Document:

CONTRACT NO. DAAD17-02-C-0073  DATED3-20-02

 Exhibit 10.31 
  

	

	AWARD / CONTRACT	  	 1. THIS CONTRACT IS A RATED
 ORDER
 UNDER DPAS (15 CFR 350)
	  	 RATING
  
  
 DO
	  	 PAGE     OF    
 PAGES
 1          50

	

	 2. CONTRACT (PROC. INST. IDENT.) NO.
  
 DAAD17-02-C-0073
	  	 3. EFFECTIVE DATE
  
 01 Feb 2002
	  	 4. REQUISITION / PURCHASE REQUEST / PROJECT NO.
  

W71B7J-2030-B325

	

	 5. ISSUED BY
	  	CODE	  	 W71B7J
	  	6. ADMINISTERED BY (IF OTHER THAN ITEM 5)	  	CODE	  	S1103A

		
	 US ARMY ROBERT MORRIS ACQUISITION CENTER
 RMAC - ADELPHI
 2800 POWDER MILL ROAD
 AMSSB-ACA
 ADELPHI MD 20783-1197
	    	 DCM - ATLANTA
 805 WALKER STREET
 SUITE 1
 MARIETTA GA 30060-2789

	

	 7. NAME AND ADDRESS OF CONTRACTOR (NO., STREET, CITY, COUNTY, STATE AND ZIP CODE)
  
 CREE INC.
 Charles M. Swoboda
 4600 SILICON DRIVE
 DURHAM NC 27703
	  	 8. DELIVERY
  
  ̈ FOB Origin        x Other (see below)

  
 9. DISCOUNT FOR PROMPT DELIVERY
 NET 30

	

	 CAGE CODE     OC9J8
	  	FACILITY CODE	  	 10. SUBMIT INVOICES 8
 (4 COPIES UNLESS OTHERWISE    
 SPECIFIED) TO
 THE ADDRESS SHOW IN:        è
	  	 ITEM
 Section 
 G

	

	 11. SHIP TO / MARK FOR
 US ARMY RESEARCH LABORATORY
 DR PAUL AMIRTHARAJ/AMSRL-SE-EM
 2800 POWDER MILL ROAD
 ADELPHI MD 20783-1197
	  	CODE	  	W71B7J	  	 12. PAYMENT WILL BE MADE BY
 DFAS-COLUMBUS CENTER
 DFAS-CO/SOUTH ENTITLEMENT OPERATIONS
 P O BOX 182264
 COLUMBUS OH 43218-2264
	  	CODE	  	HQ0338
	

	 13. AUTHORITY FOR OTHER THAN FULL AND OPEN COMPETITION
  ̈ 10 U.S.C. 2304(c) (
)     ̈ 41 U.S.C. 253(c)( )
	  	 14. ACCOUNTING AND APPROPRIATION DATA
 See Schedule

	

	 15A. ITEM NO.
	  	 15B. SUPPLIES/SERVICES
 SEE SCHEDULE
	  	15C. QUANTITY	  	15D. UNIT	  	15E. UNIT PRICE	  	15F. AMOUNT

	

	 15G. TOTAL AMOUNT OF CONTRACT     è
	  	[***]

	

	16. Table of Contents
	

	(X)	  	SEC	  	DESCRIPTION	 	PAGE(S)	  	(X)	 	SEC	 	DESCRIPTION	  	PAGE(S)
	

	 	  	 	  	PART I – THE SCHEDULE	 	 	  	 	 	 	 	PART II – CONTRACT CLAUSES	  	 
	

	 Ö
	  	A	  	SOLICITATION/CONTRACT FORM	 	1 - 1	  	Ö	 	I	 	CONTRACT CLAUSES	  	17
	

	 Ö
	  	B	  	SUPPLIES OR SERVICES AND PRICES/COSTS	 	2	  	 PART III – LIST OF DOCUMENTS, EXHIBITS &
ATTACHMENTS

	

	 Ö
	  	C	  	DESCRIPTION/SPECS./WORK STATEMENT	 	6	  	Ö	 	J	 	LIST OF ATTACHMENTS	  	33
	

	 Ö
	  	D	  	PACKAGING AND MARKING	 	9	  	PART IV – REPRESENTATIONS AND INSTRUCTIONS
	

	 Ö
	  	E	  	INSPECTION AND ACCEPTANCE	 	10	  	Ö	 	K	 	 REPRESENTATIONS, CERTIFICATIONS AND
 OTHER STATEMENTS OF OFFERORS
	  	By ref.
	
	 	 	 	 
	 Ö
	  	F	  	DELIVERIES OR PERFORMANCE	 	11	  	 	 	  
	

	 Ö
	  	G	  	CONTRACT ADMINISTRATION DATA	 	12	  	 	 	L	 	INSTRS., CONDS., AND NOTICES TO OFFERORS	  	 
	

	 Ö
	  	H	  	SPECIAL CONTRACT REQUIREMENTS	 	14	  	 	 	M	 	EVALUATION FACTORS FOR AWARD	  	 

	

	CONTRACTING OFFICER WILL COMPLETE ITEM 17 OR 18 AS APPLICABLE

	

	 17. x Contractor’s Negotiated Agreement

	  	18.  ̈
Award    (Contractor is not required to sign this document).
	(Contractor is required to sign this document and return 1 copies to issuing office). Contractor agrees to furnish and deliver all items or perform all services
set forth or otherwise identified above and on any continuation sheets for the consideration stated herein. The rights and obligations of the parties to this contract shall be subject to and governed by the following documents: (a) this
award/contract, (b) the solicitation, if any, and (c) such provisions, representations, certifications, and specifications, as are attached or incorporated by reference herein. (Attachments are listed herein.)	  	Your offer on solicitation number      including the additions or changes made by you which additions or changes set forth in full above, is hereby
accepted as to items listed above and on any continuation sheets. This award consummates the contract which consists of the following documents: (a) the Government’s solicitation and your offer, and (b) this award/contract. No further
contractual document is necessary.
	

	 19A. NAME AND TITLE OF SIGNER (TYPE OR PRINT)
  
 Charles M. Swoboda
 President and CEO
	  	 	  	 20A. NAME AND TITILE OF CONTRACTING OFFICER
  
 Theodore Weitzman/Contracting
Officer

	

	 19B. Name of Contractor
	  	 19C. Date Signed
	  	 20B. United States of America
	  	 20C. Date Signed

				
	   by            /s/ Charles M. Swoboda.

 (Signature of person authorized to sign)
	  	18MAR2002	  	       by        /s/ Theodore Weitzman

                 (Signature of Contracting Officer)
	  	20-Mar-2002
	

	 NSN 7540-01-152-8069
 Previous Editions unusable
	  	 26-107
 GPO 1985 O-469-794
	  	 STANDARD FORM 26 (REV. 4-85)

Prescribed by GSA FAR (48 CFR) 53.214(a)

  

	[***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission.

  

	CONTRACT NUMBER N00014-02-C-0250	  	PAGE 1

 DAAD17-02-C-0073         
 Page 2 of 50 
  

 SECTION B Supplies or Services and Prices 
  

	ITEM NO

	 	SUPPLIES/SERVICES

	 	QUANTITY

	 	UNIT

	 	UNIT PRICE

	 	AMOUNT

	 	 	 
	 0001
	 	 	 	 	 	Lot	 	 	 	$	 	 	$	 	 
	 	 	SEMICONDUCTOR UV OPTICAL SOURCES (SUVOS) CS - BAA
02-03, Technical Area II, UV Emitters: Contractor shall perform
research and development for Semiconductor UV
Optical Sources
(SUVOS) in accordance with Section C, Statement of Work.	 	 	 	 	 	 	 
				
	 	 	See Sections B and G, [***] [***]. PURCHASE REQUEST
NUMBER W71B7J-2030-B325	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	ESTIMATED COST	 	 	 	 	$	[	***]
	 	 	 ACRN AA Funded Amount
	 	 	 	 	 	 	 	 	$	[	***]

  

	ITEM NO

	 	SUPPLIES/SERVICES

	 	QUANTITY

	 	UNIT

	 	UNIT PRICE

	 	AMOUNT

	 	 
	 0002
	 	 	 	 	 	Lot	 	 	 	$	 	 	$	NSP
	 	 	Data IAW DD 1423, Contract Data Requirements List CS - Data in
accordance with Contract Data Requirements List, DD Form 1423,
Exhibit A to Section J. PURCHASE
REQUEST NUMBER
W71B7J-2030-B325	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 ESTIMATED COST
	 	 	 	 	$	 

  
 [***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. 

 DAAD17-02-C-0073         
 Page 3 of 50 
  

	ITEM NO

	 	SUPPLIES/SERVICES

	 	QUANTITY

	 	UNIT

	 	UNIT PRICE

	 	AMOUNT

	 	 	 
	 0003
	 	 	 	 	 	Lot	 	 	 	$	 	 	$	 	 
	 	 	OPTION - SEMICONDUCTOR UV OPTICAL SOURCES (SUVOS)
CS - BAA 02-03, Technical Area II, UV Emitters: Contractor shall
continue to perform research and development
for Semiconductor UV
Optical Sources (SUVOS) in accordance with Section C, Statement of
Work.	 	 	 	 	 	 	 
				
	 	 	 See Sections B and G, [***].
 PURCHASE REQUEST NUMBER W71B7J-2030-B325
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	ESTIMATED COST	 	 	 	 	$	[	***]

  

	ITEM NO

	 	SUPPLIES/SERVICES

	 	QUANTITY

	 	UNIT

	 	UNIT PRICE

	 	AMOUNT

	 	 	 
	 0004
	 	 	 	 	 	Lot	 	 	 	$	 	 	$	 	 
	 	 	OPTION - SEMICONDUCTOR UV OPTICAL SOURCES (SUVOS)
CS - BAA 02-03, Technical Area II, UV Emitters: Contractor shall
continue to perform research and development
for Semiconductor UV
Optical Sources (SUVOS) in accordance with Section C, Statement of
Work.	 	 	 	 	 	 	 
				
	 	 	 See Sections B and G, [***].
 PURCHASE REQUEST NUMBER W71B7J-2030-B325
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	ESTIMATED COST	 	 	 	 	$	[	***]

  
 [***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. 

 DAAD17-02-C-0073 
 Page 4 of 50 
  

 CLAUSES INCORPORATED BY FULL TEXT 
  
 [***] 
  

	 Contract Line
 Item #

	 	Government’s Share

	 	Contractor’s Share

	 	 Total Estimated
 Contract Cost

	 CLIN 0001
	 	 [***]
	 	 [***]
	 	[***]
	 CLIN 0003
	 	 [***]
	 	 [***]
	 	[***]
	 CLIN 0004
	 	 [***]
	 	 [***]
	 	[***]
				
	 TOTAL
	 	[***]	 	[***]	 	[***]

  
 Audit
Procedures 
  
 [***] 
  
 52.004-4401 RMAC POINT OF CONTACT (MAR 2000) 
  
 The RMAC point of contact for this action is: 
  
 Contract Specialist: Joyce McDonald 
 Telephone Number: 301-394-3438 
 Fax Number: 301-394-2852 
 Email: jmcdonald@arl.army.mil 
  
 Contracting Officer: Theodore H. Weitzman 
 Telephone Number: 301-3165 
 Fax Number: 301-394-3184 
 Email: tweitzman@arl.army.mil 
  
 (End of clause) 
  
 52.004-4403 CONTRACTING OFFICER’S REPRESENTATIVE (COR) (JUN 2001) 
  
 The COR appointed to this contract is identified below. See
formal letter of appointment for authorized duties/responsibilities. 
  
 COR Name: Dr. Paul Amirtharaj 
 COR Telephone: 301-394-0940 
 COR Email address: pamirtharaj@arl.army.mil 
 (End of clause) 
  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange 
 Commission. Omitted portions have been filed separately with the Commission. 
  
 52.016-4407 TYPE OF CONTRACT (SEP 1999) 

 DAAD17-02-C-0073         
 Page 5 of 50 
  

 This is a [***] type of contract. 
  
 (End of clause) 
  
 52.032-4421 INCREMENTAL FUNDING - PERFORMANCE PERIOD (SEP 1999) 
  
 This contract is incrementally funded. The amount presently available for payment and
allotted to the contract is $[***]. It is estimated that the allotted funds will cover all areas of contract performance for the period from award of contract through 12 months. 
  
 (End of clause) 
  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission. 

 DAAD17-02-C-0073         
 Page 6 of 50 
  

 SECTION C Descriptions and Specifications 
  
 Statement of Work 
  
 C.0 Introduction 
  
 The development of [***] is of critical importance to the military. [***] have application
in biological agent detection, non-line-of-sight (NLOS) covert communications, water purification, equipment/personnel decontamination, and white light generation. It is the goal of the [***] program to exploit the unique characteristics [***] that
can be integrated into modules and subsystems to address these applications. The Government is interested in novel ideas that will result in the demonstration of deep [***] sources. This effort focuses on exploiting the material qualities of the
[***] to produce an [***] compatible with the applications cited above. 
  
 This
program will be conducted in two phases. Phase I (Years 1 and 2) will concentrate on the development of [***] by exploiting the unique characteristics of [***]. Emphasis will be placed on materials needed to realize [***] [***]. These materials are
considered to be on the materials development critical path (MDCP). Also included in the Phase I effort is the [***] of innovative [***] [***] with [***] in the [***]. In Option Phase II (Option Years 3 and 4), the emphasis shifts to the
optimization of [***] and [***] with [***]. It is expected that the ultimate goal of [***] will be achieved through materials development and device innovation initially in the [***] portion of the [***] as part of the Phase I effort. Based on
advances in science, materials, and devices in Phase I, the optimization of devices to meet or exceed Option Phase II goals will be realized. 
  
 Year 1 
  
 C. 1. The Contractor shall develop [***] for [***] of [***] necessary for [***] and [***] on [***]. 
  
 C.1.1 The Contractor shall deliver representative [***] on the MDCP to the Government. 
  
 C.2. The Contractor shall grow [***] to reduce [***] effects. 
  
 C.2.1 The Contractor shall deliver representative [***] on the MDCP to the Government. 
  
 C.3. The Contractor shall fabricate [***]. 
  
 C.3.1 The Contractor shall deliver representative devices to the Government. 
  
 C. 4. The Contractor shall develop optically efficient [***] and [***] comprised of [***] in
the [***] family. 
  
 C.4.1 The Contractor shall deliver representative [***] on
the MDCP to the Government. 
  
 C.4.2 The Contractor shall deliver to the
Government [***] with [***] and [***] nine (9) months after the start of the contract. 
  
 C.4.3 The Contractor shall deliver to the Government [***] with [***] and [***] nine (9) months after the start of the contract. 
  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission. 

 DAAD17-02-C-0073         
 Page 7 of 50 
  

 C.4.4 The Contractor shall deliver to the Government [***] with [***] and [***] nine (9) months after the start of the
contract. 
  
 C.4.5 The Contractor shall deliver to the Government [***]
with [***] and [***] nine (9) months after the start of the contract. 
  
 Year
2 
  
 C.5 The Contractor shall develop [***] and [***] comprised of [***] in
the [***] family, 
  
 C.5.1 The Contractor shall deliver representative [***] on
the MDCP to the Government. 
  
 C.6 The Contractor shall grow of [***] to reduce
[***] effects. 
  
 C.6.1 The Contractor shall deliver representative [***] on the
MDCP to the Government. 
  
 C.7 The Contractor shall fabricate [***]. 

 
 C.7.1 The Contractor shall deliver to the Government [***] with [***] and [***] 23 months
after the start of the contract. 
  
 C.8 The Contractor shall develop [***].

  
 C.8.1 The Contractor shall deliver to the Government [***] and [***] with
diameter greater than or equal to [***] months after the start of the contract. 
  
 C.9 The Contractor shall develop [***] including the [***]. 
  
 C.9.1 The
Contractor shall deliver to the Government [***] with [***] and [***] 17 months after the start of the contract. 
  
 Year 3 (Option CLIN 0003) 
  
 C.10 The Contractor shall develop device design for high [***] and optimize fabrication process to produce it. 
  
 C.10.1 The Contractor shall deliver to the Government [***] with [***] and [***] 35 months
after the start of the contract. 
  
 C.11 The Contractor shall develop device
design for [***] and optimize fabrication process to produce it. 
  
 C.11.1 The
Contractor shall deliver to the Government [***] with [***] and [***] 35 months after the start of the contract. 
  
 C.12 The Contractor shall develop growth of [***]. 
  
 C.12.1 The Contractor shall deliver to the Government [***] and [***] with diameter greater than or equal to [***] 35 months after the start of the contract. 

 
 [***] Confidential treatment requested pursuant to a request for confidential treatment
filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. 

 DAAD17-02-C-0073         
 Page 8 of 50 
  

 Year 4 (Option CLIN 0004) 
  
 C.13 The Contractor shall develop design for [***] and optimize fabrication process to produce it. 
  
 C.13.1 The Contractor shall deliver to the Government [***] with [***] and [***] 47 months
after the start of the contract. 
  
 C.13.2 The Contractor shall deliver to the
Government [***] with [***] and [***] 41 months after the start of the contract. 
  
 C.13.3 The Contractor shall deliver to the Government [***] with [***] and [***] 47 months after the start of the contract. 
  
 C.14 OTHER CONTRACT DELIVERABLES 
  
 C.14.1 The contractor shall provide copies of all technical reports submitted for publication (in journals, conference proceedings and other technical reports) under this
contract to the technical POC 
  
 C.14.2 The Contractor shall complete and submit
quarterly and cost expenditure reports throughout the duration of the contract in accordance with DD Form 1423, Contract Data Requirements List, Exhibit A to Section J. Reports shall be marked with the following Distribution Statement: 

 
 DISTRIBUTION STATEMENT C: Distribution authorized to U.S. Government
Agencies and their contractors, proprietary information, 7 Feb 02. Other requests for this document shall be referred to U.S. Army Research Laboratory, Attn: AMSRL-SE-EM, 2800 Powder Mill Road, Adelphi, MD 20783-1197. 
  
 C14.3 The contractor shall provide a comprehensive Final Report at the close of the contract.
The report shall detail all activities performed under the contract and provide results and conclusions for each task. 
  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission. 

 DAAD17-02-C-0073         
 Page 9 of 50 
  

 SECTION D Packaging and Marking 
  

	D.1.	 	Preservation, Packing and Packaging shall be of a standard commercial type providing for damage-free shipment to destination. 

  
 (End of Clause) 

 DAAD17-02-C-0073         
 Page 10 of 50 
  

 SECTION E Inspection and Acceptance 
  
 INSPECTION AND ACCEPTANCE TERMS 
  
 Supplies/services will be inspected/accepted at: 
  

	CLIN

	 	INSPECT AT

	 	INSPECT BY

	 	ACCEPT AT

	 	ACCEPT BY

	 0001
	 	Destination	 	Government	 	Destination	 	Government
	 0002
	 	Destination	 	Government	 	Destination	 	Government
	 0003
	 	Destination	 	Government	 	Destination	 	Government
	 0004
	 	Destination	 	Government	 	Destination	 	Government

  
 CLAUSES INCORPORATED BY REFERENCE: 
  

	52.246-8 Alt I Inspection Of Research And Development-Cost
                    Reimbursement (May 2001) - Alternate I	 	 APR 1984

  
 CLAUSES INCORPORATED BY FULL TEXT 
  
 52.046-4400 GOVERNMENT INSPECTION AND ACCEPTANCE (SEP 1999) 
  
 Government Inspection and Acceptance shall be performed at Army Research Laboratory by an authorized Government Representative. 
  
 (End of clause) 

 DAAD17-02-C-0073         
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 SECTION F Deliveries or Performance 
  
 DELIVERY INFORMATION 
  

	CLINS

	 	DELIVERY DATE

	 	UNIT OF ISSUE

	 	QUANTITY

	 	FOB

	 	SHIP TO ADDRESS

	 0001
	 	POP 01-FEB-02 TO
31-JAN-04	 	Lot	 	 	 	Dest.	 	 W71B7J
 US ARMY RESEARCH
LABORATORY
 DR PAUL AMIRTHARAJ /
AMSRL-SE-EM
 2800 POWDER MILL ROAD
 ADELPHI MD
20783-1197

	 0002
	 	POP 01-FEB-02 TO
31-JAN-04	 	Lot	 	 	 	Dest.	 	 Same as CLIN 0001

	 0003
	 	POP 01-FEB-04 TO
31-JAN-05	 	Lot	 	 	 	Dest.	 	 Same as CLIN 0001

	 0004
	 	POP 01-FEB-05 TO
31-JAN-06	 	Lot	 	 	 	Dest.	 	 Same as CLIN 0001

  
 CLAUSES INCORPORATED BY REFERENCE: 
  

	 52.242-15 Alt I Stop-Work Order (Aug 1989) - Alternate I            APR 1984

	 I
	 	 
	 52.247-34 F.O.B. Destination                                
                              NOV 1991

  
 CLAUSES INCORPORATED BY FULL TEXT 
  
 52.017-4400 EXERCISE OF OPTION (SEP 1999) 
  
 The Contracting Officer may
exercise the option(s) contained at CLIN(s) 0003 and 0004 by written modification to the contract anytime prior to contract completion. 
  
 (End of clause) 
  
 52.027-4400 DELIVERY OF DATA ITEMS (SEP 1999) 
  
 All technical data shall be delivered in accordance with the DD 1423s attached to Section J of this contract. Data items which require distribution to DTIC shall be
mailed to the following address: 
  
 Defense Technical Information Center (DTIC)

 8725 John J. Kingman Road, Suite 0944 
 Ft. Belvoir, VA
22060-6218 
  
 (End of clause) 
  
 SECTION G Contract Administration Data 

 DAAD17-02-C-0073         
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 ACCOUNTING AND APPROPRIATION DATA 
  

	 AA:
	  	972040013012RPARGO2H20M891000255YANEM00W71B7J2030B3252NDKGGS18129	 	000000000000
	 AMOUNT:
	  	[***]	 	 

  
   CLAUSES INCORPORATED BY FULL TEXT 
  
 Audit Procedures 
  
 [***] 

 
 [***] 
  
 [***] 
  

	 Contract Line
 Item #
	 	Government’s Share	 	 Contractor’s Share
	 	 Total Estimated
 Contract
Cost
	  
  

	 CLIN 0001
	 	 [***]
	 	 [***]
	 	[	***]
	 CLIN 0003
	 	 [***]
	 	 [***]
	 	[	***]
	 CLIN 0004
	 	 [***]
	 	 [***]
	 	[	***]
	 TOTAL
	 	 [***]
	 	 [***]
	 	[	***]

  
 52.032-4405 DISTRIBUTION OF VOUCHERS (JAN 2002) 
  
 a. In
accordance with DCAA Procedures DCAAP 7641.90, paragraph 5-302a., all vouchers for cost-type contracts must be submitted using the Standard Form (SF) 1034 “Public Voucher for Purchases and Services Other Than Personal”. See
http://www.dcaa.mil Information for Contractors. 
  
 b. The
contractor shall forward vouchers to the addresses below in a simultaneous mailing. NOTE: All vouchers must identify the CLIN under which payment is being requested. VOUCHERS WHICH DO NOT IDENTIFY THE PROPER CLIN(s) WILL BE REJECTED BY THE PAYMENT
OFFICE AS IMPROPER. 
  
 All vouchers must clearly
identify the Contractor’s [***] that was incurred during the billing cycle. 
  
 (1) The original and six (6) copies to Defense Contract Audit Agency (DCAA) Office. The cognizant Office address is: 
  
 Defense Contract Audit Agency 
 DCAA/MABO 

 DAAD17-02-C-0073         
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 P.O. Box 891 
 Arnold, MD 21012-0891 
  
 (2) One copy to the Government Technical Representative, addressed to: 
  
 U.S. Army Research Laboratory 
 Attn: AMSRL-SE-EM (Paul Amirtharaj) 
 2800 Powder Mill Rd. 
 Adelphi, MD 20783 
  
 c. The contract completion voucher will be forwarded by the DCAA Contract
Auditor to the Defense Contract Management (DCM) Administrative Contracting Officer (ACO), or to the PCO who signed this contract if no DCM ACO has been designated, for approval and transmittal to the cognizant disbursing office. 
  
 (End of clause) 

 DAAD17-02-C-0073         
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 SECTION H Special Contract Requirements 
  
 CLAUSES INCORPORATED BY FULL TEXT 
  
 52.004-4400 FOREIGN NATIONALS PERFORMING UNDER CONTRACT
(FEB 2002) 
  
 In accordance with Title 8 U.S.C. 1324a, local Foreign Disclosure
Officers (FDOs) may approve access by foreign nationals working on unclassified public domain contracts for the duration of the contract, provided the foreign nationals have appropriate work authorization documentation. 
  
 In those instances where foreign nationals are required to perform under any resultant
contract and employment eligibility documentation was not submitted with an Awardee’s proposal, the employment eligibility documentation specified at 8 CFR 274a.2 shall be submitted to the Contracting Officer at least two weeks prior to the
foreign national’s performance for review and approval. Awardees not employing foreign nationals in performance of any resultant contract may disregard this clause. 
  

	 For further information, please contact:
	  	 Army Research Laboratory

	 	  	 Adelphi Laboratory Center

	 	  	 ATTN: AMSRL-CS-IO-FI

	 	  	 2800 Powder Mill Road

	 	  	 Adelphi, MD 20783-1197

  
 (End of clause)

  
 52.005-4401 RELEASE OF INFORMATION (AUG 2001)

  
 Army Regulations AR530-1 and 360-1 prescribe Department of the
Army policies and clearance procedures with respect to release of any information on Army contracts. This information can include news stories, articles, sales literature, advertisements, radio-TV spots, etc., on unclassified contracts as well as on
the classified contracts governed in this respect by DD Form 254. Army Materiel Command (AMC) Supplement 1 to AR 530-1 requires operations security (OPSEC) review and approval prior to public release of any information on AMC contracts. 

 
 Your organization shall clear with the Information Office any public
release of information on this contract by first completing ARL Form 1-A (JUN 2001) and forwarding the form and the material to be released to the address shown below. 
  

	 U.S. Army Research Laboratory
	 	 U.S. Army Robert Morris

	 Public Affairs Office
	 	 Acquisition Center

	 ATTN: AMSRL-CS-PA
	 	 Adelphi Contracting Division

	 2800 Powder Mill Road
	 	 ATTN: AMSSB-ACA-C/T. Weitzman

	 Adelphi, Maryland 20783-1197
	 	 Adelphi, Maryland 20783-1197

  
 M/F:
Contract No.: DAAD17-02-C-0073 
  
 The contractor shall assure
that an acknowledgment of Government support and disclaimer of Government endorsement as set forth below shall appear on each publication or presentation of material based on or developed under this program. These statements shall appear either on
the title/first page or the final page of such documents - 
  
 “The research reported in this document/presentation was performed in connection with contract DAAD17-02-C-0073 with the U.S. Army Research Laboratory. The views and conclusions contained in this
document/presentation are those of the authors and should not be interpreted as presenting the official policies or position, either expressed or implied, of the U.S. Army Research Laboratory or the U.S. 

 DAAD17-02-C-0073         
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Government unless so designated by other authorized documents. Citation of manufacturer’s or trade names does not constitute an official endorsement or
approval of the use thereof. The U.S. Government is authorized to reproduce and distribute reprints for Government purposes notwithstanding any copyright notation hereon.” 
  
 (End of clause) 
  
 52.028-4400 REQUIRED INSURANCE COVERAGE (AUG 1999) 
  
 Pursuant to the clause entitled “Insurance - Work on a Government Installation”, FAR 52.228-5, or the clause
entitled “Insurance - Liability to Third Persons”, FAR 52.228-7, the Contractor shall procure and maintain the following kinds of insurance coverage in the amounts herein indicated, throughout the period of performance under this contract.

  

	 (a) The Contractor shall comply with the Workmen’s Compensation statute of the State(s) where work is to be
performed.

			
	 (b) Employer’s Liability Insurance $
	  	 	100,000.00.	  	 
			
	 (c) General Liability Insurance (Comprehensive)
	  	 	 	  	 
			
	 (1) Bodily injury
	  	$	500,000.00	  	per accident
			
	 (d) Automobile Liability Insurance (Comprehensive)
	  	 	 	  	 
	 (1) Bodily injury
	  	$	200,000.00	  	per person
	 	  	$	500,000.00	  	per accident
	 (2) Property damage
	  	$	50,000.00	  	per accident

  
 (End of clause)

  
 52.031-4400 AUTHORIZATION OF PRECONTRACT
COSTS (AUG 1999) 
  
 Subject to FAR 31.205-32, “Precontract
Costs”, the Contractor is authorized precontract costs, effective 01 Feb 2002. 
  
 (End of clause) 
  
 52.032-4400 LIMITATION OF COST/LIMITATION OF FUNDS (AUG 1999) 
  
 This contract is incrementally funded. The Contract Clauses Section hereof include both of the FAR clauses at 52.232-20, “Limitation of Cost”, and 52.232-22, “Limitation of Funds”. The latter clause is operative as long
as this contract is incrementally funded. If and when the contract becomes fully funded, the “Limitation of Cost” clause shall become effective and the “Limitation of Funds” clause shall cease to be operative. 
  
 Both of the above cited clauses (52.232-20 and 52.232-22), apply to each CLIN
separately. Costs of performing work set forth in one CLIN shall not be chargeable or payable under any other CLIN. 
  
 (End of clause) 

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 52.039-4402 YEAR 2000 COMPLIANCE—NEW PRODUCTS OR SYSTEMS (OCT 1997) 
  
 The contractor shall ensure products provided under this contract, to include
hardware, software, firmware, and middleware, whether acting alone or combined as a system, are Year 2000 compliant as defined in FAR Part 39. 
  
 (End of clause) 
  
 52.046-4401 KEY PERSONNEL (FEB 00) 
  
 The Contractor shall notify the Government in the event of a transition (replacing or removal) of key personnel (those individuals addressed in the
Contractors proposal) working under this contract. The Government reserves the right to review the qualifications of any Contractor personnel proposed to replace existing personnel and accept/reject the individual based on its judgment that the
individual can perform similarly as the transitioned personnel. 
  
 (End of clause) 

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 SECTION I Contract Clauses 
  
 CLAUSES INCORPORATED BY REFERENCE: 
  

	 52.202-1
	  	Definitions	  	MAY 2001
	 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	  	JUL 1995
	 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	  	JUN 1997
	 52.204-4
	  	Printed or Copied Double-Sided on Recycled Paper	  	AUG 2000
	 52.209-6
	  	Protecting the Government’s Interest When Subcontracting With Contractors Debarred, Suspended, or Proposed for Debarment	  	JUL 1995
	 52.211-15
	  	Defense Priority And Allocation Requirements	  	SEP 1990
	 52.215-2
	  	Audit and Records—Negotiation	  	JUN 1999
	 52.215-8
	  	Order of Precedence—Uniform Contract Format	  	OCT 1997
	 52.215-10
	  	Price Reduction for Defective Cost or Pricing Data	  	OCT 1997
	 52.215-12
	  	Subcontractor Cost or Pricing Data	  	OCT 1997
	 52.215-13
	  	Subcontractor Cost or Pricing Data—Modifications	  	OCT 1997
	 52.215-15
	  	Pension Adjustments and Asset Reversions	  	DEC 1998
	 52.215-18
	  	Reversion or Adjustment of Plans for Postretirement Benefits (PRB) Other than Pensions	  	OCT 1997
	 52.215-19
	  	Notification of Ownership Changes	  	OCT 1997
	 52.215-20
	  	Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data	  	OCT 1997
	 52.215-21
	  	Requirements for Cost or Pricing Data or Information Other Than Cost or Pricing Data—Modifications	  	OCT 1997
	 52.216-7
	  	Allowable Cost And Payment	  	MAR 2000
	 52.219-8
	  	Utilization of Small Business Concerns	  	OCT 2000
	 52.219-9
	  	Small Business Subcontracting Plan	  	OCT 2000
	 52.222-3
	  	Convict Labor	  	AUG 1996
	 52.222-21
	  	Prohibition Of Segregated Facilities	  	FEB 1999
	 52.222-26
	  	Equal Opportunity	  	FEB 1999
	 52.222-35
	  	Affirmative Action For Disabled Veterans And Veterans of the Vietnam Era	  	APR 1998
	 52.222-36
	  	Affirmative Action For Workers With Disabilities	  	JUN 1998
	 52.222-37
	  	Employment Reports On Disabled Veterans And Veterans Of The Vietnam Era	  	JAN 1999
	 52.223-6
	  	Drug Free Workplace	  	MAY 2001
	 52.223-14
	  	Toxic Chemical Release Reporting	  	OCT 2000
	 52.225-1
	  	Buy American Act—Balance of Payments Program - Supplies	  	FEB 2000
	 52.225-13
	  	Restrictions on Certain Foreign Purchases	  	JUL 2000
	 52.225-16
	  	Sanctioned European Union Country Services	  	FEB 2000
	 52.226-1
	  	Utilization Of Indian Organizations And Indian-Owned Economic Enterprises	  	JUN 2000
	 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

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	 52.230-2
	  	Cost Accounting Standards	  	APR 1998
	 52.230-6
	  	Administration of Cost Accounting Standards	  	NOV 1999
	 52.232-9
	  	Limitation On Withholding Of Payments	  	APR 1984
	 52.232-17
	  	Interest	  	JUN 1996
	 52.232-20
	  	Limitation Of Cost	  	APR 1984
	 52.232-22
	  	Limitation Of Funds	  	APR 1984
	 52.232-23
	  	Assignment Of Claims	  	JAN 1986
	 52.232-25
	  	Prompt Payment	  	MAY 2001
	 52.232-33
	  	Payment by Electronic Funds Transfer—Central Contractor Registration	  	MAY 1999
	 52.233-1
	  	Disputes	  	DEC 1998
	 52.233-3 Alt I
	  	Protest After Award (Aug 1996) - Alternate I	  	JUN 1985
	 52.237-8
	  	Restriction on Severance Payments to Foreign Nationals	  	OCT 1995
	 52.242-1
	  	Notice of Intent to Disallow Costs	  	APR 1984
	 52.242-3
	  	Penalties for Unallowable Costs	  	MAY 2001
	 52.242-4
	  	Certification of Final Indirect Costs	  	JAN 1997
	 52.242-13
	  	Bankruptcy	  	JUL 1995
	 52.243-2 Alt V
	  	Changes—Cost-Reimbursement (Aug 1987) - Alternate V	  	APR 1984
	 52.244-5
	  	Competition In Subcontracting	  	DEC 1996
	 52.244-6
	  	Subcontracts for Commercial Items	  	MAY 2001
	 52.245-5
	  	Government Property (Cost-Reimbursement Time-And-Materials, Or Labor Hour Contracts)	  	JAN 1986
	 52.246-23
	  	Limitation Of Liability	  	FEB 1997
	 52.249-6
	  	Termination (Cost Reimbursement)	  	SEP 1996
	 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	  	MAR 1999
	 252.203-7002
	  	Display Of DOD Hotline Poster	  	DEC 1991
	 252.204-7003
	  	Control Of Government Personnel Work Product	  	APR 1992
	 252.205-7000
	  	Provisions Of Information To Cooperative Agreement Holders	  	DEC 1991
	 252.209-7000
	  	Acquisition From Subcontractors Subject To On-Site Inspection Under The Intermediate Range Nuclear Forces (INF) Treaty	  	NOV 1995
	 252.209-7004
	  	Subcontracting With Firms That Are Owned or Controlled By The Government of a Terrorist Country	  	MAR 1998
	 252.215-7000
	  	Pricing Adjustments	  	DEC 1991
	 252.215-7002
	  	Cost Estimating System Requirements	  	OCT 1998
	 252.219-7003
	  	Small, Small Disadvantaged and Women-Owned Small Business Subcontracting Plan (DOD Contracts)	  	APR 1996
	 252.225-7002
	  	Qualifying Country Sources As Subcontractors	  	DEC 1991
	 252.225-7007
	  	Buy American Act—Trade Agreements—Balance of Payments Program	  	SEP 2001
	 252.225-7012
	  	Preference For Certain Domestic Commodities	  	AUG 2000
	 252.225-7026
	  	Reporting Of Contract Performance Outside The United States	  	JUN 2000
	 252.225-7031
	  	Secondary Arab Boycott Of Israel	  	JUN 1992
	 252.227-7013
	  	Rights in Technical Data—Noncommercial Items	  	NOV 1995
	 252.227-7016
	  	Rights in Bid or Proposal Information	  	JUN 1995
	 252.227-7030
	  	Technical Data—Withholding Of Payment	  	MAR 2000
	 252.227-7034
	  	Patents—Subcontracts	  	APR 1984
	 252.227-7036
	  	Declaration of Technical Data Conformity	  	JAN 1997
	 252.231-7000
	  	Supplemental Cost Principles	  	DEC 1991
	 252.235-7011
	  	Final Scientific or Technical Report	  	SEP 1999
	 252.242-7004
	  	Material Management And Accounting System	  	DEC 2000
	 252.243-7002
	  	Requests for Equitable Adjustment	  	MAR 1998

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	 252.245-7001
	  	Reports Of Government Property	  	MAY 1994
	 252.247-7023
	  	Transportation of Supplies by Sea	  	MAR 2000
	 252.247-7024
	  	Notification Of Transportation Of Supplies By Sea	  	MAR 2000

  
 CLAUSES INCORPORATED BY FULL TEXT 
  
 52.216-12 COST-SHARING CONTRACT—NO FEE (APR 1984) 
  
 (a) The
Government shall not pay to the Contractor a fee for performing this contract. 
  
 (b) After paying 80 percent of the Government’s share of the total estimated cost of performance shown in the Schedule, the Contracting Officer may withhold further payment of allowable cost until a reserve is set aside in an amount
that the Contracting Officer considers necessary to protect the Government’s interest. This reserve shall not exceed one percent of the Government’s share of the total estimated cost shown in the Schedule. 
  
 (End of clause) 
  
 52.222-2 PAYMENT FOR OVERTIME PREMIUMS (JUL 1990) 
  
 (a) The use of overtime is authorized under this contract if the overtime premium cost does
not exceed or the overtime premium is paid for work — 
  
 (1) Necessary to
cope with emergencies such as those resulting from accidents, natural disasters, breakdowns of production equipment, or occasional production bottlenecks of a sporadic nature; 
  
 (2) By indirect-labor employees such as those performing duties in connection with administration, protection, transportation, maintenance,
standby plant protection, operation of utilities, or accounting; 
  
 (3) To
perform tests, industrial processes, laboratory procedures, loading or unloading of transportation conveyances, and operations in flight or afloat that are continuous in nature and cannot reasonably be interrupted or completed otherwise; or

  
 (4) That will result in lower overall costs to the Government. 
  
 (b) Any request for estimated overtime premiums that exceeds the amount specified above shall
include all estimated overtime for contract completion and shall— 
  
 (1)
Identify the work unit; e.g., department or section in which the requested overtime will be used, together with present workload, staffing, and other data of the affected unit sufficient to permit the Contracting Officer to evaluate the necessity
for the overtime; 
  
 (2) Demonstrate the effect that denial of the request will
have on the contract delivery or performance schedule; 
  
 (3) Identify the extent
to which approval of overtime would affect the performance or payments in connection with other Government contracts, together with identification of each affected contract; and 
  
 (4) Provide reasons why the required work cannot be performed by using multishift operations or by employing additional personnel.

  
 (End of clause) 
  
 52.225-11 BUY AMERICAN ACT—BALANCE OF PAYMENTS PROGRAM—CONSTRUCTION MATERIALS UNDER TRADE AGREEMENTS (FEB 2000) 

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 (a) Definitions. As used in this clause— 
  
 Component means any article, material, or supply incorporated directly into construction materials. 
  
 Construction material means an article, material, or supply brought to the construction site
by the Contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency
lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or
how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material. 
  
 Cost of components means— 
  
 (1) For components purchased by the Contractor, the acquisition cost, including transportation costs to the place of incorporation into the end product (whether or not
such costs are paid to a domestic firm), and any applicable duty (whether or not a duty-free entry certificate is issued); or 
  
 (2) For components manufactured by the Contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph
(1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product. 
  
 Designated country means any of the following countries: Aruba, Austria, Bangladesh, Belgium, Benin, Bhutan, Botswana, Burkina Faso,
Burundi, Canada, Cape Verde, Central African Republic, Chad, Comoros, Denmark. 
  
 Djibouti, Equatorial Guinea, Finland, France, Gambia, Germany, Greece, Guinea, Guinea-Bissau, Haiti, Hong Kong, Ireland, Israel, Italy, Japan. 
  
 Kiribati, Korea, Republic of, Lesotho, Liechtenstein, Luxembourg, Malawi, Maldives, Mali, Mozambique, Nepal, Netherlands, Niger, Norway, Portugal, Rwanda. 
  
 Sao Tome and Principe, Sierra Leone, Singapore, Somalia, Spain, Sweden, Switzerland, Tanzania
U.R., Togo, Tuvalu, Uganda, United Kingdom, Vanuatu, Western Samoa, Yemen. 
  
 Designated country construction material means a construction material that— 
  
 (1) Is wholly the growth, product, or manufacture of a designated country; or 
  
 (2) In the case of a construction material that consists in whole or in part of materials from another country, has been substantially transformed in a designated country into a new and different construction material
distinct from the materials from which it was transformed. 
  
 Domestic
construction material means— 
  
 (1) An unmanufactured construction material
mined or produced in the United States; or 
  
 (2) A construction material
manufactured in the United States, if the cost of its components mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. Components of foreign origin of the same class or kind for which
nonavailability determinations have been made are treated as domestic. 
  
 Foreign
construction material means a construction material other than a domestic construction material. 
  
 North American Free Trade Agreement country means Canada or Mexico. 

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 North American Free Trade Agreement country construction material means a construction material that— 
  
 (1) Is wholly the growth, product, or manufacture of a North American Free Trade Agreement
(NAFTA) country; or 
  
 (2) In the case of a construction material that consists
in whole or in part of materials from another country, has been substantially transformed in a NAFTA country into a new and different construction material distinct from the materials from which it was transformed. 
  
 United States means the 50 States and the District of Columbia, U.S. territories and
possessions, Puerto Rico, the Northern Mariana Islands, and any other place subject to U.S. jurisdiction, but does not include leased bases. 
  
 (b) Construction materials. (1) This clause implements the Buy American Act (41 U.S.C. 10a-10d) and the Balance of Payments Program by providing a preference for domestic
construction material. In addition, the Contracting Officer has determined that the Trade Agreements Act and the North American Free Trade Agreement (NAFTA) apply to this acquisition. Therefore, the Buy American Act and Balance of Payments Program
restrictions are waived for designated country and NAFTA country construction materials. 
  
 (2) The Contractor shall use only domestic, designated country, or NAFTA country construction material in performing this contract, except as provided in paragraphs (b)(3) and (b)(4) of this clause. 
  
 (3) The requirement in paragraph (b)(2) of this clause does not apply to the construction
materials or components listed by the Government as follows: [Contracting Officer to list applicable excepted materials or indicate “none”] 
  
 (4) The Contracting Officer may add other foreign construction material to the list in paragraph (b)(3) of this clause if the Government determines that— 

 
 (i) The cost of domestic construction material would be unreasonable. The cost of a
particular domestic construction material subject to the restrictions of the Buy American Act is unreasonable when the cost of such material exceeds the cost of foreign material by more than 6 percent. For determination of unreasonable cost under
the Balance of Payments Program, the Contracting Officer will use a factor of 50 percent; 
  
 (ii) The application of the restriction of the Buy American Act or Balance of Payments Program to a particular construction material would be impracticable or inconsistent with the public interest; or 
  
 (iii) The construction material is not mined, produced, or manufactured in the United States
in sufficient and reasonably available commercial quantities of a satisfactory quality. 
  
 (c) Request for determination of inapplicability of the Buy American Act or Balance of Payments Program. (1)(i) Any Contractor request to use foreign construction material in accordance with paragraph (b)(4) of this clause shall include
adequate information for Government evaluation of the request, including— 
  
 (A) A description of the foreign and domestic construction materials; 
  
 (B) Unit of measure; 
  
 (C) Quantity; 
  
 (D) Price; 
  
 (E) Time of delivery or availability; 
  
 (F) Location of the construction project; 
  
 (G) Name and address of the proposed supplier; and 

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 (H) A detailed justification of the reason for use of foreign construction materials cited in accordance with paragraph
(b)(3) of this clause. 
  
 (ii) A request based on unreasonable cost shall include
a reasonable survey of the market and a completed price comparison table in the format in paragraph (d) of this clause. 
  
 (iii) The price of construction material shall include all delivery costs to the construction site and any applicable duty (whether or not a duty-free certificate may be
issued). 
  
 (iv) Any Contractor request for a determination submitted after
contract award shall explain why the Contractor could not reasonably foresee the need for such determination and could not have requested the determination before contract award. If the Contractor does not submit a satisfactory explanation, the
Contracting Officer need not make a determination. 
  
 (2) If the Government
determines after contract award that an exception to the Buy American Act or Balance of Payments Program applies and the Contracting Officer and the Contractor negotiate adequate consideration, the Contracting Officer will modify the contract to
allow use of the foreign construction material. However, when the basis for the exception is the unreasonable price of a domestic construction material, adequate consideration is not less than the differential established in paragraph (b)(4)(i) of
this clause. 
  
 (3) Unless the Government determines that an exception to the Buy
American Act or Balance of Payments Program applies, use of foreign construction material is noncompliant with the Buy American Act or Balance of Payments Program. 
  
 (d) Data. To permit evaluation of requests under paragraph (c) of this clause based on unreasonable cost, the Contractor shall include the
following information and any applicable supporting data based on the survey of suppliers: 
  
 Foreign and Domestic Construction Materials Price Comparison 
  

	 Construction material description

	  	Unit of measure

	  	Quantity

	  	Price (dollars) \1\

	 Item 1:
	  	 	  	 	  	 
	 Foreign construction material
	  	 	  	 	  	 
	 Domestic construction material
	  	 	  	 	  	 
	 Item 2:
	  	 	  	 	  	 
	 Foreign construction material
	  	 	  	 	  	 
	 Domestic construction material
	  	 	  	 	  	 

	\1\	 	Include all delivery costs to the construction site and any applicable duty (whether or not a duty-free entry certificate is issued). 

 List name, address, telephone number, and contact for suppliers surveyed. Attach copy of response; if oral, attach summary. 
 Include other applicable supporting information. 
  
 (End of clause) 
  
 52.227-12 PATENT RIGHTS—RETENTION BY THE CONTRACTOR (LONG FORM) (JAN 1997) 
  

(a) Definitions. “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 that is or may be protectable under the Plant Variety Protection Act (7 U.S.C. 2321, et seq.). 

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 “Made” when used in relation to any invention means the conception or first actual reduction to practice of
such invention. 
  
 “Nonprofit organization” means a domestic 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. 
  
 “Practical application” means to manufacture in the case of a composition or 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 its benefits are, to the extent permitted by law or Government regulations, available to the public on reasonable terms.

  
 “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. 
  
 “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 elect to 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 elects to retain 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. 
  
 (c) Invention disclosure, election of title, and filing of patent applications by Contractor. (1) The Contractor shall disclose each subject invention to the Contracting Officer within 2 months after the inventor
discloses it in writing to Contractor personnel responsible for patent matters or within 6 months after the Contractor becomes aware that a subject invention has been made, whichever is earlier. The disclosure to the Contracting Officer 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 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 Contracting Officer, the Contractor shall promptly notify the
Contracting Officer 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 shall elect in writing whether or not to retain title to any such invention by notifying the Federal agency at the time of disclosure or within 8
months of disclosure, as to those countries (including the United States) in which the Contractor will retain title; provided, that 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 of 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 shall file its initial patent application on an elected invention within 1
year after election 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 shall file patent applications in
additional countries (including the European Patent Office and under the Patent Cooperation Treaty) within either 10 months of the corresponding initial patent application or 6 months from the date permission is granted by the Commissioner of

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 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 to the Contracting
Officer, election, and filing may, at the discretion of the funding Federal agency, be granted, and will normally be granted unless the Contracting Officer has reason to believe that a particular extension would prejudice the Government’s
interest. 
  
 (d) Conditions when the Government may obtain title. The Contractor
shall convey to the Federal agency, upon written request, title to any subject invention— 
  
 (1) If the Contractor elects not to retain title to a subject invention; 
  
 (2) If the Contractor fails to disclose or elect the subject invention within the times specified in paragraph (c) above (the agency may only request title within 60 days after learning of the Contractor’s
failure to report or elect within the specified times); 
  
 (3) In those countries
in which the Contractor fails to file patent applications within the time specified in paragraph (c) above; provided, however, that if the Contractor has filed a patent application in a country after the times specified in paragraph (c) above, but
prior to its receipt of the written request of the Federal agency, the Contractor shall continue to retain title in that country; or 
  
 (4) 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. (1) The Contractor shall 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 subject invention within the
times specified in paragraph (c) above. The Contractor’s license extends to its domestic subsidiaries and affiliates, if any, within the corporate structure of which the Contractor is a part 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 funding Federal agency except when transferred to the successor of that part of
the Contractor’s business to which the invention pertains. 
  
 (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 the subject invention pursuant to an application for an exclusive license submitted
in accordance with applicable provisions in the Federal Property Management Regulations and agency licensing regulations (if any). This license shall 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 its 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 shall furnish the Contractor a written notice of its intention to revoke or modify the
license, and the Contractor shall 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 agency licensing regulations and 37 CFR 404 concerning the licensing of Government-owned inventions, any decision concerning the revocation or modification of its 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) above and subparagraph (n)(2) below, 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 

 DAAD17-02-C-0073         
 Page 25 of 50 
  

 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) above, 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) above. 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 shall notify the Federal agency of any decision 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 this invention.”

  
 (5) The Contractor shall establish and maintain active and effective
procedures to assure that subject inventions are promptly identified and disclosed to Contractor personnel responsible for patent matters within 6 months of conception and/or first actual reduction to practice, whichever occurs first in performance
of work under this contract. These procedures shall include the maintenance of laboratory notebooks or equivalent records and other records as are reasonably necessary to document the conception and/or the first actual reduction to practice of
subject inventions, and records that show that the procedures for identifying and disclosing the inventions are followed. Upon request, the Contractor shall furnish the Contracting Officer a description of such procedures for evaluation and for
determination as to their effectiveness. 
  
 (6) The Contractor agrees, when
licensing a subject invention, to arrange to avoid royalty charges on acquisitions involving Government funds, including funds derived through Military Assistance Program of the Government or otherwise derived through the Government, to refund any
amounts received as royalty charges on the subject invention in acquisitions for, or on behalf of, the Government, and to provide for such refund in any instrument transferring rights in the invention to any party. 
  
 (7) The Contractor shall furnish the Contracting Officer the following: 
  
 (i) Interim reports every 12 months (or such longer period as may be specified by the
Contracting Officer) from the date of the contract, listing subject inventions during that period and stating that all subject inventions have been disclosed or that there are no such inventions. 
  
 (ii) A final report, within 3 months after completion of the contracted work, listing all
subject inventions or stating that there were no such inventions, and listing all subcontracts at any tier containing a patent rights clause or stating that there were no such subcontracts. 
  
 (8) The Contractor shall promptly notify the Contracting Officer in writing upon the award of
any subcontract at any tier containing a patent rights clause by identifying the subcontractor, the applicable patent rights clause, the work to be performed under the subcontract, and the dates of award and estimated completion. Upon request of the
Contracting Officer, the Contractor shall furnish a copy of such subcontract, and no more frequently than annually, a listing of the subcontracts that have been awarded. 
  
 (9) In the event of a refusal by a prospective subcontractor to accept one of the clauses in subparagraph (g)(1) or (2) below, the
Contractor (i) shall promptly submit a written notice to the Contracting Officer setting forth the subcontractor’s reasons for such refusal and other pertinent information that may expedite disposition of the matter and (ii) shall not proceed
with such subcontracting without the written authorization of the Contracting Officer. 
  
 (10) The Contractor shall provide, upon request, the filing date, serial number and title, a copy of the patent application (including an English-language version if filed in a language other than English), and patent number and 

 DAAD17-02-C-0073         
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 issue date for any subject invention for which the Contractor has retained title. 
  
 (11) Upon request, the Contractor shall furnish the Government an irrevocable power to
inspect and make copies of the patent application file. 
  
 (g) Subcontracts. (1)
The Contractor shall include the clause at 52.227-11 of the Federal Acquisition Regulation (FAR), suitably modified to identify the parties, in all subcontracts, regardless of tier, for experimental, developmental, or research work to be performed
by a small business firm or nonprofit organization. The subcontractor shall retain all rights provided for the Contractor in this clause, and the Contractor shall not, as part of the consideration for awarding the subcontract, obtain rights in the
subcontractor’s subject inventions. 
  
 (2) The Contractor shall include this
clause (FAR 52.227-12) in all other subcontracts, regardless of tier, for experimental, developmental, or research work. 
  
 (3) In the case of subcontracts, at any tier, when the prime award with the Federal agency was a contract (but not a grant or cooperative agreement), 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 those matters covered by this clause. 
  
 (h) Reporting 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 proceedings undertaken by the agency in accordance with paragraph (j) of this clause. To the extent data or information supplied under this paragraph is considered by the Contractor,
its licensee or assignee to be privileged and confidential and is so marked, the agency agrees that, to the extent permitted by law, it shall not disclose such information to persons outside the Government. (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
products embodying 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 FAR 27.304-1(g) 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 

 DAAD17-02-C-0073         
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 breach of such agreement. 
  
 (k) Special provisions for contracts with nonprofit organizations. [Reserved] 
  
 (l) Communications. 
  
 NOT APPLICABLE 
  
 (m) Other inventions. Nothing
contained in this clause shall be deemed to grant to the Government any rights with respect to any invention other than a subject invention. 
  
 (n) Examination of records relating to inventions. (1) The Contracting Officer or any authorized representative shall, until 3 years after final payment under this
contract, have the right to examine any books (including laboratory notebooks), records, and documents of the Contractor relating to the conception or first reduction to practice of inventions in the same field of technology as the work under this
contract to determine whether— 
  
 (i) Any such inventions are subject
inventions; 
  
 (ii) The Contractor has established and maintains the procedures
required by subparagraphs (f)(2) and (f)(3) of this clause; and 
  
 (iii) The
Contractor and its inventors have complied with the procedures. 
  
 (2) If the
Contracting Officer determines that an inventor has not disclosed a subject invention to the Contractor in accordance with the procedures required by subparagraph (f)(5) of this clause, the Contracting Officer may, within 60 days after the
determination, request title in accordance with subparagraphs (d)(2) and (d)(3) of this clause. However, if the Contractor establishes that the failure to disclose did not result from the Contractor’s fault or negligence, the Contracting
Officer shall not request title. 
  
 (3) If the Contracting Officer learns of an
unreported Contractor invention which the Contracting Officer believes may be a subject invention, the Contractor may be required to disclose the invention to the agency for a determination of ownership rights. 
  
 (4) Any examination of records under this paragraph shall be subject to appropriate
conditions to protect the confidentiality of the information involved. 
  
 (o)
Withholding of payment (this paragraph does not apply to subcontracts). (1) Any time before final payment under this contract, the Contracting Officer may, in the Government’s interest, withhold payment until a reserve not exceeding $50,000 or
5 percent of the amount of the contract, whichever is less, shall have been set aside if, in the Contracting Officer’s opinion, the Contractor fails to— 
  
 (i) Establish, maintain, and follow effective procedures for identifying and disclosing subject inventions pursuant to subparagraph (f)(5)
above; 
  
 (ii) Disclose any subject invention pursuant to subparagraph (c)(1)
above; 
  
 (iii) Deliver acceptable interim reports pursuant to subdivision
(f)(7)(i) above; or 
  
 (iv) Provide the information regarding subcontracts
pursuant to subparagraph (f)(8) of this clause. 
  
 (2) Such reserve or balance
shall be withheld until the Contracting Officer has determined that the Contractor has rectified whatever deficiencies exist and has delivered all reports, disclosures, and other information required by this clause. 
  
 (3) Final payment under this contract shall not be made before the Contractor delivers to the
Contracting Officer all 

 DAAD17-02-C-0073         
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 disclosures of subject inventions required by subparagraph (c)(1) above, an acceptable final report pursuant to
subdivision (f)(7)(ii) above, and all past due confirmatory instruments. 
  
 (4)
The Contracting Officer may decrease or increase the sums withheld up to the maximum authorized above. No amount shall be withheld under this paragraph while the amount specified by this paragraph is being withheld under other provisions of the
contract. The withholding of any amount or the subsequent payment thereof shall not be construed as a waiver of any Government right. 
  
 (End of clause) 
  
 52.244-2 SUBCONTRACTS (AUG 1998) - ALTERNATE II (AUG 1998) 
  
 (a) Definitions. As used in this clause— 
  
 Approved purchasing system means a Contractor’s purchasing system that has been reviewed and approved in accordance with Part 44 of the Federal Acquisition Regulation (FAR). 
  
 Consent to subcontract means the Contracting Officer’s written consent for the Contractor to enter into a particular subcontract.

  
 Subcontract means any contract, as defined in FAR Subpart 2.1, entered into by
a subcontractor to furnish supplies or services for performance of the prime contract or a subcontract. It includes, but is not limited to, purchase orders, and changes and modifications to purchase orders. 
  
 (b) This clause does not apply to subcontracts for special test equipment when the contract
contains the clause at FAR 52.245-18, Special Test Equipment. 
  
 (c) When this
clause is included in a fixed-price type contract, consent to subcontract is required only on unpriced contract actions (including unpriced modifications or unpriced delivery orders), and only if required in accordance with paragraph (d) or (e) of
this clause. 
  
 (d) If the Contractor does not have an approved purchasing
system, consent to subcontract is required for any subcontract that— 
  
 (1)
Is of the cost-reimbursement, time-and-materials, or labor-hour type; or 
  
 (2)
Is fixed-price and exceeds— 
  
 (i) For a contract awarded by the Department
of Defense, the Coast Guard, or the National Aeronautics and Space Administration, the greater of the simplified acquisition threshold or 5 percent of the total estimated cost of the contract; or 
  
 (ii) For a contract awarded by a civilian agency other than the Coast Guard and the National
Aeronautics and Space Administration, either the simplified acquisition threshold or 5 percent of the total estimated cost of the contract. 
  
 (e) If the Contractor has an approved purchasing system, the Contractor nevertheless shall obtain the Contracting Officer’s written consent before placing the
following subcontracts: 
  
 (f)(1) The Contractor shall notify the Contracting
Officer reasonably in advance of placing any subcontract or modification thereof for which consent is required under paragraph (c), (d), or (e) of this clause, including the following information: 
  
 (i) A description of the supplies or services to be subcontracted. 

 DAAD17-02-C-0073         
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 (ii) Identification of the type of subcontract to be used. 
  
 (iii) Identification of the proposed subcontractor. 
  

(iv) The proposed subcontract price. 
  
 (v) The subcontractor’s current, complete, and accurate cost or pricing data and Certificate of Current Cost or Pricing Data, if required by other contract
provisions. 
  
 (vi) The subcontractor’s Disclosure Statement or Certificate
relating to Cost Accounting Standards when such data are required by other provisions of this contract. 
  
 (vii) A negotiation memorandum reflecting— 
  
 (A) The principal elements of the subcontract price negotiations; 
  
 (B)
The most significant considerations controlling establishment of initial or revised prices; 
  
 (C) The reason cost or pricing data were or were not required; 
  
 (D) The extent, if any, to which the Contractor did not rely on the subcontractor’s cost or pricing data in determining the price objective and in negotiating the final price; 
  
 (E) The extent to which it was recognized in the negotiation that the subcontractor’s
cost or pricing data were not accurate, complete, or current; the action taken by the Contractor and the subcontractor; and the effect of any such defective data on the total price negotiated; 
  
 (F) The reasons for any significant difference between the Contractor’s price objective
and the price negotiated; and 
  
 (G) A complete explanation of the incentive fee
or profit plan when incentives are used. The explanation shall identify each critical performance element, management decisions used to quantify each incentive element, reasons for the incentives, and a summary of all trade-off possibilities
considered. 
  
 (2) If the Contractor has an approved purchasing system and
consent is not required under paragraph (c), (d), or (e) of this clause, the Contractor nevertheless shall notify the Contracting Officer reasonably in advance of entering into any (i) cost-plus-fixed-fee subcontract, or (ii) fixed-price subcontract
that exceeds either the simplified acquisition threshold or 5 percent of the total estimated cost of this contract. The notification shall include the information required by paragraphs (f)(1)(i) through (f)(1)(iv) of this clause. 
  
 (g) Unless the consent or approval specifically provides otherwise, neither consent by the
Contracting Officer to any subcontract nor approval of the Contractor’s purchasing system shall constitute a determination— 
  
 (1) Of the acceptability of any subcontract terms or conditions; 
  
 (2) Of the allowability of any cost under this contract; or 
  
 (3) To relieve the Contractor of any responsibility for performing this contract. 
  

(h) No subcontract or modification thereof placed under this contract shall provide for payment on a cost-plus-a-percentage-of-cost basis, and any fee payable under
cost-reimbursement type subcontracts shall not exceed the fee limitations in FAR 15.404-4(c)(4)(i). 
  
 (i) The Contractor shall give the Contracting Officer immediate written notice of any action or suit filed and prompt notice of any claim made against the Contractor by any subcontractor or vendor that, in the opinion
of the 

 DAAD17-02-C-0073         
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 Contractor, may result in litigation related in any way to this contract, with respect to which the Contractor may be
entitled to reimbursement from the Government. 
  
 (j) The Government reserves the
right to review the Contractor’s purchasing system as set forth in FAR Subpart 44.3. 
  
 (k) Paragraphs (d) and (f) of this clause do not apply to the following subcontracts, which were evaluated during negotiations: 
  

NOT APPLICABLE 
  
 52.247-1 COMMERCIAL BILL OF LADING NOTATIONS (APR 1984) 
  
 If the Contracting Officer authorizes supplies to be shipped on a commercial bill of lading and the Contractor will be reimbursed these transportation costs as direct allowable costs, the Contractor shall ensure before shipment is made that
the commercial shipping documents are annotated with either of the following notations, as appropriate: 
  
 (a) If the Government is shown as the consignor or the consignee, the annotation shall be: 
  
 “Transportation is for the U.S. Army Research Laboratory and the actual total transportation charges paid to the carrier(s) by the consignor or consignee are
assignable to, and shall be reimbursed by, the Government.” 
  
 (b) If the
Government is not shown as the consignor or the consignee, the annotation shall be: 
  
 “Transportation is for the U.S. Army Research Laboratory and the actual total transportation charges paid to the carrier(s) by the consignor or consignee shall be reimbursed by the Government, pursuant to cost-reimbursement contract
no. DAAD17-02-C-0073. This may be confirmed by contacting the contracting officer.” 
  
 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://farsite.hill.af.mil/VFDFARa.htm 
 http://www.arnet.gov/far 
  
 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 DFAR (48 CFR Part 2) clause with an authorized deviation is indicated by the addition of “(DEVIATION)” after the name of the regulation. 
  
 252.235-7010 Acknowledgment of Support and Disclaimer. (MAY 1995) 
  
 (a) The Contractor shall include an acknowledgment of the Government’s support in the
publication of any material based on or developed under this contract, stated in the following terms: This material is based upon work supported by the U.S. ARMY RESEARCH LABORATORY under Contract No. DAAD17-02-C-0073. 
  
 (b) All material, except scientific articles or papers published in scientific journals,
must, in addition to 

 DAAD17-02-C-0073         
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 any notices or disclaimers by the Contractor, also contain the following disclaimer: Any opinions, findings and
conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the U.S. ARMY RESEARCH LABORATORY. 

 DAAD17-02-C-0073         
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 SECTION J List of Documents, Exhibits and Other Attachments 
  
 Section J Table Of Contents 
  

	DOCUMENT TYPE

	 	DESCRIPTION

	 	PAGES

	 	DATE

	 Exhibit A
	 	 CLIN 0002 CDRL(s)
	 	4	 	 FEB-07-2002

	 Attachment 1
	 	 Approved Subcontracting Plan
	 	13	 	 MAR-09-2002

	 Attachment 2
	 	 Evidence of Bilateral Award
	 	1	 	 FEB-28-2002

 DAAD17-02-C-0073         
 Page 33 of 50 
 Exhibit A

  

	 CONTRACT DATA REQUIREMENTS LIST
 (1 Data Item)
	  	 Form Approved
 OMB No. 0704-0188
	  	 
	Public reporting burden for this collection of information is estimated to average 200 hour per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions
for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget,
Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of these addresses. Send completed form to the Government Issuing Contracting Officer for the Contract/PR No. listed in Block E.	  	 
				
	A. CONTRACT LINE ITEM NO.	  	B. EXHIBIT	  	 	  	 
	0002	  	 	  	 TOP
	  	 
	D. SYSTEM/ITEM	  	E. CONTRACT/PR NO.	  	F. CONTRACTOR	  	 
	 Data IAW DD 1423, Contract Data
	  	 W71B7J-2030-B325
	  	 	  	 
				
	1. DATA ITEM NO.	  	2. TITLE OF DATA ITEM	  	3. SUBTITLE	  	17. PRICE
GROUP
	A001	  	 STATUS REPORT
	  	 TECH & COST EXPENDITURE REPORT
	  	 
				
	4. AUTHORITY (Date Acquisition Document No.)	  	 5. CONTRACT REFERENCE
	  	6. REQUIRING OFFICE	  	 18. ESTIMATED
 TOTAL
PRICE

	 DI-MGMT-80368
	  	 SOW C.14.2
	  	 AMSRL-SE-EM
	  	 
								
	 7. DD 260 REQ
 LT
	  	 9. DIST
STATEMENT
 REQUIRED
 C
	  	 10. FREQUENCY
 QRTLY
	  	 12. DATE OF
FIRST
SUBMISSION
 105 DAYS ACA
	  	 	  	 	  	 14.      DISTRIBUTION
	  	 
	 	  	 	  	 	  	  	 	  	 	  	 	  	b. COPIES	  	 
	 8. APP CODE
  
 N/A
	  	 	  	 11. AS OF DATE
  
 NA
	  	 13. DATE OF
 SUBSEQUENT
 SUBMISSION
 SEE BLK
16
	  	 	  	 	  	 a. ADDRESSEE
	  	Draft	  	Final	  	 
	 	  	 	  	 	  	 	  	 	  	  	 	  	 	  	  	 	  	Reg	  	Repro	  	 
	16.REMARKS	  	 AMSSB-ACA-P
	  	0	  	0	  	0	  	 
	 BLK D: SEMI CONDUCTOR UV OPTICAL SOURCES (SUVOS)
	  	 COPY OF LTR
	  	0	  	0	  	0	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 AMSRL-SE-EM
	  	0	  	1	  	0	  	 
	  
 BLK 4: EACH REPORT SHALL BE DELIVERED ELECTRONICALLY AS AN
EMAIL ATTACHMENT MS WORD COMPATIBLE DOCUMENT. REPORT SHALL CONSIST OF NO MORE THAN TEN (10) PAGES. EMAIL ADDRESSES ARE AS FOLLOWS: PAMIRTHARAJ@ARL.ARMY.MIL AND jcarrano@da.pa.mil
  
 BLK 9: DISTRIBUTION STATEMENT C. DISTRIBUTION AUTHORIZED TO U.S. GOVERNMENT AGENCIES AND THEIR AUTHORIZED CONTRACTORS. FURTHER DISTRIBUTION
ONLY AS AUTHORIZED BY ARL FORM 1A.
  
 BLK 13: SUBSEQUENT SUBMISSIONS SHALL BE MADE
NLT THE 10TH DAY OF THE MONTH FOLLOWING THE PERIOD OF PERFORMANCE REPORTING ON.
	  	 DARPA/MTO
	  	0	  	1	  	0	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 15. TOTAL
	  	0	  	2	  	0	  	 
	G. PREPARED BY	  	H. DATE	  	I. APPROVED BY	  	        J. DATE	  	 
	 DR PAUL AMIRTHARAJ
	  	 07-Feb-2002
	  	 NORMAN LEKANG
	  	            07-Feb-2002	  	 
	DD Form 1423-1, AUG 96 (EG)	  	Previous editions are obsolete	  	 	  	 	  	 	  	 

 DAAD17-02-C-0073     
 Page 34 of 50 

	 CONTRACT DATA REQUIREMENTS LIST
 (1 Data Item)
	  	 Form Approved
 OMB No. 0704-0188
	  	 
	Public reporting burden for this collection of information is estimated to average 200 hour per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions
for reducing this burden, to Department of Defense, Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget,
Paperwork Reduction Project (0704-0188), Washington, DC 20503. Please DO NOT RETURN your form to either of these addresses. Send completed form to the Government Issuing Contracting Officer for the Contract/PR No. listed in Block E.
				
	A. CONTRACT LINE ITEM NO.	  	B. EXHIBIT	  	 	  	 
	0002	  	 	  	 	  	 	  	                 TOP
	  	 	  	 
				
	D. SYSTEM/ITEM	  	E. CONTRACT/PR NO.	  	F. CONTRACTOR	  	 
	 Data IAW DD 1423, Contract Data
	  	 W71B7J-2030-B325
	  	 	  	 
	1. DATA ITEM NO.	  	2. TITLE OF DATA ITEM	  	3. SUBTITLE	  	17. PRICE
GROUP
				
	A001	  	 STATUS REPORT
	  	 TECH & COST EXPENDITURE

 REPORT
	  	 
				
	 4. AUTHORITY (Date Acquisition
 Document No.)
	  	 5. CONTRACT REFERENCE
	  	6. REQUIRING OFFICE	  	 18. ESTIMATED
 TOTAL
PRICE

				
	 DI-MGMT-80368
	  	 SOW C.14.2
	  	 AMSRL-SE-EM
	  	 
								
	 7. DD 260 REQ
 LT
	  	 9. DIST
STATEMENT
 REQUIRED
  
 C
	  	 10. FREQUENCY
 QRTLY
	  	 12. DATE OF FIRST
SUBMISSION
 105 DAYS ACA
	  	 	  	 	  	 14.      DISTRIBUTION
	  	 
	 	  	 	  	 	  	  	 	  	 	  	 	  	b. COPIES	  	 
	 8. APP CODE
  
 N/A
	  	 	  	 11. AS OF DATE
  

NA
	  	 13. DATE OF
 SUBSEQUENT
   SUBMISSION
 SEE
BLK 16
	  	 	  	 	  	 a. ADDRESSEE
	  	Draft	  	Final	  	 
	 	  	 	  	 	  	 	  	 	  	  	 	  	 	  	  	 	  	Reg	  	Repro	  	 
	16.REMARKS	  	 AMSSB-ACA-P
	  	0	  	1	  	0	  	 
	  
 BLK D: SEMI
CONDUCTOR UV OPTICAL SOURCES (SUVOS)
	  	 COPY OF LTR
	  	0	  	1	  	0	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 AMSRL-SE-EM
	  	1	  	2	  	0	  	 
	 BLK 4: EACH REPORT SHALL BE DELIVERED ELECTRONICALLY AS AN EMAIL ATTACHMENT MS WORD COMPATIBLE DOCUMENT. REPORT SHALL CONSIST OF NO MORE
THAN TEN (10) PAGES. EMAIL ADDRESSES ARE AS FOLLOWS: PAMIRTHARAJ@ARL.ARMY.MIL AND jcarrano@da.pa.mil
  
 BLK 9: DISTRIBUTION STATEMENT C. DISTRIBUTION AUTHORIZED TO U.S. GOVERNMENT AGENCIES AND THEIR AUTHORIZED CONTRACTORS. FURTHER DISTRIBUTION ONLY AS AUTHORIZED BY ARL FORM 1A.
  
 BLK 13: SUBSEQUENT SUBMISSIONS SHALL BE MADE NLT THE 10TH DAY OF THE MONTH FOLLOWING THE PERIOD OF PERFORMANCE REPORTING ON.
	  	 DARPA/MTO
	  	0	  	1	  	1	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 15. TOTAL
	  	0	  	2	  	0	  	 
	G. PREPARED BY	  	H. DATE	  	I. APPROVED BY	  	        J. DATE	  	 
					
	 DR PAUL AMIRTHARAJ
	  	 07-Feb-2002
	  	 NORMAN LEKANG
	  	07-Feb-2002	  	 
						
	DD Form 1423-1, AUG 96 (EG)	  	Previous editions are obsolete	  	 	  	 	  	 	  	 

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 ATTACHMENT 1 
  
 ARMY RESEARCH LABORATORY 
  
 Report Title Goes Here 
 Any Subtitles Go Here

  
 By Some Author and Another Author 
  

	

	 ARL-CR-XXX
	 	Month XXXX

  
 Prepared by 

 
 Whatever Technology Corporation 
 0000 Research Drive 
 Anywhere, ST 20006-1000

  
 Under contract 
  
 DAAD17-XX-C-XXXX 
  
 DISTRIBUTION STATEMENT GOES HERE 

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 ATTACHMENT 2 
  
 The findings in this report are not to be construed as an official Department of the Army position unless so designated by other authorized documents.

  
 Citation of manufacturer’s or trade names does not
constitute an official endorsement or approval of the use thereof. 
  
 DESTRUCTION NOTICE: For classified documents, follow the procedures in DoD 2500.22-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. 

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 CREE, INC. 
  
 MASTER SMALL BUSINESS 
 SUBCONTRACTING PLAN 
  
 FOR
THE DEPARTMENT OF DEFENSE CONTRACTS AND 
 MAJOR SUBCONTRACTS 
  
 Small Business Concerns/Veteran Owned Small Business Concerns and Service-Disabled Veteran-Owned Small Business/Hubzone
Small Business Concerns/Small Business Concerns Owned and Controlled By Socially and Economically Disadvantaged Individuals/Small Business Concerns Owned and Controlled By Women 

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 CREE, INC. 
 MASTER SMALL BUSINESS 
 SUBCONTRACTING PLAN 
  
 Contractor    Cree,Inc.(Cree) 
  
 Address:        4600 Silicon Drive

      Durham, NC 27703-8475 
  
 This is a Master Small Business Subcontracting Plan. This Plan contains all the required elements of an individual contract plan except
individual goals established for each Government contract or major subcontract. In addition, Cree shall submit a contract specific Plan to the contracting officer/buyer for final negotiation and approval. The contract specific plan will include
goals based on the planned subcontracting for that contract. 
  
 STATEMENT
OF POLICY: 
  
 It is the policy of Cree that small business concerns,
veteran-owned small business concerns and service-disabled veteran-owned small business concerns, HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small
business concerns owned and controlled by women shall have the maximum practicable opportunity to participate in subcontracting at Cree. Cree hereby agrees to carry out this policy in awarding of subcontracts to the fullest extent, consistent with
the efficient performance of Government contracts and subcontracts. Cree further agrees to cooperate in any studies or surveys as may be conducted by the Small Business Administration, or the awarding agency/department of the United States as any be
necessary to determine the extent of compliance with Federal Acquisition Regulation (FAR) 52.219-8 clause titled, “Utilization pf Small Business Concerns (UCT 2000 Oct 1999).” 
  
 1. CONTRACT SPECIFIC GOALS 
  
 Cree shall submit proposed contract specific subcontracting goals for the term of each Government contractor major subcontract. The Contract Specific Plan submittal shall
include goals for small business concerns (SB), veteran-owned small business concerns (VOSB) small business concerns owned and controlled by socially and economically disadvantaged individuals (BD8). HUBZone small business concerns (HUB), and small
business concerns owned and controlled by women (WOSB). Service-disabled veteran-owned small business concerns meet the definition of veteran-owned small business concerns, and they will be included within the subcontracting plan goal for
veteran-owned small business concerns. The negotiated and established goals of the Contract Specific Plan will be incorporated into this Master Plan by this reference, upon signature of the parties, and will not require contract modification.

  
 The proposed goals shall be based upon an established percentage of estimated
commercial purchases, which will be derived from the current fiscal year budget. Goals for the utilization of SB, VOSB, SDB, HUB, and WOSB subcontractors shall be expressed in both dollars and percentages for total planned dollars to be
subcontracted; total dollars planned to be subcontracted to SB; total dollars planned to be subcontracted to VOSB, total dollars planned to be subcontracted to HUB; total dollars to be subcontracted to SDB; and total dollars planned to 

 
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 CREE, INC. 
 MASTER SMALL BUSINESS 
 SUBCONTRACTING PLAN 
  
 be subcontracted to WOSB concerns, unless otherwise required by the Contracting
Officer/buyer. 
  
 Cree’s subcontracting goals shall be set at a level that
the parties reasonably expect can result expending good faith efforts to use SB, VOSB, SDB, HUB and WOSB subcontractors. 
  

	2.	 	DESCRIPTION OF SUPPLIERS AND SERVICES 

  
 The principal products and/or services to be subcontracted for the Contract Specific Plan, and the types of businesses supplying them shall be identified in an Attachment
A to the Contract Specific Plan. 
  

	3.	 	METHODOLOGY – GOALS 

  

	 	a)	 	The type of products/services typically needed by Cree is reviewed periodically to establish additional materials and services that are likely to be performed by a concern other
than Cree. 

  

	 	b)	 	The Scope of Work for each Contract/subcontract is reviewed to establish potential material and services that could likely be performed by a concern other than Cree.

  

	 	c)	 	From the total estimate of potential subcontracted items, a list of those items that are candidates for small businesses is established. 

  

	 	d)	 	From the total estimate of potential subcontracted items to small businesses, a list of those items that could be subcontracted to veteran-owned small business concerns is
established 

  

	 	e)	 	From the total estimate of potential subcontracted items to small businesses, a list of those items that could be subcontracted to small disadvantaged business concerns is
established. 

  

	 	f)	 	From the total estimate of potential subcontracted items, a list of those items that are candidates for HUBZone small business concerns is established. 

  

	 	g)	 	From the total estimate of potential subcontracted items to small business, a list of those items that could be subcontracted to women-owned small business concerns is established.

  

	4.	 	METHODOLOGY—POTENTIAL SOURCES 

  
 In the establishment of potential SB/V0SB/SDB/HUB/V0SB sources for solicitation purposes, the following resources are used: 
  

	 	a)	 	Cree Company Approved Supplier List: 

  
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 CREE, INC. 
 MASTER SMALL BUSINESS 
 SUBCONTRACTING PLAN 
  

	 	b)	 	the Small Business Administration’s (SBA)Pro-Net system, (http://pro-net.sba.gov/); 

  

	 	c)	 	the National Minority Business Council Vendor Information Service, (http://www.nmbc.org/) 

  

	 	d)	 	the Minority Business Development Administration’s Phoenix database, (http://www.mbda.gov/vendors.html); 

  

	 	e)	 	the HUBZone data base in the Pro-Net system, (http://pro-net.sba.gov/): 

  

	 	f)	 	the 8(a)search database available through Pro-Net (http://pro-net.sba.gov/); 

  

	 	g)	 	the Woman-Owned Small business database available through Pro-Net (http://pro-net.sba.gov/) 

  

	 	h)	 	the Information Division of the Minority Business Development Agency in the Department of Commerce 

  

	 	i)	 	the local Industrial Services Directory: 

  

	 	j)	 	other small and minority business associations, and 

  

	 	k)	 	Networking opportunities with the local Chamber of Commerce. 

  

	 	1)	 	Office of Veterans Business Development (http://www.sba.govNETS/) 

  

	5.	 	INDIRECT COSTS 

  
 In accordance with FAR 52.219-9(OCT2000) (Cree has decided not to include indirect costs in the goals specified for its individual contracts, however, for reporting purposes on the SF295 we will allocate a portion of
indirect cost in accordance with the portion of DOD sales versus total company sales. 
  

	6.	 	RESPONSIBILITIES FOR IMPLEMENTATION 

  
 This Master Subcontracting Plan and Contract Specific Plan there under, are to be administered by Cree to assure that the provisions of applicable Law and the plan are
implemented and performed. Any change in the name of the administrator will be communicated without delay to the Contracting Officer/buyer by letter and will not require a contract modification. 
  
 The following individual will administer the subcontracting program: 
  

	 Name:
	 	 Carmen L. Hayes

		
	 Title:
	 	 Contract Administrator Small Business Utilization Specialist

		
	 Address:
	 	 4600 Silicon Drive

	 	 	 Durham, NC 27703

		
	 Telephone:
	 	 919-313-5644

		
	 Email:
	 	 Carmen_hayes@cree.com

  
 This individual’s specific duties
as they relate to this Subcontracting Program shall include, but are not limited to 
  

	 	a)	 	Oversee compliance with the content of this Plan: 

  
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 CREE, INC. 
 MASTER SMALL BUSINESS 
 SUBCONTRACTING PLAN 
  

	 	b)	 	Ensure that all Government subcontracts placed contain the latest provisions regarding small business and small disadvantaged business subcontracting and that the requirements of
FAR 52.219-9 as implemented by this Plan are being fulfilled by Cree’s large business subcontractors; 

  

	 	c)	 	Assure inclusion of SB, VOSB, SDB, HUB, WOSB concerns in all solicitations for products or services which they are capable of providing; 

  

	 	d)	 	Review solicitations to remove statements, clauses, etc. which may tend to restrict or prohibit SB, VOSB, SDB, HUB, WOSB participants; 

  

	 	e)	 	Participate in Business Opportunity Workshops, Minority Business Enterprise, Seminars, Trade Fairs, etc., to assist SB, VOSB, SDB, HUB and WOSB concerns, and to discuss
subcontracting opportunities with them. Plan to attend one DOD southeast council meeting per year; 

  

	 	f)	 	Perform periodic audit of sub-tier subcontracting plans to measure progress of goals and monitor attainment of goals under each Contract Specific Plan: 

  

	 	g)	 	Prepare and submit periodic subcontracting reports including SF 294/295, and cooperate in studies and surveys as required; 

  

	 	h)	 	Assist in developing and maintaining bidders list of SB, VOSB, SDB, HUB and WOSB concerns from all possible sources; 

  

	 	i)	 	Participate in procuring, planning and selection of potential sources to ensure that SB, VOSB, SDB, HUB and WOSB concerns are offered every opportunity to participate in the
program; 

  

	 	j)	 	Coordinate and participate with the SBA small business utilization specialist, and other groups to locate capable firms. 

  

	 	k)	 	Facilitate the use of SB/VOSB/SBD/HUB/WOSB by ensuring that adequate time is allowed for preparation of bids and that solicitation quantities, specifications, and delivery schedule
facilitate the participating by such concerns. 

  

	 	l)	 	Counsel and discuss subcontracting opportunities with representatives of SB/VOSB/SDB/HUB/WOSB firms. 

  

	 	m)	 	Provide notice of subcontractors concerning penalties and remedies for misrepresentations of business size status as SB/VOSB/B/SDB/HUB/WOSB for the purpose of obtaining a
subcontract that is to be included as part or all of a goal. 

  

	 	n)	 	Coordinate and participate in annual program review. 

  

	 	o)	 	Maintain vendor certification. 

  
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 CREE, INC. 
 MASTER SMALL BUSINESS 
 SUBCONTRACTING PLAN 
  

	7.	 	DESCRIPTION OF EFFORTS 

  
 In the establishment of the SB, VOSB, SDB, HUB, WOSB goals, the following resources are used: the Company Approved Supplier List; the Small Business Administration’s
Pro-Net system, (http://pro-net.sba.gov/); the National Minority Purchasing Council Vendor Information Service; the Minority Business Development Administration’s Phoenix database, (http://www.mbda.gov/vendors.html); the Research and
Information Division of the Minority Business Development Agency in the Department of Commerce, and other small and minority business associations. 
  
 Outreach efforts include: 
  

	 	a)	 	Assignment by name of specific individuals to carry out the requirements of company policies and procedures; 

  

	 	b)	 	Provision of technical and management assistance to small business, small disadvantaged business concerns and women-owned business concerns to ensure complete understanding of
requirements; 

  

	 	c)	 	Assuring that Cree will consider small business concerns in all “make-or-buy decisions-’ and maintain records of these processes; 

  

	 	d)	 	Institute a program to recognize purchasing personnel who excel in administering the Cree subcontracting program, 

  

	 	e)	 	Participation in local Small Business Opportunity Fairs; 

  

	 	f)	 	Institute a program that recognizes small business participation in the success of performing Government contracts and major subcontracts: and 

  

	 	g)	 	Where additional bidders are required, the following publications will be used to search for capable firms: 

  

	 	a.	 	Minority Business Enterprise published by the Defense Logistics Agency. 

  

	 	b.	 	Diversity Information Resources, National Business Campaign, 1201 12th Ave, N, Minneapolis, MN 55411, (http://www.tryusdir.com) 

  

	 	c.	 	The Regional Minority Purchasing Council’s listings. 

  

	 	d.	 	The Women-Owned Business directory. 

  

	 	e.	 	National Minority Council mailing list. 

  

	 	f.	 	An outreach effort will be made to solicit the assistance of local, state, and federal officers, trade and manufacturing associations, and labor organizations in identifying
qualified firms. 

  
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 CREE, INC. 
 MASTER SMALL BUSINESS 
 SUBCONTRACTING PLAN 
  

	8.	 	COMPLIANCE WITH FEDERAL ACQUISITION REGULATIONS (FAR) 

  
 Cree will include the FAR clause 52.219-8, titled “Utilization of Small Business Concerns, (OCT 2000), in all subcontracts supporting Government contracts that offer
further subcontracting opportunities, except contracts for personal services or subcontracts to be performed outside any territory or possession of the United States. Cree will require all subcontractors (except small business concerns) who support
Government contracts and who receive subcontracts of $500,000 or in the case of a subcontract for the construction of any public facility, $1,000,000, and which offer further subcontracting possibilities to adopt and submit a plan similar to the
Cree Plan, and one that complies with the requirements of the stated FAR clause. 
  

	9.	 	REPORTING 

  
 Cree give assurance of: 
  

	 	a)	 	Cooperation in any studies or surveys that may be required by the contracting agency, or the SBA. 

  

	 	b)	 	Submission, of periodic reports that show compliance with the subcontracting plan. Cree may utilize the GSA “Formfill” web site
http://fillform.gsa.gov/            to            complete and submit required reports, 

  

	 	c)	 	Submission of Standard Form (SF) 284 “Subcontracting Report for Individual. Contracts,” and SF-295, ‘Summary Subcontract Report,” in accordance with the
instructions on the forms. 

  

	 	d)	 	Ensuring that large business subcontractors with subcontracting plans agree to submit Standard Forms 294 and 295. 

  

	 Reporting Period

	  	 Report Due

	  	Due Date

	 Oct 1 – Mar 31
	  	SF 294	  	April 30
	 Apr 1 – Sep 30
	  	SF 294	  	October 30
	 Oct 1 – Mar 31
	  	SF 295	  	April 30 (DoD only)
	 Oct 1 – Sep 30
	  	SF 295	  	October 30
	 Subcontractor Closeout
	  	SF 294	  	Subcontract Completion

  

	10.	 	RECORDS 

  
 Cree agrees to maintain at least the following types of records to document compliance with this Subcontracting Plan: 
  

	 	a)	 	Source lists, guides, and other data identifying SB, VOSB, SDB, HUB and WOSBV concerns; 

  

	 	b)	 	Organizations contacted in an attempt to locate sources that are SB, VOSB, SDB, HUB and WOSB concerns; 

  
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 CREE, INC. 
 MASTER SMALL BUSINESS 
 SUBCONTRACTING PLAN 
  

	 	c)	 	On a subcontract-by-subcontract basis, records on all subcontract solicitations over $100,000; indicating on each solicitation whether any SB, VOSB, SDB, HUB, and WOSB concerns were
solicited, and if not, why not; 

  

	 	d)	 	On a subcontract-by-subcontract basis, records indicating the reason an award was not made to SB, VOSB, SDB, HUB and WOSB concern; 

  

	 	e)	 	Records to support other outreach efforts; contacts with minority and small business trade associations, contacts with business development organizations, attendance at small and
minority business procurement conferences and trade fairs to locate SB, VOSB, SDB, HUB, and WOSB concerns; 

  

	 	f)	 	Records to support internal activities to guide and encourage buyers through workshops, seminars, training programs and monitoring performance activities to evaluate compliance; and

  

	 	g)	 	Records to support award data, including the name, address, and business size of each subcontractor. 

  
 Cree hereby submits a request for approval of this Master Subcontracting Plan. This Plan shall be effective for three years after approval,
or for the life of any contract/major subcontract that incorporates this Master Subcontracting Plan. 
  

	 PLAN SUBMITTED BY:
	 	 	 	 	 	 
				
	 /s/ Cynthia Merrell

	 	 	 	 Date
	 	12/8/00
	 NAME
	 	 	 	 
			
	 PLAN CONCURRED BY
	 	 	 	 
				
	 /s/ Carmen Hayes

	 	 	 	 Date
	 	11/21/00
	 Small Business Utilization Specialist
	 	 	 	 
			
	 PLAN ACCEPTED BY
	 	 	 	 
	 /s/ Margerie HocKstetler

	 	 	 	 Date
	 	1/8/01
	 Contracting Officer
	 	 	 	 

  
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 CREE, INC. 
  
 Contract/Major Subcontract 
 Specific 
  
 SB/HUB/SBD/WOB/VOSB 
 SUBCONTRACTING PLAN 

 DAAD17-02-C-0073         
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 CREE, INC. 
 SB/HUB/SDB/WOB 
 SUBCONTRACTING PLAN 
 FOR 
 CONTRACT/SUBCONTRACT NO: DARPA BAA 02-03 
  

	 Contractor: Cree, Inc. (Cree)

	
	 Address: 4600 Silicon Drive

	 	 	Durham, NC 27703
		
	 Contract Value:
	 	$ [***]

  
 1. GOALS-PERCENTAGE 

 
 This Contract Specific Plan relates specifically to the scope of work to be performed
under this contract/major subcontract, including support services. Subcontracting opportunities have been found to exist in the scope of work as noted below. Further, Cree will continue to expand subcontracting opportunities for small business
concerns, HUBZone small business concerns, small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women, as they become known to Cree. 
  
 This Contract Specific Plan, hereby incorporated into the tree Master Subcontracting Plan are
the following goals: 
  

	 Small Business (SB)
	 	 [***]%

		
	 HUBZone Business
	 	 [***]%

		
	 Small Disadvantaged Business (SDB)
	 	 [***]%

		
	 Woman-Owned Small Business (WOSB)
	 	 [***]%

		
	 Veteran-Owned Small/ Business(VOSB)
	 	 [***]%

  
 2. GOALS-DOLLAR 
  
 Total dollars planned to be subcontracted is $[***] Total dollars planned to be
subcontracted to small business concerns is $ [***]. Total dollars planned to be subcontracted to HUBZone’s is $[***]. Total dollars planned to be subcontracted to small disadvantaged business concerns is $ [***]. Total dollars planned to be
subcontracted to woman-owned small business is $[***]. Total dollars planned to be subcontracted to veteran-owned small business is $ [***]. 
  
 [***] Confidential treatment
requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. 
  
 Page 2 of 4 

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 CREE, INC. 
 SB/HUB/SDB/WOB 
 SUBCONTRACTING PLAN 
  
 2. DESCRIPTION OF SUBCONTRACTING OPPORTUNITIES 
  
 The principal products and/or services to be subcontracted and the types of businesses to be
utilized are included in Attachment 1. 
  
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 DAAD17-02-C-0073         
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 CREE INC. 
 SB/HUB/WOB 
 SUBCONTRACTING PLAN 
  
 For 
 CONTRACT/SUBCONTRACT NO.: DARPA BAA 02-03 
  

	 Approved:
	 	 	 	 
				
	 /s/ Carmen Hayes

	 	 	 	 	 	        2-1-02
	 Small Business Utilization Specialist, Cree, Inc.
	 	 	 	 Date
	 
			
	  

	 	 	 	  

	 Contracting Officer/Buyer
	 	 	 	 Date
	 	 
					
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
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 Attachment 1 
  

	 Product

	    	Quantity

	    	$ Amount

	    	Total

	    	Vendor

	    	 Business
 Type

	  	Comments

	 [***]
	    	228	    	3.36	    	766.08	    	[***]	    	W	  	Women owned 3%
	 [***]
	    	228	    	90.94	    	20,734.32	    	[***]	    	S	  	Small Business-33%
	 [***]
	    	36	    	375.00	    	13,500.00	    	[***]	    	S	  	Large Business-64%
	 [***]
	    	41	    	1,600.00	    	65,600.00	    	[***]	    	L	  	 
	 [***]
	    	4	    	500.00	    	2,000.00	    	[***]	    	W	  	 
	 	    	 	    	 	    	
	    	 	    	 	  	 
	 	    	 	    	 	    	102,600.40	    	 	    	 	  	 

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission. 

	 AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT
	  	 1.  CONTRACT ID CODE
 U
	  	 	  	 PAGE 1 OF 6

	

	 2. AMENDMENT/MODIFICATION NO.
             P00001
	  	 3. EFFECTIVE DATE
 24-Sep-2003
	  	 4. REQUISITION/PURCHASE REQ. NO.
 W71B7J-2030-B325
	  	 5. PROJECT NO. (If applicable)

	

	 6. ISSUED
BY                                        
            CODE
 US ARMY ROBERT MORRIS ACQUISITION
CENTER
 RMAC – ADELPHI
 2800 POWDER MILL ROAD
 AMSSB-ACA
 ADELPHI MD 20783-1197
	  	 W71B7J
	  	 7. ADMINISTERED BY (If other than Item 6)
 DCMC - ATLANTA
 805 WALKER STREET
 SUITE 1
 MARIETTA GA 30060-2789
	  	CODE         S1103A
	

  

	 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and Zip Code)
  
 CREE, INC.
 CHARLES M. SWOBODA
 4600 SILICON DRIVE
 DURHAM NC 27703
	  	 	  	 9A. AMENDMENT OF SOLICITATION NO.

	 	  	 	  	9B. DATED (SEE ITEM 11)
	 	  	 	  	 X
	  	 10A. MODIFICATION OF CONTRACT/ORDER NO.
 DAAD17-02-C-0073

				
	 CODE     OC9J8
	  	 FACILITY CODE
	  	 X
	  	 10B. DATED (SEE ITEM 13)
 01-Feb-2002

	

	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
	

  ̈ The
above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers          ̈ is extended,         
  ̈ is not extended. 
  
 Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: 
 (a) By completing items 8 and 15, and returning      copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which
includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER.
 If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior
to the opening hour and date specified. 
  

	12.	 	ACCOUNTING AND APPROPRIATION DATA (If required) 

  

	 	  	 13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS,
 IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

  

	       A.	 	THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. ITEM 10A. 

  

	       B.	 	THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES 

 (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b)

  

	       C.	 	THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: 

  

	X    D.	 	OTHER (Specify type of modification and authority) 

  
 Unilateral Modification pursuant to 10 USC 2304 and Contractor’s e-mail dated 24 SEP 2002. 
  
 E. IMPORTANT; Contractor x is not,
 ̈ is required to sign this document and return          copies to the issuing office.

  

	    14.	 	DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.) 

  
 The purpose of this modification is threefold: 
 A. 52.005-4401 RELEASE OF INFORMATION (AUG 2001) is deleted and replaced with 52.005-4401 RELEASE OF INFORMATION (JUL 2002) and 52.004-4400 
 FOREIGN NATIONALS PERFORMING UNDER CONTRACT – ALTERNATE I (AUG 1999) is incorporated to apply to Educational Institutions only. 
 B. The USARMAC Contracting Point of Contact has changed from Joyce McDonald to Robin Stoltz. 
 C. In addition, this modification also contains administrative changes to comply with automated contracting system requirements and in no way impacts any of the 
 terms and conditions of the contract. 
 D. All other terms and conditions of
the contract remain unchanged. 
  
 Except as provided herein, all terms and
conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect. 
  

	

	 15A. NAME AND TITLE OF SIGNER (Type or print)
	  	 16A. NAME AND TITLE OF SIGNER (Type or
print)
 THEODORE WEITZMAN/CONTRACTING OFFICER

	

	 15B. CONTRACTOR/OFFEROR
            
  

 (Signature of person authorized to sign)
	  	 15C. DATE SIGNED
  
	  	 16B. UNITED STATES OF AMERICA    
  
 By: /s/ Theodore Weitzman
                                  

 (Signature of Contracting Officer)
	  	 16C.   DATE SIGNED
 24-Sep-2002

	

	 NSN 7540-01-152-8070
 PREVIOUS EDITION
UNUSABLE
 ConWrite Version 4.1.4
 Created 06 Sep 2001 9:31
AM
	  	 	  	 STANDARD FORM 30 (REV. 10-83)
 Prescribed by GSA
 FAR (48 CFR) 53.243

 DAAD17-02-C-0073         
 P00001 
 Page 2 of 6 
  

 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 
  
 SUMMARY OF CHANGES 
  
 Changes in Solicitation/Contract/Order Form 
  
 The discount terms has changed from NET 30 to Net 30 Days 
  
 Changes in Section B 
  
 CLIN 0001 
  
 The acceptance terms number of days has increased from 0 by 7 to 7 
  
 CLIN 0002 
  
 The acceptance terms number of days has increased from 0 by 7 to 7 
  
 CLIN 0003 
  
 The acceptance terms number of days has increased from 0 by 7 to 7 
  
 CLIN 0004 
  
 The acceptance terms number of days has increased from 0 by 7 to 7 

 DAAD17-02-C-0073         
 P00001 
 Page 3 of 6 
  

 Changes in Section B 
  
 The following clauses which are incorporated by full text have been added or modified: 
  
 52.004-4401 RMAC POINT OF CONTACT (MAR 2000) 
  
 The RMAC point of contact for this action is: 
  
 Contract Specialist: Robin Stoltz 
 Telephone Number: 301-394-3381 

Fax Number: 301-394-2852 
 Email: rstoltz@arl.army.mil 
  
 (End of clause) 

 DAAD17-02-C-0073         
 P00001 
 Page 4 of 6 
  

 Changes in Section G 
  
 Summary for the Payment Office 
  
 The total funded amount of the contract remains unchanged. 

 DAAD17-02-C-0073         
 P00001 
 Page 5 of 6 
  

 Changes in Section H 
  
 The following clauses which are incorporated by full text have been added or modified: 
  
 52.004-4400 FOREIGN NATIONALS PERFORMING UNDER CONTRACT - ALTERNATE I 
                       (AUG 1999) (APPLIES TO EDUCATIONAL INSTITUTIONS ONLY) 
  
 In accordance with 8 USC 1324a, it is unlawful to hire for employment in the US an individual
without verifying that individual’s employment authorization. 8 CFR 274a.2 VERIFICATION OF EMPLOYMENT ELIGIBILITY identifies the official documents that establish employment eligibility. 
  
 Prior to performance of work by a foreign national as a result of this contract, the employer
shall provide the Contracting Officer the name of the foreign national and identify the type of form (s) produced for verification of employment status. Should the foreign national’s performance require access to DoD facilities, the employer
shall coordinate with the sponsor providing access, in order to submit the following: 
  
 1. Individual’s Name 
 2. Citizenship 
 3. Date and Location of the Visit 
 4. Purpose of the Visit 
 5. Passport Number 
 6. Employer’s Verification of Work Authorization 
  
 (End of clause) 
  
 52.005-4401 RELEASE OF INFORMATION (JUL 2002) 
  
 Army Regulations (AR) 530-1 and AR 360-1 prescribe Department of the Army policies for operations security (OPSEC) review prior to public release. These
include: 
  
 (1) Procurement instruments and solicitations
(including grants, cooperative agreements, etc.), abstracts, papers, technical reports, articles, point papers, news releases, short items to be included in other publications, academic papers on work-related subject matter, speeches, briefings,
media presentations, training materials, munitions cases, environmental impact statements, and other forms of information, including film, audio tapes and video cassettes which could divulge non-releasable, unclassified information 
  
 (2) Information posted on electronic bulletin boards, passed over unsecured
electronic mail systems, or posted in a manner to the World Wide Web 
  
 These policies are applicable to unclassified contracts/instruments as well as the classified contracts/instruments governed in this respect by DD Form 254. 
  
 Army policy is to make available to the public the maximum accurate information on Army contract/instrument relationships,
industry/academic accomplishments, and scientific achievements. In furtherance of this policy, each party agrees to confer and consult with each other prior to publication or any other disclosure of information relating to efforts under this
contract/instrument. Prior to any public publication or disclosure, each party will offer the other 

 DAAD17-02-C-0073         
 P00001 
 Page 6 of 6 
  

 party ample opportunity to review the proposed publication or disclosure, to submit objections, and to file application
letters for patents in a timely manner. The contractor shall allow 60 days for completion of this process. 
  
 Your organization will provide the Public Affairs Office any public release of information on this contract/instrument by forwarding the material to be
released and a transmittal letter identifying the contract/instrument number the specific information to be released, the medium to be used, the purpose of the release, the cognizant Science Officer, Technical Monitor, or Contracting Officer’s
Representative to the addresses shown below. 
  

	 U.S. Army Research Laboratory
	  	U.S. Army Robert Morris Acquisition Center
	 Public Affairs Office
	  	Adelphi Contracting Division
	 ATTN: AMSRL-CS-PA
	  	ATTN: AMSSB-ACA-C
	 2800 Powder Mill Road
	  	2800 Powder Mill Road
	 Adelphi, Maryland 20783-1197
	  	Adelphi, Maryland 20783-1197

  
 M/F: Contract No.: DAAD17-02-C-0073

  
 The contractor shall assure that an acknowledgment of
Government support and disclaimer of Government endorsement as set forth below shall appear on each publication or presentation of material based on or developed under this program. These statements shall appear either on the title/first page or the
final page of such documents - 
  
 “The research reported in
this document/presentation was performed in connection with contract/instrument DAAD17-02-C-0073 with the U.S. Army Research Laboratory. The views and conclusions contained in this document/presentation are those of the authors and should not be
interpreted as presenting the official policies or position, either expressed or implied, of the U.S. Army Research Laboratory or the U.S. Government unless so designated by other authorized documents. Citation of manufacturer’s or trade names
does not constitute an official endorsement or approval of the use thereof. The U.S. Government is authorized to reproduce and distribute reprints for Government purposes notwithstanding any copyright notation hereon.” 
  
 (End of clause) 

	 AMENDMENT OF SOLICITATION//MODIFICATION OF CONTRACT
	  	 1.  CONTRACT ID CODE
 T
	  	 PAGE 1 OF 3

	

	 2. AMENDMENT/MODIFICATION NO.
             P00002
	  	 3. EFFECTIVE DATE
 16-Dec-2002
	  	 4. REQUISITION/PURCHASE REQ. NO.
 SEE
SCHEDULE
	  	 5. PROJECT NO. (If applicable)

	

	 6. ISSUED
BY                                        
            CODE
  
 US ARMY ROBERT MORRIS ACQUISITION CENTER
 RMAC – ADELPHI
 2800 POWDER MILL ROAD
 AMSSB-ACA
 ADELPHI MD 20783-1197
	  	 W71B7J
	  	 	  	 7. ADMINISTERED BY (If other than Item 6)
 DCMC - ATLANTA
 805 WALKER STREET, SUITE 1
 MARIETTA, GA 30060-2789
	  	 CODE S1103A

	

  

	 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and Zip Code)
  
 CREE INC.
 CHARLES M. SWOBOA
 4600 SILICON DRIVE
 DURHAM, NC 27703
	  	 	  	 9A. AMENDMENT OF SOLICITATION NO.

	 	  	 	  	 	  	9B. DATED (SEE ITEM 11)
	 	  	 	  	 	  	 (X)
	  	 10A. MODIFICATION OF CONTRACT/ORDER NO
 DAAD17-02-C-0073

					
	 CODE 0C9J8
	  	 FACILITY CODE
	  	 	  	 (X)
	  	 10B. DATED (SEE ITEM 13)
 20-MAR-2002

	

	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
	

	 ̈	 	The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of
Offers                                     ̈ is extended, 

	 ̈	 	is not extended. 

  
 Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: 
  
 (a) By completing items 8 and 15, and returning          copies of the amendment; (b) By
acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE
DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. 
  
 If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes
reference to the solicitation and this amendment, and is received prior to the opening hour and date specified. 
  

	 12.   ACCOUNTING AND APPROPRIATION DATA (If required)
         See Schedule

	 13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,
 IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED ITEM 14.

  

	 A.	 	THIS CHANGE ORDER IS ISSUED PURSUANT TO (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. ITEM 10A. 

  

	B.	 	THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14,
PURSUANT TO THE AUTHORITY OF FAR 43.103(b). 

  

	 C.	 	THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: 

  

	D.	 	OTHER (Specify type of modification and authority) 

 Unilateral Modification pursuant to 10 USC 2304 and Contractor’s e-mail dated 24 SEP 2002. 
  

	E.	 	IMPORTANT; Contractor x is not,  ̈ is required to sign this document and return      copies to the issuing office. 

  

	14.	 	DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.) 

  
 The purpose of this modification is to add an increment of funds in the amount of $ [***], as
follows: 
  
 Except as provided herein, all terms and conditions of the document
referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect. 
  

	

	 15A. NAME AND TITLE OF SIGNER (Type or print)
	 	 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type
or print)
 THEODORE WEITZMAN/CONTRACTING OFFICER
 TEL:
301-394-3165    EMAIL: tweitzman@arl.army.mil

	

	 15B. CONTRACTOR/OFFEROR             
15C. DATE SIGNED
 /s/                                      
              
 (Signature of person
authorized to sign)
	 	 16B. UNITED STATES OF AMERICA    16C.   DATE SIGNED
 By: /s/ Theodore Weitzman
                                 24-Sep-2002
 (Signature of Contracting Officer)

	

	 EXCEPTION TO SF
30                                       
 30-105-04
 APPROVED BY FORM 11-84
	 	 STANDARD FORM 30 (REV. 10-83)
 Prescribed by GSA
 FAR (48
CFR) 53.243

  

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with
the 

  

 DAAD17-02-C-0073         
 P00002 
 Page 2 of 3 
  

 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 
  
 SUMMARY OF CHANGES 
  
 SECTION B - SUPPLIES OR SERVICES AND PRICES 
  
 CLIN 0002 
 The test type No Test has been
added. 
  
 SUBCLIN 000101 is added as follows: 
  

	ITEM NO

	  	 SUPPLIES/SERVICES

	  	QUANTITY

	  	UNIT

	  	UNIT PRICE

	  	AMOUNT

	 000101
	  	 	  	 	  	 	  	 	  	 
	 	  	 Incremental Funding for CLIN 0001
	  	 	  	 	  	 	  	 
	 	  	 CS
	  	 	  	 	  	 	  	 
	 	  	PURCHASE REQUEST NUMBER: W71B7J-2347-B321	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 ESTIMATED COST
SHARE RATIO
	  	[***]
	 	  	 ACRN AC Funded Amount
	  	 	  	 	  	 	  	[***]

  
 FOB: Destination 
  
 SECTION E - INSPECTION AND ACCEPTANCE 
  
 The following Acceptance/Inspection Schedule was added for SUBCLIN 000101: 
  

	 INSPECT AT

	  	 INSPECT BY

	  	 ACCEPT AT

	  	 ACCEPT BY

	 N/A
	  	N/A	  	N/A	  	Government

  
 SECTION G - CONTRACT ADMINISTRATION
DATA 
  
 Accounting and Appropriation 
  
 Summary for the Payment Office 
  
 As a result of this modification, the total funded amount for this document was increased by $[***] from $[***] to $[***].

  
 SUBCLIN 000101: 
 Funding on SUBCLIN 000101 is initiated as follows: 
  
 ACRN: AC 
  
 Acctng Data:

 973040013010RPARGO3H20M891000255YANEM00W71B7J2347B3213N17GGS18129 
  

Increase: $[***] 

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission. 

 DAAD17-02-C-0073         
 P00002 
 Page 3 of 3 
  

 Total: $[***] 
  
 (End of Summary of Changes) 
  

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission. 

	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	 1.  CONTRACT ID CODE
 T
	  	 PAGE 1 OF 8

	

	 2. AMENDMENT/MODIFICATION NO.
             P00003
	  	 3. EFFECTIVE DATE
 05-May-2003
	  	 4. REQUISITION/PURCHASE REQ. NO.
 SEE SCHEDULE
	  	 5. PROJECT NO. (If applicable)

	

	 6. ISSUED BY    
 US ARMY ROBERT MORRIS ACQUISITION CENTER
 RMAC – ADELPHI
 2800 POWDER MILL ROAD
 AMSSB-ACA
 ADELPHI MD 20783-1197
	  	 CODE W71B7J
	  	 	  	 7. ADMINISTERED BY (If other than Item 6)
 DCMC - ATLANTA
 805 WALKER STREET
 SUITE 1
 MARIETTA GA 30060-2789
	  	 CODE S1103A

	

  

	 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and Zip Code)
  
 CREE, INC.
 CHARLES M. SWOBODA
 4600 SILICON DRIVE
 DURHAM NC 27703
	  	 	  	 9A. AMENDMENT OF SOLICITATION NO.

	 	  	 	  	 	  	9B. DATED (SEE ITEM 11)
	 	  	 	  	 	  	 X
	  	 10A. MODIFICATION OF CONTRACT/ORDER NO
 DAAD17-02-C-0073

					
	 CODE OC9J8
	  	 FACILITY CODE
	  	 	  	 X
	  	 10B. DATED (SEE ITEM 13)
 20-Mar-2002

	

	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
	

  ̈ The
above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers             ̈ is extended, 
  ̈ is not extended. 
  
 Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: 
 (a) By completing items 8 and 15, and returning      copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which
includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. 

If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes
reference to the solicitation and this amendment, and is received prior to the opening hour and date specified. 
  

	12.	 	ACCOUNTING AND APPROPRIATION DATA (If required) 

  See Schedule 
  

	 	  	 13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS,
 IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

  

	 	 X  A.	 	 THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT 

 ORDER NO. ITEM 10A. 
  
 FAR 52.243-2 Changes Alt V (AUG 1987) 
  

	 	B.	 	THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14,
PURSUANT TO THE AUTHORITY OF FAR 43.103(b) 

  

	 	C.	 	THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: 

  

	 	D.	 	OTHER (Specify type of modification and authority) 

  
 E. IMPORTANT; Contractor x is not,  ̈ is required to sign this document and return          copies to the issuing office. 
  

	14.	 	DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.) 

  
 The purpose of this modification is as follows: 
 (Note: This modification may contain extraneous administrative changes as a result of the Government’s automated contracting system. These extraneous changes do not
affect the terms and conditions of the contract.) 
 Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as
heretofore changed, remains unchanged and in full force and effect. 
  

	

	 15A. NAME AND TITLE OF SIGNER (Type or print)
	 	 16A. NAME AND TITLE OF SIGNER (Type or
print)
 THEODORE WEITZMAN/CONTRACTING OFFICER
 TEL: 301-394-3165        EMAIL: tweitzman@arl.army.mil

	

	 15B. CONTRACTOR/OFFEROR
             15C. DATE SIGNED
 (Signature of person
authorized to sign)
	 	 16B. UNITED STATES OF AMERICA    16C.   DATE SIGNED
 By: /s/ Theodore Weitzman
                                  05-May-2003
 (Signature of Contracting Officer)

	

	 EXCEPTION TO SF
30                                30-105-04
 APPROVED BY OIRM 11-84
	 	 STANDARD FORM 30 (REV. 10-83)
 Prescribed by GSA
 FAR (48 CFR)
53.243

 DAAD17-02-C-0073         
 P00003 
 Page 2 of 8 
  

 SUMMARY OF CHANGES 
  
 SECTION SF 30 - BLOCK 14 CONTINUATION PAGE 
  
 The following have been added by full text: 
 MODIFICATION
TEXT 
 A. The purpose of this modification is to fully fund the Government’s share of CLIN 0001, to correct a typographical error in Section B,
Cost-Share Explanation, and to issue a Change Order to the Statement of Work, Section C.7. 
  
 B. The Contractor has 30 days to submit a cost and schedule impact proposal as a result of the Change Order. The Contractor is advised that unless the estimated cost of this contract is increased in accordance with
the provisions of the Limitation of Cost clause or by subsequent written supplemental agreement, any cost incurred by the Contractor in excess of the present cost or funding limit shall be at the Contractor’s sole risk. 
  
 SECTION A - SOLICITATION/CONTRACT FORM 
 The ‘issued by’ organization has changed from 
 US ARMY ROBERT MORRIS ACQUISITION CENTER 
 RMAC - ADELPHI 
 2800 POWDER MILL ROAD 
 AMSSB-ACA 
 ADELPHI MD 20783-1197 
 to 
 US ARMY ROBERT MORRIS ACQUISITION CENTER 
 RMAC - ADELPHI 
 2800 POWDER MILL ROAD 
 AMSSB-ACC-AC 
 ADELPHI MD 20783-1197 
  
 The
‘Payment will be made by’ organization has changed from 
 DFAS - COLUMBUS CENTER 
 DFAS-CO/SOUTH ENTITLEMENT OPERATIONS 
 P.O. BOX 182264 
 COLUMBUS OH 43218-2264 
 to 
 DFAS -
COLUMBUS 
 SOUTH ENTITLEMENTS OPERATIONS 
 P.O. BOX 182264 
 COLUMBUS OH 43218-2264 
  
 SECTION B - SUPPLIES OR SERVICES AND PRICES

  
 SUBCLIN 000102 is added as follows: 

 DAAD17-02-C-0073         
 P00003 
 Page 3 of 8 
 AMOUNT 
  

	ITEM NO

	  	 SUPPLIES/SERVICES

	  	QUANTITY

	  	UNIT

	  	UNIT PRICE

	  	AMOUNT

	 000102
	  	 	  	 	  	 	  	 	  	 
	 	  	 Incremental Funding for CLIN 0001
	  	 	  	 	  	 	  	 
	 	  	 CS
	  	 	  	 	  	 	  	 
	 	  	 Incremental Funding for CLIN 0001
	  	 	  	 	  	 	  	 
	 	  	 PURCHASE REQUEST NUMBER: W71B7J-3122-B321
	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 ESTIMATED COST
SHARE RATIO
	  	[***]
	 	  	 ACRN AD Funded Amount
	  	 	  	 	  	 	  	[***]

  
 FOB: Destination

  
 The following have been modified: 
 [***] 

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission. 

 DAAD17-02-C-0073         
 P00003 
 Page 4 of 8 
  

 [***] 
  

	 Contract Line

	  	 Government’s Share

	  	 Contractor’s Share

	  	 Total Estimated
Item # Contract Cost

	 	  	 	  	 	  	 
	 CLIN 0001
	  	[***]	  	[***]	  	[***]
	 CLIN 0003
	  	[***]	  	[***]	  	[***]
	 CLIN 0004
	  	[***]	  	[***]	  	[***]
				
	 TOTAL
	  	[***]	  	[***]	  	[***]

  
 52.032-4421 INCREMENTAL
FUNDING—PERFORMANCE PERIOD (SEP 1999) 
  
 This contract is incrementally
funded. The amount presently available for payment and allotted to the contract is $ [***]. It is estimated that the allotted funds will cover all areas of contract performance for the period from award of contract through completion of CLIN 0001.

  
 (End of clause) 
  
 SECTION C—DESCRIPTIONS AND SPECIFICATIONS 
  
 The following have been modified: 
 STATEMENT OF WORK 
  
 Statement of Work 
  
 C.0 Introduction 
  
 The development of [***] is of critical importance to the military. [***] have application in biological agent detection, non-line-of-sight (NLOS) covert communications, water purification, equipment/personnel
decontamination, and white light generation. It is the goal of the [***] program to exploit the unique characteristics of [***]that can be integrated into modules and subsystems to address these applications. The Government is interested in novel
ideas that will result in the demonstration of deep [***]. This effort focuses on exploiting the material qualities of the [***] to produce an [***] compatible with the applications cited above. 
  
 This program will be conducted in two phases. Phase I (Years 1 and 2) will concentrate on the
development of [***] by exploiting the unique characteristics of [***]. Emphasis will be placed on materials needed to realize [***] and [***]. These materials are considered to be on the materials development critical path (MDCP). Also included in
the Phase I effort is the [***] of innovative [***] with [***] the [***]. In Option Phase II (Option Years 3 and 4), the emphasis shifts to the optimization of [***] and [***] with [***]. It is expected that the ultimate goal of [***] 
  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission.

 DAAD17-02-C-0073         
 P00003 
 Page 5 of 8 
  

 will be achieved through materials development and device innovation initially in the near UV portion of the [***] as
part of the Phase I effort. Based on advances in science, materials, and devices in Phase I, the optimization of devices to meet or exceed Option Phase II goals will be realized. 
  
 Year 1 
  
 C. 1. The Contractor shall develop [***] for [***] necessary for [***] and [***] on [***]. 
  
 C.1.1 The Contractor shall deliver representative [***] on the MDCP to the Government. 
  
 C.2. The Contractor shall grow [***] to reduce [***]. 
  
 C.2.1 The Contractor shall deliver representative [***] on the MDCP to the Government.

  
 C.3. The Contractor shall fabricate [***]. 
  
 C.3.1 The Contractor shall deliver representative devices to the Government. 
  
 C. 4. The Contractor shall develop optically efficient [***] and [***] comprised of [***]
family. 
  
 C.4.1 The Contractor shall deliver representative [***] on the MDCP to
the Government. 
  
 C.4.2 The Contractor shall deliver to the Government [***]
with [***] and [***] nine (9) months after the start of the contract. 
  
 C.4.3
The Contractor shall deliver to the Government [***] with [***] and [***] nine (9) months after the start of the contract. 
  
 C.4.4 The Contractor shall deliver to the Government [***] with [***] and [***] nine (9) months after the start of the contract. 
  
 C.4.5 The Contractor shall deliver to the Government [***] with [***] and [***] nine (9)
months after the start of the contract. 
  
 Year 2 
  
 C.5 The Contractor shall develop [***] and [***] comprised of [***] family, 
  
 C.5.1 The Contractor shall deliver representative [***] on the MDCP to the Government.

  
 C.6 The Contractor shall grow of III-nitrides on [***] to reduce [***].

  
 C.6.1 The Contractor shall deliver representative [***] on the MDCP to the
Government. 
  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have
been filed separately with the Commission. 
  
 C.7 The contractor shall
substantially improve the reliability and lifetimes of [***]. 
  
 C.7.1 The
contractor shall deliver [***] after the start of the contract. 
  
 [***]
Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. 

 DAAD17-02-C-0073         
 P00003 
 Page 6 of 8 
  

 C.7.2 The contractor shall deliver 20 packaged laser diodes (LDs) with peak output wavelength of 360 nm under CW
operation and with lifetimes of at least 300 hrs 23 months after the start of the contract. 
  
 C.7.3 The contractor shall fabricate and deliver [***] 23 months after the start of the contract. 
  
 C.8 The Contractor shall develop [***]. 
  
 C.8.1 The Contractor shall deliver to the Government [***] with [***] 23 months after the start of the contract. 
  
 C.9 The Contractor shall develop [***] including the [***]. 
  
 C.9.1 The Contractor shall deliver to the Government [***] and [***] 17 months after the
start of the contract. 
  
 Year 3 (Option CLIN 0003) 
  
 C.10 The Contractor shall develop device design for [***] and optimize fabrication process
to produce it. 
  
 C.10.1 The Contractor shall deliver to the Government [***] and
[***] 35 months after the start of the contract. 
  
 C.11 The Contractor shall
develop device design for [***] and optimize fabrication process to produce it. 
  
 C.11.1 The Contractor shall deliver to the Government [***] and [***] 35 months after the start of the contract. 
  
 C.12 The Contractor shall develop growth of [***]. 
  
 C.12.1 The Contractor shall deliver to the Government [***] and [***] with [***] 35 months after the start of the contract. 
  
 Year 4 (Option CLIN 0004) 
  
 C.13 The Contractor shall develop design for [***] and optimize fabrication process to
produce it. 
  
 C.13.1 The Contractor shall deliver to the Government [***] and
[***] 47 months after the start of the contract. 
  
 C.13.2 The Contractor shall
deliver to the Government [***] and [***] 41 months after the start of the contract. 
  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the
Securities and Exchange Commission. Omitted portions have been filed separately with the Commission. 
  
 C.13.3 The Contractor shall deliver to the Government [***] and [***] 47 months after the start of the contract. 
  
 C.14 OTHER CONTRACT DELIVERABLES 
  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission. 

 DAAD17-02-C-0073         
 P00003 
 Page 7 of 8 
  

 C.14.1 The contractor shall provide copies of all technical reports submitted for publication (in journals, conference
proceedings and other technical reports) under this contract to the technical POC 
  
 C.14.2 The Contractor shall complete and submit quarterly and cost expenditure reports throughout the duration of the contract in accordance with DD Form 1423, Contract Data Requirements List, Exhibit A to Section J. Reports shall be marked
with the following Distribution Statement: 
  
 DISTRIBUTION
STATEMENT C: Distribution authorized to U.S. Government Agencies and their contractors, proprietary information, 7 Feb 02. Other requests for this document shall be referred to U.S. Army Research Laboratory, Attn: AMSRL-SE-EM, 2800 Powder Mill Road,
Adelphi, MD 20783-1197. 
  
 C14.3 The contractor shall provide a comprehensive
Final Report at the close of the contract. The report shall detail all activities performed under the contract and provide results and conclusions for each task. 
  
 SECTION E—INSPECTION AND ACCEPTANCE 
  
 The Acceptance/Inspection Schedule for SUBCLIN 000101 has been changed from: 
  

	 INSPECT AT

	  	 INSPECT BY

	  	 ACCEPT AT

	  	 ACCEPT BY

	 N/A
	  	N/A	  	N/A	  	Government

  
 To: 
  

	 INSPECT AT

	  	 INSPECT BY

	  	 ACCEPT AT

	  	 ACCEPT BY

	 Destination
	  	Government	  	Destination	  	Government

  
 The following
Acceptance/Inspection Schedule was added for SUBCLIN 000102: 
  

	 INSPECT AT

	  	 INSPECT BY

	  	 ACCEPT AT

	  	 ACCEPT BY

	 Destination
	  	Government	  	Destination	  	Government

  
 SECTION F - DELIVERIES OR PERFORMANCE

  
 The following Delivery Schedule item has been added to SUBCLIN 000101:

  

	 DELIVERY DATE

	  	QUANTITY

	  	SHIP TO ADDRESS

	  	UIC

	 31-JAN-2004
	  	 	  	 US ARMY RESEARCH LABORATORY
 DR PAUL AMIRTHARAJ
 2800 POWDER MILL ROAD
 ADELPHI MD
20783-1197
 301-394-0940
 FOB: Destination
	  	W71B7J

  
 [***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted
portions have been filed separately with the Commission. 
  
 The following
Delivery Schedule item has been added to SUBCLIN 000102: 
  

	 DELIVERY DATE

	  	QUANTITY

	  	 SHIP TO ADDRESS

	  	UIC

	 31-JAN-2004
	  	 	  	US ARMY RESEARCH LABORATORY	  	W71B7J

  

 DAAD17-02-C-0073         
 P00003 
 Page 8 of 8 
  

	 DR PAUL AMIRTHARAJ

	 2800 POWDER MILL ROAD

	 ADELPHI MD 20783-1197

	 301-394-0940

	 FOB: Destination

  
 SECTION G - CONTRACT
ADMINISTRATION DATA 
  
 Accounting and Appropriation 
  
 Summary for the Payment Office 
  
 As a result of this modification, the total funded amount for this document was increased by $ [***] from $[***] to $ [***].

  
 SUBCLIN 000102: 
 Funding on SUBCLIN 000102 is initiated as follows: 
  
 ACRN: AD 
  
 Acctng Data:

 973040013010RPARGO3H20M891000255YANEM00W71B7J3122B3213N17GGS18129 
  

Increase: $ [***] 
  
 Total: $ [***] 
  
 (End of Summary of Changes) 

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission. 

	 AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT
	  	 1.  CONTRACT ID CODE
  
 U
	  	 PAGE 1 OF 8

	

	 2. AMENDMENT/MODIFICATION NO.
             P00004
	  	 3. EFFECTIVE DATE
 01-Jul-2003
	  	 4. REQUISITION/PURCHASE REQ. NO.
 SEE SCHEDULE
	 	 5. PROJECT NO. (If applicable)

	

	 6. ISSUED
BY                                        
                CODE
	  	 W71B7J
	  	7. ADMINISTERED BY (If other than Item 6)	 	CODE	 	S1103A
	 	
	 	 	 	 	

				
	 US ARMY ROBERT MORRIS ACQUISITION CENTER
 RMAC – ADELPHI
 2800 POWDER MILL ROAD
 AMSSB-ACA
 ADELPHI MD 20783-1197
  
	  	 DCMC - ATLANTA
 805 WALKER STREET
 SUITE 1
 MARIETTA GA 30060-2789
	 	 	 	 
	

	8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and Zip Code)	  	9A. AMENDMENT OF SOLICITATION NO.
	 CREE, INC.
 CHARLES M. SWOBODA
 4600 SILICON DRIVE
 DURHAM NC 27703
	  	 	  
	 	 	 	

	  	 	  	 9B. DATED (SEE ITEM 11)
  

	 	 	 	

	  	 X
	  	 10A. MODIFICATION OF CONTRACT/ORDER NO.
 DAAD17-02-C-0073

	
	 	 	

	 CODE        OC9J8
	  	 FACILITY CODE
	  	 X
	  	 10B. DATED (SEE ITEM 13)
 20-Mar-2002
  

	

	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
	

	  ̈ The above numbered
solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers
                         ̈ is extended,
  ̈ is not
extended.
  
 Offers must acknowledge receipt of this amendment prior to the hour
and date specified in the solicitation or as amended, by one of the following methods:
 (a) By completing items 8 and 15, and returning
     copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers.
FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER.
 If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment,
and is received prior to the opening hour and date specified.
  
 12. ACCOUNTING
AND APPROPRIATION DATA (If required)
 See Schedule

	

	 	  	 13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS,
 IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

	

				
	 	 	 	 	A.	 	THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. ITEM 10A.
	

	 	 	 	 	B.	 	THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14,
PURSUANT TO THE AUTHORITY OF FAR 43.103(b)
	

	 	 	 	 	 C.
  
	 	 THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
  

	

	 	 	 X
	 	D.	 	 OTHER (Specify type of modification and authority)
 DFAR 252.217-7027 CONTRACT DEFINITIZATION OCT 1998)

	

	 	 	E. IMPORTANT; Contractor  ̈ is not, x is required to sign this document and return     1     copies to the issuing office.
	

	 	 	 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject
matter where feasible.)
  
 The purpose of this modification is to definitize
the change order issued in Modification P00003 as follows:

	

 Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore
changed, remains unchanged and in full force and effect. 

	

	 15A. NAME AND TITLE OF SIGNER (Type or print)
 Denise S. Holliday
 Contracts Manager
	 	 16A. NAME AND TITLE OF SIGNER (Type or
print)
 THEODORE WEITZMAN/CONTRACTING OFFICER
 TEL: 301-394-3165        EMAIL: tweitzman@arl.army.mil

	

	 15B. CONTRACTOR/OFFEROR             
15C. DATE SIGNED
 /s/ Denise S.
Holliday                                      
  6/30/03
 (Signature of person authorized to sign)
	 	 16B. UNITED STATES OF AMERICA    16C.   DATE SIGNED
 By: /s/ Theodore Weitzman
                                  01-Jul-2003
 (Signature of Contracting Officer)

	

	 EXCEPTION TO SF
30                                30-105-04
 APPROVED BY OIRM 11-84
	 	 STANDARD FORM 30 (REV. 10-83)
 Prescribed by GSA
 FAR (48 CFR)
53.243

 DAAD17-02-C-0073         
 P00004 
 Page 2 of 6 
  

 SECTION SF 30 BLOCK 14 CONTINUATION PAGE 
  
 SUMMARY OF CHANGES 
  
 SECTION A - SOLICITATION/CONTRACT FORM 
  
 The total cost of this contract was increased by $ [***] from $ [***] to $ [***]. 
  
 SECTION B—SUPPLIES OR SERVICES AND PRICES 
  
 CLIN 0001 
 The estimated/max cost has
increased by $ [***] from $[***] to $[***]. 
 The total cost of this line item has increased by $[***] from $[***] to $[***]. 
  
 SUBCLIN 000103 is added as follows: 
  

	ITEM NO

	  	 SUPPLIES/SERVICES

	  	QUANTITY

	  	UNIT

	  	 UNIT PRICE

	  	AMOUNT

	 
	 000103
	  	 	  	 	  	 	  	 	  	 	 
	 	  	 Funding for Change Order
	  	 	  	 	  	 	  	 	 
	 	  	 CS
	  	 	  	 	  	 	  	 	 
	 	  	 Funding for Change Order
	  	 	  	 	  	 	  	 	 
	 	  	 	  	 	  	 	  	 ESTIMATED COST SHARE RATIO
	  	[	***]
	 	  	 ACRN AE Funded Amount
	  	 	  	 	  	 	  	[	***]

  
 FOB: Destination 
  
 The following have been modified: 
  
 [***] 

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission. 

 DAAD17-02-C-0073         
 P00004 
 Page 3 of 6 
  

 [***] 
  

	 Contract Line
 Item
#

	 	 Government’s Share

	 	 Contractor’s Share

	  	 Total Estimated
 Contract Cost

	 
	 	 	 	 	 	  	 	 
	 CLIN 0001
	 	 [***]
	 	 [***]
	  	[	***]
	 CLIN 0003
	 	 [***]
	 	 [***]
	  	[	***]
	 CLIN 0004
	 	 [***]
	 	 [***]
	  	[	***]
	 TOTAL
	 	[***]	 	[***]	  	[	***]

  
 52.032-4421 INCREMENTAL
FUNDING—PERFORMANCE PERIOD (SEP 1999) 
  
 This contract is incrementally
funded. The amount presently available for payment and allotted to the contract is $ [***]. It is estimated that the allotted funds will cover all areas of contract performance for the period from award of contract through completion of CLIN 0001.

  
 (End of clause) 
  
 SECTION E—INSPECTION AND ACCEPTANCE 
  
 The following Technical Office was added for SUBCLIN 000102: 
 US ARMY RESEARCH LABORATORY 
 DR PAUL AMIRTHARAJ 
 2800 POWDER MILL ROAD 
 ADELPHI MD 20783-1197 
  
 The following Acceptance/Inspection Schedule was added for SUBCLIN 000103: 
  

	 INSPECT AT

	  	 INSPECT BY

	  	 ACCEPT AT

	  	 ACCEPT BY

	 Destination
	  	Government	  	Destination	  	Government

  
 The following Technical Office was
added for SUBCLIN 000103: 
 US ARMY RESEARCH LABORATORY 
 DR PAUL
AMIRTHARAJ 
 2800 POWDER MILL ROAD 
 ADELPHI MD 20783-1197

  
 SECTION F - DELIVERIES OR PERFORMANCE 
  
 The following Delivery Schedule item for CLIN 0001 has been changed from: 
  

	DELIVERY DATE	 	QUANTITY	 	SHIP TO ADDRESS	  	UIC

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission. 

  

	 POP 01-FEB-2002 TO
 31-JAN-2004
	 	 N/A
	 	 US ARMY RESEARCH LABORATORY
 DR PAUL AMIRTHARAJ
	  	 W71B7J

 DAAD17-02-C-0073         
 P00004 
 Page 4 of 6 
  

	 	 	 	 	 2800 POWDER MILL ROAD
 ADELPHI MD 20783-1197
 301-394-0940
 FOB: Destination
	  	 

  
 To: 
  

	 DELIVERY DATE

	 	 QUANTITY

	 	 SHIP TO ADDRESS

	  	UIC

	POP 01-FEB-2002 TO 31-JAN-
2004	 	N/A	 	 US ARMY RESEARCH
LABORATORY
 DR PAUL
AMIRTHARAJ
2800 POWDER MILL ROAD
ADELPHI MD 20783-1197
301-394-0940
FOB: Destination
	  	W71B7J

  
 The following Delivery
Schedule item has been added to SUBCLIN 000103: 
  

	 DELIVERY DATE

	 	 QUANTITY

	 	 SHIP TO ADDRESS

	  	UIC

	31-JAN-2004	 	 	 	 US ARMY RESEARCH
LABORATORY
 DR PAUL
AMIRTHARAJ
2800 POWDER MILL ROAD
ADELPHI MD 20783-1197
301-394-0940
FOB: Destination
	  	W71B7J

  
 SECTION G - CONTRACT ADMINISTRATION
DATA 
  
 Accounting and Appropriation 
  
 Summary for the Payment Office 
  
 As a result of this modification, the total funded amount for this document was increased by $[***] from $[***] to $[***].

  
 SUBCLIN 000103: 
 Funding on SUBCLIN 000103 is initiated as follows: 
  
 ACRN: AE 
  
 Acctng Data:
973040013010RPARGO3H20M891000255YANEM00W71B7J3122B3223N17GGS18129 
  
 Increase: $ [***] 
  
 Total: $ [***] 
  
 SECTION J—LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS  

	[***]	 	Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed
separately with the Commission. 

 DAAD17-02-C-0073         
 P00004 
 Page 5 of 6 
  

 Exhibit/Attachment Table of Contents 
  

	 DOCUMENT TYPE

	  	 DESCRIPTION

	  	PAGES

	  	DATE

	 Attachment 1
	  	 Evidence of Bilateral
 Award
	  	 	  	30-JUN-2003

  
 The following have been added by full
text: 
 EVIDENCE OF BILATERAL AWARD 
  
 (End of Summary of Changes) 

 DAAD17-02-C-0073     
 P00004 
 Page 6 of 6 
  

	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	  	 1.  CONTRACT ID CODE
 U
	  	 PAGE 1 OF 4

	

	 2. AMENDMENT/MODIFICATION NO.
             P00004
	  	 3. EFFECTIVE DATE
 01-Jul-2003
	  	 4. REQUISITION/PURCHASE REQ. NO.
 SEE SCHEDULE
	  	 5. PROJECT NO. (If applicable)

	

	 6. ISSUED BY    
 US ARMY ROBERT MORRIS ACQUISITION CENTER
 RMAC – ADELPHI
 2800 POWDER MILL ROAD
 AMSSB-ACA
 ADELPHI MD 20783-1197
	  	 CODE W71B7J
	  	 	  	 7. ADMINISTERED BY (If other than Item 6)
 DCMC - ATLANTA
 805 WALKER STREET
 SUITE 1
 MARIETTA GA 30060-2789
	  	 CODE S1103A

	

  

	 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and Zip Code)
  
 CREE, INC.
 CHARLES M. SWOBODA
 4600 SILICON DRIVE
 DURHAM NC 27703
	  	 	  	 9A. AMENDMENT OF SOLICITATION NO.

	 	  	 	  	 	  	9B. DATED (SEE ITEM 11)
	 	  	 	  	 	  	 X
	  	 10A. MODIFICATION OF CONTRACT/ORDER NO
 DAAD17-02-C-0073

					
	 CODE OC9J8
	  	 FACILITY CODE
	  	 	  	 X
	  	 10B. DATED (SEE ITEM 13)
 20-Mar-2002

	

	11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS
	

  ̈ The
above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers              ̈ is extended, 
  ̈ is not extended. 
  
 Offers must acknowledge
receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods: 
 (a) By completing items
8 and 15, and returning          copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a
reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. 
 If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes
reference to the solicitation and this amendment, and is received prior to the opening hour and date specified. 
  

	12.	 	ACCOUNTING AND APPROPRIATION DATA (If required) 

  See Schedule 
  

	 	  	 13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS,
 IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

  

	 	A.	 	THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. ITEM 10A. 

  

	 	B.	 	THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14,
PURSUANT TO THE AUTHORITY OF FAR 43.103(b) 

  

	 	C.	 	THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: 

  

	 	 X  D.	 	OTHER (Specify type of modification and authority) DFAR 252.217-7027 CONTRACT DEFINITIZATION OCT 1998) 

  
 E. IMPORTANT; Contractor  ̈
is not, x is required to sign this document and return     1     copies to the issuing office. 
  

	14.	 	DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.) 

  
 The purpose of this modification is to definitize the change order issued in Modification
P00003 as follows: 
 Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect. 
  

	

	 15A. NAME AND TITLE OF SIGNER (Type or print)
 Denise S. Holliday
 Contracts Manager
	 	 16A. NAME AND TITLE OF SIGNER (Type or
print)
 THEODORE WEITZMAN/CONTRACTING OFFICER
 TEL: 301-394-3165        EMAIL: tweitzman@arl.army.mil

	

	 15B. CONTRACTOR/OFFEROR             
15C. DATE SIGNED
 /s/ Denise S.
Holliday                                      
  6/30/03
 (Signature of person authorized to sign)
	 	 16B. UNITED STATES OF AMERICA    16C.   DATE SIGNED
 By: /s/ Theodore Weitzman
                                  01-Jul-2003
 (Signature of Contracting Officer)

	

	 EXCEPTION TO SF
30                                30-105-04
 APPROVED BY OIRM 11-84
	 	 STANDARD FORM 30 (REV. 10-83)
 Prescribed by GSAAnnual Incentive Program

 EXHIBIT 10.10 
  
 VENTURE CATALYST INCORPORATED 
 “VCAT” 
  
 Annual Incentive Program 
  
 Plan Document

  
 Effective date: July 1, 2003 
  
  
  
  
  
  

 VCAT Annual Incentive Program 
  
 Index 
  

	SECTION	  	PAGE
		
	 
Compensation Philosophy
	  	1
		
	 
Annual Incentive Program
	  	1
		
	 
VCAT Profit Sharing Plan
	  	1
		
	 
Annual Incentive Program Eligibility and Participation
	  	3
		
	 
Funding and Payment
	  	3
		
	 
Plan Administration
	  	3
		
	 
Change in Corporate Control
	  	4
		
	 
Attachment A
	  	5

  

 
Compensation Philosophy 
  
 VCAT
believes that its employees should have the opportunity to share in the success of the organization through competitive compensation programs. VCAT’s compensation packages include competitive base salaries, annual incentive programs (profit
sharing plan and bonuses), long-term incentive programs (stock options) and generous benefit plans. 
  
 The vision at VCAT is to be the leading provider of consulting services, infrastructure and technology in the gaming and hospitality market. This annual
incentive program aims to further the vision of the company. 
  
 
Annual Incentive Program 
  
 The purpose of VCAT’s annual incentive program is to provide eligible employees of VCAT the opportunity to share in the company’s success, to reward employees for achieving and exceeding quantifiable business results or to
recognize an individual’s exemplary performance. With this in mind, VCAT has developed a Profit Sharing Plan (“the Plan”) under the annual incentive program. The Plan is in addition to VCAT’s practice of periodically making
discretionary bonus payments to employees. It is intended that discretionary cash bonus payments be made to recognize outstanding contributions including but not limited to exceptional performance, significant team achievements, and leadership of
successful initiatives. 
  
 The Plan was created to align
the interests of the shareholders, debt holders and employees of VCAT. The Plan’s focus is on profitability. With this goal in place, the “line of sight” between performance, business results and rewards is increased. The Plan has
been designed to offer strong upside potential for exceptional business results. 
  
 The following sections provide details about the Plan. The Plan described in this document will require annual written approval by the Compensation Committee of the Board of Directors (the “Committee”) prior
the start of each fiscal year that it is effective. 
  
 
VCAT Profit Sharing Plan 
  
 The “Plan Awards”, if earned, will be based on a profit sharing model and will be based on an allocation of a percentage of VCAT’s earnings before taxes (“EBT”) that are above a minimum earnings before taxes
target (the “Earnings Target”). The amount the EBT exceeds the Earning Target will be the “Plan EBT”. Prior to the start of each twelve month period beginning on July 1st ending on June 30th, comprising each VCAT fiscal year, (a “Plan Year”), the Committee will (a) review and approve the Plan Award formulas, (b) will establish
an Earnings Target and (c) will set an Award Cap percentage (discussed below). Notwithstanding the preceding sentence, for the initial Plan Year the Board of Directors of VCAT will establish the Earnings Target on or prior to July 31, 2003.
Individual participant Plan Awards will be calculated based on “Fixed Award” and “Discretionary Award” formulas. The Fixed Award percentages will be determined at the beginning of each fiscal year by the Committee, and will be
set forth in written “Award Agreements”. The Discretionary Awards will be determined at the end of each Plan Year by the CEO, President and CFO, subject to approval by the Committee. If the CEO and/or President and/or CFO are to receive
Discretionary Awards, then such awards will de determined solely by the Committee. 
  
 The Plan Awards will accrue and will be recorded on VCAT’s books as soon as the EBT is above the Earnings Target. The Committee has the sole discretion to make adjustments to the EBT (“Adjusted EBT”) at
any time prior to the payment of the Plan Awards, which will be used to calculate the Plan EBT and ultimately the Plan Awards. Adjustments can be made to EBT to take into account, as well as to disregard, any events that the Committee considers
extraordinary, including, but not limited to, adjustments to the EBT for amortization expenses. If there are no adjustments made to the EBT then the Plan EBT will be determined using the EBT. If there are adjustments, then the Adjusted EBT will be
used to determine the Plan EBT. Final Plan Awards will be calculated based on audited results and will be made within the required payment period (discussed below). 
  

 1 

 Individual Fixed and Discretionary Plan Awards will be subject to a cap (“Award Cap”), limiting
the total cash awards any participant can earn and be paid in any Plan Year. The Award Cap will be a pre-determined percentage of an individual’s base salary in effect at the beginning of the applicable Plan Year. Any Plan Awards that exceed
the Award Cap will be deferred to the subsequent year, until paid in full. Deferred Plan Awards will count against the Award Cap for future Plan Years, and will be paid to those Plan participants who then meet the eligibility requirements listed
below. 
  
 The first Plan Year is the fiscal year ending June 30,
2004 (“Fiscal 2004”). The Plan Award formulas and Award Cap for Fiscal 2004 (and every fiscal year thereafter, until changed by the Board of Directors of VCAT and/or the Committee before a new Plan Year begins), are included as Attachment
A. 
  
 A summary of the Plan formulas: 
  
 Aggregate Plan Awards = Plan EBT x applicable Fixed and Discretionary
Award %’s 
  
 Individual Fixed Award = Aggregate
Awards x individual’s Fixed Award % (subject to Cap) 
  
 Aggregate Discretionary Awards = Aggregate Plan Awards less Aggregate Fixed Awards 
  
 Individual Discretionary Award = to be determined each Plan Year (subject to Cap) 
  
 Using the Plan formulas for fiscal 2004, following are examples of the Plan Award calculations: 
  

	 	  	 	 	 	Example 1

	 	 	Example 2

	 
	 Earnings before taxes (EBT)
	  	 	 	 	$	1,500,000	 	 	$	4,500,000	 
	 Extraordinary gain
	  	 	 	 	 	(50,000	)	 	 	(150,000	)
	 Amortization expense
	  	 	 	 	 	25,000	 	 	 	100,000	 
	 	  	 	 	 	
	
	
	 	
	
	

	 Adjusted EBT
	  	 	 	 	 	1,475,000	 	 	 	4,450,000	 
	 Earnings Target
	  	 	 	 	 	250,000	 	 	 	250,000	 
	 	  	 	 	 	
	
	
	 	
	
	

	 Plan EBT
	  	 	 	 	 	1,225,000	 	 	 	4,200,000	 
	 	  	 	 	 	
	
	
	 	
	
	

	 Plan EBT up to $1M
	  	 	 	 	 	1,000,000	 	 	 	1,000,000	 
	 Plan EBT > $1M
	  	 	 	 	 	225,000	 	 	 	3,200,000	 
				
	 Plan Award Allocation %’s
	  	 	 	 	 	 	 	 	 	 	 
	 Plan EBT up to $1M
	  	 	 	 	 	20	%	 	 	20	%
	 Plan EBT > $1M
	  	 	 	 	 	15	%	 	 	15	%
				
	 Plan Award Allocation $’s
	  	 	 	 	 	 	 	 	 	 	 
	 Plan EBT up to $1M
	  	 	 	 	$	200,000	 	 	$	200,000	 
	 Plan EBT > $1M
	  	 	 	 	 	33,750	 	 	 	480,000	 
	 	  	 	 	 	
	
	
	 	
	
	

	 Aggregate Plan Awards
	  	 	 	 	 	233,750	 	 	 	680,000	 
				
	 Plan Awards as a % of EBT
	  	 	 	 	 	15.6	%	 	 	15.1	%
				
	 Fixed Awards
	  	 	 	 	 	 	 	 	 	 	 
	 CEO
	  	40	%	 	$	93,500	 	 	$	272,000	 
	 President
	  	20	%	 	 	46,750	 	 	 	136,000	 
	 CFO
	  	10	%	 	 	23,375	 	 	 	68,000	 
				
	 Discretionary Awards
	  	 	 	 	 	 	 	 	 	 	 
	 Discretionary Participants
	  	30	%	 	$	70,125	 	 	$	204,000	 

  
  

 2 

 
Annual Incentive Program Eligibility and Participation 
  
 All of the following eligibility requirements must be met in order for an employee to participate in the Plan, subject to VCAT’s discretion to adjust these rules at any time in any lawful manner. 

  

	 	•	 	All VCAT full-time regular employees are eligible to participate in the Plan, but only those who receive and sign an Award Agreement will be entitled to receive Fixed Awards. A VCAT
full-time employee is defined as an employee who works a regular schedule of 30 hours or more per week for each week of employment with VCAT during the Plan Year. 

  

	 	•	 	Participants must be employed prior to March 31st of the Plan Year to be eligible for an award for that Plan Year. 

  

	 	•	 	Employees joining VCAT after July 1st of each
Plan Year, but prior to March 31st who meet all other requirements will participate in the Plan on a pro-rated basis. 

  

	 	•	 	Employees are eligible to participate in the Plan beginning as of their first day of employment. 

  

	 	•	 	Participants must be employed by VCAT on the day of award distribution (including deferred awards) and meet its eligibility requirements on that date, unless otherwise specified in
writing under a contractual agreement or severance policy. 

  

	 	•	 	Employees must maintain acceptable levels of overall performance to be eligible for a Plan Award payment. Eligibility does not guarantee that an employee will receive an award.

  

	 	•	 	The Plan under the annual incentive program is not considered to be a promise of continued employment, and employment with the company remains “at will.”

  

	 	•	 	If an otherwise eligible employee terminates employment and then resumes employment during the Plan Year, the employee must re-qualify for eligibility in the Plan. Such eligibility
will, if offered by the Committee, begin from the date of rehire without credit for prior service. 

  

	 	•	 	Participation maybe pro-rated in the discretion of the Committee for promotions, transfers, and demotions. It is anticipated that Plan Awards, if any, shall be pro-rated for leaves
of absence in the following scenario, although the Committee may decide otherwise on a case-by-case basis: 

  

	 	Ø	 	Leaves of Absence. Employees who take unpaid leaves of absence during the Plan Year will have their Plan Award adjusted down on a pro-rated basis for the period they were on
leave (i.e. if an employee is on leave for 25% of a Plan Year, they will receive 75% of their Plan Award). If this provision is not consistent with State or federal law, such laws will prevail. 

  
 
Funding and Payment 
  

	 	•	 	The Plan shall be considered as “self funded” through increases in VCAT’s annual earnings. 

  

	 	•	 	All Plan Awards shall be subject to usual and customary tax withholdings. 

  

	 	•	 	All Plan Awards are expected to be paid within 30 days of filing of VCAT’s annual report with the SEC. 

  
 
Plan Administration 
  

	 	•	 	VCAT’s CEO, President and CFO shall be the Plan Administrators and have complete discretion to resolve any and all questions of interpretation arising under the Plan, subject
to approval of the Committee. The Plan Administrators have the right to adjust, upward or downward to any extent, any Discretionary Plan Awards to any individual, and also have discretion to recommend revised or new Fixed Awards at any time during
the Plan Year, subject to the approval of the Committee. 

  

	 	•	 	The Plan Administrators have the overall responsibility for: (a) reviewing the annual incentive program with the Committee on an annual basis before the start of each fiscal year
(b) obtaining the Committee’s approval for the Plan and (c) working with the Committee to set the Earnings Target, Award Cap and formulas for determining the aggregate and individual Plan Awards. 

  

 3 

	 	•	 	With respect to the foregoing and without limiting the generality of the foregoing, the Plan Administrators are responsible for: 

  

	 	Ø	 	Recommending appropriate company goals and minimum earnings targets; 

  

	 	Ø	 	Establishing the guidelines for funding and payments; 

  

	 	Ø	 	Assistance with determining participation and Plan Award levels. 

  

	 	Ø	 	Addressing issues of variability, interpretations, and determining changes to make to the Plan under the annual incentive program. 

  

	 	Ø	 	Implementation, communication, and administration of the Plan. 

  

	 	Ø	 	The CFO is responsible for calculating actual performance on a quarterly and annual basis as well as final review of Plan Awards. 

  

	 	•	 	The Plan Awards will be calculated in accordance with the criteria established for the Plan, will be subject to any discretionary adjustments that the Plan allows, and will not be
awarded automatically. 

  

	 	•	 	The Committee or the Board of Directors of VCAT may amend or terminate the plan at any time. 

  
 
Change in Corporate Control 
  
 If the Company engages in any transaction or series of transactions in which its stockholders beforehand do not afterward have control over 50% of the surviving company’s voting securities (or VCAT sells substantially all of its
assets), then VCAT, the Plan Administrators, and the Committee shall not have the discretion to reduce the aggregate amount of awards accrued under the Plan through the date of the last transaction resulting in the change of control (according to
terms and decisions in effect when the first such transaction occurred). 
  

 4 

 
Attachment A 
 Plan Formulas and Award Cap 
  
 Earnings Target for Fiscal 2004 (and every year thereafter until changed): 
  
 $250,000 
  
 Aggregate Plan Awards Formula for Fiscal 2004 (and every year thereafter until changed): 
  
 20% of the Plan EBT up to the first $1 million dollars of Plan EBT 
  
 15% of the Plan EBT over $1 million dollars of Plan EBT. 
  
 Fixed Award Formulas for Fiscal 2004 (and every year thereafter until changed):

  

	Don Speer (CEO)	  	40% of the Aggregate Plan Awards
		
	Greg Shay (President)	  	20% of the Aggregate Plan Awards
		
	Kevin McIntosh (CFO)	  	10% of the Aggregate Plan Awards

  
 Award Cap: 
  
 75% of the each eligible participant’s base salary at the beginning of the applicable
Plan Year. 
  

 5

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