 
	
                OPTION

              	
                TRAVEL
                  EXPENSES

                 

                COST

                 

                The
                  contractor, Coda Octopus, Inc. shall separate travel expenditures
                  and bill
                  under this CLIN for actual expenses in accordance with the
                  JTR.

                 

                 

                 

                FOB:
                  Destination

                 

              	 
	 	
                ESTIMATED
                  COST

                 

              	
                $30,000.00

                 

              
	 	 	 

      

       

      
        
          
          

        

        
          Page
            5 of
            37

          
            

          

        

        
          
          

        

      

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0009

              	 	
                7

              	
                Each

              	
                $470,250.00

              	
                $3,291,750.00
                  EST

              
	
                OPTION

              	
                OPTION
                  4: ADVANCED PROTOTYPE UIS SYSTEM

                FFP

                If
                  and when this option is executed, the contractor, Coda Octopus,
                  Inc.,
                  shall build up to seven (7) additional UIS Systems to agreed USCG
                  specifications.

                 

                Period
                  of Performance: NTE 6 months from execution of option.
                  

                 

                NOTE:
                  It is estimated that delivery time from date or order for each
                  UIS will be
                  3 months. CodaOctopus will be able to build up to seven (7) further
                  UIS
                  Systems and can deliver together if required within 3-4 months
                  from date
                  of order. Delivery time will be similar regardless of whether one
                  (1)
                  additional UIS System of the seven (7) additional UIS Systems is
                  ordered.

                 

                FOB:
                  Destination

                PURCHASE
                  REQUEST NUMBER: WITSWG71155207

                 

              	 
	 	 	 
	 	 
	 
	 	
                NET
                  AMT

              	
                $3,291,750.00
                  (EST.)

              
	 
	 	 	 	 

      

       

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0010

              	 	
                247,434

              	
                Dollars,
                  U.S.

              	
                $1.00

              	
                $247,434.00
                  EST

              
	
                OPTION

              	
                OPTION
                  5: DEVELOPMENT OF ONE PIECE F190

                FFP

                If
                  and when this option is executed, the contractor, Coda Octopus,
                  Inc.,
                  shall develop a one piece F190 Inertial Attitude and Positioning
                  System to
                  replace standard two piece system used in UIS. It is estimated
                  that this
                  will assist in rapid deployment and calibration of the UIS systems
                  further
                  enhancing the systems operability.

                 

                Period
                  of Performance: NTE 6 months from execution of option.
                  

                 

                FOB:
                  Destination

                PURCHASE
                  REQUEST NUMBER: WITSWG71155207

                 

              	 
	 	 	 
	 	 
	 
	 	
                NET
                  AMT

              	
                $247,434.00
                  (EST.)

              
	 
	 	 	 	 

      

       

      
        
          
          

        

        
          Page
            6 of
            37

          
            

          

        

        
          
          

        

      

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0011

              	 	 	
                Dollars,
                  U.S.

              	 	 
	
                OPTION

              	
                TRAVEL
                  EXPENSES

                 

                COST

                 

                The
                  contractor, Coda Octopus, Inc. shall separate travel expenditures
                  and bill
                  under this CLIN for actual expenses in accordance with the
                  JTR.

                 

                 

                 

                FOB:
                  Destination

                 

              	 
	 	
                ESTIMATED
                  COST

                 

              	
                $10,000.00

                 

              
	 	 	 

      

       

      

      
        	
                ITEM
                  NO

              	
                SUPPLIES/SERVICES

              	
                QUANTITY

              	
                UNIT

              	
                UNIT
                  PRICE

              	
                AMOUNT

              
	
                0012

              	 	 	
                Dollars,
                  U.S.

              	 	
                NSP

              
	 	
                CONTRACT
                  DATA REQUIREMENT LISTS (CDRLS)

                FFP

                The
                  contractor, Coda Octopus, Inc., is obligated to deliver all data
                  listed
                  IAW DD Form 1423-1. The price that is attributable to the data
                  shall be
                  included in the total costs and NOT Separately Priced.

                 

                FOB:
                  Destination

                PURCHASE
                  REQUEST NUMBER: WITSWG71155207

                 

              	 
	 	 	 
	 	 
	 
	 	
                NET
                  AMT

              	
                $0.00

              
	 
	 	 	 	 

      

       

      
        
          
          

        

        
          Page
            7 of
            37

          
            

          

        

        
          
          

        

      

       

      Section
        C
        - Descriptions and Specifications

      

      STATEMENT
        OF WORK

      FOR

      UNDERWATER
        INSPECTION SYSTEM

      14
        June 2007

      

      1.0
        Scope. This
        Scope of Work (SOW) sets forth the specific activities and tasks together
        with
        the expected deliverables to U. S. Coast Guard (USCG) Research & Development
        Center (RDC) for a mobile, rapidly deployable capability to surveil and detect
        subsurface threats in real time that is transferable and capable of rapid
        installation on USCG small boats. In additional, several operational efforts
        are
        included to further advance the technology.

      

      1.1  Background.
        USCG RDC
        has identified a number of requirements listed below that are believed to
        be
        generic to any agency with similar needs. Any system developed should fulfill
        these requirements. The RDC has conducted independent sonar evaluation trials
        that have compared the different sonar technologies available on the
        marketplace. Based on the initial feedback from these trials the RDC has
        identified 3D real time sonar as having the highest potential to fulfill
        the
        requirements within the port and harbor security sector.

      

      1.2  Applicability.
        Coda
        Octopus manufacture the only product that exists today that is capable of
        producing 3D underwater imagery in real time and have worked indirectly with
        the
        USCG RDC over the last 3 years in developing the concept for a mobile and
        rapidly deployable underwater inspection capability. The EchoscopeTM
        Real
        Time 3D Sonar is a unique and patented technology that will form the core
        of any
        system developed. The CodaOctopus Underwater Inspection SystemTM
        (UIS)
        concept integrates the Echoscope with other commercially available sensors
        designed for integration on a small vessel. An integrated systems approach
        is
        necessary to fulfill the USCG requirements and Coda Octopus is uniquely placed
        to develop and supply these systems. This project is a follow on to the efforts
        that have been independent to date. It is anticipated that there is opportunity
        for further follow on work to further enhance US government agency
        capabilities.

      

      2.0
        APPLICABLE DOCUMENTS

      

      	o  	
              USCG
                Document G-3RPDs draft concept of
                operations.

            

      

      3.0
        REQUIREMENTS 

      

      3.1
        General
        Requirements. Develop
        and build three (3) UISs with training schedule, full system manuals and
        a
        guarantee as discussed below.

      

      3.2
        Technical
        Objectives and Goals.

      The
        prototype systems developed will be capable of the following:

      	a.  	
              Provide
                the USCG with the availability of the capability to rapidly conduct
                searches for threats and parasitic attachments below the surface
                in
                low-visibility subsurface conditions.

            

      	b.  	
              Independent
                of ambient light (night operations).

            

      	c.  	
              Usable
                on Coast Guard small boats at 3 to 5 knots to cover 18,000 to 30,000
                linear feet of bulkhead per hour.

            

      	d.  	
              Capable
                of guaranteeing 100% inspection coverage.

            

      	e.  	
              Usable
                with minimal risk to Coast Guard personnel and
                assets.

            

      	f.  	
              Intuitive
                user display (no specialty skills/rating
                required).

            

      	g.  	
              Minimizes
                required specialty operator skills.

            

      	h.  	
              Capable
                of being used effectively during a National Security
                Event.

            

      	i.  	
              Compatible
                with current Coast Guard security
                operations.

            

      	j.  	
              Weather
                effect limitations are minimized
                (wind/waves/ice).

            

      	k.  	
              Effects
                of current are minimized.

            

      	l.  	
              Field
                of view is maximized.

            

      	m.  	
              Can
                be used in navigationally restricted
                environments.

            

      	n.  	
              Document
                area coverage for subsequent review and
                comparison.

            

       

      
        
          
          

        

        
          Page
            8 of
            37

          
            

          

        

        
          
          

        

      

       

      3.3
        Specific
        Requirements and Deliverables.

      

      3.3.1
        Build and deliver three (3) complete prototype UIS systems.

      

      3.3.2
        Deliver Monthly Status Reports (CDRL A001)

      

      3.3.3
        Provide Operator Training. This training will cover in sufficient detail
        all
        operations that will allow CG and local law enforcement crew to effectively
        operate and maintain the systems in accordance with G-3RPDs draft concept
        of
        operations.

      

      3.3.4
        Deliver Presentation Materials (CDRL A002)  

      

      3.3.5
        Deliver UIS Owner’s Manuals. (CDRL A003)

      

      3.3.6
        Provide one year system guarantee for each system supplied. (CDRL
        A004)

       

      3.3.7
        Conferences
        and Symposia. 
        The government will occasionally host professional conferences or symposia
        on
        topics relevant to technology needs of the combating terrorism
        community.   Upon receipt of a written directive, from the Contracting
        Officer Representative (COR) or Contracting Officer, the contractor shall
        be
        prepared to participate in these conferences by providing equipment displays
        and
        technical expertise.  For planning purposes, the government expects one
        such event, of 4 days in the Washington DC area, during the duration of this
        effort.

       

      3.4
        OPTIONAL
        UIS DEVELOPMENTS

      

      3.4.1
        Option 1: Range
        Resolution Enhancement. Develop
        core beam forming hardware and FPGA technology to improve the current 3 or
        4cm
        range resolution to 1 or 2cm, and increase target detection of objects on
        harbor
        walls and other close range applications. 

      

      3.4.2
        Option 2: Increased
        Echoscope Frequency.
        Develop
        new transducer and channel board hardware to allow operation at higher
        frequencies (up to 500KHz). Given the modular design of the Echoscope, it
        would
        then be feasible to allow dual transducers to be mounted simultaneously and
        provide multiple target returns at different frequencies (375KHz and 500KHz).
        Increasing the frequency of operation to 500KHz would also increase the
        resolution of the data and reduce the volume to approximately 25 x 25deg
        -
        effectively doubling the lateral resolution.

      

      
        
          
          

        

        
          Page
            9 of
            37

          
            

          

        

        
          
          

        

      

      

      3.4.3
        Option 3: Automated
        Change Detection.
        Develop
        Automated Change Detection algorithms for on-line detection and post-processing
        analysis of captured Echoscope data. The data post-mission would reside on
        a
        large-scale SQL database allow several over-time analysis to be generated
        as
        well as know-good baseline surveys for real time analysis. Algorithm would
        be
        backwards compatible with existing UIS systems to enable all users to add
        this
        additional software capability on a per license basis. 

      

      3.4.4
        Option 4: Advanced
        Prototype UIS Systems.
        Build up
        to seven additional UIS systems to agreed USCG specification.

      

      3.4.5
        Option 5: Development
        of Prototype One Piece F190 Inertial Navigation System to Upgrade UIS
        Capability. 
        Develop
        a one piece F190 Inertial Attitude and Positioning System to replace standard
        two piece system used in UIS. It is estimated that this will assist in rapid
        deployment and calibration of the UIS systems further enhancing the systems
        operability.

      

      4
        MILESTONES

      For
        project planning purposes the following schedule of milestones will be
        followed:

       

      
        
          	
                  0
                    Days

                	
                  Contract
                    Award

                
	 	 
	
                  7-14
                    DAC

                	
                  Kickoff
                    Meeting

                
	 	 
	
                  30
                    DAC

                	
                  Preliminary
                    Design Review

                
	 	 
	
                  60
                    DAC

                	
                  Standard
                    UIS Component Delivery

                
	 	 
	
                  90
                    DAC

                	
                  Second
                    Design Review & Initial UIS Deployment (System #1)

                
	 	 
	
                  120
                    DAC

                	
                  Prototype
                    Systems Delivery (UIS Systems #2 and #3)

                
	 	 
	
                  150
                    DAC

                	
                  Training
                    and Final Integration

                
	 	 
	
                  180
                    DAC

                	
                  Contract
                    Complete

                
	 	 

        

      

      

      5
        DELIVERABLES

      

      5.1
        Data
        Deliverables. The
        contractor shall deliver data deliverables as delineated herein and in the
        Contract Data Requirements List (CDRL) attached to the basic contract. All
        written documentation (meeting minutes, reports, plans, etc.) will have the
        TSWG
        task number (PS-ID-2393), title given by TSWG (Underwater Inspection System),
        and contract number on the upper right corner of the front sheet.

      

      5.2
        Contractor
        Progress, Status, and Management Reports Deliverable.
        The
        contractor shall provide monthly status and cost reports identifying the
        progress made during each calendar month and provide in detail any problems
        or
        issues that should be discussed. The reports shall further document complete
        financial status including current funding level, accrued costs, billed costs
        and remaining funds. These reports will be delivered by email in Microsoft
        Word
        format to tierneyl@tswg.gov
        and
paula.kestler@us.army.mil
        prior to
        the 15th
        day of
        the month following the start of work. (CDRL
        A001)

       

      
        
          
          

        

        
          Page
            10
            of 37

          
            

          

        

        
          
          

        

      

       

      5.3
        Presentation
        Material/Meeting Support/Informal Technical Information
        Deliverable.
        The
        contractor shall prepare electronic or hardcopy viewgraphs and a wall board
        that
        describes the task and results. The contractor shall take 5-20 8 inch x 10
        inch
        color photographs and/or high-resolution digital images (>800dpi) of various
        stages of the project to be delivered in hard copy and in JPEG format on
        media.
        The contractor shall prepare and submit meeting agendas, handouts,
        presentations, and minutes for meetings or demonstrations directly related
        to
        this effort.
        (CDRL A002)

      

      5.4
        User
        Manual Deliverable.
        The
        contractor shall provide a Underwater Inspection Systems Owner’s Manual that
        includes system and component descriptions, calibration procedures, operating
        instructions, maintenance requirements, troubleshooting section and a
        recommended spare parts list. The Underwater Inspection Systems Owner’s Manual
        must allow the operators to use the Underwater Inspection Systems without
        contractor support. (CDRL
        A003)

      

      5.5
        System
        Guarantee Deliverable.
        The
        contractor shall provide documentation for each of the three Underwater
        Inspection Systems a one year system guarantee. (CDRL
        A004)

      

      5.6
        Addressees
        for Deliverables.
        The
        contractor shall use the following mailing addresses and information for
        the
        activities listed in Block 14 and 16 of the DD Form 1423. 

      The
        UIS System Prototypes shall be delivered to the following
        address:

      Underwater
        Systems, USCG R&D Center

      Scot
        T. Tripp

      1082
        Shennecossett Road

      Avery
        Point, Groton CT

      860-441-2680
        (v) 2792 (f)

      Email:
        Scot.T.Tripp@uscg.mil

      

      All
        documentation deliverables shall be delivered to the following addresses
        as
        specified under 5.1 through 5.5

      Contracting
        Officer’s Representative (COR) / Program Manager (PM):

      Lawrence
        Tierney

      Technical
        Support Working group

      P.O.
        Box
        16224

      Arlington,
        VA 22215

      703-604-0122
        (v) 703-602-0180 (f)

      Email: tierneyl@tswg.gov

      

      Procuring
        Contracting Officer (PCO):

      J.
        Renee Hodge

      U.S.
        Army
        RDECOM Acquisition Center

      Attn:
        AMSSB-ACC-A 

      4118
        Susquehanna Avenue

      Aberdeen
        Proving Ground, MD 21005-3013

      410-278-0881
        (v) 410-306-3729 (efax)

       

      Procuring
        Contract Specialist (PCS):

      Paula
        Kestler

      410-278-0795
        (v) 410-306-3735 (efax)

      Email:
        paula.kestler@us.army.mil

       

      
        
          
          

        

        
          Page
            11
            of 37

          
            

          

        

        
          
          

        

      

       

      6
        MARKINGS/DISTRIBUTION OF REPORTS

      

      6.1
        Data
        Rights. All
        reports and deliverables shall contain the following:

      

      This
        material may be reproduced by or for the U.S. Government pursuant to the
        copyright license under clause at DFARS 252.227-7013 (November 1995). The
        U.S.
        Government retains Unlimited Rights. Unlimited rights means right to use,
        modify, perform, display, release, or disclose technical data in whole or
        in
        part, in any manner and for any purpose whatsoever, and to have or authorize
        others to do so.

      

      6.2
        Distribution/Release
        Limitation Statements.  All
        data
        provided by the Government and/or developed by the Contractor(s) for the
        Government shall be protected from disclosure in accordance with the markings
        contained thereon and paragraphs below. All other information relating to
        the
        items to be delivered or services to be performed under this delivery order
        may
        not be disclosed by any means without prior approval by the Government.
        Dissemination or public disclosure includes, but is not limited to, permitting
        access to such information by foreign nationals or by any other person or
        entity; publication of technical or scientific papers; advertising; or, any
        other proposed public release. The Contractor shall provide adequate physical
        protection to such information so as to preclude access by any person or
        entity
        not authorized such access by the Government.

      

      “DISTRIBUTION
        STATEMENT C.
        Distribution authorized to U.S. Government Agencies and their contractors).
        Other requests for this document shall be referred to (insert controlling
        DoD
        office) Further distribution only as directed by CTTSO, TSWG Attn: Program
        Security Officer, or the Director of CTTSO, PO Box 16224, Arlington VA
        22215.”

      

      6.3
        Destruction
        Notice. The
        Contractor shall include a destruction notice on all technical documents
        marked
        with Distribution Statements B, C, D, E, F, or X as follows.

      

      “DESTRUCTION
        NOTICE
        -
        For classified documents, follow the procedures in DOD 5200.22-M, Industrial
        Security Manual, Section 11-19 or DOD 5200.1-R, Information Security Program
        Regulation, Chapter IX. For unclassified, limited documents, destroy by any
        method that will prevent disclosure of contents or reconstruction of the
        document.”

      

      7.0
        Period of Performance. 

      

      Period
        of Performance for the BASE EFFORT shall be from date of award
02
        July 2007
        through to 01
        January 2008 and
        shall not exceed (NTE) six months. 

      

      See
        Section F for Option(s) details.

      

      8.0
        Security. 

      

      8.1
        Classification. This
        project is UNCLASSIFIED.

      

      8.2
        Distribution. No
        data
        or other deliverable from this project shall be distributed, published, briefed,
        or otherwise used without the expressed approval of the CTTSO Program
        Manager.

      

      
        
          
          

        

        
          Page
            12
            of 37

          
            

          

        

        
          
          

        

      

      

      CLAUSES
        INCORPORATED BY FULL TEXT

      

      

      AMCAC
        52.0204-4001, IDENTIFICATION OF OZONE DEPLETING SUBSTANCES (OCT
        1999)

      

      a.
        The
        following required Class I Ozone Depleting Substances (ODS) have been identified
        and 

      approved
        for use under performance of any resultant contract.

      

      (X)
        None.

      

      (_)
        (List
        any approved ODS requirements): ________________________________

      

      __________________________________________________________________________________

      

      __________________________________________________________________________________

      

      b.
        If
        during performance of the contract, an approved Class I ODS is discovered,
        the
        contractor

      is
        encouraged to notify the contracting officer immediately.

      

      c.
        The
        ODS restrictions apply to subcontracts as well.

      

      

      AMCAC
        52.0204-4002, CLASS I OZONE DEPLETING SUBSTANCES (OCT
        1999)

      

      a.
        Per
        Section 326 of Public Law 102-484, effective 1 Jun 93, specifications and
        standards cannot

      require
        the use of Class I ozone depleting substances (ODS) without approval. There
        are
        some cases where

      a
        specification or standard allows
        the use
        of an ODS, but does not specifically require
        its use.
        A situation 

      of
        this
        type does not require substitution under the law.

      

      b.
        If
        this requirement allows, but does not require, the use of a Class I ODS,
        although it is not

      mandatory
        for the contractor to use a non-ODS substance, the contractor is encouraged
        to
        give preference

      to
        using
        the non-ODS choice.

      

      

      AMCAC
        52.0223-4001, OSHA STANDARDS (OCT 1999)

      

      Contractor
        must comply with all applicable OSHA standards. 

       

      
        
          
          

        

        
          Page
            13
            of 37

          
            

          

        

        
          
          

        

      

       

      Section
        D
        - Packaging and Marking 

      

      CLAUSES
        INCORPORATED BY FULL TEXT

      

      

      AMCAC
        52.0247-4001, COMMERCIAL PACKAGING (AUG 1999)

      

      Packaging
        of all
        deliverables as specified in the CDRLs, DD Form 1423-1
        shall be
        in accordance with standard commercial practices, which are necessary to
        prevent
        deterioration and damage due to hazards of shipping, handling and
        storage.

      

      

      APG
        52.0210-4100, CONSIGNMENT OF DELIVERIES (JUL 1999) 

      

      All
        deliveries shall be marked and/or consigned as stated in the Government
        Statement of Work (SOW) and IAW CDRLs, DD Form 1423-1.

       

      NOTE:
        All
        packages/envelopes shall be clearly marked with applicable contract number,
        W91CRB-07-C-0093
        and
        shall contain appropriate packing slip.

       

      
        
          
          

        

        
          Page
            14
            of 37

          
            

          

        

        
          
          

        

      

       

      Section
        E
        - Inspection and Acceptance

      

      INSPECTION
        AND ACCEPTANCE TERMS
        of all
        deliverables shall be performed by the Government at destination and be
        coordinated through the Contracting Officer’s Representative (COR) in accordance
        with the CDRLs, DD Form 1423-1.

      

      CLAUSES
        INCORPORATED BY REFERENCE

      

      

      
        	
                52.246-7
                  

              	
                Inspection
                  Of Research And Development Fixed Price 

              	
                AUG
                  1996 

              	
                 

              
	
                52.246-15
                  

              	
                Certificate
                  of Conformance 

              	
                APR
                  1984 

              	
                 

              
	
                52.246-16
                  

              	
                Responsibility
                  For Supplies 

              	
                APR
                  1984 

              	
                 

              
	
                252.246-7000
                  

              	
                Material
                  Inspection And Receiving Report 

              	
                MAR
                  2003 

              	
                 

              

      

       

      
        
          
          

        

        
          Page
            15
            of 37

          
            

          

        

        
          
          

        

      

       

      Section
        F
        - Deliveries or Performance

      

      PERIOD
        OF PERFORMANCE:

      

      The
        contract Base Effort period of performance shall become effective on
        02 July 2007
        through
        to 01
        January 2008.

      CLIN
        0001 - Base Effort (NTE 6 Months)

      CLIN
        0002 - Travel Expense

      

      Estimated
        Period of Performances for the Options is as follows:

      CLIN
        0003 - Option One (1) Range Resolution Enhancement

      (NTE:
        6 Months After Receipt of Order (ARO) 

      CLIN
        0005 - Option Two (2) Increased EchoscopeTM
        Frequency

      (NTE:
        6 Months ARO) 

      CLIN
        0007 - Option Three (3) Automated Change Detection

      (NTE:
        18 Months ARO) 

      CLIN
        0009 - Option Four (4) not to exceed seven (7) Advanced Prototype UIS
        Systems

      (NTE:
        6 Months ARO)

      CLIN
        0010 - Option Five (5) Development of Prototype One Piece F190 Inertial
        Navigation System to Upgrade UIS Capability (NTE:
        6 Months ARO)

      

      DELIVERY
        INFORMATION:

      

      The
        contractor shall provide all deliverables (CDRLs) in accordance with the
        SOW,
        which are delineated herein under Section 5
        Deliverables and 5.6 Addresses for Deliverables.

      

      The
        UIS System Prototypes shall be delivered to the following
        address:

      Underwater
        Systems, USCG R&D Center

      Scot
        T. Tripp

      1082
        Shennecossett Road

      Avery
        Point, Groton CT

      860-441-2680
        (v) 2792 (f)

      Email:
        Scot.T.Tripp@uscg.mil

       

      
        
          
          

        

        
          Page
            16
            of 37

          
            

          

        

        
          
          

        

      

       

      All
        documentation deliverables shall be delivered to the following addresses
        as
        specified under 5.1 through 5.5

      Contracting
        Officer’s Representative (COR) / Program Manager (PM):

      Lawrence
        Tierney

      Technical
        Support Working group

      P.O.
        Box
        16224

      Arlington,
        VA 22215

      703-604-0122
        (v) 703-602-0180 (f)

      Email: tierneyl@tswg.gov

      

      Procuring
        Contracting Officer (PCO):

      Paula
        Kestler

      U.S.
        Army
        RDECOM Acquisition Center

      Attn:
        AMSSB-ACC-A 

      4118
        Susquehanna Avenue

      Aberdeen
        Proving Ground, MD 21005-3013

      410-278-0795
        (v) 410-306-3735 (efax)

      Email:
        paula.kestler@us.army.mil

      

      CLAUSES
        INCORPORATED BY REFERENCE

      

      
        	
                52.242-15
                  

              	
                Stop-Work
                  Order 

              	
                AUG
                  1989 

              	
                 

              
	
                52.247-34
                  

              	
                F.O.B.
                  Destination 

              	
                NOV
                  1991 

              	
                 

              

      

       

      
        
          
          

        

        
          Page
            17
            of 37

          
            

          

        

        
          
          

        

      

       

      Section
        G
        - Contract Administration Data

      

      CLAUSES
        INCORPORATED BY FULL TEXT

      

      INVOICE
        INFORMATION

      

      AMCAC
        52.0242-4001, INSTRUCTIONS TO PAYING OFFICE AND AMINISTRATIVE CONTRACTING
        OFFICE
        (AUG 1999)

      

      a.
        The Contracting Office representative is:

      

      Name:
        PAULA
        KESTLER -Procuring Contracting Officer (PCO)

      

      Organization
        Code: AMSRD-ACC-CS

       

      Telephone
        Area Code and Number: 410-278-0795
        DSN: 298-0795

       

      E-FAX:
        410-306-3735

       

      Email:
        paula.kestler@us.army.mil

      

      b.
        Payment to the contractor shall be made in accordance with FAR Subpart 32.11,
        Electronic Funds Transfer.

      

      c.
        Paying Office Information: NAVY
        SYSTEMS MANAGEMENT ACTIVITY

      

      Telephone
        Inquiries: 703-699-4165 or 4160 or 4163 or 4170

      FAX:
        703-699-4136

      Email:
        wrtaza.irene@mail.navy.mil 

      

      	d.  	
              Invoice
                Instructions:

            

       

      The
        contractor, CODAOCTOPUS
        INCORPORATED
        is permitted to invoice Monthly per FAR
        Subpart 32.5 Progress Payments
        as follows:

      

      Contractor’s
        Voucher/Invoice shall specify the following:

      	1.  	
              Contractor’s
                name, address, contract number and number consecutively
                starting with 001

            

      	2.  	
              Statement
                as to whether the voucher is for provisional,
                partial
                or
                final
                payment

            

      	3.  	
              Signature
                of authorized representative of the
                contractor

            

      	4.  	
              REMIT
                ADDRESS AS STATED ON THE ACH VENDOR FORM:
                Bank’s name, address, account number type of account, routing number,
                Tax
                ID number and Duns number.

            

      	5.  	
              Invoices
                shall be submitted through the following addressees as stated below
                to
                payment officer for payments (see
                block 12 for payment office):

            

      

      
        
          
          

        

        
          Page
            18
            of 37

          
            

          

        

        
          
          

        

      

      

      CODAOCTOPUS
        INCORPORATED -
        CONTRACTOR: The
        contractor must utilize Public Vouchers (SF 1443) for Progress Payments.
        

      	·  	
              Each
                SIGNED
                voucher/invoice MUST be
                submitted on a MONTHLY
                BASIS.
                

            

      	·  	
              The
                contractor shall submit electronically a signed,
                scanned, emailed and or faxed
                copy to the COR/PM
                (Larry)
                and PCO
                (Paula)
                along with the MSRs.

            

      	·  	
              The
                contractor is instructed to notify the COR and the PCO immediately
                if any
                payments issues occur on the voucher/invoice.

            

       

      Larry
        Tierney - COR/PM: 

      	·  	
              The
                COR/PM is authorized to review, approve, sign and forward the contractor’s
                Progress Payments voucher/invoice direct submissions.
                

            

      	·  	
              The
                COR/PM is also authorized to review, approve and sign DD 250 when
                applicable. 

            

      	·  	
              The
                COR/PM is instructed to notify the PCO if there are any technical
                issues
                that have an impact on the voucher/invoice within five (5) working
                days
                after receipt.

            

      

      Technical
        Support Working Group

      P.O.
        Box 16224

      Arlington,
        VA 22215

      COR:
        Larry Tierney

      703-604-0122
        (v) 703-604-1729 (f)

      Email:
        tierneyl@tswg.gov
        and cdsubgroup@tswg.gov

      

      Paula
        Kestler - PCO: 

      	·  	
              The
                PCO will administer the binding contract, modifications, vouchers/invoices
                and any other pertinent documents.

            

      	·  	
              The
                PCO will also review invoices and notify appropriate person(s) if
                inaccurate.

            

      	·  	
              The
                PCO will sign invoices when directed to so by the
                COR/PM.

            

      

      US
        ARMY RDECOM ACQUISITION CENTER

      AMSRD-ACC-CS

      4118
        Susquehanna Avenue

      APG,
        MD 21005-3013

      PCO:
        Paula Kestler

      410-278-0795
        (v) 410-306-3735 (efax)

      Email:
        paula.kestler@us.army.mil

       

      FUNDING
        INFORMATION

      

      The
        Base
        Effort of the contract will be funded in the amount of $2,597,410.00
        per

      MIPR
        #N41756 07 MP 50382
        (Basic)
        dated 25 April 2007.

      

      ACCOUNTING
        AND APPROPRIATION DATA

      

      
        	
                AA:
                  9770400FBCG0004175600689412D000000G2000715000 

              
	
                AMOUNT:
                  $2,597,410.00 

              
	
                CIN
                  0001 & 0002: $2,597,410.00

              

      

       

      
        
          
          

        

        
          Page
            19
            of 37

          
            

          

        

        
          
          

        

      

       

      POST
        AWARD CONFERENCE

      

      Post
        Award Conference/Project Kick Off Meeting
        shall be
        organized by CODAOCTOPUS
        INCORPORATED
        and held
        at the
        their facility in Saint Petersburg, Florida where the work will be performed
        as
        soon
        as possible following the award, NO
        LATER THAN 30 DAYS after
        the
        contract award date and all stakeholders shall be contacted when this Conference
        /Meeting is to be held. Alternatively at the discretion of the U.S. Coast
        Guard
        and the contracting officer the Post Award Conference/Kick Off Meeting may
        be
        held at one of their nominated facilities. CODAOCTOPUS
        INCORPORATED shall
        keep the minutes of the Conference/Meeting IAW
        CDRL A002 and
        have
        a sign-in roster present. The Conference/Meeting should be in accordance
        with
        FAR 42.503-2. The primary purpose is to review the data package/requirements
        with CODAOCTOPUS
        INCORPORATED to
        clarify any pertinent questions that CODAOCTOPUS
        INCORPORATED may
        propose, and to insure that CODAOCTOPUS
        INCORPORATED has
        a
        complete and legible data package as well as a complete understanding of
        the
        contracts technical and contractual requirements. The purpose of this
        Conference/Meeting is NOT
        to make
        any changes to contract in any way.

      

      
        
          
          

        

        
          Page
            20
            of 37

          
            

          

        

        
          
          

        

      

      

      Section
        H
        - Special Contract Requirements 

      

      CLAUSES
        INCORPORATED BY FULL TEXT

      

      AMCAC
        52.0228-4001, INSURANCE REQUIREMENTS (JUL 1999) 

      

      The
        following insurance is required as a minimum in accordance with the Federal
        Acquisition Regulations and the appropriate clause in Section I:

      

      a.
        Legally Required Insurance: Where certain laws apply, such as State laws
        governing workman’s compensation and employer’s liability coverage, etc., the
        contractor, prior to commencement of work, shall furnish the Contracting
        Officer
        a written statement that such laws have been complied with and that compliance
        will continue throughout the period of contract performance. Minimum coverage
        of
        $100,000 is required.

      

      b.
        Comprehensive General Liability and Automobile Liability:

      

        
          	 	 	
                  Each
                    Person

                	 	
                  Per
                    Occurrence 

                	 	
                  Property
                    Damage

                	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  Comprehensive
                    General

                	 	 	
                  None

                	 	
                  $

                	
                  500,000

                	 	 	
                  None

                	 
	
                  Liability

                	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                  Automobile
                    Liability

                	 	
                  $

                	
                  200,000

                	 	
                  $

                	
                  500,000

                	 	
                  $

                	
                  20,000

                	 

        

      

       

      
        
          
          

        

        
          Page
            21
            of 37

          
            

          

        

        
          
          

        

      

      
AMCAC
        52.0242-4003, GOVERNMENT-CONTRACTOR RELATIONSHIPS (SEP
        1999)

      

      a.
        The
        Government and the contractor understand and agree that the services to be
        delivered under this contract by the contractor to the Government are
        non-personal services and the parties recognize and agree that no
        employer-employee or master-servant relationships exist or will exist under
        the
        contract between the Government and the contractor and/or between the Government
        and the contractor’s employees. It is therefore, in the best interest of the
        Government to afford the parties a full and complete understanding of their
        respective obligations.

      

      b.
        Contractor personnel under this contract shall not:

      

      (1)
        be
        placed in a position where they are appointed or employed by a Federal Officer,
        or are under the supervision, direction, or evaluation of a Federal Officer,
        Military or Civilian.

      

      (2)
        be
        placed in a staff or policymaking position.

      

      (3)
        be
        placed in a position of command, supervision, administration or control over
        DA
        Military or Civilian Personnel, or personnel of other contractors, or become
        a
        part of the Government organization.

      

      (4)
        be
        used for the purpose of avoiding manpower ceilings or other personnel rules
        and
        regulations of DA or the Civil Service Commission.

      

      (5)
        be
        used in administration or supervision of military procurement
        activities.

      

      c.
        Employee Relationship:

      

      (1)
        The
        services to be performed under this contract do not require the contractor
        or
        its employees to exercise personal judgment and discretion on behalf of the
        Government, but rather the contractor’s employees will act and exercise personal
        judgment and discretion on behalf of the contractor.

       

      
        (2)
          Rules, regulations, directions, and requirements that are issued by command
          authorities under their responsibility for good order, administration,
          and
          security are applicable to all personnel who enter the installation, or
          who
          travel on Government transportation. This is not to be construed or interpreted
          to establish any degree of Government control that is inconsistent with
          a
          non-personal services contract. 
           

          
            
              
              

            

            
              Page
                22
                of 37

              
                

              

            

            
              
              

            

          

           

          Section
            I
            - Contract Clauses

        

      

      

      CLAUSES
        INCORPORATED BY REFERENCE

      

      
        	
                52.202-1
                  

              	
                Definitions
                  

              	
                JUL
                  2004 

              	
                 

              
	
                52.203-3
                  

              	
                Gratuities
                  

              	
                APR
                  1984 

              	
                 

              
	
                52.203-5
                  

              	
                Covenant
                  Against Contingent Fees 

              	
                APR
                  1984 

              	
                 

              
	
                52.203-6
                  

              	
                Restrictions
                  On Subcontractor Sales To The Government 

              	
                SEP
                  2006 

              	
                 

              
	
                52.203-7
                  

              	
                Anti-Kickback
                  Procedures 

              	
                JUL
                  1995 

              	
                 

              
	
                52.203-8
                  

              	
                Cancellation,
                  Rescission, and Recovery of Funds for Illegal or Improper Activity
                  

              	
                JAN
                  1997 

              	
                 

              
	
                52.203-10
                  

              	
                Price
                  Or Fee Adjustment For Illegal Or Improper Activity 

              	
                JAN
                  1997 

              	
                 

              
	
                52.203-12
                  

              	
                Limitation
                  On Payments To Influence Certain Federal Transactions 

              	
                SEP
                  2005 

              	
                 

              
	
                52.204-2
                  

              	
                Security
                  Requirements 

              	
                AUG
                  1996 

              	
                 

              
	
                52.204-4
                  

              	
                Printed
                  or Copied Double-Sided on Recycled Paper 

              	
                AUG
                  2000 

              	
                 

              
	
                52.204-7
                  

              	
                Central
                  Contractor Registration 

              	
                JUL
                  2006 

              	
                 

              
	
                52.209-6
                  

              	
                Protecting
                  the Government's Interest When Subcontracting With Contractors
                  Debarred,
                  Suspended, or Proposed for Debarment 

              	
                SEP
                  2006 

              	
                 

              
	
                52.211-5
                  

              	
                Material
                  Requirements 

              	
                AUG
                  2000 

              	
                 

              
	
                52.211-15
                  

              	
                Defense
                  Priority And Allocation Requirements 

              	
                SEP
                  1990 

              	
                 

              
	
                52.215-8
                  

              	
                Order
                  of Precedence--Uniform Contract Format 

              	
                OCT
                  1997 

              	
                 

              
	
                52.215-14
                  Alt I 

              	
                Integrity
                  of Unit Prices (Oct 1997) - Alternate I 

              	
                OCT
                  1997 

              	
                 

              
	
                52.215-17
                  

              	
                Waiver
                  of Facilities Capital Cost of Money 

              	
                OCT
                  1997 

              	
                 

              
	
                52.216-2
                  

              	
                Economic
                  Price Adjustment - Standard Supplies 

              	
                JAN
                  1997 

              	
                 

              
	
                52.219-8
                  

              	
                Utilization
                  of Small Business Concerns 

              	
                MAY
                  2004 

              	
                 

              
	
                52.222-21
                  

              	
                Prohibition
                  Of Segregated Facilities 

              	
                FEB
                  1999 

              	
                 

              
	
                52.222-26
                  

              	
                Equal
                  Opportunity 

              	
                MAR
                  2007 

              	
                 

              
	
                52.222-35
                  

              	
                Equal
                  Opportunity For Special Disabled Veterans, Veterans of the Vietnam
                  Era,
                  and Other Eligible Veterans 

              	
                SEP
                  2006 

              	
                 

              
	
                52.222-36
                  

              	
                Affirmative
                  Action For Workers With Disabilities 

              	
                JUN
                  1998 

              	
                 

              
	
                52.222-37
                  

              	
                Employment
                  Reports On Special Disabled Veterans, Veterans Of The Vietnam Era,
                  and
                  Other Eligible Veterans 

              	
                SEP
                  2006 

              	
                 

              
	
                52.223-6
                  

              	
                Drug-Free
                  Workplace 

              	
                MAY
                  2001 

              	
                 

              
	
                52.223-11
                  

              	
                Ozone-Depleting
                  Substances 

              	
                MAY
                  2001 

              	
                 

              
	
                52.223-13
                  

              	
                Certification
                  of Toxic Chemical Release Reporting 

              	
                AUG
                  2003 

              	
                 

              
	
                52.223-14
                  

              	
                Toxic
                  Chemical Release Reporting 

              	
                AUG
                  2003 

              	
                 

              
	
                52.227-1
                  Alt I 

              	
                Authorization
                  And Consent (Jul 1995) - Alternate I 

              	
                APR
                  1984 

              	
                 

              
	
                52.227-2
                  

              	
                Notice
                  And Assistance Regarding Patent And Copyright Infringement

              	
                AUG
                  1996 

              	
                 

              
	
                52.228-7
                  

              	
                Insurance--Liability
                  To Third Persons 

              	
                MAR
                  1996 

              	
                 

              
	
                52.232-2
                  

              	
                Payments
                  Under Fixed-Price Research And Development Contracts 

              	
                APR
                  1984 

              	
                 

              
	
                52.232-8
                  

              	
                Discounts
                  For Prompt Payment 

              	
                FEB
                  2002 

              	
                 

              
	
                52.232-9
                  

              	
                Limitation
                  On Withholding Of Payments 

              	
                APR
                  1984 

              	
                 

              
	
                52.232-13
                  

              	
                Notice
                  Of Progress Payments 

              	
                APR
                  1984 

              	
                 

              
	
                52.232-14
                  

              	
                Notice
                  Of Availability Of Progress Payments Exclusively For Small Business
                  Concerns 

              	
                APR
                  1984 

              	
                 

              
	
                52.232-17
                  

              	
                Interest
                  

              	
                JUN
                  1996 

              	
                 

              
	
                52.232-22
                  

              	
                Limitation
                  Of Funds 

              	
                APR
                  1984 

              	
                 

              
	
                52.232-23
                  Alt I 

              	
                Assignment
                  of Claims (Jan 1986) - Alternate I 

              	
                APR
                  1984 

              	
                 

              
	
                52.232-25
                  

              	
                Prompt
                  Payment 

              	
                OCT
                  2003 

              	
                 

              

      

       

      
        
          
          

        

        
          Page
            23
            of 37

          
            

          

        

        
          
          

        

      

       

      
        	
                52.232-33
                  

              	
                Payment
                  by Electronic Funds Transfer--Central Contractor Registration
                  

              	
                OCT
                  2003 

              	
                 

              
	
                52.233-1
                  

              	
                Disputes
                  

              	
                JUL
                  2002 

              	
                 

              
	
                52.233-3
                  

              	
                Protest
                  After Award 

              	
                AUG
                  1996 

              	
                 

              
	
                52.239-1
                  

              	
                Privacy
                  or Security Safeguards 

              	
                AUG
                  1996 

              	
                 

              
	
                52.242-13
                  

              	
                Bankruptcy
                  

              	
                JUL
                  1995 

              	
                 

              
	
                52.243-1
                  Alt V 

              	
                Changes--Fixed-Price
                  (Aug 1987) - Alternate V 

              	
                APR
                  1984 

              	
                 

              
	
                52.244-2
                  

              	
                Subcontracts
                  

              	
                AUG
                  1998 

              	
                 

              
	
                52.244-5
                  

              	
                Competition
                  In Subcontracting 

              	
                DEC
                  1996 

              	
                 

              
	
                52.244-6
                  

              	
                Subcontracts
                  for Commercial Items 

              	
                MAR
                  2007 

              	
                 

              
	
                52.245-1
                  

              	
                Property
                  Records 

              	
                APR
                  1984 

              	
                 

              
	
                52.245-2
                  Alt I 

              	
                Government
                  Property (Fixed-Price Contracts) (May 2004) - Alternate I 

              	
                APR
                  1984 

              	
                 

              
	
                52.245-4
                  

              	
                Government-Furnished
                  Property (Short Form) 

              	
                JUN
                  2003 

              	
                 

              
	
                52.245-18
                  

              	
                Special
                  Test Equipment 

              	
                FEB
                  1993 

              	
                 

              
	
                52.245-19
                  

              	
                Government
                  Property Furnished "As Is" 

              	
                APR
                  1984 

              	
                 

              
	
                52.246-24
                  

              	
                Limitation
                  Of Liability--High-Value Items 

              	
                FEB
                  1997 

              	
                 

              
	
                52.249-9
                  

              	
                Default
                  (Fixed-Priced Research And Development) 

              	
                APR
                  1984 

              	
                 

              
	
                52.249-14
                  

              	
                Excusable
                  Delays 

              	
                APR
                  1984 

              	
                 

              
	
                52.253-1
                  

              	
                Computer
                  Generated Forms 

              	
                JAN
                  1991 

              	
                 

              
	
                252.201-7000
                  

              	
                Contracting
                  Officer's Representative 

              	
                DEC
                  1991 

              	
                 

              
	
                252.203-7001
                  

              	
                Prohibition
                  On Persons Convicted of Fraud or Other Defense-Contract-Related
                  Felonies
                  

              	
                DEC
                  2004 

              	
                 

              
	
                252.204-7000
                  

              	
                Disclosure
                  Of Information 

              	
                DEC
                  1991 

              	
                 

              
	
                252.204-7002
                  

              	
                Payment
                  For Subline Items Not Separately Priced 

              	
                DEC
                  1991 

              	
                 

              
	
                252.204-7003
                  

              	
                Control
                  Of Government Personnel Work Product 

              	
                APR
                  1992 

              	
                 

              
	
                252.205-7000
                  

              	
                Provision
                  Of Information To Cooperative Agreement Holders 

              	
                DEC
                  1991 

              	
                 

              
	
                252.209-7004
                  

              	
                Subcontracting
                  With Firms That Are Owned or Controlled By The Government of a
                  Terrorist
                  Country 

              	
                DEC
                  2006 

              	
                 

              
	
                252.225-7001
                  

              	
                Buy
                  American Act And Balance Of Payments Program 

              	
                JUN
                  2005 

              	
                 

              
	
                252.227-7013
                  Alt I 

              	
                Rights
                  in Technical Data--Noncommercial Items (Nov 1995) - Alternate I
                  

              	
                JUN
                  1995 

              	
                 

              
	
                252.227-7014
                  Alt I 

              	
                Rights
                  in Noncommercial Computer Software and Noncommercial Computer Software
                  Documentation (Jun 1995) - Alternate I 

              	
                JUN
                  1995 

              	
                 

              
	
                252.227-7015
                  

              	
                Technical
                  Data--Commercial Items 

              	
                NOV
                  1995 

              	
                 

              
	
                252.227-7016
                  

              	
                Rights
                  in Bid or Proposal Information 

              	
                JUN
                  1995 

              	
                 

              
	
                252.227-7017
                  

              	
                Identification
                  and Assertion of Use, Release, or Disclosure Restrictions 

              	
                JUN
                  1995 

              	
                 

              
	
                252.227-7019
                  

              	
                Validation
                  of Asserted Restrictions--Computer Software 

              	
                JUN
                  1995 

              	
                 

              
	
                252.227-7020
                  

              	
                Rights
                  In Data--Special Works 

              	
                JUN
                  1995 

              	
                 

              
	
                252.227-7021
                  

              	
                Rights
                  In Data--Existing Works 

              	
                MAR
                  1979 

              	
                 

              
	
                252.227-7026
                  

              	
                Deferred
                  Delivery Of Technical Data Or Computer Software 

              	
                APR
                  1988 

              	
                 

              
	
                252.227-7027
                  

              	
                Deferred
                  Ordering Of Technical Data Or Computer Software 

              	
                APR
                  1988 

              	
                 

              
	
                252.227-7037
                  

              	
                Validation
                  of Restrictive Markings on Technical Data 

              	
                SEP
                  1999 

              	
                 

              
	
                252.227-7039
                  

              	
                Patents--Reporting
                  Of Subject Inventions 

              	
                APR
                  1990 

              	
                 

              
	
                252.232-7010
                  

              	
                Levies
                  on Contract Payments 

              	
                DEC
                  2006 

              	
                 

              
	
                252.235-7010
                  

              	
                Acknowledgment
                  of Support and Disclaimer 

              	
                MAY
                  1995 

              	
                 

              
	
                252.235-7011
                  

              	
                Final
                  Scientific or Technical Report 

              	
                NOV
                  2004 

              	
                 

              
	
                252.243-7002
                  

              	
                Requests
                  for Equitable Adjustment 

              	
                MAR
                  1998 

              	
                 

              
	
                252.245-7001
                  

              	
                Reports
                  Of Government Property 

              	
                MAY
                  1994 

              	
                 

              
	
                252.246-7001
                  Alt II 

              	
                Warranty
                  Of Data (Dec 1991) - Alternate II 

              	
                DEC
                  1991 

              	
                 

              

      

       

      
        
          
          

        

        
          Page
            24
            of 37

          
            

          

        

        
          
          

        

      

      

      CLAUSES
        INCORPORATED BY FULL TEXT

      

      52.215-6
        Place of Performance. 

      

      As
        prescribed in 15.209(f), insert the following provision: 

      Place
        of Performance (Oct 1997)

      (a)
        The
        offeror or respondent, in the performance of any contract resulting from
        this
        solicitation, 

      o  intends, xdoes
        not
        intend [check
        applicable block]
        to use
        one or more plants or facilities located at a different address from the
        address
        of the offeror or respondent as indicated in this proposal or response to
        request for information. 

      (b)
        If
        the offeror or respondent checks "intends" in paragraph (a) of this provision,
        it shall insert in the following spaces the required information: 

      

      
        	 	
                 

                PLACE
                  OF PERFORMANCE

                 

              	
                NAME
                  AND ADDRESS OF OWNER AND OPERATOR OF THE PLANT OR FACILITY IF OTHER
                  THAN
                  OFFEROR OR RESPONDENT

              
	
                NAME
                  OF COMPANY

              	
                CodaOctopus,
                  Inc.

              	 
	
                STREET
                  ADDRESS

              	
                100
                  14th
                  Avenue South

              	 
	
                 

                CITY

              	
                 

                Saint
                  Petersburg

              	 
	
                STATE

              	
                FL

              	 
	
                COUNTY

              	
              	 
	
                ZIP
                  CODE

              	
                33701

              	 

      

       

      (End
        of
        provision) 

      

      52.217-7
        OPTION FOR INCREASED QUANTITY--SEPARATELY PRICED LINE ITEM (MAR
        1989)

      

      The
        Government may require the delivery of the numbered line item, identified
        in the
        Schedule as an option item, in the quantity and at the price stated in the
        Schedule. The Contracting Officer may exercise the option by written notice
        to
        the Contractor within
        the six (6) month period of performance.
        Delivery of added items shall continue at the same rate that like items are
        called for under the contract, unless the parties otherwise agree.

      

      (End
        of
        clause)

       

      
        
          
          

        

        
          Page
            25
            of 37

          
            

          

        

        
          
          

        

      

       

      52.217-9
        OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

      

      (a)
        The
        Government may extend the term of this contract by written notice to the
        Contractorwithin
        the six (6) month period of performance;
        provided that the Government gives the Contractor a preliminary written notice
        of its intent to extend
        at least 30 days before
        the contract expires. The preliminary notice does not commit the Government
        to
        an extension.

      

      (b)
        If
        the Government exercises this option, the extended contract shall be considered
        to include this option clause.

      

      (c)
        The
        total duration of this contract, including the exercise of any options under
        this clause, shall not exceed four
        (4) years or 48 months.

      

      (End
        of
        clause)

      

      52.227-11
        PATENT RIGHTS--RETENTION BY THE CONTRACTOR (SHORT FORM) (JUN 1997)

      

      (a)
        Definitions. 

      

      (1)
        "Invention" means any invention or discovery which is or may be patentable
        or
        otherwise protectable under title 35 of the United States Code, or any novel
        variety of plant which is or may be protected under the Plant Variety Protection
        Act (7 U.S.C. 2321, et seq.).

      

      (2)
        "Made" when used in relation to any invention means the conception or first
        actual reduction to practice of such invention. 

      

      (3)
        "Nonprofit organization" means a university or other institution of higher
        education or an organization of the type described in section 501(c) (3)
        of the
        Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from taxation
        under
        section 501(a) of the Internal Revenue Code (26 U.S.C. 501(a)) or any nonprofit
        scientific or educational organization qualified under a state nonprofit
        organization statute. 

      

      (4)
        "Practical application" means to manufacture, in the case of a composition
        of
        product; to practice, in the case of a process or method, or to operate,
        in the
        case of a machine or system; and, in each case, under such conditions as
        to
        establish that the invention is being utilized and that is benefits are,
        to the
        extent permitted by law or Government regulations, available to the public
        on
        reasonable terms. 

      

      (5)
        "Small business firm" means a small business concern as defined at section
        2 of
        Pub. L. 85-536 (15 U.S.C. 632) and implementing regulations of the Administrator
        of the Small Business Administration. For the purpose of this clause, the
        size
        standards for small business concerns involved in Government procurement
        and
        subcontracting at 13 CFR 121.3-8 and 13 CFR 121.3-12, respectively, will
        be
        used. 

      

      (6)
        "Subject invention" means any invention of the contractor conceived or first
        actually reduced to practice in the performance of work under this contract,
        provided that in the case of a variety of plant, the date of determination
        (as
        defined in section 41(d) of the Plant Variety Protection Act, 7 U.S.C. 2401(d))
        must also occur during the period of contract performance. 

      

      (b)
        Allocation of principal rights. The Contractor may retain the entire right,
        title, and interest throughout the world to each subject invention subject
        to
        the provisions of this clause and 35 U.S.C. 203. With respect to any subject
        invention in which the Contractor retains title, the Federal Government shall
        have a nonexclusive, nontransferable, irrevocable, paid-up license to practice
        or have practiced for or on behalf of the United States the subject invention
        throughout the world. 

      

      
        
          
          

        

        
          Page
            26
            of 37

          
            

          

        

        
          
          

        

      

      

      (c)
        Invention disclosure, election of title, and filing of patent application
        by
        Contractor. (1) The Contractor will disclose each subject invention to the
        Federal agency within 2 months after the inventor discloses it in writing
        to
        Contractor personnel responsible for patent matters. The disclosure to the
        agency shall be in the form of a written report and shall identify the contract
        under which the invention was made and the inventor(s). It shall be sufficiently
        complete in technical detail to convey a clear understanding to the extent
        known
        at the time of the disclosure, of the nature, purpose, operation, and the
        physical, chemical, biological or electrical characteristics of the invention.
        The disclosure shall also identify any publication, on sale or public use
        of the
        invention and whether a manuscript describing the invention has been submitted
        for publication and, if so, whether it has been accepted for publication
        at the
        time of disclosure. In addition, after disclosure to the agency, the Contractor
        will promptly notify the agency of the acceptance of any manuscript describing
        the invention for publication or of any on sale or public use planned by
        the
        Contractor. 

      

      (2)
        The
        Contractor will elect in writing whether or not to retain title to any such
        invention by notifying the Federal agency within 2 years of disclosure to
        the
        Federal agency. However, in any case where publication, on sale or public
        use
        has initiated the 1-year statutory period wherein valid patent protection
        can
        still be obtained in the United States, the period for election of title
        may be
        shortened by the agency to a date that is no more than 60 days prior to the
        end
        of the statutory period. 

      

      (3)
        The
        Contractor will file its initial patent application on a subject invention
        to
        which it elects to retain title within 1 year after election of title or,
        if
        earlier, prior to the end of any statutory period wherein valid patent
        protection can be obtained in the United States after a publication, on sale,
        or
        public use. The Contractor will file patent applications in additional countries
        or international patent offices within either 10 months of the corresponding
        initial patent application or 6 months from the date permission is granted
        by
        the Commissioner of Patents and Trademarks to file foreign patent applications
        where such filing has been prohibited by a Secrecy Order. 

      

      (4)
        Requests for extension of the time for disclosure election, and filing under
        subparagraphs (c) (1), (2), and (3) of this clause may, at the discretion
        of the
        agency, be granted. 

      

      (d)
        Conditions when the Government may obtain title. The Contractor will convey
        to
        the Federal agency, upon written request, title to any subject invention--
        

      

      (1)
        If
        the Contractor fails to disclose or elect title to the subject invention
        within
        the times specified in paragraph (c) of this clause, or elects not to retain
        title; provided, that the agency may only request title within 60 days after
        learning of the failure of the Contractor to disclose or elect within the
        specified times. 

      

      (2)
        In
        those countries in which the Contractor fails to file patent applications
        within
        the times specified in paragraph (c) of this clause; provided, however, that
        if
        the Contractor has filed a patent application in a country after the times
        specified in paragraph (c) of this clause, but prior to its receipt of the
        written request of the Federal agency, the Contractor shall continue to retain
        title in that country. 

      

      (3)
        In
        any country in which the Contractor decides not to continue the prosecution
        of
        any application for, to pay the maintenance fees on, or defend in reexamination
        or opposition proceeding on, a patent on a subject invention. 

      

      (e)
        Minimum rights to Contractor and protection of the Contractor right to file.
        (1)
        The Contractor will retain a nonexclusive royalty-free license throughout
        the
        world in each subject invention to which the Government obtains title, except
        if
        the Contractor fails to disclose the invention within the times specified
        in
        paragraph (c) of this clause. The Contractor's license extends to its domestic
        subsidiary and affiliates, if any, within the corporate structure of which
        the
        Contractor is a party and includes the right to grant sublicenses of the
        same
        scope to the extent the Contractor was legally obligated to do so at the
        time
        the contract was awarded. The license is transferable only with the approval
        of
        the Federal agency, except when transferred to the successor of that part
        of the
        Contractor's business to which the invention pertains. 

      

      
        
          
          

        

        
          Page
            27
            of 37

          
            

          

        

        
          
          

        

      

      

      (2)
        The
        Contractor's domestic license may be revoked or modified by the funding Federal
        agency to the extent necessary to achieve expeditious practical application
        of
        subject invention pursuant to an application for an exclusive license submitted
        in accordance with applicable provisions at 37 CFR Part 404 and agency licensing
        regulations (if any). This license will not be revoked in that field of use
        or
        the geographical areas in which the Contractor has achieved practical
        application and continues to make the benefits of the invention reasonably
        accessible to the public. The license in any foreign country may be revoked
        or
        modified at the discretion of the funding Federal agency to the extent the
        Contractor, its licensees, or the domestic subsidiaries or affiliates have
        failed to achieve practical application in that foreign country. 

      

      (3)
        Before revocation or modification of the license, the funding Federal agency
        will furnish the Contractor a written notice of its intention to revoke or
        modify the license, and the Contractor will be allowed 30 days (or such other
        time as may be authorized by the funding Federal agency for good cause shown
        by
        the Contractor) after the notice to show cause why the license should not
        be
        revoked or modified. The Contractor has the right to appeal, in accordance
        with
        applicable regulations in 37 CFR Part 404 and agency regulations, if any,
        concerning the licensing of

      Government-owned
        inventions, any decision concerning the revocation or modification of the
        license. 

      

      (f)
        Contractor action to protect the Government's interest. (1) The Contractor
        agrees to execute or to have executed and promptly deliver to the Federal
        agency
        all instruments necessary to (i) establish or confirm the rights the Government
        has throughout the world in those subject inventions to which the Contractor
        elects to retain title, and (ii) convey title to the Federal agency when
        requested under paragraph (d) of this clause and to enable the Government
        to
        obtain patent protection throughout the world in that subject invention.
        

      

      (2)
        The
        Contractor agrees to require, by written agreement, its employees, other
        than
        clerical and nontechnical employees, to disclose promptly in writing to
        personnel identified as responsible for the administration of patent matters
        and
        in a format suggested by the Contractor each subject invention made under
        contract in order that the Contractor can comply with the disclosure provisions
        of paragraph (c) of this clause, and to execute all papers necessary to file
        patent applications on subject inventions and to establish the Government's
        rights in the subject inventions. This disclosure format should require,
        as a
        minimum, the information required by subparagraph (c) (1) of this clause.
        The
        Contractor shall instruct such employees, through employee agreements or
        other
        suitable educational programs, on the importance of reporting inventions
        in
        sufficient time to permit the filing of patent applications prior to U.S.
        or
        foreign statutory bars. 

      

      (3)
        The
        Contractor will notify the Federal agency of any decisions not to continue
        the
        prosecution of a patent application, pay maintenance fees, or defend in a
        reexamination or opposition proceeding on a patent, in any country, not less
        than 30 days before the expiration of the response period required by the
        relevant patent office. 

      

      (4)
        The
        Contractor agrees to include, within the specification of any United States
        patent application and any patent issuing thereon covering a subject invention,
        the following statement, "This invention was made with Government support
        under
        (identify the contract) awarded by (identify the Federal agency). The Government
        has certain rights in the invention." 

      

      (g)
        Subcontracts. (1) The Contractor will include this clause, suitably modified
        to
        identify the parties, in al subcontracts, regardless of tier, for experimental,
        developmental, or research work to be performed by a small business firm
        or
        domestic nonprofit organization. The subcontractor will retain all rights
        provided for the Contractor in this clause, and the Contractor will not,
        as part
        of the consideration for awarding the subcontract, obtain rights in the
        subcontractor's subject inventions. 

      

      (2)
        The
        Contractor will include in all other subcontracts, regardless of tier, for
        experimental, developmental, or research work the patent rights clause required
        by Subpart 27.3. 

      

      
        
          
          

        

        
          Page
            28
            of 37

          
            

          

        

        
          
          

        

      

      

      (3)
        In
        the case of subcontracts, at any tier, the agency, subcontractor, and the
        Contractor agree that the mutual obligations of the parties created by this
        clause constitute a contract between the subcontractor and the Federal agency
        with respect to the matters covered by the clause; provided, however, that
        nothing in this paragraph is intended to confer any jurisdiction under the
        Contract Disputes Act in connection with proceedings under paragraph (j)
        of this
        clause. 

      

      (h)
        Reporting on utilization of subject inventions. The Contractor agrees to
        submit,
        on request, periodic reports no more frequently than annually on the utilization
        of a subject invention or on efforts at obtaining such utilization that are
        being made by the Contractor or its licensees or assignees. Such reports
        shall
        include information regarding the status of development, date of first
        commercial sale or use, gross royalties received by the Contractor, and such
        other data and information as the agency may reasonably specify. The Contractor
        also agrees to provide additional reports as may be requested by the agency
        in
        connection with any march-in proceeding undertaken by the agency in accordance
        with paragraph (j) of this clause. As required by 35 U.S.C. 202(c) (5), the
        agency agrees it will not disclose such information to persons outside the
        Government without permission of the Contractor. 

      

      (i)
        Preference for United States industry. Notwithstanding any other provision
        of
        this clause, the Contractor agrees that neither it nor any assignee will
        grant
        to any person the exclusive right to use or sell any subject invention in
        the
        United States unless such person agrees that any product embodying the subject
        invention or produced through the use of the subject invention will be
        manufactured substantially in the United States. However, in individual cases,
        the requirement for such an agreement may be waived by the Federal agency
        upon a
        showing by the Contractor or its assignee that reasonable but unsuccessful
        efforts have been made to grant licenses on similar terms to potential licensees
        that would be likely to manufacture substantially in the United States or
        that
        under the circumstances domestic manufacture is not commercially feasible.
        

      

      (j)
        March-in rights. The Contractor agrees that, with respect to any subject
        invention in which it has acquired title, the Federal agency has the right
        in
        accordance with the procedures in 37 CFR 401.6 and any supplemental regulations
        of the agency to require the Contractor, an assignee or exclusive licensee
        of a
        subject invention to grant a nonexclusive, partially exclusive, or exclusive
        license in any field of use to a responsible applicant or applicants, upon
        terms
        that are reasonable under the circumstances, and if the Contractor, assignee,
        or
        exclusive licensee refuses such a request the Federal agency has the right
        to
        grant such a license itself if the Federal agency determines that--

      

      (1)
        Such
        action is necessary because the Contractor or assignee has not taken, or
        is not
        expected to take within a reasonable time, effective steps to achieve practical
        application of the subject invention in such field of use; 

      

      (2)
        Such
        action is necessary to alleviate health or safety needs which are not reasonably
        satisfied by the Contractor, assignee, or their licensees; 

      

      (3)
        Such
        action is necessary to meet requirements for public use specified by Federal
        regulations and such requirements are not reasonably satisfied by the
        Contractor, assignee, or licensees; or 

      

      (4)
        Such
        action is necessary because the agreement required by paragraph (i) of this
        clause has not been obtained or waived or because a licensee of the exclusive
        right to use or sell any subject invention in the United States is in breach
        of
        such agreement. 

      

      (k)
        Special provisions for contracts with nonprofit organizations. If the Contractor
        is a nonprofit organization, it agrees that-- 

      

      (1)
        Rights to a subject invention in the United States may not be assigned without
        the approval of the Federal agency, except where such assignment is made
        to an
        organization which has as one of its primary functions the management of
        inventions; provided, that such assignee will be subject to the same provisions
        as the Contractor; 

      

      (2)
        The
        Contractor will share royalties collected on a subject invention with the
        inventor, including Federal employee co-inventors (when the agency deems
        it
        appropriate) when the subject invention is assigned in accordance with 35
        U.S.C.
        202(e) and 37 CFR 401.10; 

       

      
        
          
          

        

        
          Page
            29
            of 37

          
            

          

        

        
          
          

        

      

       

      (3)
        The
        balance of any royalties or income earned by the Contractor with respect
        to
        subject inventions, after payment of expenses (including payments to inventors)
        incidental to the administration of subject inventions will be utilized for
        the
        support of scientific research or education; and 

      

      (4)
        It
        will make efforts that are reasonable under the circumstances to attract
        licensees of subject inventions that are small business firms, and that it
        will
        give a preference to a small business firm when licensing a subject invention
        if
        the Contractor determines that the small business firm has a plan or proposal
        for marketing the invention which, if executed, is equally as likely to bring
        the invention to practical application as any plans or proposals from applicants
        that are not small business firms; provided, that the Contractor is also
        satisfied that the small business firm has the capability and resources to
        carry
        out its plan or proposal. The decision whether to give a preference in any
        specific case will be at the discretion of the contractor. However, the
        Contractor agrees that the Secretary of Commerce may review the Contractor's
        licensing program and decisions regarding small business applicants, and
        the
        Contractor will negotiate changes to its licensing policies, procedures,
        or
        practices with the Secretary of Commerce when the Secretary's review discloses
        that the Contractor could take reasonable steps to more effectively implement
        the requirements of this subparagraph (k) (4). 

      

      (l)
        Communications. 

      

      Refer
        all questions regarding this clause to the procuring contracting officer,
        Paula
        Kestler @ 410-278-0795 or email: paula.kestler@us.army.mil

      

      (End
        of
        clause) 

      

      52.232-16
        PROGRESS PAYMENTS (APR 2003) ALTERNATE I (MAR 2000)

      

      The
        Government will make progress payments to the Contractor when requested as
        work
        progresses, but not more frequently than monthly,
        in
        amounts predetermined and approved by the Contracting
        Officer,
        under
        the following conditions:

      

      (a)
        Computation of amounts. (1) Unless the Contractor requests a smaller amount,
        the
        Government will compute each progress payment as 80 percent of the Contractor's
        total costs incurred under this contract whether or not actually paid, plus
        financing payments to subcontractors (see paragraph (j) of this clause),
        less
        the sum of all previous progress payments made by the Government under this
        contract. The Contracting Officer will consider cost of money that would
        be
        allowable under FAR 31.205-10 as an incurred cost for progress payment
        purposes.

      

      (2)
        The
        amount of financing and other payments for supplies and services purchased
        directly for the contract are limited to the amounts that have been paid
        by
        cash, check, or other forms of payment, or that are determined due and will
        be
        paid to subcontractors--

      

      (i)
        In
        accordance with the terms and conditions of a subcontract or invoice;
        and

      

      (ii)
        Ordinarily within 30 days of the submission of the Contractor's payment request
        to the Government.

      

      (3)
        The
        Government will exclude accrued costs of Contractor contributions under employee
        pension plans until actually paid unless--

      

      (i)
        The
        Contractor's practice is to make contributions to the retirement fund quarterly
        or more frequently; and

      

      (ii)
        The
        contribution does not remain unpaid 30 days after the end of the applicable
        quarter or shorter payment period (any contribution remaining unpaid shall
        be
        excluded from the Contractor's total costs for progress payments until
        paid).

       

      
        
          
          

        

        
          Page
            30
            of 37

          
            

          

        

        
          
          

        

      

       

      (4)
        The
        Contractor shall not include the following in total costs for progress payment
        purposes in paragraph (a)(1) of this clause:

      

      (i)
        Costs
        that are not reasonable, allocable to this contract, and consistent with
        sound
        and generally accepted accounting principles and practices.

      

      (ii)
        Costs incurred by subcontractors or suppliers.

      

      (iii)
        Costs ordinarily capitalized and subject to depreciation or amortization
        except
        for the properly depreciated or amortized portion of such costs.

      

      (iv)
        Payments made or amounts payable to subcontractors or suppliers, except for
        --

      

      (A)
        Completed work, including partial deliveries, to which the Contractor has
        acquired title; and

      

      (B)
        Work
        under cost-reimbursement or time-and-material subcontracts to which the
        Contractor has acquired title.

      

      (5)
        The
        amount of unliquidated progress payments may exceed neither

      

      (i)
        the
        progress payments made against incomplete work (including allowable unliquidated
        progress payments to subcontractors) nor 

      

      (ii)
        the
        value, for progress payment purposes, of the incomplete work. Incomplete
        work
        shall be considered to be the supplies and services required by this contract,
        for which delivery and invoicing by the Contractor and acceptance by the
        Government are incomplete.

      

      (6)
        The
        total amount of progress payments shall not exceed 80 percent of the total
        contract price.

      

      (7)
        If a
        progress payment or the unliquidated progress payments exceed the amounts
        permitted by subparagraphs (a)(4) or (a)(5) of this clause, the Contractor
        shall
        repay the amount of such excess to the Government on demand.

      

      (8)
        Notwithstanding any other terms of the contract, the Contractor agrees not
        to
        request progress payments in dollar amounts of less than $2,500. The Contracting
        Officer may make exceptions.

      

      (b)
        Liquidation. Except as provided in the Termination for Convenience of the
        Government clause, all progress payments shall be liquidated by deducting
        from
        any payment under this contract, other than advance or progress payments,
        the
        unliquidated progress payments, or 80 percent of the amount invoiced, whichever
        is less. The Contractor shall repay to the Government any amounts required
        by a
        retroactive price reduction, after computing liquidations and payments on
        past
        invoices at the reduced prices and adjusting the unliquidated progress payments
        accordingly. The Government reserves the right to unilaterally change from
        the
        ordinary liquidation rate to an alternate rate when deemed appropriate for
        proper contract financing.

      

      (c)
        Reduction or suspension. The Contracting Officer may reduce or suspend progress
        payments, increase the rate of liquidation, or take a combination of these
        actions, after finding on substantial evidence any of the following
        conditions:

      

      (1)
        The
        Contractor failed to comply with any material requirement of this contract
        (which includes paragraphs (f) and (g) of this clause).

      

      (2)
        Performance of this contract is endangered by the Contractor's --

      

      (i)
        Failure to make progress or 

      

      (ii)
        Unsatisfactory financial condition.

       

      
        
          
          

        

        
          Page
            31
            of 37

          
            

          

        

        
          
          

        

      

       

      (3)
        Inventory allocated to this contract substantially exceeds reasonable
        requirements.

      

      (4)
        The
        Contractor is delinquent in payment of the costs of performing this contract
        in
        the ordinary course of business.

      

      (5)
        The
        unliquidated progress payments exceed the fair value of the work accomplished
        on
        the undelivered portion of this contract.

      

      (6)
        The
        Contractor is realizing less profit than that reflected in the establishment
        of
        any alternate liquidation rate in paragraph (b) of this clause, and that
        rate is
        less than the progress payment rate stated in subparagraph (a)(1) of this
        clause.

      

      (d)
        Title. 

      

      (1)
        Title
        to the property described in this paragraph (d) shall vest in the Government.
        Vestiture shall be immediately upon the date of this contract, for property
        acquired or produced before that date. Otherwise, vestiture shall occur when
        the
        property is or should have been allocable or properly chargeable to this
        contract.

      

      (2)
        "Property," as used in this clause, includes all of the below-described items
        acquired or produced by the Contractor that are or should be allocable or
        properly chargeable to this contract under sound and generally accepted
        accounting principles and practices.

      

      (i)
        Parts, materials, inventories, and work in process;

      

      (ii)
        Special tooling and special test equipment to which the Government is to
        acquire
        title under any other clause of this contract;

      

      (iii)
        Nondurable (i.e., noncapital) tools, jigs, dies, fixtures, molds, patterns,
        taps, gauges, test equipment, and other similar manufacturing aids, title
        to
        which would not be obtained as special tooling under paragraph (d)(2)(ii)
        above;
        and

      

      (iv)
        Drawings and technical data, to the extent the Contractor or subcontractors
        are
        required to deliver them to the Government by other clauses of this
        contract.

      

      (3)
        Although title to property is in the Government under this clause, other
        applicable clauses of this contract; e.g., the termination or special tooling
        clauses, shall determine the handling and disposition of the
        property.

      

      (4)
        The
        Contractor may sell any scrap resulting from production under this contract
        without requesting the Contracting Officer's approval, but the proceeds shall
        be
        credited against the costs of performance.

      

      (5)
        To
        acquire for its own use or dispose of property to which title is vested in
        the
        Government under this clause, the Contractor must obtain the Contracting
        Officer's advance approval of the action and the terms. The Contractor shall
        (i)
        exclude the allocable costs of the property from the costs of contract
        performance, and (ii) repay to the Government any amount of unliquidated
        progress payments allocable to the property. Repayment may be by cash or
        credit
        memorandum.

      

      (6)
        When
        the Contractor completes all of the obligations under this contract, including
        liquidation of all progress payments, title shall vest in the Contractor
        for all
        property (or the proceeds thereof) not--

      

      (i)
        Delivered to, and accepted by, the Government under this contract;
        or

      

      (ii)
        Incorporated in supplies delivered to, and accepted by, the Government under
        this contract and to which title is vested in the Government under this
        clause.

       

      
        
          
          

        

        
          Page
            32
            of 37

          
            

          

        

        
          
          

        

      

       

      (7)
        The
        terms of this contract concerning liability for Government-furnished property
        shall not apply to property to which the Government acquired title solely
        under
        this clause.

      

      (e)
        Risk
        of loss. Before delivery to and acceptance by the Government, the Contractor
        shall bear the risk of loss for property, the title to which vests in the
        Government under this clause, except to the extent the Government expressly
        assumes the risk. The Contractor shall repay the Government an amount equal
        to
        the unliquidated progress payments that are based on costs allocable to property
        that is damaged, lost, stolen, or destroyed.

      

      (f)
        Control of costs and property. The Contractor shall maintain an accounting
        system and controls adequate for the proper administration of this
        clause.

      

      (g)
        Reports and access to records. The Contractor shall promptly furnish reports,
        certificates, financial statements, and other pertinent information reasonably
        requested by the Contracting Officer for the administration of this clause.
        Also, the Contractor shall give the Government reasonable opportunity to
        examine
        and verify the Contractor's books, records, and accounts.

      

      (h)
        Special terms regarding default. If this contract is terminated under the
        Default clause, (i) the Contractor shall, on demand, repay to the Government
        the
        amount of unliquidated progress payments and (ii) title shall vest in the
        Contractor, on full liquidation of progress payments, for all property for
        which
        the Government elects not to require delivery under the Default clause. The
        Government shall be liable for no payment except as provided by the Default
        clause.

      

      (i)
        Reservations of rights. 

      

      (1)
        No
        payment or vesting of title under this clause shall -

      

      (i)
        excuse the Contractor from performance of obligations under this contract
        or
        (ii) constitute a waiver of any of the rights or remedies of the parties
        under
        the contract.

      

      (2)
        The
        Government's rights and remedies under this clause 

      

      (i)
        Shall
        not be exclusive but rather shall be in addition to any other rights and
        remedies provided by law or this contract and 

      

      (ii)
        Shall not be affected by delayed, partial, or omitted exercise of any right,
        remedy, power, or privilege, nor shall such exercise or any single exercise
        preclude or impair any further exercise under this clause or the exercise
        of any
        other right, power, or privilege of the Government.

      

      (j)
        Financing payments to subcontractors. The financing payments to subcontractors
        mentioned in paragraphs (a)(1) and (a)(2) of this clause shall be all financing
        payments to subcontractors or divisions, if the following conditions are
        met:

      

      (1)
        The
        amounts included are limited to--

      

      (i)
        The
        unliquidated remainder of financing payments made; plus

      

      (ii)
        Any
        unpaid subcontractor requests for financing payments.

      

      (2)
        The
        subcontract or interdivisional order is expected to involve a minimum of
        approximately 6 months between the beginning of work and the first delivery;
        or,
        if the subcontractor is a small business concern, 4 months.

      

      (3)
        If
        the financing payments are in the form of progress payments, the terms of
        the
        subcontract or interdivisional order concerning progress payments--

       

      
        
          
          

        

        
          Page
            33
            of 37

          
            

          

        

        
          
          

        

      

       

      (i)
        Are
        substantially similar to the terms of this clause for any subcontractor that
        is
        a large business concern, or this clause with its Alternate I for any
        subcontractor that is a small business concern;

      

      (ii)
        Are
        at least as favorable to the Government as the terms of this
        clause;

      

      (iii)
        Are
        not more favorable to the subcontractor or division than the terms of this
        clause are to the Contractor;

      

      (iv)
        Are
        in conformance with the requirements of FAR 32.504(e); and

      

      (v)
        Subordinate all subcontractor rights concerning property to which the Government
        has title under the subcontract to the Government's right to require delivery
        of
        the property to the Government if--

      

      (A)
        The
        Contractor defaults; or

      

      (B)
        The
        subcontractor becomes bankrupt or insolvent.

      

      (4)
        If
        the financing payments are in the form of performance-based payments, the
        terms
        of the subcontract or interdivisional order concerning payments--

      

      (i)
        Are
        substantially similar to the Performance-Based Payments clause at FAR 52.232-32
        and meet the criteria for, and definition of, performance-based payments
        in FAR
        Part 32;

      

      (ii)
        Are
        in conformance with the requirements of FAR 32.504(f); and

      

      (iii)
        Subordinate all subcontractor rights concerning property to which the Government
        has title under the subcontract to the Government's right to require delivery
        of
        the property to the Government if--

      

      (A)
        The
        Contractor defaults; or

      

      (B)
        The
        subcontractor becomes bankrupt or insolvent.

      

      (5)
        If
        the financing payments are in the form of commercial item financing payments,
        the terms of the subcontract or interdivisional order concerning
        payments--

      

      (i)
        Are
        constructed in accordance with FAR 32.206(c) and included in a subcontract
        for a
        commercial item purchase that meets the definition and standards for acquisition
        of commercial items in FAR Parts 2 and 12;

      

      (ii)
        Are
        in conformance with the requirements of FAR 32.504(g); and

      

      (iii)
        Subordinate all subcontractor rights concerning property to which the Government
        has title under the subcontract to the Government's right to require delivery
        of
        the property to the Government if--

      

      (A)
        The
        Contractor defaults; or

      

      (B)
        The
        subcontractor becomes bankrupt or insolvent.

      

      (6)
        If
        financing is in the form of progress payments, the progress payment rate
        in the
        subcontract is the customary rate used by the contracting agency, depending
        on
        whether the subcontractor is or is not a small business concern.

      

      (7)
        Concerning any proceeds received by the Government for property to which
        title
        has vested in the Government under the subcontract terms, the parties agree
        that
        the proceeds shall be applied to reducing any unliquidated financing payments
        by
        the Government to the Contractor under this contract.

       

      
        
          
          

        

        
          Page
            34
            of 37

          
            

          

        

        
          
          

        

      

       

      (8)
        If no
        unliquidated financing payments to the Contractor remain, but there are
        unliquidated financing payments that the Contractor has made to any
        subcontractor, the Contractor shall be subrogated to all the rights the
        Government obtained through the terms required by this clause to be in any
        subcontract, as if all such rights had been assigned and transferred to the
        Contractor.

      

      (9)
        To
        facilitate small business participation in subcontracting under this contract,
        the Contractor shall provide financing payments to small business concerns,
        in
        conformity with the standards for customary contract financing payments stated
        in FAR 32.113. The Contractor shall not consider the need for such financing
        payments as a handicap or adverse factor in the award of
        subcontracts.

      

      (k)
        Limitations on undefinitized contract actions. Notwithstanding any other
        progress payment provisions in this contract, progress payments may not exceed
        80 percent of costs incurred on work accomplished under undefinitized contract
        actions. A "contract action" is any action resulting in a contract, as defined
        in Subpart 2.1, including contract modifications for additional supplies
        or
        services, but not including contract modifications that are within the scope
        and
        under the terms of the contract, such as contract modifications issued pursuant
        to the Changes clause, or funding and other administrative changes. This
        limitation shall apply to the costs incurred, as computed in accordance with
        paragraph (a) of this clause, and shall remain in effect until the contract
        action is definitized. Costs incurred which are subject to this limitation
        shall
        be segregated on Contractor progress payment requests and invoices from those
        costs eligible for higher progress payment rates. For purposes of progress
        payment liquidation, as described in paragraph (b) of this clause, progress
        payments for undefinitized contract actions shall be liquidated at 80 percent
        of
        the amount invoiced for work performed under the undefinitized contract action
        as long as the contract action remains undefinitized. The amount of unliquidated
        progress payments for undefinitized contract actions shall not exceed 80
        percent
        of the maximum liability of the Government under the undefinitized contract
        action or such lower limit specified elsewhere in the contract. Separate
        limits
        may be specified for separate actions.

      

      (l)
        Due date. The designated payment office will make progress payments on the
        15th
        day after the designated billing office receives a proper progress payment
        request.
        In the event that the Government requires an audit or other review of a specific
        progress payment request to ensure compliance with the terms and conditions
        of
        the contract, the designated payment office is not compelled to make payment
        by
        the specified due date. Progress payments are considered contract financing
        and
        are not subject to the interest penalty provisions of the Prompt Payment
        Act.

      

      (m)
        Progress payments under indefinite--delivery contracts. The Contractor shall
        account for and submit progress payment requests under individual orders
        as if
        the order constituted a separate contract, unless otherwise specified in
        this
        contract.

      

      (End
        of
        clause)

      

      52.252-2
        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/these address(es):

      

      http://www.arnet.gov/far

      http://farsite.hill.af.mil

      http://www.acq.osd.mil/dpap/dfars/index.htm

      http://www.arnet.gov/far/loadmainre.html

      http://farsite.hill.af.mil/Vfdfar1.htm

      

      (End
        of
        clause)

      

      
        
          
          

        

        
          Page
            35
            of 37

          
            

          

        

        
          
          

        

      

      

      52.252-6
        AUTHORIZED DEVIATIONS IN CLAUSES (APR 1984)

      

      (a)
        The
        use in this solicitation or contract of any Federal Acquisition Regulation
        (48
        CFR Chapter 1) clause with an authorized deviation is indicated by the addition
        of "(DEVIATION)" after the date of the clause.

      

      (b)
          The
        use
        in this solicitation or contract of any Defense
        Federal Acquisition Regulation Supplement
        (48 CFR
Chapter
        1)
        clause
        with an authorized deviation is indicated by the addition of "(DEVIATION)"
        after
        the name of the regulation.

      

      (End
        of
        Clause)

       

      
        
          
          

        

        
          Page
            36
            of 37

          
            

          

        

        
          
          

        

      

       

      Section
        J
        - List of Documents, Exhibits and Other Attachments

       

      
        
          	
                  DOCUMENT
                    TYPE

                	
                  DESCRIPTION

                	
                  DATE

                
	
                  Attachment
                    J.1 

                	
                  CODAOCTOPUS
                    INCORPORATED

                  MARITIME
                    PORT SECURITY COUNTERTERRORISM INITIATIVE UNDERWATER INSPECTION
                    SYSTEM

                	
                  15
                    JUN 07

                
	 	
                  PROPRIETARY
                    DO NOT RELEASE

                	 
	 	 	 
	
                  Attachment
                    J.2

                	
                  Contract
                    Data Requirements (CDRLs) - DD FORM 1423-1

                	
                  05
                    APR 07

                
	 	
                  A001

                	
                  Progress,
                    Status and Management Reports

                  Monthly
                    Status Report (MSR)

                	 
	 	
                  A002

                	
                  Presentation
                    Material

                  Conference
                    Minutes Report, Record of 

                	 
	 	
                  Meeting/Minutes
                    

                	 
	 	
                  A003

                	
                  Manuals
                    for UIS Owner’s Manual

                	 
	 	
                  A004

                	
                  System
                    Support for One Year Documentation

                	 
	 	 	 
	
                  Attachment
                    J.3

                	
                  252.227-7017
                    Identification and Assertion of Use, Release, or Disclosure Restrictions.
                    (Jun 1995) 

                	
                  02
                    JUN 07

                
	 	 	 

        

         

        
          
            
            

          

          
            Page
              37
              of 37

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