Document:

exv4w9

Exhibit 4.9

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933
(THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED, PLEDGED OR
HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE COMPANY HAS RECEIVED AN
OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED. THE SALE, TRANSFER OR ASSIGNMENT OF THE SECURITIES REPRESENTED BY
THIS WARRANT ARE SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN VOTING AGREEMENT, AS AMENDED FROM
TIME TO TIME, AMONG THE COMPANY AND CERTAIN HOLDERS OF ITS OUTSTANDING CAPITAL STOCK. COPIES OF
SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS
CERTIFICATE TO THE SECRETARY OF THE COMPANY.

WARRANT

To Purchase Shares

of

Myriant Technologies, Inc.

Issued: January 13, 2011

     THIS CERTIFIES THAT Specialty Chemicals, LLC or its registered and permitted assigns, is
entitled, at any time prior to the Expiration Date (as hereinafter defined), to purchase from
Myriant Technologies, Inc., a Delaware corporation (the “Company”), 15,212 shares of the
common stock of the Company (the “Shares”) (subject to adjustment as provided herein), in
whole or in part, at the Exercise Price (as hereinafter defined), all on the terms and conditions
and pursuant to the provisions hereinafter set forth.

1. DEFINITIONS. As used in this Warrant, the following terms have the respective
meanings set forth below:

     “Additional Shares” means all Shares issued by the Company after the Closing Date, other than
Permitted Shares.

     “Board” means the Board of Directors of the Company.

     “Business Day” means any day that is not Saturday, Sunday or other day when banks are required
or permitted to be closed in the State of New York.

     “Closing Date” means January 13, 2011.

     “Commission” means the U.S. Securities and Exchange Commission.

     “Company” has the meaning set forth in the opening paragraph of this Warrant.

     “Convertible Securities” means any security exchangeable for or convertible into Shares.

 

 

     “Current Market Price” means, in respect of any Share on any date herein specified, the
Current Market Value per Share at such date, or if there shall then be a public market for the
Shares, the average of the daily market prices for the ten (10) consecutive Business Days
commencing ten (10) Business Days before such date or, at the time of an initial public offering of
the Company’s Shares, the initial public offering price. The daily market price for each such
Business Day shall be (i) the last sale price on such date on the principal exchange where such
Shares are then listed or admitted to trading, (ii) if no sale takes place on such day on any such
exchange, the average of the last reported closing bid and asked prices on such day as officially
quoted on any such exchange, (iii) if the Shares are not then listed or admitted to trading on any
stock exchange, the average of the last reported closing bid and asked prices on such day in the
over-the-counter market, as furnished by the National Association of Securities Dealers Automatic
Quotation System or the National Quotation Bureau, Inc., (iv) if neither such entity at the time is
engaged in the business of reporting such prices, as furnished by any similar firm then engaged in
such business, or (v) if there is no such firm, as furnished by any member of the NASD selected
mutually by the Holder and the Company or, if they cannot agree upon such selection, as selected by
two (2) such members of the NASD, one of which shall be selected by the Holder and one of which
shall be selected by the Company.

     “Current Market Value” means, in respect of any Share on any date herein specified, the
current market value of such Shares (determined without giving effect to the discount for a
minority interest as of the last day of the most recent fiscal month prior to such date specified,
based on (i) any actual cash transaction whereby the Company sells Shares (or equivalents) pursuant
to an arm’s length transaction, and if such a cash price is not available, then (ii) the equity
value of the Company, as determined in good faith by an Independent Financial Expert, divided by
the number of Fully Diluted Outstanding Shares; provided, however, that, in determining the current
market value of such Shares, such Independent Financial Expert shall, to the extent reasonably
practical, compare the value of such Shares to Shares or shares of publicly-held companies
operating in the Company’s industry. By way of explanation of the foregoing, even if the Company
is privately-held as of the date of such determination, the Independent Financial Expert will, to
the extent reasonably practical, compare the Company to publicly-held companies operating in the
same industry. If an Independent Financial Expert selected by the Company is not acceptable to the
Holder involved in such determination and the Company and such Holders cannot agree on a mutually
acceptable Independent Financial Expert, then such Holders and the Company shall each choose one
Independent Financial Expert, and the respective chosen Independent Financial Experts shall agree
on another Independent Financial Expert that shall make the determination. The Company shall
retain, at its sole cost, such Independent Financial Experts as may be necessary for determining
Current Market Value required by the terms of this Warrant. Notwithstanding the foregoing, if the
Current Market Value is to be determined as a result of or in connection with a cash transaction
for the sale or purchase of Shares in an arm’s length transaction as a result of the exercise of
“drag along” or “tag along” rights, then the Current Market Value shall be the value of the Shares
in such transaction.

     “Defaulting Party” has the meaning set forth in Section 14.1 of this Warrant.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

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     “Exercise Price” means a purchase price of Six and No/100 Dollars ($6.00) per Share and
adjusted as provided herein.

     “Expiration Date” means August 15, 2015.

     “Fully Diluted Outstanding” means, when used with reference to Shares, at any date when the
number of Shares is to be determined, all Shares outstanding at such date and all Warrant Shares
outstanding on such date, and all Shares issued or issuable pursuant to the exercise, conversion or
exchange of Options or Convertible Securities outstanding on such date.

     “Holdco” has the meaning set forth in Section 4.1(d) of this Warrant.

     “Holder” means the Person in whose name the Warrant set forth herein is registered on the
books of the Company maintained for such purpose.

     “Independent Financial Expert” means an investment banking firm of nationally recognized
standing mutually chosen by the Company and the Holder or otherwise selected pursuant to the
procedures specified under “Current Market Value” above.

     “Legend Removal Date” has the meaning set forth in Section 9 of this Warrant.

     “NASD” means the National Association of Securities Dealers, Inc., or any successor
corporation thereto.

     “Option” means rights, options or warrants to subscribe for, purchase or otherwise acquire
Shares, Convertible Securities or other equity interests in the Company.

     “Permitted Shares” means (i) Warrant Shares; (ii) Shares issued or issuable on conversion or
exercise of Convertible Securities or Options outstanding on the date hereof and set forth on
Schedule A hereto; and (iii) Reserved Employee Shares.

     “Person” means any individual, corporation, general partnership, limited partnership, limited
liability partnership, joint venture, association, joint-stock company, trust, limited liability
company, unincorporated organization or government or any agency or political subdivision thereof.

     “Qualified IPO” means a fully underwritten, firm commitment public offering pursuant to an
effective registration under the Securities Act covering the offering or sale by the Company of its
Shares in which the per Share price paid by the public for such Shares shall be at least (i) if the
public offering occurs within eighteen (18) months of the date here of, then 1.2 times the Exercise
Price per Share, (ii) if the public offering occurs anytime during the period beginning eighteen
(18) months and one (1) day from the date hereof and ending twenty-four (24) months from the date
hereof, then 1.4 times the Exercise Price, and (iii) if the public offering occurs anytime after
twenty-four (24) months from the date hereof, then 1.5 times the Exercise Price.

     “Reclassified Shares” has the meaning set forth in Section 14.12 of this Warrant.

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     “Reserved Employee Shares” shall mean all Shares reserved by the Company for issuance pursuant
to stock purchase, stock grant or stock option arrangements for employees, directors or consultants
of the Company, all under arrangements approved by the Board of Directors, provided that such
Shares shall not exceed in the aggregate eight percent (8%) of the Fully Diluted Outstanding Shares
as of the date hereof without the written consent of Holders of Warrants exercisable for at least
66-2/3% of the aggregate number of Shares then purchasable upon exercise of this Warrant and the
other Warrants.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Shares” has the meaning set forth in the preamble of this Warrant.

     “Stockholders Agreements” means collectively, (i) that certain Investor Rights Agreement dated
January 13, 2011, by and among the Company, the Holder, and the other stockholders of the Company
that are party thereto, (ii) that certain Voting Agreement, dated January 13, 2011, by and among
the Company, the Holder, and the other stockholders of the Company that are party thereto, and
(iii) that certain Right of First Refusal and Co-Sale Agreement, dated January 13, 2011, by and
among the Company, the Holder, and the other stockholders of the Company that are party thereto.

     “Transfer” means any disposition of any Warrant or Warrant Shares or of any interest in either
thereof, which would constitute a sale thereof within the meaning of the Securities Act.

     “Warrant Price” means an amount equal to (i) the number of Shares being purchased upon any
exercise of this Warrant pursuant to Section 2.1 or Section 2.3, multiplied by (ii) the Exercise
Price as adjusted pursuant to the terms of this Warrant as of the date of such exercise.

     “Warrant Shares” means the Shares purchased by the Holder of this Warrant and the holders of
the other Warrants upon the exercise hereof or thereof.

     “Warrants” means (i) this Warrant, (ii) all other warrants issued pursuant to that certain
Warrant Issuance Agreement dated as of July 16, 2009 by and among the Company and each of those
persons whose names are set forth on the Schedule of Investors attached thereto as Exhibit A, and
(iii) all warrants issued upon transfer, division or combination of, or in substitution for, any of
the foregoing; provided that all Warrants shall at all times be identical as to terms and
conditions and date, except as to the number of Shares for which they may be exercised and the name
of the Holder thereof.

2. EXERCISE OF WARRANT

     2.1 General. At any time and from time to time after the date hereof and until 5:00
p.m., New York, New York time, on the Expiration Date, Holder may exercise this Warrant, on any
Business Day, for all or any part of the number of Shares purchasable hereunder. Upon exercise of
this Warrant, the Holder shall automatically become a party to the Stockholders Agreements, and
will take all action, including the execution of signature pages to such agreements, to effect the
same.

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     2.2 Cash Exercise. Holder may exercise this Warrant, in whole or in part, by
delivering to the Company at the Company’s principal offices at Two Batterymarch Park, Suite 301,
Quincy, Massachusetts 02169 or at such other office or agency designated by the Company pursuant to
Section 12, the following: (i) a written notice of Holder’s election to exercise this Warrant
specifying the number of Shares to be purchased, (ii) payment of the Warrant Price and (iii) this
Warrant. Such notice shall be substantially in the form of the subscription form appearing at the
end of this Warrant as Exhibit A, duly executed by Holder or its agent or attorney. Upon receipt
thereof, the Company shall, as promptly as practicable, and in any event within three (3) Business
Days thereafter, execute or cause to be executed and deliver or cause to be delivered to Holder a
certificate or certificates, as applicable, reflecting Holder’s ownership of the aggregate number
of Shares issuable upon such exercise, together with cash in lieu of any fraction of a Share, as
hereinafter provided in Section 2.5. The Share certificate or certificates so delivered shall be
in such denomination or denominations as such Holder shall request in the notice and shall be
registered in the name of Holder or, subject to any restrictions on transfer, such other name as
shall be designated in the notice. This Warrant shall be deemed to have been exercised and such
certificate or certificates shall be deemed to have been effective, and Holder or any other Person
so designated to be named therein shall be deemed to have become a holder of record of such Shares
for all purposes, as of the date the notice, together with the cash or check or checks and this
Warrant, is received by the Company as described above and all taxes required to be paid by Holder,
if any, pursuant to Section 2.4 prior to the issuance of such Shares have been paid. If this
Warrant has been exercised in part, the Company shall, at the time of delivery of the certificate
or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights
of Holder to purchase the unpurchased Shares called for by this Warrant, which new Warrant shall in
all other respects be identical with this Warrant, or, at the request of Holder, appropriate
notation may be made on this Warrant and the same returned to Holder. Payment of the Warrant Price
shall be made at the option of Holder by certified or official bank check or by wire transfer. In
addition to the issuance of Share certificates to Holder and, in the event the Stockholders
Agreements do not provide for certification of the Shares, the Company will take all necessary
action to revise Schedule A to the Stockholders Agreements to reflect the issuance of additional
Shares to Holder.

     2.3 Automatic Exercise.

     (a) Automatic Exercise. Notwithstanding anything to the contrary herein contained,
immediately prior to the consummation of a Qualified IPO, this Warrant shall be deemed
automatically exercised at the Exercise Price; and

     (b) Payment of Exercise Price Following Automatic Exercise. Promptly following the exercise
of this Warrant pursuant to Section 2.3(a) and in any event within three days thereafter, the
Holder shall deliver to the Company at the Company’s principal offices at Two Batterymarch Park,
Suite 301, Quincy, Massachusetts 02169 or at such other office or agency designated by the Company
pursuant to Section 12, the following: (i) payment of the Warrant Price and (iii) this Warrant.
Upon receipt thereof, the Company shall, as promptly as practicable, and in any event within three
(3) Business Days thereafter, execute or cause to be executed and deliver or cause to be delivered
to Holder a certificate or certificates reflecting Holder’s ownership of the aggregate number of
Shares issuable upon such exercise, together with cash in lieu of any fraction of a Share, as
hereinafter provided in Section 2.4. The Share

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certificate or certificates so delivered shall be in such denomination or denominations as such
Holder shall request in writing and shall be registered in the name of Holder or, subject to any
restrictions on transfer, such other name as shall be designated in writing. If this Warrant has
been exercised in part, the Company shall, at the time of delivery of the certificate or
certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of
Holder to purchase the unpurchased Shares called for by this Warrant, which new Warrant shall in
all other respects be identical with this Warrant, or, at the request of Holder, appropriate
notation may be made on this Warrant and the same returned to Holder. Payment of the Warrant
Price shall be made at the option of the Holder by certified or official bank check or by wire
transfer. In addition to the issuance of Share certificates to Holder and, in the event the
Stockholders Agreements do not provide for certification of the Shares, the Company will take all
necessary action to revise Schedule A to the Stockholders Agreements to reflect the issuance of
additional Shares to Holder.

     2.4 Payment of Taxes. When the Warrant Price is paid to the Company, all such Warrant
Shares shall be validly issued, fully paid and nonassessable and not subject to any preemptive
rights or restrictions other than those restrictions pursuant to the Stockholders Agreements. The
Company shall pay all expenses in connection with, and all taxes and other governmental charges
that may be imposed with respect to, the issue or delivery thereof, unless such tax or charge is
imposed by law upon Holder, in which case, Holder shall pay such taxes or charges. The Company
shall not be required to pay any tax or other charge imposed in connection with any transfer
involved in the issue or delivery of any certificate for Shares issuable upon exercise of this
Warrant in any name other than that of Holder, and in such case, the Company shall not be required
to register such Shares in any name other than Holder until such tax or other charge has been paid
or it has been established to the reasonable satisfaction of the Company that no such tax or other
charge is due.

     2.5 Fractional Shares. The Company shall not be required to issue a fractional Share
upon the exercise of this Warrant. As to any fraction of a Share which the Holder would otherwise
be entitled to purchase upon such exercise, the Company shall pay a cash adjustment in respect of
such final fraction in an amount equal to the same fraction of the Current Market Price per Share
of a Share on the date of exercise.

3. TRANSFER, DIVISION AND COMBINATION

     3.1 Transfer. Subject to the terms and conditions hereof and compliance with all
applicable securities laws, Transfer of this Warrant and all rights hereunder, in whole or in part,
shall be registered on the books of the Company to be maintained for such purpose, upon surrender
of this Warrant at the principal office of the Company referred to in Section 2.2 or the office or
agency designated by the Company pursuant to Section 12, together with (i) a written assignment of
this Warrant substantially in the form of Exhibit B hereto duly executed by Holder or its agent or
attorney, (ii) a copy of each of the Stockholders Agreements, and (iii) an acknowledgement executed
by the transferee that the Warrant remains subject to the terms of the Stockholders Agreements.
Upon such surrender the Company shall execute and deliver a new Warrant or Warrants in the name of
the assignee or assignees and in the denomination specified in such instrument of assignment, and
shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned,
and this Warrant shall promptly be cancelled.

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     3.2 Division and Combination. This Warrant may be divided or combined with other
Warrants upon presentation hereof at the aforesaid office or agency of the Company, together with a
written notice specifying the names and denominations in which new Warrants are to be issued,
signed by Holder or its agent or attorney. Subject to compliance with Section 3.1, as to any
Transfer that may be involved in such division or combination, the Company shall execute and
deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined
in accordance with such notice.

     3.3 Expenses. The Company shall prepare, issue and deliver at its own cost and
expense (other than transfer taxes) the new Warrant or Warrants under this Section 3.

     3.4 Maintenance of Books. The Company agrees to maintain, at its aforesaid office or
agency, books for the registration and the registration of Transfer of the Warrants.

	4.	 	ADJUSTMENTS. The number of Shares for which this Warrant is exercisable, and the
price at which such Shares may be purchased upon exercise of this Warrant, shall be subject to
adjustment from time to time as set forth in this Section 4. The Company shall give each Holder
notice of any event described below, which requires an adjustment pursuant to this Section 4 at the
time of such event.

     4.1 Distributions, Subdivisions and Combinations. If, at any time, the Company, or in
the case of (d) below, the Company or the holders of the equity securities of the Company:

     (a) takes a record of holders of its Shares for the purpose of entitling them to receive a
distribution payable in, or other distribution of, Additional Shares,

     (b) subdivides its outstanding Shares into a larger number of Shares,

     (c) combines its outstanding Shares into a smaller number of Shares, or

     (d) form a new holding company to be the parent of the Company and to own one hundred percent
(100%) of the Shares (“Holdco”),

then (i) the number (and kind, in the case of (d) above) of Warrant Shares represented by this
Warrant immediately after the occurrence of any such event shall be adjusted to equal the number
(and kind, in the case of (d) above) of Shares that a record holder of the same number of Shares
for which this Warrant is exercisable immediately prior to the occurrence of such event would own
or be entitled to receive after the happening of such event, and (ii) the Exercise Price shall be
adjusted to equal (A) the then existing Exercise Price multiplied by the number of Shares for which
this Warrant is exercisable immediately prior to the adjustment divided by (B) the number of Shares
for which this Warrant is exercisable immediately after such adjustment. In the case of (d) above,
by way of illustration and not limitation, if Holdco is formed to own one hundred percent (100%) of
the Shares and other equity interests of the Company and, immediately prior to such formation, ten
percent (10%) of the Shares are subject to this Warrant, Holder shall receive a warrant to purchase
ten percent (10%) of the common equity interests of Holdco upon the exchange and cancellation of
this Warrant.

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     4.2 Certain Other Distributions. If, at any time, the Company takes a record of
holders of its Shares for the purpose of entitling them to receive any distribution of:

     (a) any evidences of its indebtedness, any other securities of any nature whatsoever (other
than Additional Shares) or any other property, dividends or other cash distributions, or

     (b) any options to subscribe for or purchase any evidences of its indebtedness, or for any
other securities of any nature whatsoever (other than Additional Shares) or for any other
property,

then (i) the number of Shares for which this Warrant is exercisable shall be adjusted to equal the
product of the number of Shares for which this Warrant is exercisable immediately prior to such
adjustment by a fraction (A) the numerator of which shall be the Current Market Price per Share at
the date of taking such record and (B) the denominator of which shall be such Current Market Price
per Share at the date of taking such record, plus the amount of consideration, if any, paid by the
holder of one (1) Share for such evidence of indebtedness, other securities or property, or Options
so distributable and minus the amount allocable to one (1) Share of the fair value (as determined
in good faith by the Board and supported by an opinion from an Independent Financial Expert) of any
and all such evidences of indebtedness, Shares, other securities or property or warrants or other
subscription or purchase rights so distributable, and (ii) the Exercise Price shall be adjusted to
equal (A) the Exercise Price multiplied by the number of Shares for which this Warrant is
exercisable immediately prior to the adjustment divided by (B) the number of Shares for which this
Warrant is exercisable immediately after such adjustment.

     4.3 Issuance of Additional Shares. If, at any time, Company issues or sells any
Additional Shares other than Permitted Shares, in exchange for consideration in an amount per
Additional Share less than the Exercise Price at the time the Additional Shares are issued, then

     (a) the Exercise Price for which this Warrant is exercisable shall be reduced to a price
equal to the price obtained by multiplying (i) the Exercise Price in effect immediately prior to
the issuance of such Additional Shares by (ii) a fraction of which (x) the numerator equals the
sum of (i) the number of Fully Diluted Outstanding Shares immediately prior to such issue or sale
and (ii) the number of additional Shares that the aggregate consideration received by Company upon
such issue or sale would purchase at the Exercise Price in effect immediately prior to such
issuance and (y) the denominator equals the total number of Fully Diluted Outstanding Shares
outstanding immediately after such issue or sale; and

     (b) the number of Shares for which this Warrant is exercisable shall be adjusted to equal the
product obtained by multiplying the Exercise Price in effect immediately prior to such issue or
sale by the number of Shares for which this Warrant is exercisable immediately prior to such issue
or sale and dividing the product thereof by the Exercise Price resulting from the adjustment made
pursuant to clause (i) above.

     4.4 Issuance of Warrants or Other Rights. If, at any time, the Company shall take a
record of holders of its Shares for the purpose of entitling them to receive a distribution of, or
shall in any manner (whether directly or by assumption in a merger where the Company is the

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surviving entity) issue or sell, any warrants or other rights to subscribe for or purchase any
Additional Shares other than Permitted Shares or any Convertible Securities other than Permitted
Shares, whether or not the rights to exchange or convert thereunder are immediately exercisable,
and the price per Share for which Shares are issuable upon the exercise of such warrants or other
rights or upon conversion or exchange of such Convertible Securities shall be less than the
Exercise Price in effect immediately prior to the time of such issue or sale, then the number of
Shares for which this Warrant is exercisable and the Exercise Price shall be adjusted as provided
in Section 4.3 on the basis that the maximum number of Additional Shares issuable pursuant to all
such warrants or other rights or necessary to effect the conversion or exchange of all such
Convertible Securities shall be deemed to have been issued and outstanding and the Company shall
have received all of the consideration payable therefor, if any, as of the date of the actual
issuance of such warrants or other rights or Convertible Securities. No further adjustments of the
number of Shares for which this Warrant is exercisable and the Exercise Price shall be made upon
the actual issue of such Shares or of such Convertible Securities upon exercise of such warrants or
other rights or upon the actual issue of such Shares upon such conversion or exchange of such
Convertible Securities.

     4.5 Issuance of Convertible Securities. If, at any time, the Company shall take a
record of holders of its Shares for the purpose of entitling them to receive a distribution of, or
shall in any manner (whether directly or by assumption in a merger where the Company is the
surviving entity) issue or sell, any Convertible Securities other than Permitted Shares, whether or
not the rights to exchange or convert thereunder are immediately exercisable, and the price per
Share for which Shares are issuable upon such conversion or exchange shall be less than the
Exercise Price in effect immediately prior to the time of such issue or sale, then the number of
Shares for which this Warrant is exercisable and the Exercise Price shall be adjusted as provided
in Section 4.3 on the basis that the maximum number of Additional Shares necessary to effect the
conversion or exchange of all such Convertible Securities shall be deemed to have been issued and
outstanding and the Company shall have received all of the consideration payable therefor, if any,
as of the date of actual issuance of such Convertible Securities. No adjustment of the number of
Shares for which this Warrant is exercisable and the Exercise Price shall be made under this
Section 4.5 upon the issuance of any Convertible Securities that are issued pursuant to the
exercise of any warrants or other subscription or purchase rights therefor, if any such adjustment
shall previously have been made upon the issuance of such warrants or other rights pursuant to
Section 4.4. No further adjustments of the number of Shares for which this Warrant is exercisable
and the Exercise Price shall be made upon the actual issue of such Shares upon conversion or
exchange of such Convertible Securities and, if any issue or sale of such Convertible Securities is
made upon exercise of any warrant or other right to subscribe for or to purchase any such
Convertible Securities for which adjustments of the number of Shares for which this Warrant is
exercisable and the Exercise Price have been or are to be made pursuant to other provisions of this
Section 4, no further adjustments of the number of Shares for which this Warrant is exercisable and
the Exercise Price shall be made by reason of such issue or sale.

     4.6 Superseding Adjustment. If, at any time after any adjustment of the number of
Shares for which this Warrant is exercisable and the Exercise Price has been made pursuant to
Section 4.4 or Section 4.5 as the result of any issuance of warrants, rights or Convertible
Securities:

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     (a) such warrants or rights, or the right of conversion or exchange in such other Convertible
Securities, shall expire, and all or a portion of such warrants or rights, or the right of
conversion or exchange with respect to all or a portion of such other Convertible Securities, as
the case may be, shall not have been exercised, or

     (b) the consideration per Share for which Shares are issuable pursuant to such warrants or
rights, or the terms of such other Convertible Securities, shall be increased solely by virtue of
provisions therein contained for an automatic increase in such consideration per Share upon the
occurrence of a specified date or event,

then for each outstanding Warrant such previous adjustments shall be rescinded and annulled and the
Additional Shares that were deemed to have been issued by virtue of the computation made in
connection with the adjustment so rescinded and annulled shall no longer be deemed to have been
issued by virtue of such computation. Thereupon, a recomputation shall be made of the effect of
such warrants or rights or options or other Convertible Securities on the basis of:

     (c) treating the number of Additional Shares or other property, if any, theretofore actually
issued or issuable pursuant to the previous exercise of any such warrants or rights or any such
right of conversion or exchange, as having been issued on the date or dates of any such exercise
and for the consideration actually received and receivable therefor, and

     (d) treating any such warrants or rights or any such other Convertible Securities that then
remain outstanding as having been granted or issued immediately after the time of such increase of
the consideration per Share for which Shares or other property are issuable under such warrants or
rights or other Convertible Securities, whereupon a new adjustment of the number of Shares for
which this Warrant is exercisable and the Exercise Price shall be made, which new adjustment shall
supersede the previous adjustment so rescinded and annulled.

     4.7 Other Provisions Applicable to Adjustments under this Section. The following
provisions shall be applicable to making adjustments to the number of Shares for which this Warrant
is exercisable and the Exercise Price provided for in this Section 4:

     (a) Computation of Consideration. To the extent that any Additional Shares or any
Convertible Securities or any warrants or other rights to subscribe for or purchase any Additional
Shares or any Convertible Securities are issued for cash consideration, the consideration received
by Company therefor shall be the amount of the cash received by Company therefor, or, if such
Additional Shares or Convertible Securities are offered by Company for subscription, the
subscription price, or, if such Additional Shares or Convertible Securities are sold to
underwriters or dealers for public offering without a subscription offering, the initial public
offering price (in any such case subtracting any amounts paid or receivable for accrued interest
or accrued distributions and without taking into account any compensation, discounts or expenses
paid or incurred by Company for and in the underwriting of, or otherwise in connection with, the
issuance thereof). To the extent that such issuance is for a consideration other than cash, then,
except as herein otherwise expressly provided, the amount of such consideration shall be deemed to
be the fair market value of such consideration at the time of such issuance as determined in good
faith by the Board and supported by an opinion from an Independent Financial Expert. In case any
Additional Shares or any

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Convertible Securities or any warrants or other rights to subscribe for or purchase such
Additional Shares or Convertible Securities shall be issued in connection with any merger where
the Company issues any securities, the amount of consideration therefor shall be deemed to be the
fair market value, as determined in good faith by the Board and supported by an opinion from an
Independent Financial Expert of such portion of the assets and business of the nonsurviving entity
as the Board in good faith shall determine to be attributable to such Additional Shares,
Convertible Securities, warrants or other rights, as the case may be. The consideration for any
Additional Shares issuable pursuant to any warrants or other rights to subscribe for or purchase
the same shall be the consideration received by the Company for issuing such warrants or other
rights plus the additional consideration payable to the Company upon exercise of such warrants or
other rights. The consideration for any Additional Shares issuable pursuant to the terms of any
Convertible Securities shall be the consideration received by the Company for issuing warrants or
other rights to subscribe for or purchase such Convertible Securities, plus the consideration paid
or payable to the Company in respect of the subscription for or purchase of such Convertible
Securities, plus the additional consideration, if any, payable to the Company upon the exercise of
the right of conversion or exchange of such Convertible Securities. If any Additional Shares or
Convertible Securities are issued at any time in payment or satisfaction of any distributions upon
any class of Shares other than Shares, Company shall be deemed to have received for such
Additional Shares or Convertible Securities a consideration equal to the amount of such
distribution so paid or satisfied.

     (b) When Adjustments to Be Made. The adjustments required by this Section 4 shall be made
whenever and as often as any specified event requiring an adjustment shall occur, except that any
adjustment of the number of Shares for which this Warrant is exercisable that would otherwise be
required may be postponed (except in the case of a subdivision or combination of the Shares, as
provided for in Section 4.1) up to, but not beyond the date of exercise if such adjustment either
by itself or with other adjustments not previously made adds or subtracts less than 1% of the
Shares for which this Warrant is exercisable immediately prior to the making of such adjustment.
Any adjustment representing a change of less than such minimum amount (except as aforesaid) that
is postponed shall be carried forward and made as soon as such adjustment, together with other
adjustments required by this Section 4 and not previously made, would result in a minimum
adjustment on the date of exercise. For the purpose of any adjustment, any specified event shall
be deemed to have occurred at the close of business on the date of its occurrence.

     (c) Fractional Interests. In computing adjustments under this Section 4, fractional
interests in Shares shall be taken into account to the nearest 1/100th of a Share.

     (d) When Adjustment Not Required. If the Company takes a record of holders of its Shares for
the purpose of entitling them to receive a distribution or subscription or purchase rights and,
thereafter and before the distribution to holders thereof, legally abandons its plan to pay or
deliver such distribution, subscription or purchase rights, then thereafter no adjustment shall be
required by reason of the taking of such record and any such adjustment previously made in respect
thereof shall be rescinded and annulled.

     (e) Challenge to Good Faith Determination. Whenever the Board is required to make a
determination in good faith of the fair market value of any item under this Section 4,

11

 

the Holder may challenge such determination in good faith, and an Independent Financial Expert
shall resolve any such dispute.

5. NOTICES TO WARRANT HOLDERS

     5.1 Notice of Adjustments. Whenever the number of Shares for which this Warrant is
exercisable, or whenever the price at which such Shares may be purchased upon exercise of the
Warrants, is adjusted pursuant to Section 4, the Company shall prepare a certificate to be executed
by its chief financial officer, if any, or its principal financial officers in case there is no
chief financial officer, setting forth, in reasonable detail, the event requiring the adjustment
and the method by which such adjustment was calculated (including a description of the basis on
which the Board determined the fair market value of any evidences of indebtedness, Shares or stock,
other securities or property or warrants or other subscription or purchase rights referred to in
Section 4.2), specifying the number of Shares for which this Warrant is exercisable and describing
the number and kind of any other Shares or other property for which this Warrant is exercisable,
and any change in the purchase price or prices thereof, after giving effect to such adjustment or
change. The Company shall promptly cause a signed copy of such certificate to be delivered to each
Holder in accordance with Section 14.2. The Company shall keep at its office or agency designated
pursuant to Section 12 copies of all such certificates and cause the same to be available for
inspection at said office during normal business hours by any Holder or any prospective purchaser
of a Warrant designated by a Holder thereof.

     5.2 Notice of Company Action. If at any time:

     (a) the Company takes a record of holders of its Shares for the purpose of entitling them to
receive a distribution of any type including cash, property, or any right to subscribe for or
purchase any evidences of its indebtedness, any Shares of any class or series or any other
securities or property, or to receive any other right;

     (b) there is any capital reorganization of the Company, any reclassification or
recapitalization of the Company or any consolidation or merger of the Company with, or any sale,
transfer or other disposition of all or substantially all the property, assets or business of the
Company to, another Person;

     (c) there is a voluntary or involuntary dissolution, liquidation or winding up of the
Company.

then, in any one or more of such cases, the Company shall give to Holder: (i) at least twenty (20)
days’ prior written notice of the date on which a record date shall be selected for such
distribution or right or for determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or
winding up, and (ii) if any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, dissolution, liquidation or winding up occurs, at least twenty (20) days’
prior written notice of the date when the same shall take place. Such notice also shall specify:
(i) the date on which any such record is to be taken for the purpose of such distribution or right,
the date on which Holders of Shares shall be entitled to any such distribution or right, and the
amount and character thereof, and (ii) the date on which any such reorganization,

12

 

reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up is
to take place and the time, if any such time is to be fixed, as of which Holders of Shares shall be
entitled to exchange their Shares for securities or other property deliverable upon such
reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution,
liquidation or winding up. Each such written notice shall be deemed sufficiently given if
addressed to Holder at the last address of Holder appearing on the books of the Company and
delivered in accordance with Section 14.2.

6. NO IMPAIRMENT. The Company shall not by any action, including, without limitation,
through any amendment to its certificate of incorporation through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
but will at all times in good faith assist in carrying out all such actions as may be reasonably
necessary or appropriate to protect the rights of Holder against impairment. Without limiting the
generality of the foregoing, the Company will (a) take all such action as may be reasonably
necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable Shares upon the exercise of this Warrant, and (b) use its reasonable efforts to
obtain all such authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof as may be necessary to enable the Company to perform its obligations under
this Warrant.

7. RESERVATION AND AUTHORIZATION OF SHARES. From and after the date hereof, the
Company shall at all times reserve and keep available for issue upon the exercise of Warrants such
number of its authorized but unissued Shares as will be sufficient to permit the exercise in full
of all outstanding Warrants. All Shares, when issued upon exercise of any Warrant and payment
therefor in accordance with the terms of such Warrant, shall be duly and validly issued and fully
paid and nonassessable, and not subject to preemptive rights.

     Before taking any action that would result in an adjustment in the number of Shares for which
this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such
authorizations or exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

     If any Shares required to be reserved for issuance upon exercise of Warrants require
registration or qualification with any governmental authority or other governmental approval or
filing under any federal or state law before such Shares may be so issued, the Company will in good
faith and as expeditiously as possible and at its expense endeavor to cause such Shares to be duly
registered.

8. TAKING OF RECORD; SHARES AND WARRANT TRANSFER BOOKS. In the case of all
distributions by the Company to holders of its Shares with respect to which any provision of
Section 4 refers to the taking of a record of such holders, the Company will in each such case
take such a record as of the close of business on a Business Day. The Company will not at any
time, except upon dissolution, liquidation or winding up of the Company, close its transfer books
so as to result in preventing or delaying the exercise or transfer of any Warrant.

13

 

9. RESTRICTIVE LEGEND. If certificated, each Share certificate representing Warrant
Shares shall bear the following legends:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR UNLESS THE
COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE
COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

THE SALE, TRANSFER OR ASSIGNMENT OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN VOTING AGREEMENT, AS AMENDED
FROM TIME TO TIME, AMONG THE COMPANY AND CERTAIN HOLDERS OF ITS OUTSTANDING CAPITAL
STOCK. COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE
BY THE HOLDER OF RECORD OF THIS CERTIFICATE TO THE SECRETARY OF THE COMPANY.

Certificates evidencing the Warrant Shares shall not contain the legend set forth above: (i)
following any sale of such Warrant Shares pursuant to an effective registration statement covering
the resale of such security under the Securities Act, or (ii) following any sale of such Warrant
Shares pursuant to Rule 144, or (iii) if requested by the Holder and such Warrant Shares are
eligible for sale under Rule 144(k) (or any similar successor rule that may be promulgated by the
Commission), or (iv) if such legend is not required under applicable requirements of the
Securities Act (including judicial interpretations and pronouncements issued by the staff of the
Commission). The Company may not make any notation on its records that enlarge the restrictions
on transfer set forth in this Section.

10. SUPPLYING INFORMATION. The Company shall cooperate with each Holder of a Warrant
and each holder of Warrant Shares in supplying such information as may be reasonably necessary for
such holder to complete and file any information reporting forms presently or hereafter required by
the Commission as a condition to the availability of an exemption from the Securities Act for the
sale or transfer of any Warrant or Warrant Shares.

11. LOSS OR MUTILATION. Upon receipt by the Company of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any
Warrant (which evidence shall be, in the case of an institutional investor, notice from such
institutional investor of such ownership and such loss, theft, destruction or mutilation), and

     (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it
(provided that if the Holder of such Warrant is an institutional investor or has a minimum net
worth of at least $500,000,000, such Holder’s own unsecured agreement of indemnity shall be deemed
to be satisfactory), or

14

 

     (b) in the case of mutilation, upon surrender and cancellation thereof,

the Company at its own expense shall execute and deliver, in lieu thereof, a new Warrant, dated the
date of the original Warrant.

12. OFFICE OF THE COMPANY. As long as any of the Warrants remain outstanding, the
Company shall maintain an office or agency (which may be the principal executive offices of the
Company) where the Warrants may be presented for exercise, registration of transfer, division or
combination as provided in this Warrant.

13. SECURITIES ACT MATTERS.

     13.1 Representations, Warranties and Covenants of Holder. The Holder hereby
represents and warrants to, and agrees with, the Company as of the date of any exercise hereof
that:

     (a) It is acquiring the Warrant Shares, for its own account, without a view to the
distribution thereof in violation of the Securities Act, without prejudice, however, to Holder’s
right to Transfer the Warrant Shares in compliance with applicable securities laws and the terms
of the Stockholders Agreements.

     (b) It is an “accredited investor” within the meaning of Regulation D under the Securities
Act.

     (c) It acknowledges that (i) the Warrant Shares have not been registered under the Securities
Act, in reliance on the private offering exemption contained in Section 4(2) of the Securities Act
and Regulation D thereunder; (ii) because the Warrant Shares are not so registered, it must bear
the economic risk of holding the Warrant Shares for an indefinite period of time unless the
Warrant Shares are subsequently, registered under the Securities Act or an exemption from such
registration is available with respect thereto; and (iii) there is no trading market for the
Warrant Shares and there is no expectation that such market will exist in the future.

     (d) It will not assign or transfer the Warrant Shares except in accordance and in compliance
with the requirements of the Securities Act, as then in effect.

     (e) It acknowledges that (i) it has had ready access to any and all documents which it deems
relevant to the acquisition of the Warrant Shares; (ii) the Company has made available to it at a
reasonable time prior to the issuance of the Warrant Shares the opportunity to ask questions and
receive answers concerning the Company and to obtain any additional information which the Company
possesses or can be acquired without unreasonable effort or expense that is necessary to verify
the accuracy of the information furnished by the Company; and (iii) it has reviewed or had the
opportunity to review all such documents or information referred to above.

     13.2 Representations, Warranties and Covenants of the Company. The Company represents
and warrants to, and agrees with, Holder as of the date of any exercise that:

15

 

     (a) This Warrant has been duly authorized, validly issued and is the valid and binding
obligation of the Company, enforceable against the Company in accordance with the terms hereof.

     (b) Assuming the truth and accuracy of Holder’s representations and warranties contained in
Section 13.1, the issuance of this Warrant and the issuance of Warrant Shares pursuant to this
Warrant are exempt from the registration and prospectus delivery requirements of the Securities
Act.

     (c) The Company agrees that neither it nor any Person acting on its behalf has offered or
will offer this Warrant or the Warrant Shares or any part thereof or any similar securities for
issue or sale to, or has solicited or will solicit any offer to acquire any of the same from, any
Person so as to bring the issuance and sale of this Warrant or the Warrant Shares hereunder within
the provisions of the registration and prospectus delivery requirements of the Securities Act.

14. MISCELLANEOUS

     14.1 Nonwaiver and Expenses. If either party (the “Defaulting Party”) fails to comply
with any provision of this Warrant, it shall pay to the other party such amounts as shall be
sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’
fees, including those of appellate proceedings, incurred by the other party in enforcing any of its
rights, powers or remedies hereunder. No course of dealing or any delay or failure to exercise any
right hereunder on the part of a party shall operate as a waiver of such right or otherwise
prejudice its rights, powers or remedies.

     14.2 Notice Generally. Any notice, demand, request, consent, approval, declaration,
delivery or other communication to be made pursuant to the provisions of this Warrant shall be
deemed sufficiently given or made if in writing and either delivered in person with receipt
acknowledged or sent by registered or certified mail, return receipt requested, postage prepaid, or
by telecopy and confirmed by telecopy answerback, addressed as follows:

     (a) If to any Holder or holder of Warrant Shares, at its last known address appearing on the
books of the Company maintained for such purpose.

     (b) If to the Company at:

Myriant Technologies, Inc.

Two Batterymarch Park

Suite 301

Quincy, MA 02169

Telephone: 617-657-5200

Facsimile: 617-657-5210

Attention: Stephen J. Gatto

or at such address as may be substituted by notice given as herein provided. The party entitled to
receive any notice required hereunder may waive such notice in writing. Every notice, demand,
request, consent, approval, declaration, delivery or other communication hereunder shall be

16

 

deemed to have been duly given or served on the date on which personally delivered, with receipt
acknowledged, telecopied and confirmed by telecopy answerback, or three (3) Business Days after the
same shall have been deposited in the United States mail. Notice by electronic mail shall not
constitute effective notice hereunder.

     14.3 Successors and Assigns. Subject to the provisions of Sections 3.1, this Warrant
and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors of
the Company and the successors and assigns of Holder. Holder has entered into the Stockholders
Agreements with the Company and other members which imposes certain other restrictions on the
transfer of the Warrant Shares. This Warrant and all rights evidenced hereby may be transferred by
Holder to any Person in accordance with the terms of the Stockholders Agreements and law, including
without limitation, the Securities Act.

     14.4 Remedies. Subject to the terms of the Stockholders Agreements, each holder of a
Warrant or Warrant Shares, in addition to being entitled to exercise all rights granted by law,
including recovery of damages, will be entitled to specific performance of its rights under this
Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by the Company of the provisions of this Warrant and hereby agrees
to waive the defense in any action for specific performance that a remedy at law would be adequate.

     14.5 Amendment. This Warrant may be modified, restated, supplemented, waived or
amended or the provisions hereof waived with the written consent of the Company and Holder.

     14.6 Severability. Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Warrant.

     14.7 Headings. The headings used in this Warrant are for the convenience of reference
only and shall not, for any purpose, be deemed a part of this Warrant.

     14.8 Governing Law. This Warrant shall be governed by the laws of the State of New
York, without regard to the provisions thereof relating to conflict of laws.

     14.9 Facsimile Signature. The signature on this Warrant may be by facsimile, with
original signature page to be substituted therefor.

     14.10 Non-Survival. The parties hereby agree that all the provisions of this Warrant
shall terminate and be of no further force or effect on the earlier of the exercise in full of this
Warrant and the Expiration Date; provided that if Holder exercises this Warrant on the
Expiration Date, Company shall deliver to Holder the Warrant Shares even if such delivery shall
occur after the Expiration Date.

     14.11 Counterparts. This Warrant may be executed by one or more of the parties to
this Warrant on any number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

17

 

     14.12 Reorganization of the Company or Reclassification of Shares. In the event the
Company (a) converts, by merger or otherwise, to another type of entity including but not limited
to a corporation or a limited partnership, or (b) reclassifies the Shares into any other class of
equity (the result of such reclassification, “Reclassified Shares”), then Holder will be
entitled to purchase the percentage of such Fully Diluted Outstanding (x) equity interests in such
entity or (y) Reclassified Shares, as applicable, equal to the percentage of Fully Diluted
Outstanding Shares provided for by, and on the same terms and conditions specified in, this
Warrant.

15. LIMITATION OF LIABILITY. No provision hereof, in the absence of affirmative
action by Holder to purchase Shares, and no enumeration herein of the rights or privileges of
Holder hereof, shall give rise to any liability of such Holder for the purchase price of any Shares
or as a holder of Shares of Company, whether such liability is asserted by Company or by creditors
of Company.

[Signature Pages Follow]

18

 

     IN WITNESS WHEREOF, the Company and Holder have caused this Warrant to be duly executed by its
authorized officer as of the date first above written.

	 	 	 	 	 
	 	Myriant Technologies, Inc. 

 	 
	 	By:  	/s/ Stephen J. Gatto
 	 
	 	 	Name:  	Stephen J. Gatto 	 
	 	 	Title:  	Chairman and CEO 	 
	 

Signature Page to

Myriant Technologies, Inc. Warrant

Page — 1

 

 

	 	 	 	 	 
	 	Specialty Chemicals, LLC 

 	 
	 	By:  	/s/ Lisa Kavalieras
 	 
	 	 	Name:  	Lisa Kavalieras 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to

Myriant Technologies, Inc. Warrant

Page — 2

 

 

EXHIBIT A

SUBSCRIPTION FORM

[To be executed only upon exercise of Warrant]

     The undersigned registered owner of this Warrant irrevocably exercises this Warrant for the
purchase of ____________ Shares of Myriant Technologies, Inc., a Delaware corporation, and herewith
makes payment therefor, all at the price and on the terms and conditions specified in the Warrant,
which certificates for the Shares hereby purchased (and any securities or property issuable upon
such exercise) to be issued in the name of the undersigned and delivered to the undersigned as
follows:

	 	 	 

	Name
	 	Address
	 
	 

     If Shares and the certificates representing the Shares being purchased pursuant hereto are to
be registered in a name or names other than the name of the holder of this Warrant, all transfer
taxes payable upon such transfer shall be paid by the undersigned at the time of delivering the
notice of exercise and such request.

     The undersigned acknowledges that, if certificated, each certificate for Warrant Shares issued
upon exercise of the Warrant shall bear a legend to the effect that such Warrant Shares may not be
transferred except upon compliance with the provisions of the Securities Act and applicable state
securities laws, and each certificate for Warrant Shares transferred shall bear such a legend
unless, in the opinion of counsel for the Company, such legend is not required.

     If the number of Shares shall not be all the Warrant Shares purchasable under this Warrant, a
new Warrant of like tenor is to be issued in the name of and delivered to the undersigned for the
remaining balance of the Shares purchasable thereunder.

	 	 	 

	 
	 

	 	 
	 

	 	(Name of Registered Owner)
	 
	 	 
	 
	 

	 	 
	 

	 	(Signature of Registered Owner)
	 
	 	 
	 
	 

	 	 
	 

	 	(Street Address)
	 
	 	 
	 
	 

	 	 
	 

	 	(City)                                    (State)                                    (Zip Code)

			
	NOTICE:	 	The signature on this subscription must correspond with the names as written upon the face
of the within Warrant in every particular, without alteration or enlargement or any change
whatsoever.

Exhibit A

 

 

EXHIBIT
B

ASSIGNMENT FORM

     FOR VALUE RECEIVED the undersigned registered owner of this Warrant hereby sells, assigns and
transfers unto the Assignee named below all of the rights of the undersigned under this Warrant,
with respect to the number of Shares set forth below:

	 	 	 

	Name and Address of Assignee
	 	No. of Shares
	 
	 	 
	 	 	 

and does hereby irrevocably constitute and appoint _______________ attorney-in-fact to register
such transfer on the books of Myriant Technologies, Inc. maintained for the purpose, with full
power of substitution in the premises.

     If the number of Shares is not all of the Warrant Shares represented by this Warrant, a new
Warrant of like tenor is to be issued in the name of and delivered to the undersigned for the
balance remaining of the Shares represented by this Warrant.

	 	 	 	 	 	 	 

	Dated:

	 	 	 	Print Name:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Signature:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Witness:	 	 
	 

	 	 	 	 	 	 

			
	NOTICE:	 	The signature on this assignment must correspond with the name as written upon the face of
the within Warrant in every particular, without alteration or enlargement or any change
whatsoever.

Exhibit B

 

 

SCHEDULE A

PERMITTED SHARES

NONE.

Schedule Aexv10w1

Exhibit 10.1

NOT SPECIFIED/OTHER

ASSISTANCE AGREEMENT

	 	 	 	 	 	 	 	 	 

	1. Award No.

	 	  2. Modification No.
	 	3. Effective Date
	 	4. CFDA No.

	DE-EE0002878

	 	 	 	01/28/2010
	 	 	81.087	 

	 	 	 	 	 

	5. Awarded To

	 	6. Sponsoring Office
	 	7. Period of Performance
	BIOENERGY INTERNATIONAL, INC.

	 	Golden Field Office
	 	01/28/2010
	Attn: STEPHEN GATTO

	 	U.S. Department of Energy
	 	Through
	ONE PINEHILL DRIVE, BATTERYMARCH PARK II

	 	Golden Field Office
	 	09/30/2013
	SUITE 301

	 	1617 Cole Blvd.	 	 
	QUINCY MA 021694801

	 	Golden, CO 80401	 	 

	 	 	 	 	 

	8. Type of Agreement

	 	9. Authority
	 	10. Purchase Request or Funding Document No.
	o Grant

	 	109-58 Energy Policy Act (2005)
	 	10EE002331
	þ Cooperative Agreement

	 	111-5 Recovery Act 2009	 	 
	o Other
	 	 	 	 

	 	 	 	 	 

	11. Remittance Address

	 	12. Total Amount
	 	13. Funds Obligated
	BIOENERGY INTERNATIONAL, LLC

	 	Govt. Share: $50,000,000.00
	 	This action: $50,000,000.00
	Attn: STEPHEN GATTO
	 	 	 	 
	ONE PINEHILL DRIVE, BATTERYMARCH PARK II

	 	Cost Share: $89,589,188.00	 	 
	SUITE 301
	 	 	 	 
	QUINCY, MA 021694801

	 	Total: $139,589,188.00
	 	Total: $50,000,000.00

	 	 	 	 	 

	14. Principal Investigator

	 	15. Program Manager
	 	16. Administrator
	John Ellersick

	 	Gene R. Petersen
	 	Golden Field Office
	617-675-5220

	 	Phone: 303-275-4937
	 	U.S. Department of Energy
	 

	 	 	 	Golden Field Office
	 

	 	 	 	1617 Cole Blvd.
	 

	 	 	 	Golden CO 80401-3393

	 	 	 	 	 

	17. Submit Payment Requests To

	 	18. Paying Office
	 	19. Submit Reports To
	OR for Golden
	 	 	 	 
	U.S. Department of Energy
	 	 	 	 
	Oak Ridge Financial Service Center
	 	 	 	 
	P.O. Box 4517
	 	 	 	 
	Oak Ridge TN 37831
	 	 	 	 

	 

	20. Accounting and Appropriate Data

	recovery act

	 

	21. Research Title and/or Description of Project

	RECOVERY ACT — BEI — MYRIANT SUCCINIC ACID BIOREFINERY (MYSAB)

	 	 	 

	For the Recipient

	 	For the United States of America
	 
	 	 
	22. Signature of Person Authorized to Sign

	 	 25. Signature of Grants/Agreements Officer

	 	 	 	 	 	 	 

	23. Name and Title

	 	24. Date Signed
	 	26. Name of Officer
	 	27. Date Signed
	 

	 	 	 	Melisa Y. Wise
	 	01/20/2010

NOT SPECIFIED/OTHER

 

 

NOT SPECIFIED/OTHER

	 	 	 	 	 	 	 	 	 	 	 

	CONTINUATION SHEET

	 	REFERENCE NO. OF DOCUMENT BEING CONTINUED
	 	PAGE
	 	OF

	 

	 	DE-EE0002878
	 	 	2	 	 	 	3	 
	 
	NAME OF OFFEROR OR CONTRACTOR
	 	 	 	 	 	 	 	 
	BIOENERGY INTERNATIONAL, LLC
	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	ITEM NO.	 	SUPPLIES/SERVICES	 	QUANTITY	 	UNIT	 	UNIT PRICE	 	AMOUNT
	(A)	 	(B)	 	(C)	 	(D)	 	(E)	 	(F)
	 	 	DUNS Number: 611942686
“Electronic signature or signatures as used in
this document means a method of signing an
Electronic message that—

	 	 
	 	 
	 	 
	 	 
	 
	 	 	(A) Identifies and authenticates a particular
person as the source of the electronic message;
	 	 	 	 	 	 	 	 
	 
	 	 	(B) Indicates such person’s approval of the
information contained in the electronic message;
and,
	 	 	 	 	 	 	 	 
	 
	 	 	(C) Submission via FedConnect constitutes
electronically signed documents.”
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	1. This is a conditional award, comprised of this
Assistance Agreement and the Special Terms and
Conditions. Upon successful completion of
negotiations, this award will be modified to lift
its conditional status, to revise the Special Terms
and Conditions, and to add additional attachments,
such as Attachment 1, Intellectual Property
Provisions; Attachment 2, Statement of Project
Objectives; Attachment 3, Federal Assistance
Reporting Requirements; and Attachment 4, Budget
Information — Non Construction Programs.
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	2. The award was prepared using the proposed
budget information in the Recipient’s application.
The Special Terms and Conditions, Provision 1 of
the award states DOE will not release the funding
obligated by this award until the Awardee submits a
full application and subsequently requested
supplemental information, the Contracting Officer
reviews and approves the Awardee’s application and
supplemental information and completion of
negotiations. Performance against this award is,
therefore, at the Recipient’s own risk, and
payments for costs incurred for the Recipient’s
project will not be made until completion of
negotiations.
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	3. The administrative office for this award is
03601. The administrative office (administrative
contracting activity) code is needed by the
recipient for reporting to FederalReporting.gov
concerning awards made with funding from the
American
(Continued).
	 	 	 	 	 	 	 	 

 

 

NOT SPECIFIED / OTHER

	 	 	 	 	 	 	 	 	 	 	 

	CONTINUATION SHEET

	 	REFERENCE NO. OF DOCUMENT BEING CONTINUED

DE-EE0002878
	 	PAGE
	 	OF

	 

	 	
	 	 	3	 	 	 	3	 
	NAME OF OFFEROR OR CONTRACTOR
	 	 	 	 	 	 	 
	BIOENERGY INTERNATIONAL, LLC
	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	ITEM NO.	 	SUPPLIES/SERVICES	 	QUANTITY	 	UNIT	 	UNIT PRICE	 	AMOUNT
	(A)	 	(B)	 	(C)	 	(D)	 	(E)	 	(F)
	 	 	Recovery and Reinvestment Act of 2009
(ARRA or Recovery Act). Recipients must report
to FederalReporting.gov by the 10th day of each
quarter.

	 	 
	 	 
	 	 
	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	4. A representative of the DOE office will
contact the Recipient to request additional
and/or revised information needed to supplement
and clarify the Recipient’s application, to
complete the negotiations of an amended award.
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	DOE Award Administrator: Brenda Dias
	 	 	 	 	 	 	 	 
	 	 	E-mail: Brenda.dias@go.doe.gov
	 	 	 	 	 	 	 	 
	 	 	Phone: 303-275-6043
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	Recipient Business Officer: Alif Saleh
	 	 	 	 	 	 	 	 
	 	 	E-mail: asaleh@myriant.com
	 	 	 	 	 	 	 	 
	 	 	Phone: 617-657-5219
	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 	 	 
	 	 	ASAP: NO
	 	 	 	 	 	 	 	 
	 	 	Extent Competed: COMPETED
	 	 	 	 	 	 	 	 
	 	 	Davis-Bacon Act: YES
	 	 	 	 	 	 	 	 
	 	 	Payment:
	 	 	 	 	 	 	 	 
	 	 	     OR for Golden
	 	 	 	 	 	 	 	 
	 	 	     U.S. Department of Energy
	 	 	 	 	 	 	 	 
	 	 	     Oak Ridge Financial Service Center
	 	 	 	 	 	 	 	 
	 	 	     P.O. Box 4517
	 	 	 	 	 	 	 	 
	 	 	     Oak Ridge TN 37831
	 	 	 	 	 	 	 	 
	 	 	Fund: 05794
	 	 	 	 	 	 	 	 
	 	 	Appr Year: 2009
	 	 	 	 	 	 	 	 
	 	 	Allottee: 31 Report
	 	 	 	 	 	 	 	 
	 	 	Entity: 200835
	 	 	 	 	 	 	 	 
	 	 	Object Class: 41000
	 	 	 	 	 	 	 	 
	 	 	Program: 1004173
	 	 	 	 	 	 	 	 
	 	 	Project: 2004000
	 	 	 	 	 	 	 	 
	 	 	WFO: 0000000
	 	 	 	 	 	 	 	 
	 	 	Local Use: 0000000
	 	 	 	 	 	 	 	 
	 	 	TAS Agency: 89 TAS
	 	 	 	 	 	 	 	 
	 	 	Account: 0331
	 	 	 	 	 	 	 	 
	 	 	 

	 	 	 	 	 	 	 	JULY 2004

NOT SPECIFIED / OTHER

 

 

DE-EE0002878/000

SPECIAL TERMS AND CONDITIONS

Table of Contents

	 	 	 	 	 	 	 
	Number	 	Subject	 	Page
	1.

	 	CONDITIONAL AVAILABILITY OF FUNDS
	 	 	2	 
	2.

	 	RESOLUTION OF CONFLICTING CONDITIONS
	 	 	2	 
	3.

	 	AWARD AGREEMENT TERMS AND CONDITIONS
	 	 	2	 
	4.

	 	ELECTRONIC AUTHORIZATION OF AWARD DOCUMENTS
	 	 	3	 
	5.

	 	AWARD PROJECT PERIOD
	 	 	3	 
	6.

	 	INTELLECTUAL PROPERTY PROVISIONS
	 	 	3	 
	7.

	 	COST SHARE
	 	 	3	 
	8.

	 	REPORTING REQUIREMENTS
	 	 	4	 
	9.

	 	PAYMENT PROCEDURES
	 	 	4	 
	10.

	 	REBUDGETING AND RECOVERY OF INDIRECT COSTS
	 	 	5	 
	11.

	 	INSOLVENCY, BANKRUPTCY OR RECEIVERSHIP
	 	 	6	 
	12.

	 	NATIONAL ENVIRONMENTAL POLICY ACT (NEPA)
REQUIREMENTS
	 	 	6	 
	13.

	 	STATEMENT OF FEDERAL STEWARDSHIP
	 	 	7	 
	14.

	 	SITE VISITS
	 	 	7	 
	15.

	 	PUBLICATIONS
	 	 	7	 
	16.

	 	FEDERAL, STATE, AND MUNICIPAL REQUIREMENTS
	 	 	8	 
	17.

	 	LOBBYING RESTRICTIONS
	 	 	8	 
	18.

	 	NOTICE REGARDING THE PURCHASE OF AMERICAN-MADE
EQUIPMENT AND PRODUCTS — SENSE OF CONGRESS 	 	 	8	 
	19.

	 	SPECIAL PROVISIONS RELATING TO WORK FUNDED UNDER
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
(May 2009)
	 	 	8	 
	20.

	 	REPORTING AND REGISTRATION REQUIREMENTS UNDER
SECTION 1512 OF THE RECOVERY ACT
	 	 	13	 
	21.

	 	REQUIRED USE OF AMERICAN IRON, STEEL, AND
MANUFACTURED GOODS — SECTION 1605 OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
	 	 	14	 
	22.

	 	RECOVERY ACT TRANSACTIONS LISTED IN SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS AND RECIPIENT
RESPONSIBILITIES FOR INFORMING SUBRECIPIENTS
	 	 	16	 
	23.

	 	WAGE RATE REQUIREMENTS UNDER SECTION 1606 OF THE
RECOVERY ACT
	 	 	17	 
	24.

	 	DAVIS BACON ACT AND CONTRACT WORK HOURS AND
SAFETY STANDARDS ACT
	 	 	18	 

1

 

DE-EE0002878/000

SPECIAL TERMS AND CONDITIONS

	1.	 	CONDITIONAL AVAILABILITY OF FUNDS

	 	a.	 	Notwithstanding the obligation of funds shown on the Assistance Agreement Cover
Page, the parties hereby agree that the availability of funds to the Awardee for
payment of costs incurred by the Awardee is conditioned upon the Awardee’s submission
of a full application and any subsequently requested supplemental information, the
Contracting Officer’s review and approval of the Awardee’s application and supplemental
information, and completion of negotiations. No funds, therefore, shall be made
available to the Awardee for payment, and DOE does not guarantee or assume any
obligation to reimburse costs incurred by the Awardee during the negotiation process.
	 
	 	b.	 	When the parties have completed negotiations of all terms and conditions for
this award, the Contracting Officer will issue an amendment to this award making
available the obligated amount for payment in accordance with the payment provisions
contained in the Special Terms and Conditions. The Awardee may then receive payment for
allowable costs incurred or recognize costs incurred toward cost share requirements, as
applicable, in accordance with the negotiated payment provisions.
	 
	 	c.	 	Failure by the Recipient to provide an application and any subsequently
requested supplemental documentation which is acceptable to the Contracting Officer, or
failure to complete negotiations will be deemed noncompliance pursuant to 10 CFR
600.24. Based on such noncompliance, the Contracting Officer may unilaterally terminate
or suspend this award. In such case, the Awardee shall not be reimbursed for costs
incurred at the Awardee’s risk, as described in Paragraph a. above.

	2.	 	RESOLUTION OF CONFLICTING CONDITIONS
	 
	 	 	Any apparent inconsistency between Federal statutes and regulations and the terms and
conditions contained in this award must be referred to the DOE Award Administrator for
guidance.
	 
	3.	 	AWARD AGREEMENT TERMS AND CONDITIONS

	 	a.	 	This award consists of the Assistance Agreement Cover Page, plus the following:

	 	1)	 	Special Terms and Conditions.
	 
	 	2)	 	Applicable program regulations.
	 
	 	3)	 	DOE Assistance Regulations, 10 CFR Part 600 at
http://ecfr.gpoaccess.gov.
	 
	 	4)	 	If the award is for research and the award is for a university
or non-profit, the Research Terms & Conditions and the DOE Agency Specific
Requirements at http://www.ns£gov/bfaldias/policy/rtc/index.jsp apply.
	 
	 	5)	 	Application/proposal as approved by DOE.

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DE-EE0002878/000

	 	6)	 	National Policy Assurances to Be Incorporated as Award Terms in
effect on date of award at
http://management.energy.gov/businessdoe/1374.htm.

	 	b.	 	When the parties have completed negotiations of all final special terms and
conditions for this award, the Contracting Officer will issue an amendment and the
following documents will be added to the award:

	 	1)	 	Special Terms and Conditions.
	 
	 	2)	 	Attachments:

	 	 	 
	Attachment Number	 	Title
	1.

	 	Intellectual Property Provisions
	2.

	 	Statement of Project Objectives
	3.

	 	Federal Assistance Reporting Checklist and
Instructions
	4.

	 	Budget Pages (SF 424A)

	4.	 	ELECTRONIC AUTHORIZATION OF AWARD DOCUMENTS
	 
	 	 	Acknowledgement of award documents by the Recipient’s authorized representative through
electronic systems used by the Department of Energy, specifically FedConnect, constitutes
the Recipient’s acceptance of the terms and conditions of the award. Acknowledgement via
FedConnect by the Recipient’s authorized representative constitutes the Recipient’s
electronic signature.
	 
	5.	 	AWARD PROJECT PERIOD
	 
	 	 	The Project Period for this award is shown in the Assistance Agreement, Block 7, Period of
Performance. The Project Period may be amended upon completion of negotiations.
	 
	6.	 	INTELLECTUAL PROPERTY PROVISION
	 
	 	 	The intellectual property provisions applicable to this award will be incorporated by
reference or included as Attachment 1 to the amended award, upon completion of negotiations.
	 
	7.	 	COST SHARE

	 	a.	 	The Federal funds currently obligated on this award are shown in the Assistance
Agreement, Blocks 12 and 13. The Federal funds and Recipient cost share may be amended
upon completion of negotiations.
	 
	 	b.	 	Total Estimated Project Cost is the sum of the Federal Government share and
Recipient share of the estimated project costs. The Recipient’s cost share must come
from non-Federal sources unless otherwise allowed by law. By accepting Federal funds
under this award, you agree that you are liable for your percentage share of total
allowable project costs, on a budget period basis, even if the project is terminated
early or is not funded to its completion.
	 
	 	c.	 	If you discover that you may be unable to provide cost sharing that is required
upon completion of negotiations, the Recipient should immediately provide

3

 

DE-EE0002878/000

	 	 	 	written notification to the DOE Award Administrator, indicating whether the
Recipient will continue or phase out the project. If the Recipient plans to continue
the project, the notification must describe how replacement cost sharing will be
secured.

	 	d.	 	The Recipient must maintain records of all project costs that you claim as cost
sharing, including in-kind costs, as well as records of costs to be paid by DOE. Such
records are subject to audit.
	 
	 	e.	 	Failure to provide the cost sharing required by this Article may result in the
subsequent recovery by DOE of some or all the funds provided under the award.

	8.	 	REPORTING REQUIREMENTS

	 	a.	 	Requirements. The reporting requirements for this award will be
identified on the Federal Assistance Reporting Checklist, DOE F 4600.2, and become
Attachment 3 to an amended award upon completion of negotiations. (A sample checklist
may be found at the following link:
http://www.managementeriergy.gov/documents/DOEF46002PolicyVersion.pdf.)
	 
	 	 	 	Failure to comply with the reporting requirements will be considered a material
noncompliance with the terms of the award. Noncompliance may result in withholding
of future payments, suspension or termination of the current award, and withholding
of future awards. A willful failure to perform, a history of failure to perform, or
unsatisfactory performance of this and/or other financial assistance awards, may
also result in a debarment action to preclude future awards by Federal agencies.
	 
	 	b.	 	Dissemination of scientific/technical reports. Scientific/technical
reports submitted under this award will be disseminated on the Internet via the DOE
Information Bridge (www.osti.gov/bridge), unless the report contains patentable
material, protected data or SBIR/STTR data. Citations for journal articles produced
under the award will appear on the DOE Energy Citations Database
(www.osti.gov/energycitations).
	 
	 	c.	 	Restrictions. Reports submitted to the DOE Information Bridge must not
contain any Protected Personal Identifiable Information (PII), limited rights data
(proprietary data), classified information, information subject to export control
classification, or other information not subject to release.

	9.	 	PAYMENT PROCEDURES

	 	a.	 	Method of Payment. Payment will be made by reimbursement through the
Automated Clearinghouse (ACH) method of payment.
	 
	 	b.	 	Requesting Reimbursement. Requests for reimbursements must be made
electronically through Department of Energy’s Oak Ridge Financial Service Center
(ORFSC) ACH Vendor Inquiry Payment Electronic Reporting System

4

 

DE-EE0002878/000

	 	 	 	(VIPERS). To access and use VIPERS, you must enroll at
https://finweb.oro.doe.gov/vipers.htm. Detailed instructions on how to
enroll are provided on the web site.
	 
	 	 	 	For non-construction awards, you must submit a Standard Form (SF) 270, “Request for
Advance or Reimbursement,” at https://finweb.oro.doe.gov/vipers.htm and
attach a file containing appropriate supporting documentation. The file attachment
must show the total Federal share claimed on the SF 270, the non-Federal share
claimed for the billing period if cost sharing is required, and cumulative
expenditures to date (both Federal and non-Federal) for each of the following
categories: salaries/wages and fringe benefits; equipment; travel;
participant/training support costs, if any; other direct costs, including
subawards/contracts; and indirect costs. For construction awards, you must submit a
SF 271, “Outlay Report and Request for Reimbursement for Construction Programs,”
through VIPERS.

	 	c.	 	Timing of submittals. Submittal of the SF 270 or SF 271 should coincide
with your normal billing pattern, but not more frequently than every two weeks.
Requests for reimbursement must be limited to the amount of disbursements made during
the billing period for the Federal share of direct project costs and the proportionate
share of any allowable indirect costs incurred during that billing period.
	 
	 	d.	 	Adjusting payment requests for available cash. You must disburse any
funds that are available from repayments to and interest earned on a revolving fund,
program income, rebates, refunds, contract settlements, audit recoveries, credits,
discounts, and interest earned on any of those funds before requesting additional cash
payments from DOE.
	 
	 	e.	 	Payments. The DOE approving official will approve the invoice as soon
as practical, but not later than 30 days after your request is received, unless the
billing is improper. Upon receipt of an invoice payment authorization from the DOE
approving official, the ORFSC will disburse payment to you. You may check the status of
payments at the VIPER web site. All payments are made by electronic funds transfer to
the bank account identified on the ACH Vendor/Miscellaneous Payment Enrollment Form (SF
3881) that you filed.

	10.	 	REBUDGETING AND RECOVERY OF INDIRECT COSTS

	 	a.	 	If actual allowable indirect costs are less than those budgeted and funded
under the award, the Awardee may use the difference to pay additional allowable direct
costs during the project period. If at the completion of the award the Government’s
share of total allowable costs (i.e., direct and indirect), is less than the total
costs reimbursed, the Awardee must refund the difference.
	 
	 	b.	 	Awardees are expected to manage their indirect costs. DOE will not amend an
award solely to provide additional funds for changes in indirect cost rates. DOE

5

 

DE-EE0002878/000

	 	 	 	recognizes that the inability to obtain full reimbursement for indirect costs means
the Awardee must absorb the underrecovery. Such underrecovery may be allocated as
part of the organization’s required cost sharing.

	11.	 	INSOLVENCY, BANKRUPTCY OR RECEIVERSHIP

	 	a.	 	The Awardee shall immediately notify the DOE Administrator identified on the
Assistance Agreement Cover Page of the occurrence of any of the following events: (i)
the Awardee, or the Awardee’s parent’s filing of a voluntary case seeking liquidation
or reorganization under the Bankruptcy Act; (ii) the Awardee’s consent to the
institution of an involuntary case under the Bankruptcy Act against the Awardee or its
parent; (iii) the filing of any similar proceeding for or against the Awardee or its
parent, or its consent to, the dissolution, winding-up or readjustment of its debts,
appointment of a receiver, conservator, trustee, or other officer with similar powers
over the Awardee, under any other applicable state or federal law; or (iv) the
Awardee’s insolvency due to its inability to pay its debts generally as they become
due.
	 
	 	b.	 	Such notification shall be in writing and shall: (i) specifically set out the
details of the occurrence of an event referenced in paragraph (a); (ii) provide the
facts surrounding that event; and (iii) provide the impact such event will have on the
project being funded by this award.
	 
	 	c.	 	Upon the occurrence of any of the four events described in the first paragraph,
DOE reserves the right to conduct a review of the award to determine the Awardee’s
compliance with the required elements of the award (including such items as cost share,
progress towards technical project objectives, and submission of required reports). If
a DOE review determines that there are significant deficiencies or concerns with the
Awardee’s performance under the award, DOE reserves the right to impose additional
requirements, as needed, including (i) change the Awardee payment method; or (ii)
institute payment controls.
	 
	 	d.	 	Failure of the Awardee to comply with this provision may be considered by the
Contracting Officer to be a material noncompliance of this financial assistance award.

	12.	 	NATIONAL ENVIRONMENTAL POLICY ACT (NEPA) REQUIREMENTS
	 
	 	 	The Awardee and any of its subawardees are restricted from taking any action using Federal
funds, which would have an adverse affect on the environment or limit the choice of
reasonable alternatives prior to DOE providing either a NEPA clearance or a final NEPA
decision regarding this project. If the Awardee moves forward with activities that are not
authorized by the Contracting Officer for federal funding by the DOE under this award, in
advance of negotiations, to include DOE initiating the NEPA process, the Awardee is doing so
at risk of deobligation of federal funding and such costs may not be recognized as allowable
cost share.

6

 

DE-EE0002878/000

	 	 	If this award includes construction activities, the Awardee must submit an environmental
evaluation report/evaluation notification form addressing NEPA issues prior to DOE
initiating the NEPA process.

	13.	 	STATEMENT OF FEDERAL STEWARDSHIP
	 
	 	 	DOE will exercise normal Federal stewardship in overseeing the project activities performed
under this award. Stewardship activities include, but are not limited to, conducting site
visits; reviewing performance and financial reports; providing technical assistance and/or
temporary intervention in unusual circumstances to correct deficiencies which develop during
the project; assuring compliance with terms and conditions; and reviewing technical
performance after project completion to ensure that the award objectives have been
accomplished.
	 
	14.	 	SITE VISITS
	 
	 	 	DOE’s authorized representatives have the right to make site visits at reasonable times to
review project accomplishments and management control systems and to provide technical
assistance, if required. The Awardee must provide, and must require its subawardees to
provide, reasonable access to facilities, office space, resources, and assistance for the
safety and convenience of the DOE and any other government representatives in the
performance of their duties. All site visits and evaluations will be performed in a manner
that does not unduly interfere with or delay the work.
	 
	15.	 	PUBLICATIONS

	 	a.	 	The Awardee is encouraged to publish or otherwise make publicly available the
results of the work conducted under the award.
	 
	 	b.	 	An acknowledgment of Federal support and a disclaimer must appear in the
publication of any material, whether copyrighted or not, based on or developed under
this project, as follows:

	 	 	Acknowledgment: “This material is based upon work supported by the Department of Energy
[National Nuclear Security Administration] [add name(s) of other agencies, if applicable]
under Award Number(s) [enter the award number(s)].”
	 
	 	 	Disclaimer: “This report was prepared as an account of work sponsored by an agency of the
United States Government. Neither the United States Government nor any agency thereof, nor
any of their employees, makes any warranty, express or implied, or assumes any legal
liability or responsibility for the accuracy, completeness, or usefulness of any
information, apparatus, product, or process disclosed, or represents that its use would not
infringe privately owned rights. Reference herein to any specific commercial product,
process, or service by trade name, trademark, manufacturer, or otherwise does not
necessarily constitute or imply its endorsement, recommendation, or favoring by the United
States Government or any agency thereof. The views and opinions of authors expressed herein
do not necessarily state or reflect those of the United States Government or any agency
thereof.”

7

 

DE-EE0002878/000

	16.	 	FEDERAL, STATE, AND MUNICIPAL REQUIREMENTS
	 
	 	 	The Awardee must obtain any required permits and comply with applicable federal, state, and
municipal laws, codes, and regulations for work performed under this award.
	 
	17.	 	LOBBYING RESTRICTIONS
	 
	 	 	By accepting funds under this award, the Awardee agrees that none of the funds obligated on
the award shall be expended, directly or indirectly, to influence congressional action on
any legislation or appropriation matters pending before Congress, other than to communicate
to Members of Congress as described in 18 U.S.C. 1913. This restriction is in addition to
those prescribed elsewhere in statute and regulation.
	 
	18.	 	NOTICE REGARDING THE PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS — SENSE OF CONGRESS
	 
	 	 	It is the sense of the Congress that, to the greatest extent practicable, all equipment and
products purchased with funds made available under this award should be American-made.
	 
	19.	 	SPECIAL PROVISIONS RELATING TO WORK FUNDED UNDER AMERICAN RECOVERY AND REINVESTMENT ACT OF
2009 (May 2009)

Preamble

The American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, (Recovery Act) was enacted to
preserve and create jobs and promote economic recovery, assist those most impacted by the
recession, provide investments needed to increase economic efficiency by spurring technological
advances in science and health, invest in transportation, environmental protection, and other
infrastructure that will provide long-term economic benefits, stabilize State and local government
budgets, in order to minimize and avoid reductions in essential services and counterproductive
State and local tax increases. Recipients shall use grant funds in a manner that maximizes job
creation and economic benefit.

The Recipient shall comply with all terms and conditions in the Recovery Act relating generally to
governance, accountability, transparency, data collection and resources as specified in Act itself
and as discussed below.

Recipients should begin planning activities for their first tier subrecipients, including obtaining
a DUNS number (or updating the existing DUNS record), and registering with the Central Contractor
Registration (CCR).

Be advised that Recovery Act funds can be used in conjunction with other funding as necessary to
complete projects, but tracking and reporting must be separate to meet the reporting requirements
of the Recovery Act and related guidance. For projects funded by sources other than the Recovery
Act, Contractors must keep separate records for Recovery Act funds and to ensure those records
comply with the requirements of the Act.

8

 

DE-EE0002878/000

The Government has not fully developed the implementing instructions of the Recovery Act,
particularly concerning specific procedural requirements for the new reporting requirements. The
Recipient will be provided these details as they become available. The Recipient must comply with
all requirements of the Act. If the recipient believes there is any inconsistency between ARRA
requirements and current award terms and conditions, the issues will be referred to the Contracting
Officer for reconciliation.

Definitions

For purposes of this clause, Covered Funds means funds expended or obligated from appropriations
under the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5. Covered Funds will have
special accounting codes and will be identified as Recovery Act funds in the grant, cooperative
agreement or TIA and/or modification using Recovery Act funds. Covered Funds must be reimbursed by
September 30, 2015.

Non-Federal employer means any employer with respect to covered funds — the contractor,
subcontractor, grantee, or recipient, as the case may be, if the contractor, subcontractor,
grantee, or recipient is an employer; and any professional membership organization, certification
of other professional body, any agent or licensee of the Federal government, or any person acting
directly or indirectly in the interest of an employer receiving covered funds; or with respect to
covered funds received by a State or local government, the State or local government receiving the
funds and any contractor or subcontractor receiving the funds and any contractor or subcontractor
of the State or local government; and does not mean any department, agency, or other entity of the
federal government.

Recipient means any entity that receives Recovery Act funds directly from the Federal government
(including Recovery Act funds received through grant, loan, or contract) other than an individual
and includes a State that receives Recovery Act Funds.

Special Provisions

A. Flow Down Requirement

Recipients must include these special terms and conditions in any subaward.

B. Segregation of Costs

Recipients must segregate the obligations and expenditures related to funding under the Recovery
Act. Financial and accounting systems should be revised as necessary to segregate, track and
maintain these funds apart and separate from other revenue streams. No part of the funds from the
Recovery Act shall be commingled with any other funds or used for a purpose other than that of
making payments for costs allowable for Recovery Act projects.

C. Prohibition on Use of Funds

None of the funds provided under this agreement derived from the American Recovery and Reinvestment
Act of 2009, Pub. L. 111-5, may be used by any State or local government, or any

9

 

DE-EE0002878/000

private entity, for any casino or other gambling establishment, aquarium, zoo, golf course, or
swimming pool.

D. Access to Records

With respect to each financial assistance agreement awarded utilizing at least some of the funds
appropriated or otherwise made available by the American Recovery and Reinvestment Act of 2009,
Pub. L. 111-5, any representative of an appropriate inspector general appointed under section 3 or
8G of the Inspector General Act of 1988 (5 U.S.C. App.) or of the Comptroller General is authorized
—

     (1) to examine any records of the contractor or grantee, any of its subcontractors or
subgrantees, or any State or local agency administering such contract that pertain to, and involve
transactions that relate to, the subcontract, subcontract, grant, or subgrant; and

     (2) to interview any officer or employee of the contractor, grantee, subgrantee, or agency
regarding such transactions.

E. Publication

An application may contain technical data and other data, including trade secrets and/or privileged
or confidential information, which the applicant does not want disclosed to the public or used by
the Government for any purpose other than the application. To protect such data, the applicant
should specifically identify each page including each line or paragraph thereof containing the data
to be protected and mark the cover sheet of the application with the following Notice as well as
referring to the Notice on each page to which the Notice applies:

Notice of Restriction on Disclosure and Use of Data

The data contained in this application have been submitted in confidence and contain
trade secrets or proprietary information, and such data shall be used or disclosed only for
evaluation purposes, provided that if this applicant receives an award as a result of or in
connection with the submission of this application, DOE shall have the right to use or disclose the
data here to the extent provided in the award. This restriction does not limit the Government’s
right to use or disclose data obtained without restriction from any source, including the
applicant.

Information about this agreement will be published on the Internet and linked to the website
www.recovery.gov, maintained by the Accountability and Transparency Board. The Board may exclude
posting contractual or other information on the website on a case-by-case basis when necessary to
protect national security or to protect information that is not subject to disclosure under
sections 552 and 552a of title 5, United States Code.

F. Protecting State and Local Government and Contractor Whistleblowers.

The requirements of Section 1553 of the Act are summarized below. They include, but are not limited
to:

Prohibition on Reprisals: An employee of any non-Federal employer receiving covered funds under the
American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, may not be

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DE-EE0002878/000

discharged, demoted, or otherwise discriminated against as a reprisal for disclosing, including a
disclosure made in the ordinary course of an employee’s duties, to the Accountability and
Transparency Board, an inspector general, the Comptroller General, a member of Congress, a State or
Federal regulatory or law enforcement agency, a person with supervisory authority over the employee
(or other person working for the employer who has the authority to investigate, discover or
terminate misconduct), a court or grant jury, the head of a Federal agency, or their
representatives information that the employee believes is evidence of:

     • gross management of an agency contract or grant relating to covered funds;

     • a gross waste of covered funds;

     • a substantial and specific danger to public health or safety related to the implementation
or use of covered funds;

     • an abuse of authority related to the implementation or use of covered funds; or

     • as violation of law, rule, or regulation related to an agency contract (including the
competition for or negotiation of a contract) or grant, awarded or issued relating to covered
funds.

Agency Action: Not later than 30 days after receiving an inspector general report of an alleged
reprisal, the head of the agency shall determine whether there is sufficient basis to conclude that
the non-Federal employer has subjected the employee to a prohibited reprisal. The agency shall
either issue an order denying relief in whole or in part or shall take one or more of the following
actions:

     • Order the employer to take affirmative action to abate the reprisal.

     • Order the employer to reinstate the person to the position that the person held before the
reprisal, together with compensation including back pay, compensatory damages, employment benefits,
and other terms and conditions of employment that would apply to the person in that position if the
reprisal had not been taken.

     • Order the employer to pay the employee an amount equal to the aggregate amount of all costs
and expenses (including attorneys’ fees and expert witnesses’ fees) that were reasonably incurred
by the employee for or in connection with, bringing the complaint regarding the reprisal, as
determined by the head of a court of competent jurisdiction.

Nonenforceablity of Certain Provisions Waiving Rights and remedies or Requiring Arbitration: Except
as provided in a collective bargaining agreement, the rights and remedies provided to aggrieved
employees by this section may not be waived by any agreement, policy, form, or condition of
employment, including any predispute arbitration agreement. No predispute arbitration agreement
shall be valid or enforceable if it requires arbitration of a dispute arising out of this section.

Requirement to Post Notice of Rights and Remedies: Any employer receiving covered funds under the
American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, shall post notice of the rights and
remedies as required therein. (Refer to section 1553 of the American Recovery and Reinvestment Act
of 2009, Pub. L. 111-5, www.Recovery.gov, for specific requirements of this section and prescribed
language for the notices.).

G. Reserved.

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H. False Claims Act

Recipient and sub-recipients shall promptly refer to the DOE or other appropriate Inspector General
any credible evidence that a principal, employee, agent, contractor, sub-grantee, subcontractor or
other person has submitted a false claim under the False Claims Act or has committed a criminal or
civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity or similar
misconduct involving those funds.

I. Information in Support of Recovery Act Reporting

Recipient may be required to submit backup documentation for expenditures of funds under the
Recovery Act including such items as timecards and invoices. Recipient shall provide copies of
backup documentation at the request of the Contracting Officer or designee.

J. Availability of Funds

Funds appropriated under the Recovery Act and obligated to this award are available for
reimbursement of costs until September 30, 2015.

K. Additional Funding Distribution and Assurance of Appropriate Use of Funds

If the Recipient is a State Government, the following paragraphs apply:

Certification by Governor — Not later than April 3, 2009, for funds provided to any State or
agency thereof by the American Reinvestment and Recovery Act of 2009, Pub. L. 111-5, the Governor
of the State shall certify that: 1) the state will request and use funds provided by the Act; and
2) the funds will be used to create jobs and promote economic growth.

Acceptance by State Legislature — If funds provided to any State in any division of the Act are
not accepted for use by the Governor, then acceptance by the State legislature, by means of the
adoption of a concurrent resolution, shall be sufficient to provide funding to such State.

Distribution — After adoption of a State legislature’s concurrent resolution, funding to the State
will be for distribution to local governments, councils of government, public entities, and
public-private entities within the State either by formula or at the State’s discretion.

L. Certifications

With respect to funds made available to State or local governments for infrastructure investments
under the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, the Governor, mayor, or
other chief executive, as appropriate, certified by acceptance of this award that the
infrastructure investment has received the full review and vetting required by law and that the
chief executive accepts responsibility that the infrastructure investment is an appropriate use of
taxpayer dollars. Recipient shall provide an additional certification that includes a description
of the investment, the estimated total cost, and the amount of covered funds to be used for posting
on the Internet. A State or local agency may not receive infrastructure investment funding from
funds made available by the Act unless this certification is made and posted.

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	20.	 	REPORTING AND REGISTRATION REQUIREMENTS UNDER SECTION 1512 OF THE RECOVERY ACT
	 
	 	 	 (a) This award requires the recipient to complete projects or activities which are funded
under the American Recovery and Reinvestment Act of 2009 (Recovery Act) and to report on use
of Recovery Act funds provided through this award. Information from these reports will be
made available to the public.
	 
	 	 	 (b) The reports are due no later than ten calendar days after each calendar quarter in which
the Recipient receives the assistance award funded in whole or in part by the Recovery Act.
	 
	 	 	 (c) Recipients and their first-tier subrecipients must maintain current registrations in the
Central Contractor Registration (http://wvw.ccrgov) at all times during which they have
active federal awards funded with Recovery Act funds. A Dun and Bradstreet Data Universal
Numbering System (DUNS) Number (http://www.dnb.com) is one of the requirements for
registration in the Central Contractor Registration.
	 
	 	 	 (d) The recipient shall report the information described in section 1512(c) of the Recovery
Act using the reporting instructions and data elements that will be provided online at
http://www.FederalReporting.gov and ensure that any information that is pre-filled is
corrected or updated as needed.

	21.	 	REQUIRED USE OF AMERICAN IRON, STEEL, AND MANUFACTURED GOODS — SECTION 1605 OF THE AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009
	 
	 	 	After completion of negotiations, this provision may be revised.

	 	(a)	 	Definitions. As used in this award term and condition
	 
	 	 	 	 (1) Manufactured good means a good brought to the construction site for
incorporation into the building or work that has been—

	 	 	 	 (i) Processed into a specific form and shape; or
	 
	 	 	 	 (ii) Combined with other raw material to create a material that has
different properties than the properties of the individual raw materials.

	 	 	 	 (2) Public building and public work means a public building of, and a public work of
a governmental entity (the United States; the District of Columbia; commonwealths,
territories, and minor outlying islands of the United States; State and local
governments; and multi-State, regional, or interstate entities which have
governmental functions). These buildings and works may include, without limitation,
bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains,
power lines, pumping stations, heavy generators, railways, airports, terminals,
docks, piers, wharves, ways, lighthouses, buoys, jetties,

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	 	 	 	breakwaters, levees, and canals, and the construction, alteration, maintenance, or
repair of such buildings and works.
	 
	 	 	 	 (3) Steel means an alloy that includes at least 50 percent iron, between .02 and 2
percent carbon, and may include other elements.

	 	 	 (b) Domestic preference. (1) This award term and condition implements Section 1605 of the
American Recovery and Reinvestment Act of 2009 (Recovery Act) (Pub. L. 111-5), by requiring
that all iron, steel, and manufactured goods used in the project are produced in the United
States except as provided in paragraph (b)(3) of this section and condition.

	 	 	 	 (1) This requirement does not apply to the material listed by the Federal Government
as follows:

	 	 	None.

	 	 	 	 (2) The award official may add other iron, steel, and/or manufactured goods to the
list in paragraph (b)(2) of this section and condition if the Federal Government
determines that

	 	 	 	 (i) The cost of the domestic iron, steel, and/or manufactured goods would be
unreasonable. The cost of domestic iron, steel, or manufactured goods used
in the project is unreasonable when the cumulative cost of such material
will increase the cost of the overall project by more than 25 percent;
	 
	 	 	 	 (ii) The iron, steel, and/or manufactured good is not produced, or
manufactured in the United States in sufficient and reasonably available
quantities and of a satisfactory quality; or
	 
	 	 	 	 (iii) The application of the restriction of section 1605 of the Recovery Act
would be inconsistent with the public interest.

	 	 	 (c) Request for determination of inapplicability of Section 1605 of the Recovery Act .
(1)(i) Any recipient request to use foreign iron, steel, and/or manufactured goods in
accordance with paragraph (b)(3) of this section shall include adequate information for
Federal Government evaluation of the request, including

	 	 	 	 (A) A description of the foreign and domestic iron, steel, and/or
manufactured goods;
	 
	 	 	 	 (B) Unit of measure;
	 
	 	 	 	 (C) Quantity;
	 
	 	 	 	 (D) Cost;

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	 	 	 	 (E) Time of delivery or availability;
	 
	 	 	 	 (F) Location of the project;
	 
	 	 	 	 (G) Name and address of the proposed supplier; and
	 
	 	 	 	 (H) A detailed justification of the reason for use of foreign iron, steel,
and/or manufactured goods cited in accordance with paragraph (b)(3) of this
section.
	 
	 	 	 	 (ii) A request based on unreasonable cost shall include a reasonable survey
of the market and a completed cost comparison table in the format in
paragraph (d) of this section.
	 
	 	 	 	 (iii) The cost of iron, steel, and/or manufactured goods material shall
include all delivery costs to the construction site and any applicable duty.
	 
	 	 	 	 (iv) Any recipient request for a determination submitted after Recovery Act
funds have been obligated for a project for construction, alteration,
maintenance, or repair shall explain why the recipient could not reasonably
foresee the need for such determination and could not have requested the
determination before the funds were obligated. If the recipient does not
submit a satisfactory explanation, the award official need not make a
determination.

	 	 	 	 (2) If the Federal Government determines after funds have been obligated for a
project for construction, alteration, maintenance, or repair that an exception to
section 1605 of the Recovery Act applies, the award official will amend the award to
allow use of the foreign iron, steel, and/or relevant manufactured goods. When the
basis for the exception is nonavailability or public interest, the amended award
shall reflect adjustment of the award amount, redistribution of budgeted funds,
and/or other actions taken to cover costs associated with acquiring or using the
foreign iron, steel, and/or relevant manufactured goods. When the basis for the
exception is the unreasonable cost of the domestic iron, steel, or manufactured
goods, the award official shall adjust the award amount or redistribute budgeted
funds by at least the differential established in 2 CFR 176.110(a).
	 
	 	 	 	 (3) Unless the Federal Government determines that an exception to section 1605 of
the Recovery Act applies, use of foreign iron, steel, and/or manufactured goods is
noncompliant with section 1605 of the American Recovery and Reinvestment Act.

	 	 	 (d) Data. To permit evaluation of requests under paragraph (b) of this section based on
unreasonable cost, the Recipient shall include the following information and any applicable
supporting data based on the survey of suppliers:

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Foreign and Domestic Items Cost Comparison

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Cost	 
	Description	 	Unit of measure	 	 	Quantity	 	 	(dollars)*	 
	Item 1:
	 	 	 	 	 	 	 	 	 	 	 	 
	Foreign steel, iron, or manufactured good
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Domestic steel, iron, or manufactured good
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Item 2:
	 	 	 	 	 	 	 	 	 	 	 	 
	Foreign steel, iron, or manufactured good
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Domestic steel, iron, or manufactured
good
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 

List name, address, telephone number, email address, and contact for suppliers surveyed. Attach
copy of response; if oral, attach summary.

Include other applicable supporting information. *Include all delivery costs to the construction
site.

	22.	 	RECOVERY ACT TRANSACTIONS LISTED IN SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND RECIPIENT
RESPONSIBILITIES FOR INFORMING SUBRECIPIENTS

	 	a.	 	To maximize the transparency and accountability of funds authorized under the
American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) as
required by Congress and in accordance with 2 CFR 215.21 “Uniform Administrative
Requirements for Grants and Agreements” and OMB Circular A-102 Common Rules provisions,
recipients agree to maintain records that identify adequately the source and
application of Recovery Act funds. OMB Circular A-102 is available at
http://www.whitehouse.gov/omb/circulars/a102/a102.html.
	 
	 	b.	 	For recipients covered by the Single Audit Act Amendments of 1996 and OMB
Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,”
recipients agree to separately identify the expenditures for Federal awards under the
Recovery Act on the Schedule of Expenditures of Federal Awards (SEFA) and the Data
Collection Form (SF-SAC) required by OMB Circular A-133. OMB Circular A-133 is
available at http://www.whitehouse.gov/omb/circulars/a133/a133.html. This shall be
accomplished by identifying expenditures for Federal awards made under the Recovery Act
separately on the SEFA, and as separate rows under Item 9 of Part III on the SF-SAC by
CFDA number, and inclusion of the prefix “ARRA-” in identifying the name of the Federal
program on the SEFA and as the first characters in Item 9d of Part III on the SF-SAC.
	 
	 	c.	 	Recipients agree to separately identify to each subrecipient, and document at
the time of subaward and at the time of disbursement of funds, the Federal award

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	 	 	 	number, CFDA number, and amount of Recovery Act funds. When a
recipient awards Recovery Act funds for an existing program, the information furnished to
subrecipients shall distinguish the subawards of incremental Recovery Act funds from
regular subawards under the existing program.
	 
	 	d.	 	Recipients agree to require their subrecipients to include on their SEFA
information to specifically identify Recovery Act funding similar to the requirements
for the recipient SEFA described above. This information is needed to allow the
recipient to properly monitor subrecipient expenditure of ARRA funds as well as
oversight by the Federal awarding agencies, Offices of Inspector General and the
Government Accountability Office.

	23.	 	WAGE RATE REQUIREMENTS UNDER SECTION 1606 OF THE RECOVERY ACT
	 
	 	 	After completion of negotiations, this provision may be revised.

	 	a.	 	Section 1606 of the Recovery Act requires that all laborers and mechanics
employed by contractors and subcontractors on projects funded directly by or assisted
in whole or in part by and through the Federal Government pursuant to the Recovery Act
shall be paid wages at rates not less than those prevailing on projects of a character
similar in the locality as determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States Code.
	 
	 	 	 	Pursuant to Reorganization Plan No. 14 and the Copeland Act, 40 U.S.C. 3145, the
Department of Labor has issued regulations at 29 CFR parts 1, 3, and 5 to implement
the Davis-Bacon and related Acts. Regulations in 29 CFR 5.5 instruct agencies
concerning application of the standard Davis-Bacon contract clauses set forth in
that section. Federal agencies providing grants, cooperative agreements, and loans
under the Recovery Act shall ensure that the standard Davis-Bacon contract clauses
found in 29 CFR 5.5(a) are incorporated in any resultant covered contracts that are
in excess of $2,000 for construction, alteration or repair (including painting and
decorating).
	 
	 	b.	 	For additional guidance on the wage rate requirements of section 1606, contact
your awarding agency. Recipients of grants, cooperative agreements and loans should
direct their initial inquiries concerning the application of Davis-Bacon requirements
to a particular federally assisted project to the Federal agency funding the project.
The Secretary of Labor retains final coverage authority under Reorganization Plan
Number 14.

	24.	 	DAVIS BACON ACT AND CONTRACT WORK HOURS AND SAFETY STANDARDS ACT
	 
	 	 	After completion of negotiations, this provision may be revised.

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Definitions: For purposes of this provision, “Davis Bacon Act and Contract Work Hours and Safety
Standards Act,” the following definitions are applicable:

	 	 	 	 (1) “Award” means any grant, cooperative agreement or technology investment
agreement made with Recovery Act funds by the Department of Energy (DOE) to a
Recipient. Such Award must require compliance with the labor standards clauses and
wage rate requirements of the Davis-Bacon Act (DBA) for work performed by all
laborers and mechanics employed by Recipients (other than a unit of State or local
government whose own employees perform the construction) Subrecipients, Contractors,
and subcontractors.
	 
	 	 	 	 (2) “Contractor” means an entity that enters into a Contract. For purposes of these
clauses, Contractor shall include (as applicable) prime contractors, Recipients,
Subrecipients, and Recipients’ or Subrecipients’ contractors, subcontractors, and
lower-tier subcontractors. “Contractor” does not mean a unit of State or local
government where construction is performed by its own employees.”
	 
	 	 	 	 (3) “Contract” means a contract executed by a Recipient, Subrecipient, prime
contractor, or any tier subcontractor for construction, alteration, or repair. It
may also mean (as applicable) (i) financial assistance instruments such as grants,
cooperative agreements, technology investment agreements, and loans; and, (ii) Sub
awards, contracts and subcontracts issued under financial assistance agreements.
“Contract” does not mean a financial assistance instrument with a unit of State or
local government where construction is performed by its own employees.
	 
	 	 	 	 (4) “Contracting Officer” means the DOE official authorized to execute an Award on
behalf of DOE and who is responsible for the business management and non-program
aspects of the financial assistance process.
	 
	 	 	 	 (5) “Recipient” means any entity other than an individual that receives an Award of
Federal funds in the form of a grant, cooperative agreement, or technology
investment agreement directly from the Federal Government and is financially
accountable for the use of any DOE funds or property, and is legally responsible for
carrying out the terms and conditions of the program and Award.
	 
	 	 	 	 (6) “Subaward” means an award of financial assistance in the form of money, or
property in lieu of money, made under an award by a Recipient to an eligible
Subrecipient or by a Subrecipient to a lower-tier subrecipient. The term includes
financial assistance when provided by any legal agreement, even if the agreement is
called a contract, but does not include the Recipient’s procurement of goods and
services to carry out the program nor does it include any form of assistance which
is excluded from the definition of “Award” above.

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	 	 	 	 (7) “Subrecipient” means a non-Federal entity that expends Federal funds received
from a Recipient to carry out a Federal program, but does not include an individual
that is a beneficiary of such a program.
	 
	 	(b)	 	Davis Bacon Act

	 	(1)	 	Minimum wages.
	 
	 	 	 	 (i) All laborers and mechanics employed or working upon the site of the work
(or under the United States Housing Act of 1937 or under the Housing Act of
1949 in the construction or development of the project), will be paid
unconditionally and not less often than once a week, and, without subsequent
deduction or rebate on any account (except such payroll deductions as are
permitted by regulations issued by the Secretary of Labor under the Copeland
Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits
(or cash equivalents thereof) due at time of payment computed at rates not
less than those contained in the wage determination of the Secretary of
Labor which is attached hereto and made a part hereof, regardless of any
contractual relationship which may be alleged to exist between the
Contractor and such laborers and mechanics.
	 
	 	 	 	Contributions made or costs reasonably anticipated for bona fide fringe
benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers
or mechanics are considered wages paid to such laborers or mechanics,
subject to the provisions of paragraph (a)(1)(iv) of this section; also,
regular contributions made or costs incurred for more than a weekly period
(but not less often than quarterly) under plans, funds, or programs which
cover the particular weekly period, are deemed to be constructively made or
incurred during such weekly period. Such laborers and mechanics shall be
paid the appropriate wage rate and fringe benefits on the wage determination
for the classification of work actually performed, without regard to skill,
except as provided in § 5.5(a)(4). Laborers or mechanics performing work in
more than one classification may be compensated at the rate specified for
each classification for the time actually worked therein, provided that the
employer’s payroll records accurately set forth the time spent in each
classification in which work is performed. The wage determination (including
any additional classification and wage rates conformed under paragraph
(a)(1)(ii) of this section) and the Davis-Bacon poster (WH-I321) shall be
posted at all times by the Contractor and its subcontractors at the site of
the work in a prominent and accessible place where it can be easily seen by
the workers.
	 
	 	 	 	 (ii) (A) The Contracting Officer shall require that any class of laborers
or mechanics, including helpers, which is not listed in the wage
determination and which is to be employed under the Contract shall be
classified in conformance with the wage determination. The Contracting

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	 	 	 	Officer shall approve an additional classification and wage rate and fringe
benefits therefore only when the following criteria have been met:

	 	 	 	 (2) The work to be performed by the classification requested is not performed by a
classification in the wage determination;
	 
	 	 	 	 (3) The classification is utilized in the area by the construction industry; and
	 
	 	 	 	 (4) The proposed wage rate, including any bona fide fringe benefits, bears a
reasonable relationship to the wage rates contained in the wage determination.

	 	 	 	 (A) If the Contractor and the laborers and mechanics to be employed in the
classification (if known), or their representatives, and the Contracting
Officer agree on the classification and wage rate (including the amount
designated for fringe benefits where appropriate), a report of the action
taken shall be sent by the Contracting Officer to the Administrator of the
Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210. The
Administrator, or an authorized representative, will approve, modify, or
disapprove every additional classification action within 30 days of receipt
and so advise the Contracting Officer or will notify the Contracting Officer
within the 30-day period that additional time is necessary.
	 
	 	 	 	 (B) In the event the Contractor, the laborers or mechanics to be employed in
the classification or their representatives, and the Contracting Officer do
not agree on the proposed classification and wage rate (including the amount
designated for fringe benefits, where appropriate), the Contracting Officer
shall refer the questions, including the views of all interested parties and
the recommendation of the Contracting Officer, to the Administrator for
determination. The Administrator, or an authorized representative, will
issue a determination within 30 days of receipt and so advise the
Contracting Officer or will notify the Contracting Officer within the 30-day
period that additional time is necessary.
	 
	 	 	 	 (C) The wage rate (including fringe benefits where appropriate) determined
pursuant to paragraphs (a)(1)(ii)(B) or (C) of this section, shall be paid
to all workers performing work in the classification under this Contract
from the first day on which work is performed in the classification.
	 
	 	 	 	 (ii) Whenever the minimum wage rate prescribed in the Contract for a class
of laborers or mechanics includes a fringe benefit which is not expressed as
an hourly rate, the Contractor shall either pay the benefit as stated in the
wage determination or shall pay another bona fide fringe benefit or an
hourly cash equivalent thereof.
	 
	 	 	 	 (iii) If the Contractor does not make payments to a trustee or other third
person, the Contractor may consider as part of the wages of any laborer or

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	 	 	 	mechanic the amount of any costs reasonably anticipated in providing bona
fide fringe benefits under a plan or program, provided that the Secretary of
Labor has found, upon the written request of the Contractor, that the
applicable standards of the Davis-Bacon Act have been met. The
Secretary of Labor may require the Contractor to set aside in a separate
account assets for the meeting of obligations under the plan or program.

	 	 	 	 (5) Withholding. The Department of Energy or the Recipient or Subrecipient shall
upon its own action or upon written request of an authorized representative of the
Department of Labor withhold or cause to be withheld from the Contractor under this
Contract or any other Federal contract with the same prime contractor, or any other
federally-assisted contract subject to Davis-Bacon prevailing wage requirements,
which is held by the same prime contractor, so much of the accrued payments or
advances as may be considered necessary to pay laborers and mechanics, including
apprentices, trainees, and helpers, employed by the Contractor or any subcontractor
the full amount of wages required by the Contract. In the event of failure to pay
any laborer or mechanic, including any apprentice, trainee, or helper, employed or
working on the site of the work (or under the United States Housing Act of 1937 or
under the Housing Act of 1949 in the construction or development of the project),
all or part of the wages required by the Contract, the Department of Energy,
Recipient, or Subrecipient, may, after written notice to the Contractor, sponsor,
applicant, or owner, take such action as may be necessary to cause the suspension of
any further payment, advance, or guarantee of funds until such violations have
ceased.
	 
	 	 	 	 (6) Payrolls and basic records.

	 	 	 	 (i) Payrolls and basic records relating thereto shall be maintained by the
Contractor during the course of the work and preserved for a period of three
years thereafter for all laborers and mechanics working at the site of the
work (or under the United States Housing Act of 1937, or under the Housing
Act of 1949, in the construction or development of the project). Such
records shall contain the name, address, and social security number of each
such worker, his or her correct classification, hourly rates of wages paid
(including rates of contributions or costs anticipated for bona fide fringe
benefits or cash equivalents thereof of the types described in section
1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked,
deductions made, and actual wages paid. Whenever the Secretary of Labor has
found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic
include the amount of any costs reasonably anticipated in providing benefits
under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon
Act, the Contractor shall maintain records which show that the commitment to
provide such benefits is enforceable, that the plan or program is
financially responsible, and that the plan or program has been communicated
in writing to the laborers or mechanics affected, and records which show the
costs anticipated or the actual cost incurred in providing such benefits.
Contractors employing

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	 	 	 	apprentices or trainees under approved programs shall
maintain written evidence of the registration of apprenticeship programs and
certification of trainee programs, the registration of the apprentices and
trainees, and the ratios and wage rates prescribed in the applicable
programs.
	 
	 	 	 	 (ii) (A) The Contractor shall submit weekly for each week in which any
Contract work is performed a copy of all payrolls to the Department of
Energy if the agency is a party to the Contract, but if the agency is not
such a party, the Contractor will submit the payrolls to the Recipient or
Subrecipient (as applicable), applicant, sponsor, or owner, as the case may
be, for transmission to the Department of Energy. The payrolls submitted
shall set out accurately and completely all of the information required to
be maintained under 29 CFR 5.5(a)(3)(i), except that full social security
numbers and home addresses shall not be included on weekly transmittals.
Instead, the payrolls shall only need to include an individually identifying
number for each employee (e.g., the last four digits of the employee’s
social security number). The required weekly payroll information may be
submitted in any form desired. Optional Form WH-347 is available for this
purpose from the Wage and Hour Division Web site at
http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The
prime Contractor is responsible for the submission of copies of payrolls by
all subcontractors. Contractors and subcontractors shall maintain the full
social security number and current address of each covered worker, and shall
provide them upon request to the Department of Energy if the agency is a
party to the Contract, but if the agency is not such a party, the Contractor
will submit them to the Recipient or Subrecipient (as applicable),
applicant, sponsor, or owner, as the case may be, for transmission to the
Department of Energy, the Contractor, or the Wage and Hour Division of the
Department of Labor for purposes of an investigation or audit of compliance
with prevailing wage requirements. It is not a violation of this section for
a prime contractor to require a subcontractor to provide addresses and
social security numbers to the prime contractor for its own records, without
weekly submission to the sponsoring government agency (or the Recipient or
Subrecipient (as applicable), applicant, sponsor, or owner).
	 
	 	 	 	 (A) Each payroll submitted shall be accompanied by a “Statement of
Compliance,” signed by the Contractor or subcontractor or his or her agent
who pays or supervises the payment of the persons employed under the
Contract and shall certify the following:

	 	 	 	 (7) That the payroll for the payroll period contains the information required to be
provided under § 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate
information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5,
and that such information is correct and complete;

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	 	 	 	 (8) That each laborer or mechanic (including each helper, apprentice, and trainee)
employed on the Contract during the payroll period has been paid the full weekly
wages earned, without rebate, either directly or indirectly, and that no deductions
have been made either directly or indirectly from the full wages earned, other than
permissible deductions as set forth in Regulations, 29 CFR part 3;
	 
	 	 	 	 (9) That each laborer or mechanic has been paid not less than the applicable wage
rates and fringe benefits or cash equivalents for the classification of work
performed, as specified in the applicable wage determination incorporated into the
Contract.

	 	 	 	 (A) The weekly submission of a properly executed certification set forth on
the reverse side of Optional Form WH-347 shall satisfy the requirement for
submission of the “Statement of Compliance” required by paragraph
(a)(3)(ii)(B) of this section.
	 
	 	 	 	 (B) The falsification of any of the above certifications may subject the
Contractor or subcontractor to civil or criminal prosecution under section
1001 of title 18 and section 3729 of title 31 of the United States Code.
	 
	 	 	 	 (ii) The Contractor or subcontractor shall make the records required under
paragraph (a)(3)(i) of this section available for inspection, copying, or
transcription by authorized representatives of the Department of Energy or
the Department of Labor, and shall permit such representatives to interview
employees during working hours on the job. If the Contractor or
subcontractor fails to submit the required records or to make them
available, the Federal agency may, after written notice to the Contractor,
sponsor, applicant, or owner, take such action as may be necessary to cause
the suspension of any further payment, advance, or guarantee of funds.
Furthermore, failure to submit the required records upon request or to make
such records available may be grounds for debarment action pursuant to 29
CFR 5.12.
	 
	 	(10)	 	Apprentices and trainees —
	 
	 	 	 	 (i) Apprentices. Apprentices will be permitted to work at less than the
predetermined rate for the work they performed when they are employed
pursuant to and individually registered in a bona fide apprenticeship
program registered with the U.S. Department of Labor, Employment and
Training Administration, Office of Apprenticeship Training, Employer and
Labor Services, or with a State Apprenticeship Agency recognized by the
Office, or if a person is employed in his or her first 90 days of
probationary employment as an apprentice in such an apprenticeship program,
who is not individually registered in the program, but who has been
certified by the Office of Apprenticeship Training, Employer and Labor
Services or a State Apprenticeship Agency (where appropriate) to

23

 

DE-EE0002878/000

	 	 	 	be eligible
for probationary employment as an apprentice. The allowable ratio of
apprentices to journeymen on the job site in any craft classification shall
not be greater than the ratio permitted to the Contractor as to the entire
work force under the registered program. Any worker listed on a payroll at
an apprentice wage rate, who is not registered or otherwise employed as
stated above, shall be paid not less than the applicable wage rate on the
wage determination for the classification of work actually
performed. In addition, any apprentice performing work on the job site in
excess of the ratio permitted under the registered program shall be paid not
less than the applicable wage rate on the wage determination for the work
actually performed. Where a Contractor is performing construction on a
project in a locality other than that in which its program is registered,
the ratios and wage rates (expressed in percentages of the journeyman’s
hourly rate) specified in the Contractor’s or subcontractor’s registered
program shall be observed. Every apprentice must be paid at not less than
the rate specified in the registered program for the apprentice’s level of
progress, expressed as a percentage of the journeymen hourly rate specified
in the applicable wage determination. Apprentices shall be paid fringe
benefits in accordance with the provisions of the apprenticeship program. If
the apprenticeship program does not specify fringe benefits, apprentices
must be paid the full amount of fringe benefits listed on the wage
determination for the applicable classification. If the Administrator
determines that a different practice prevails for the applicable apprentice
classification, fringes shall be paid in accordance with that determination.
In the event the Office of Apprenticeship Training, Employer and Labor
Services, or a State Apprenticeship Agency recognized by the Office,
withdraws approval of an apprenticeship program, the Contractor will no
longer be permitted to utilize apprentices at less than the applicable
predetermined rate for the work performed until an acceptable program is
approved.
	 
	 	 	 	 (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be
permitted to work at less than the predetermined rate for the work performed
unless they are employed pursuant to and individually registered in a
program which has received prior approval, evidenced by formal certification
by the U.S. Department of Labor, Employment and Training Administration. The
ratio of trainees to journeymen on the job site shall not be greater than
permitted under the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less than the rate
specified in the approved program for the trainee’s level of progress,
expressed as a percentage of the journeyman hourly rate specified in the
applicable wage determination. Trainees shall be paid fringe benefits in
accordance with the provisions of the trainee program. If the trainee
program does not mention fringe benefits, trainees shall be paid the full
amount of fringe benefits listed on the wage determination unless the
Administrator of the Wage and Hour Division determines that there is an
apprenticeship program associated with the corresponding journeyman

24

 

DE-EE0002878/000

	 	 	 	wage
rate on the wage determination which provides for less than full fringe
benefits for apprentices. Any employee listed on the payroll at a trainee
rate who is not registered and participating in a training plan approved by
the Employment and Training Administration shall be paid not less than the
applicable wage rate on the wage determination for the classification of
work actually performed. In addition, any trainee performing work on the job
site in excess of the ratio permitted under the
registered program shall be paid not less than the applicable wage rate on
the wage determination for the work actually performed. In the event the
Employment and Training Administration withdraws approval of a training
program, the Contractor will no longer be permitted to utilize trainees at
less than the applicable predetermined rate for the work performed until an
acceptable program is approved.
	 
	 	 	 	 (iii) Equal employment opportunity. The utilization of apprentices,
trainees, and journeymen under this part shall be in conformity with the
equal employment opportunity requirements of Executive Order 11246, as
amended and 29 CFR part 30.

	 	 	 	 (11) Compliance with Copeland Act requirements. The Contractor shall comply with the
requirements of 29 CFR part 3, which are incorporated by reference in this Contract.
	 
	 	 	 	 (12) Contracts and Subcontracts. The Recipient, Subrecipient, the Recipient’s, and
Subrecipient’s contractors and subcontractor shall insert in any Contracts the
clauses contained herein in(a)(I) through (10) and such other clauses as the
Department of Energy may by appropriate instructions require, and also a clause
requiring the subcontractors to include these clauses in any lower tier
subcontracts. The Recipient shall be responsible for the compliance by any
subcontractor or lower tier subcontractor with all of the paragraphs in this clause.
	 
	 	 	 	 (13) Contract termination: debarment. A breach of the Contract clauses in 29 CFR 5.5
may be grounds for termination of the Contract, and for debarment as a contractor
and a subcontractor as provided in 29 CFR 5.12.
	 
	 	 	 	 (14) Compliance with Davis-Bacon and Related Act requirements. All rulings and
interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3,
and 5 are herein incorporated by reference in this Contract.
	 
	 	 	 	 (15) Disputes concerning labor standards. Disputes arising out of the labor
standards provisions of this Contract shall not be subject to the general disputes
clause of this Contract. Such disputes shall be resolved in accordance with the
procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7.
Disputes within the meaning of this clause include disputes between the Recipient,
Subrecipient, the Contractor (or any of its subcontractors), and the contracting
agency, the U.S. Department of Labor, or the employees or their representatives.

25

 

DE-EE0002878/000

	 	 	 	 (16) Certification of eligibility.

	 	 	 	 (i) By entering into this Contract, the Contractor certifies that neither it
(nor he or she) nor any person or firm who has an interest in the
Contractor’s firm is a person or firm ineligible to be awarded Government
contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR
5.12(a)(1).
	 
	 	 	 	 (ii) No part of this Contract shall be subcontracted to any person or firm
ineligible for award of a Government contract by virtue of section 3(a) of
the Davis-Bacon Act or 29 CFR 5.12(a)(1).
	 
	 	 	 	 (iii) The penalty for making false statements is prescribed in the U.S.
Criminal Code, 18 U.S.C. 1001.

(c) Contract Work Hours and Safety Standards Act. As used in this paragraph, the terms
laborers and mechanics include watchmen and guards.

	 	 	 	 (1) Overtime requirements. No Contractor or subcontractor contracting for any part
of the Contract work which may require or involve the employment of laborers or
mechanics shall require or permit any such laborer or mechanic in any workweek in
which he or she is employed on such work to work in excess of forty hours in such
workweek unless such laborer or mechanic receives compensation at a rate not less
than one and one-half times the basic rate of pay for all hours worked in excess of
forty hours in such workweek.
	 
	 	 	 	 (2) Violation; liability for unpaid wages; liquidated damages. In the event of any
violation of the clause set forth in paragraph (b)(1) of this section, the
Contractor and any subcontractor responsible therefor shall be liable for the unpaid
wages. In addition, such Contractor and subcontractor shall be liable to the United
States (in the case of work done under contract for the District of Columbia or a
territory, to such District or to such territory), for liquidated damages. Such
liquidated damages shall be computed with respect to each individual laborer or
mechanic, including watchmen and guards, employed in violation of the clause set
forth in paragraph (b)(1) of this section, in the sum of $10 for each calendar day
on which such individual was required or permitted to work in excess of the standard
workweek of forty hours without payment of the overtime wages required by the clause
set forth in paragraph (b)(1) of this section.
	 
	 	 	 	 (3) Withholding for unpaid wages and liquidated damages. The Department of Energy or
the Recipient or Subrecipient shall upon its own action or upon written request of
an authorized representative of the Department of Labor withhold or cause to be
withheld, from any moneys payable on account of work performed by the Contractor or
subcontractor under any such contract or any other Federal contract with the same
prime Contractor, or any other federally-assisted contract subject to the Contract
Work Hours and Safety Standards Act, which is held by the same prime contractor,
such sums as may be determined to be necessary to

26

 

DE-EE0002878/000

	 	 	 	satisfy any liabilities of such
Contractor or subcontractor for unpaid wages and liquidated damages as provided in
the clause set forth in paragraph (b)(2) of this section.
	 
	 	 	 	 (4) Contracts and Subcontracts. The Recipient, Subrecipient, and Recipient’s and
Subrecipient’s contractor or subcontractor shall insert in any Contracts, the
clauses set forth in paragraph (b)(1) through (4) of this section and also a clause
requiring the subcontractors to include these clauses in any lower tier
subcontracts. The Recipient shall be responsible for compliance by any subcontractor
or lower tier subcontractor with the clauses set forth in paragraphs (b)(1) through
(4) of this section.
	 
	 	 	 	 (5) The Contractor or subcontractor shall maintain payrolls and basic payroll
records during the course of the work and shall preserve them for a period of three
years from the completion of the Contract for all laborers and mechanics, including
guards and watchmen, working on the Contract. Such records shall contain the name
and address of each such employee, social security number, correct classifications,
hourly rates of wages paid, daily and weekly number of hours worked, deductions
made, and actual wages paid. The records to be maintained under this paragraph shall
be made available by the Contractor or subcontractor for inspection, copying, or
transcription by authorized representatives of the Department of Energy and the
Department of Labor, and the Contractor or subcontractor will permit such
representatives to interview employees during working hours on the job.

	 	(d)	 	Rates of Wages

After completion of negotiations, this provision may be revised.

The minimum wages to be paid laborers and mechanics under this award involved in performance of
work at the project site, as determined by the Secretary of Labor to be prevailing for the
corresponding classes of laborers and mechanics employed on projects of a character similar to the
contract work in the pertinent locality, are found at http://www.wdol.gov/, by clicking on
“Selecting DBA WDs”. The Wage Determination Number(s) and General Decision Number(s) specific to
this award are found below. These wage rates are minimum rates and are not intended to represent
the actual wage rates that the Contractor may have to pay.

	 	 	 	 	 
	CONSTRUCTION	 	 	 	 
	TYPE	 	WAGE DETERMINATION NUMBER	 	GENERAL DECISION NUMBER
	Building

	 	TBD
	 	TBD
	Highway

	 	TBD
	 	TBD
	Residential

	 	TBD
	 	TBD

27

 

NOT SPECIFIED/OTHER

ASSISTANCE AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 
	1. Award No.

	 	2. Modification No.
	 	3. Effective Date
	 	4. CFDA No.

	DE-EE0002878

	 	     001	 	 	01/28/2010
	 	      81.087	 

	 	 	 	 	 
	5. Awarded To

	 	6. Sponsoring Office
	 	7. Period of Performance
	BIOENERGY INTERNATIONAL, INC.

	 	Golden Field Office
	 	01/28/2010
	Attn: STEPHEN GATTO

	 	U.S. Department of Energy
	 	Through
	ONE PINEHILL DRIVE, BATTERYMARCH PARK II

	 	Golden Field Office
	 	09/30/2013
	SUITE 301

	 	1617 Cole Blvd.	 	 
	QUINCY MA 021694801

	 	Golden, CO 80401	 	 

	 	 	 	 	 
	8. Type of Agreement

	 	9. Authority
	 	10. Purchase Request or Funding Document No.
	o Grant

	 	109-58 Energy Policy Act (2005)
	 	10EE003369
	þ Cooperative Agreement

	 	111-5 Recovery Act 2009	 	 
	o Other
	 	 	 	 

	 	 	 	 	 	 	 
	11. Remittance Address

	 	12. Total Amount
	 	13. Funds Obligated

	BIOENERGY INTERNATIONAL, LLC

	 	Govt. Share: $50,000,000.00
	 	This action: $0.00

	Attn: STEPHEN GATTO
	 	 	 	 	 	 
	ONE PINEHILL DRIVE, BATTERYMARCH PARK II

	 	Cost Share: $89,589,188.00	 	 	 	 
	SUITE 301

	 	 	 	 	Total:

	QUINCY, MA 021694801

	 	Total: $139,589,188.00
	 	$	50,000,000.00	 

	 	 	 	 	 
	14. Principal Investigator

	 	15. Program Manager
	 	16. Administrator
	John Ellersick

	 	Gene R. Petersen
	 	Golden Field Office
	617-675-5220

	 	Phone: 303-275-4937
	 	U.S. Department of Energy
	 

	 	 	 	Golden Field Office
	 

	 	 	 	1617 Cole Blvd.
	 

	 	 	 	Golden CO 80401-3393

	 	 	 	 	 
	17. Submit Payment Requests To

	 	18. Paying Office
	 	19. Submit Reports To
	OR for Golden

	 	OR for Golden	 	 
	U.S. Department of Energy

	 	U.S. Department of Energy	 	 
	Oak Ridge Financial Service Center

	 	Oak Ridge Financial Service Center	 	 
	P.O. Box 4517

	 	P.O. Box 4517	 	 
	Oak Ridge TN 37831

	 	Oak Ridge TN 37831	 	 

20. Accounting and Appropriate Data

See schedule

21. Research Title and/or Description of Project

RECOVERY ACT — BEI — MYRIANT SUCCINIC ACID BIOREFINERY (MYSAB)

	 	 	 
	For the Recipient
	 	For the United States of America

	 	 	 	 	 	 	 
	22. Signature of Person Authorized to Sign

	 	 	 	25. Signature of Grants/Agreements Officer	 	 
	 

	 	 	 	Signature on File	 	 
	 
	 	 	 	 	 	 
	23. Name and Title

	 	24. Date Signed
	 	26. Name of Officer
	 	27. Date Signed
	 

	 	 	 	Melisa Y. Wise
	 	01/20/2010

NOT SPECIFIED/OTHER

 

 

NOT SPECIFIED/OTHER

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	REFERENCE NO. OF DOCUMENT BEING CONTINUED	 	 	 	 	 	 	 	 
	CONTINUATION SHEET

	 	DE-EE0002878/001
	 	PAGE
	 	OF

	 

	 	 	 	 	2	 	 	 	3	 

NAME OF OFFEROR OR CONTRACTOR

BIOENERGY INTERNATIONAL, LLC

	 	 	 	 	 	 	 	 	 	 	 
	ITEM NO.	 	SUPPLIES/SERVICES	 	QUANTITY	 	UNIT	 	UNIT PRICE	 	AMOUNT
	(A)	 	(B)	 	(C)	 	(D)	 	(E)	 	(F)
	 

	 	DUNS Number: 611942686
The administrative office (administrative
contracting activity) for this modification is
03601 from STRIPES.

The administrative office (administrative
contracting activity) code is needed by the
contractor/recipient for reporting to
FederalReporting.gov concerning awards made
with funding from the American Recovery and
Reinvestment Act of 2009 (ARRA or Recovery
Act).

The purposes of this modification are to:

1) delete and replace the Special Terms and
Conditions;

2) add the Intellectual Property Provisions,
CDSB-1003 (Attachment 1);

3) add the Statement of Project Objectives
(Attachment 2);

4) add the Federal Assistance Reporting
Checklist and Instructions, DOE F 4600.2
(Attachment 3);

5) add the Budget Information, SF-424A
(Attachment 4); and

6) add the Requirements For Contingency Funds
for Integrated Biorefinery Projects, Appendix
(Attachment 5).

All other terms and conditions remain unchanged.

In Block 7 of the Assistance Agreement, the
Period of Performance reflects the beginning of
the Project Period through the end of the
current Budget Period, shown as 1/28/2010
through 9/30/2010. For multiple Budget
Periods, see Special Terms and Conditions,
Provision 4, “Award Project Period and Budget
Periods.”

DOE Award Administrator: Brenda Dias
E-mail: Brenda.dias@go.doe.gov
Phone: 303-275-6043

(Continued)...	 	 	 	 	 	 	 	 

 

 

NOT SPECIFIED/OTHER

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	REFERENCE NO. OF DOCUMENT BEING CONTINUED
	 	PAGE
	 	OF

	CONTINUATION SHEET

	 	DE-EE0002878/001
	 	 	3	 	 	 	3	 

NAME OF OFFEROR OR CONTRACTOR

BIOENERGY INTERNATIONAL, LLC

	 	 	 	 	 	 	 	 	 	 	 
	ITEM NO.	 	SUPPLIES/SERVICES	 	QUANTITY	 	UNIT	 	UNIT PRICE	 	AMOUNT
	(A)	 	(B)	 	(C)	 	(D)	 	(E)	 	(F)
	 

	 	Recipient Business Officer: Alif Saleh

E-mail: asaleh@myriant.com

Phone: 617-657-5219

Recipient Principal Investigator: John Ellersick

E-mail: asaleh@myriant.com

Phone: 617-657-5219

“Electronic signature or signatures as used in
this document means a method of signing an
electronic message that —

(A) Identifies and authenticates a particular
person as the source of the electronic message;

(B) Indicates such person’s approval of the
information contained in the electronic message;
and,

(C) Submission via FedConnect constitutes
electronically signed documents

ASAP: NO

Extent Competed: COMPETED

Davis-Bacon Act: YES	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	JULY 2004

NOT SPECIFIED / OTHER

 

 

DE-EE0002878/001

SPECIAL TERMS AND CONDITIONS

Table of Contents

	 	 	 	 	 	 	 
	Number	 	Subject	 	Page	 
	1.	 	RESOLUTION OF CONFLICTING CONDITIONS 
	 	 	3	 
	2.	 	AWARD AGREEMENT TERMS AND CONDITIONS 
	 	 	3	 
	3.	 	ELECTRONIC AUTHORIZATION OF AWARD DOCUMENTS 
	 	 	3	 
	4.	 	AWARD PROJECT PERIOD AND BUDGET PERIODS 
	 	 	3	 
	5.	 	PAYMENT PROCEDURES 
	 	 	4	 
	6.	 	COST SHARING 
	 	 	5	 
	7.	 	REBUDGETING AND RECOVERY OF INDIRECT COSTS 
	 	 	5	 
	8.	 	FINAL INCURRED COST AUDIT 
	 	 	6	 
	9.	 	STATEMENT OF FEDERAL STEWARDSHIP 
	 	 	6	 
	10.	 	STATEMENT OF SUBSTANTIAL INVOLVEMENT 
	 	 	6	 
	11.	 	SITE VISITS 
	 	 	7	 
	12.	 	REPORTING REQUIREMENTS 
	 	 	7	 
	13.	 	PUBLICATIONS 
	 	 	8	 
	14.	 	FEDERAL, STATE, AND MUNICIPAL REQUIREMENTS 
	 	 	8	 
	15	 	INTELLECTUAL PROPERTY PROVISIONS AND CONTACT
INFORMATION 
	 	 	9	 
	16.	 	NATIONAL SECURITY: CLASSIFIABLE RESULTS ORIGINATING
UNDER AN AWARD
	 	 	9	 
	17.	 	CONTINUATION APPLICATION AND FUNDING — AWARDS
UNDER 10 CFR 600 
	 	 	10	 
	18.	 	LOBBYING RESTRICTIONS 
	 	 	11	 
	19.	 	NOTICE REGARDING THE PURCHASE OF AMERICAN-MADE
EQUIPMENT AND PRODUCTS — SENSE OF CONGRESS 
	 	 	11	 
	20.	 	FUNDING OF BUDGET PERIODS 
	 	 	11	 
	21.	 	PROPERTY 
	 	 	12	 
	22.	 	DECONTAMINATION AND/OR DECOMMISSIONING (D&D)
COSTS 
	 	 	12	 
	23.	 	INSOLVENCY, BANKRUPTCY OR RECEIVERSHIP 
	 	 	13	 
	24.	 	NATIONAL ENVIRONMENTAL POLICY ACT (NEPA)
REQUIREMENTS 
	 	 	13	 
	25.	 	INDEMNITY 
	 	 	14	 
	26.	 	SPECIAL PROVISIONS RELATING TO WORK FUNDED UNDER
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009
(May 2009) 
	 	 	14	 
	27.	 	REPORTING AND REGISTRATION REQUIREMENTS UNDER
SECTION 1512 OF THE RECOVERY ACT
	 	 	18	 
	28.	 	REQUIRED USE OF AMERICAN IRON, STEEL, AND
MANUFACTURED GOODS — SECTION 1605 OF THE
AMERICAN RECOVERY AND REINVESTMENT ACT OF
2009
	 	 	19	 

1

 

DE-EE0002878/001

Attachment 1

Table of Contents (cont.)

	 	 	 	 	 	 	 
	Number	 	Subject	 	Page	 
	29.	 	REQUIRED USE OF AMERICAN IRON, STEEL, AND
MANUFACTURED GOODS (COVERED UNDER INTERNATIONAL AGREEMENTS) — SECTION 1605 OF THE
AMERICAN RECOVERY
AND REINVESTMENT ACT OF 2009
	 	 	21	 
	30.	 	RECOVERY ACT TRANSACTIONS LISTED IN SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS AND RECIPIENT
RESPONSIBILITIES FOR INFORMING SUBRECIPIENTS 
	 	 	25	 
	31.	 	WAGE RATE REQUIREMENTS UNDER SECTION 1606 OF THE
RECOVERY ACT
	 	 	26	 
	32.	 	DAVIS BACON ACT AND CONTRACT WORK HOURS AND
SAFETY STANDARDS ACT 
	 	 	27	 
	33.	 	CONTINGENCY 
	 	 	37	 
	34.	 	REOPENER TERM — PENDING INDIRECT RATES — FINANCIAL
ASSISTANCE
	 	 	38	 

2

 

DE-EE00002878/001

	1.	 	RESOLUTION OF CONFLICTING CONDITIONS
	 
	 	 	Any apparent inconsistency between Federal statutes and regulations and the terms and
conditions contained in this award must be referred to the DOE Award Administrator for
guidance.
	 
	2.	 	AWARD AGREEMENT TERMS AND CONDITIONS

	 	 	This award/agreement consists of the Assistance Agreement, plus the following:

	 	a.	 	Special Terms and Conditions.
	 
	 	b.	 	Attachments:

	 	 	 
	Attachment Number	 	Title
	1.

	 	Intellectual Property Provisions
	2.

	 	Statement of Project Objectives
	3.

	 	Federal Assistance Reporting Checklist and
Instructions
	4.

	 	Budget Pages (SF 424A)
	5.

	 	Requirements for Contingency Funds for Integrated
Biorefinery Projects

	 	c.	 	Applicable program regulations
	 
	 	d.	 	DOE Assistance Regulations, 10 CFR Part 600 at
http://ecfr.gpoaccess.gov.
	 
	 	e.	 	If the award is for research and the award is for a university or non-profit,
the Research Terms & Conditions and the DOE Agency Specific Requirements at
http://www.nsf.gov/bfa/dias/policy/rtc/index.jsn apply.
	 
	 	f.	 	Application/proposal as approved by DOE.
	 
	 	g.	 	National Policy Assurances to Be Incorporated as Award Terms in effect on date
of award at

 http://managementenergy.gov/business doe/1374.htm.

	3.	 	ELECTRONIC AUTHORIZATION OF AWARD DOCUMENTS
	 
	 	 	Acknowledgement of award documents by the Recipient’s authorized representative through
electronic systems used by the Department of Energy, specifically FedConnect, constitutes
the Recipient’s acceptance of the terms and conditions of the award. Acknowledgement via
FedConnect by the Recipient’s authorized representative constitutes the Recipient’s
electronic signature.
	 
	4.	 	AWARD PROJECT PERIOD AND BUDGET PERIODS
	 
	 	 	The Project Period for this award is 1/28/2010 through 9/30/2013, consisting of the
following Budget Periods:

3

 

DE-EE0002878/001

	 	 	 	 	 
	Budget Period	 	Start Date	 	End Date
	1

	 	1/28/2010
	 	9/30/2010
	2
	 	10/1/2010
	 	9/30/2013

	5.	 	PAYMENT PROCEDURES
	 
	 	 	PAYMENT PROCEDURES — REIMBURSEMENT THROUGH THE AUTOMATED CLEARING HOUSE (ACH) VENDER
INQUIRY PAYMENT ELECTRONIC REPORTING SYSTEM (VIPERS)

	 	a.	 	Method of Payment. Payment will be made by reimbursement through ACH.
	 
	 	b.	 	Requesting Reimbursement. Requests for reimbursements must be made
electronically through Department of Energy’s Oak Ridge Financial Service Center
(ORFSC) VIPERS. To access and use VIPERS, you must enroll at
https://finweb.oro.doe.gov/vipers.htm. Detailed instructions on how to enroll
are provided on the web site.
	 
	 	 	 	For non-construction awards, you must submit a Standard Form (SF) 270, “Request for
Advance or Reimbursement,” at https://finweb.oro.doe.gov/vipers.htm and
attach a file containing appropriate supporting documentation. The file attachment
must show the total Federal share claimed on the SF 270, the non-Federal share
claimed for the billing period if cost sharing is required, and cumulative
expenditures to date (both Federal and non-Federal) for each of the following
categories: salaries/wages and fringe benefits; equipment; travel;
participant/training support costs, if any; other direct costs, including
subawards/contracts; and indirect costs. For construction awards, you must submit a
SF 271, “Outlay Report and Request for Reimbursement for Construction Programs,”
through VIPERS.
	 
	 	c.	 	Timing of submittals. Submittal of the SF 270 or SF 271 should coincide
with your normal billing pattern, but not more frequently than every two weeks.
Requests for reimbursement must be limited to the amount of disbursements made during
the billing period for the Federal share of direct project costs and the proportionate
share of any allowable indirect costs incurred during that billing period.
	 
	 	d.	 	Adjusting payment requests for available cash. You must disburse any
funds that are available from repayments to and interest earned on a revolving fund,
program income, rebates, refunds, contract settlements, audit recoveries, credits,
discounts, and interest earned on any of those funds before requesting additional cash
payments from DOE.
	 
	 	e.	 	Payments. The DOE approving official will approve the invoice as soon
as practical, but not later than 30 days after your request is received, unless the
billing is improper. Upon receipt of an invoice payment authorization from the

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	 	 	 	DOE approving official, the ORFSC will disburse payment to you. You may check the
status of payments at the VIPER web site. All payments are made by electronic funds
transfer to the bank account identified on the ACH Vendor/Miscellaneous Payment
Enrollment Form (SF 3881) that you filed.

	6.	 	COST SHARING
	 
	 	 	COST SHARING FFRDC NOT INVOLVED

	 	a.	 	Total Estimated Project Cost is the sum of the Federal Government share and
Recipient share of the estimated project costs. The Recipient’s cost share must come
from non-Federal sources unless otherwise allowed by law. By accepting Federal funds
under this award, you agree that you are liable for your percentage share of total
allowable project costs, on a budget period basis, even if the project is terminated
early or is not funded to its completion. This cost is shared as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	DOE Cost Share $ /	 	 	Recipient Cost Share	 	 	 	 
	Budget Period	 	%	 	 	$ / To	 	 	Total Estimated Costs	 
	1
	 	$	10,419,044/50	%	 	$	10,419,044/50	%	 	$	20,838,087	 
	2
	 	TBD	 	 	TBD	 	 	TBD	 
	Total Project
	 	$	10,419,044/50	%	 	$	10,419,044/50	%	 	$	20,838,087	 

	 	b.	 	If you discover that you may be unable to provide cost sharing of at least the
amount identified in paragraph a of this Article, you should immediately provide
written notification to the DOE Award Administrator, indicating whether you will
continue or phase out the project. If you plan to continue the project, the
notification must describe how replacement cost sharing will be secured.
	 
	 	c.	 	You must maintain records of all project costs that you claim as cost sharing,
including in-kind costs, as well as records of costs to be paid by DOE. Such records
are subject to audit.
	 
	 	d.	 	Failure to provide the cost sharing required by this Article may result in the
subsequent recovery by DOE of some or all the funds provided under the award.

	7.	 	REBUDGETING AND RECOVERY OF INDIRECT COSTS
	 
	 	 	INDIRECT COSTS AND FRINGE BENEFITS ARE NOT REIMBURSABLE
	 
	 	 	The budget for this award does not include indirect costs or fringe benefits. Therefore,
these expenses shall not be charged to nor reimbursement requested for this project nor
shall the indirect and fringe benefit costs from this project be allocated to any other
federally sponsored project. In addition, indirect costs or fringe benefits shall not be
counted as cost share unless approved by the Contracting Officer. This restriction does not
apply to subawardees’ indirect or fringe benefit costs.

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	8.	 	FINAL INCURRED COST AUDIT
	 
	 	 	In accordance with 10 CFR 600, DOE reserves the right to initiate a final incurred cost
audit on this award. If the audit has not been performed or completed prior to the closeout
of the award, DOE retains the right to recover an appropriate amount after fully considering
the recommendations on disallowed costs resulting from the final audit.
	 
	9.	 	STATEMENT OF FEDERAL STEWARDSHIP
	 
	 	 	DOE will exercise normal Federal stewardship in overseeing the project activities performed
under this award. Stewardship activities include, but are not limited to, conducting site
visits; reviewing performance and financial reports; providing technical assistance and/or
temporary intervention in unusual circumstances to correct deficiencies which develop during
the project; assuring compliance with terms and conditions; and reviewing technical
performance after project completion to ensure that the award objectives have been
accomplished.
	 
	10.	 	STATEMENT OF SUBSTANTIAL INVOLVEMENT

	 	a.	 	Government Insight
	 
	 	 	 	In order to adequately monitor project progress and provide technical direction
and/or redirection to the Recipient, DOE must be provided an adequate level of
insight into various Recipient activities. Government Insight activities by DOE
include attendance at Recipient meetings, reviews and tests, as well as access for
DOE’s consultants to perform independent evaluations of Recipient’s plans and
processes. Recipient shall notify the DOE Project Officer of meetings, reviews, and
tests in sufficient time to permit DOE participation, and provide all appropriate
documentation for DOE review.
	 
	 	b.	 	Specific activities to be conducted by DOE

	 	1.	 	Risk Evaluation —DOE will review the Recipient’s initial Risk
Mitigation Plan (RMP) for quality and completeness. DOE will also monitor
updates to the RMP and actions taken by the Recipient during the performance of
its award to mitigate risks and improve the probability of successful execution
of the integrated Biorefinery project. At DOE’s discretion, additional
independent risk analyses of the project by DOE consultants may be requested.
	 
	 	2.	 	Independent Engineering Assessments — DOE will engage a
private, independent engineering (IE) firm to assist in assessing the progress
of the project and provide timely and accurate reports to DOE. The Recipient
will ensure that the IE has access to any and all relevant documentation
sufficient to allow the IE to provide independent evaluations to DOE on the
progress of the project. Such documentation includes but is not limited to the
following:

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	•	 	Drawings and specifications
	 
	•	 	Construction and Execution plans
	 
	•	 	Resource loaded schedules
	 
	•	 	Design functions and requirements for the site final design review Risk management plans
	 
	•	 	Value management and engineering studies and/or plans Acquisition strategies
	 
	•	 	Project execution plans
	 
	•	 	Project controls including earned value management systems Qualifications of the integrated
project team.
	 
	•	 	Financial strategy for funding the construction project
	 
	•	 	Updated marketing and business plan
	 
	•	 	Invoices submitted to DOE

	 	 	 	DOE will evaluate the quality and completeness of information and documentation
provided by the Recipient to DOE and its consultants in order to allow DOE to
provide technical direction and/or redirection to the Recipient about how best to
achieve the purposes of the award. Consultants to DOE may not provide technical
direction and/or redirection to the Recipient.

	11.	 	SITE VISITS
	 
	 	 	DOE’s authorized representatives have the right to make site visits at reasonable times to
review project accomplishments and management control systems and to provide technical
assistance, if required. You must provide, and must require your subawardees to provide,
reasonable access to facilities, office space, resources, and assistance for the safety and
convenience of the government representatives in the performance of their duties. All site
visits and evaluations must be performed in a manner that does not unduly interfere with or
delay the work.
	 
	12.	 	REPORTING REQUIREMENTS

	 	a.	 	Requirements. The reporting requirements for this award are identified
on the Federal Assistance Reporting Checklist, DOE F 4600.2, attached to this award.
Failure to comply with these reporting requirements is considered a material
noncompliance with the terms of the award. Noncompliance may result in withholding of
future payments, suspension or termination of the current award, and withholding of
future awards. A willful failure to perform, a history of failure to perform, or
unsatisfactory performance of this and/or other financial assistance

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	 	 	 	awards, may also result in a debarment action to preclude future awards by Federal
agencies.
	 
	 	b.	 	Dissemination of scientific/technical reports. Scientific/technical
reports submitted under this award will be disseminated on the Internet via the DOE
Information Bridge (www.osti.gov/bridge), unless the report contains patentable
material, protected data or SBIR/STTR data. Citations for journal articles produced
under the award will appear on the DOE Energy Citations Database
(www.osti.gov/energycitations).
	 
	 	c.	 	Restrictions. Reports submitted to the DOE Information Bridge must not
contain any Protected Personal Identifiable Information (PR), limited rights data
(proprietary data), classified information, information subject to export control
classification, or other information not subject to release.

	13.	 	PUBLICATIONS

	 	a.	 	You are encouraged to publish or otherwise make publicly available the results
of the work conducted under the award.
	 
	 	b.	 	An acknowledgment of DOE support and a disclaimer must appear in the
publication of any material, whether copyrighted or not, based on or developed under
this project, as follows:

	 	 	 	Acknowledgment: “This material is based upon work supported by the
Department of Energy [National Nuclear Security Administration] [add name(s)
of other agencies, if applicable} under Award Number(s) [enter the award
number(s)].”
	 
	 	 	 	Disclaimer. “This report was prepared as an account of work sponsored by an
agency of the United States Government. Neither the United States Government
nor any agency thereof, nor any of their employees, makes any warranty,
express or implied, or assumes any legal liability or responsibility for the
accuracy, completeness, or usefulness of any information, apparatus,
product, or process disclosed, or represents that its use would not infringe
privately owned rights. Reference herein to any specific commercial product,
process, or service by trade name, trademark, manufacturer, or otherwise
does not necessarily constitute or imply its endorsement, recommendation, or
favoring by the United States Government or any agency thereof. The views
and opinions of authors expressed herein do not necessarily state or reflect
those of the United States Government or any agency thereof.”

	14.	 	FEDERAL, STATE, AND MUNICIPAL REQUIREMENTS
	 
	 	 	You must obtain any required permits and comply with applicable federal, state, and
municipal laws, codes, and regulations for work performed under this award.

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	15.	 	INTELLECTUAL PROPERTY PROVISIONS AND CONTACT INFORMATION

	 	a.	 	The intellectual property provisions applicable to this award are provided as
an attachment to this award or are referenced in the Assistance Agreement.
	 
	 	b.	 	Questions regarding intellectual property matters should be referred to the DOE
Award Administrator identified and the Patent Counsel designated as the service
provider for the DOE office that issued the award.
	 
	 	 	 	Patent Counsel for the Golden Field Office is Julia Moody, who may be reached at
julia.moody@go.doe.gov or 303-275-4867.

	16.	 	NATIONAL SECURITY: CLASSIFIABLE RESULTS ORIGINATING UNDER AN AWARD

	 	a.	 	This award is intended for unclassified, publicly releasable research. You will
not be granted access to classified information. DOE does not expect that the results
of the research project will involve classified information. Under certain
circumstances, however, a classification review of information originated under the
award may be required. The Department may review research work generated under this
award at any time to determine if it requires classification.
	 
	 	b.	 	Executive Order 12958 (60 Fed. Reg. 19,825 (1995)) states that basic scientific
research information not clearly related to the national security shall not be
classified. Nevertheless, some information concerning (among other things) scientific,
technological, or economic matters relating to national security or cryptology may
require classification. If you originate information during the course of this award
that you believe requires classification, you must promptly:

	 	1.	 	Notify the DOE Project Officer and the DOE Award Administrator;
	 
	 	2.	 	Submit the information by registered mail directly to the
Director, Office of Classification and Information Control, SO-10.2; U.S.
Department of Energy; P.O. Box A; Germantown, MD 20875-0963, for classification
review.
	 
	 	3.	 	Restrict access to the information to the maximum extent
possible until you are informed that the information is not classified, but no
longer than 30 days after receipt by the Director, Office of Classification and
Information Control

	 	c.	 	If you originate information concerning the production or utilization of
special nuclear material (i.e., plutonium, uranium enriched in the isotope 233 or 235,
and any other material so determined under section 51 of the Atomic Energy Act) or
nuclear energy, you must:

	 	1.	 	Notify the DOE Project Officer and the DOE Award Administrator;

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	 	2.	 	Submit the information by registered mail directly to the
Director, Office of Classification and Information Control, SO-10.2; U.S.
Department of Energy; P. O. Box A; Germantown, MD 20875-0963 for classification
review within 180 days of the date the Recipient first discovers or first has
reason to believe that the information is useful in such production or
utilization; and
	 
	 	3.	 	Restrict access to the information to the maximum extent
possible until you are informed that the information is not classified, but no
longer than 90 days after receipt by the Director, Office of Classification and
Information Control.

	 	d.	 	If DOE determines any of the information requires classification, you agree
that the Government may terminate the award by mutual agreement in accordance with 10
CFR. 600.25(d). All material deemed to be classified must be forwarded to DOE, in a
manner specified by DOE.
	 
	 	e.	 	If DOE does not respond within the specified time periods, you are under no
further obligation to restrict access to the information.

	17.	 	CONTINUATION APPLICATION AND FUNDING — AWARDS UNDER 10 UK 600

	 	a.	 	Continuation Application. A continuation application is a non-competitive
application for an additional budget period within a previously approved project
period. At least 60 days before the end of each budget period, your continuation
application must be submitted to the DOE Project Officer and the DOE Award
Administrator identified in the Assistance Agreement, to be eligible to receive a
continuation award for the next budget period. The continuation application must
include the following information:

	 	1.	 	Application for Federal Assistance, SF-424.
	 
	 	2.	 	A continuation report, which must provide a summary of the
progress towards meeting the objectives of the award, including any significant
findings, conclusions, or developments, a comparison of actual accomplishment
with the objectives established for the reporting period (milestones,
deliverables, decision point criteria and stage gates), reasons for slippage if
goals were not met, an estimate of any unobligated balances remaining at the
end of the budget period, and when applicable an explanation of cost overruns
or underruns. A description of your plans for the award during the upcoming
budget period and any variance from the DOE approved objectives needs to be
included in the continuation application package.
	 
	 	3.	 	A detailed budget and supporting justification for the upcoming
budget period with the supporting documentation below, including an estimate of

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	 	 	 	DOE funds expected to be remaining at the end of the current budget period:

	 	a)	 	Budget Information — Non Construction
Programs, SF-424A.
	 
	 	b)	 	Cost Reasonableness Determination, PMC 123.1
(Excel Version).

	 	4.	 	Environmental Checklist, EF1, (This form should be completed
on-line at https://www.eere-pmc.energy.gov/).
	 
	 	5.	 	Commitment Letters from Third Parties Contributing to Cost
Sharing, if applicable.
	 
	 	6.	 	Statement of Project Objectives (SOPO), if revision is
required.

	 	a)	 	Continuation Funding. Continuation funding is
contingent on: (1) availability of funds; (2) meeting the objectives,
milestones, deliverables, decision point criteria and stage gates of
your award and obtaining approval from DOE to continue work on the
project (DOE authorizing either Pass or Redirect through a stage-gate
review); (3) submittal of required reports; or (4) compliance with the
terms and conditions of the award.

	18.	 	LOBBYING RESTRICTIONS
	 
	 	 	By accepting funds under this award, you agree that none of the funds obligated on the award
shall be expended, directly or indirectly, to influence congressional action on any
legislation or appropriation matters pending before Congress, other than to communicate to
Members of Congress as described in 18 U.S.C. 1913. This restriction is in addition to those
prescribed elsewhere in statute and regulation.
	 
	19.	 	NOTICE REGARDING THE PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS — SENSE OF CONGRESS
	 
	 	 	It is the sense of the Congress that, to the greatest extent practicable, all equipment and
products purchased with funds made available under this award should be American-made.
	 
	20.	 	FUNDING OF BUDGET PERIODS
	 
	 	 	DOE has obligated $50,000,000 for completion of the project authorized by this agreement;
however, only $10,419,044 is available for work performed by the Recipient during Budget
Period 1 of the project. For Budget Period 2, the remainder or $39,580,956 will be available
contingent upon the submission by the Recipient of a continuation application and written
approval of the continuation application by the DOE Contracting Officer.

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	 	 	In the event that the Recipient does not submit a continuation application for subsequent
Budget Periods, or DOE disapproves a continuation application for subsequent Budget Periods,
the maximum DOE liability to the Recipient is the funds that are available for the current
approved Budget Period(s). In such event, DOE reserves the right to deobligate any remaining
funds.
	 
	21.	 	PROPERTY
	 
	 	 	Real property and equipment acquired by the Recipient shall be subject to the rules set
forth in 10 CFR 600.130-137, 10 C1-1( 600.231-233, or 10 CFR 600.320-324, as applicable.
	 
	 	 	Consistent with the goals and objectives of this project, the Recipient may continue to use
Recipient acquired property beyond the Period of Performance, without obligation, during the
period of such use, to extinguish DOE’s conditional title to such property as described in
10 CFR 600.132-135, 10 CFR 600.231-233, or 600.321-324, subject to the following: (a) the
Recipient continues to utilize such property for the objectives of the project as set forth
in the Statement of Project Objectives; (b) DOE retains the right to periodically ask for,
and the Recipient agrees to provide, reasonable information concerning the use and condition
of the property; and (c) the Recipient follows the property disposition rules set forth in
the applicable sections of 10 CFR Part 600, if the property is no longer used by the
Recipient for the objectives of the project, and the fair market value of property exceeds
$5,000.
	 
	 	 	Once the per unit fair market value of the property is less than $5,000, pursuant to the
applicable sections of 10 CFR Part 600, DOE’s residual interest in the property shall be
extinguished and the Recipient shall have no further obligation to the DOE with respect to
the property.
	 
	 	 	The regulations as set forth in 10 CPR. Part 600 and the requirements of this article shall
also apply to property in the possession of any team member, sub-recipient or other entity
where such property was acquired in whole or in part with funds provided by DOE under this
award or where such property was counted as cost-sharing under the award.
	 
	22.	 	DECONTAMINATION AND/OR DECOMMISSIONING (D&D) COSTS
	 
	 	 	Notwithstanding any other provisions of this Agreement, the Government shall not be
responsible for or have any obligation to the Recipient for (i) Decontamination and/or
Decommissioning (D&D) of any of the Recipient’s facilities, or (ii) any costs which may be
incurred by the Recipient in connection with the D&D of any of its facilities due to the
performance of the work under this Agreement, whether said work was performed prior to or
subsequent to the effective date of the Agreement.
	 
	23.	 	INSOLVENCY, BANKRUPTCY OR RECEIVERSHIP

	 	a.	 	You shall immediately notify the DOE of the occurrence of any of the following
events: (i) you or your parent’s filing of a voluntary case seeking liquidation or
reorganization under the Bankruptcy Act; (ii) your consent to the institution of an

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	 	 	 	involuntary case under the Bankruptcy Act against you or your parent; (iii) the
filing of any similar proceeding for or against you or your parent, or your consent
to the dissolution, winding-up or readjustment of your debts, appointment of a
receiver, conservator, trustee, or other officer with similar powers over you, under
any other applicable state or federal law; or (iv) your insolvency due to its
inability to pay debts generally as they become due.
	 
	 	b.	 	Such notification shall be in writing and shall: (i) specifically set out the
details of the occurrence of an event referenced in paragraph (a); (ii) provide the
facts surrounding that event; and (iii) provide the impact such event will have on the
project being funded by this award.
	 
	 	c.	 	Upon the occurrence of any of the four events described in paragraph a. of this
provision, DOE reserves the right to conduct a review of your award to determine your
compliance with the required elements of the award (including such items as cost share,
progress towards technical project objectives, and submission of required reports). If
the DOE review determines that there are significant deficiencies or concerns with your
performance under the award, DOE reserves the right to impose additional requirements,
as needed, including (i) change of payment method; or (ii) institute payment controls.
	 
	 	d.	 	Failure of the Recipient to comply with this provision may be considered a
material noncompliance of this financial assistance award by the Contracting Officer.

	24.	 	NATIONAL ENVIRONMENTAL POLICY ACT (NEPA) REQUIREMENTS
	 
	 	 	You are restricted from taking any action using Federal funds, which would have an adverse
effect on the environment or limit the choice of reasonable alternatives prior to DOE/NNSA
providing either a NEPA clearance or a final NEPA decision regarding this project Prohibited
actions include: capital equipment procurement. Any activities outside of the Budget Period
1 scope of work are subject to further NEPA review and prohibited at this time. This
restriction does not preclude you from: Budget Period 1 activities with the exception of
capital equipment purchase.
	 
	 	 	If you move forward with activities that are not authorized for Federal funding by the DOE
Contracting Officer in advance of the final NEPA decision, you are doing so at risk of not
receiving Federal funding and such costs may not be recognized as allowable cost share.
	 
	 	 	If this award includes construction activities, you must submit an environmental evaluation
report/evaluation notification form addressing NEPA issues prior to DOE initiating the NEPA
process.
	 
	25.	 	INDEMNITY
	 
	 	 	The Recipient shall indemnify the Government and its officers, agents, or employees for any
and all liability, including litigation expenses and attorneys’ fees, arising from suits,

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	 	 	actions, or claims of any character for death, bodily injury, or loss of or damage to
property or to the environment, resulting from the project, except to the extent that such
liability results from the direct fault or negligence of Government officers, agents or
employees, or to the extent such liability may be covered by applicable allowable costs
provisions.
	 
	26.	 	SPECIAL PROVISIONS RELATING TO WORK FUNDED UNDER AMERICAN RECOVERY AND REINVESTMENT ACT OF
2009 (May 2009)

Preamble

The American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, (Recovery Act) was enacted to
preserve and create jobs and promote economic recovery, assist those most impacted by the
recession, provide investments needed to increase economic efficiency by spurring technological
advances in science and health, invest in transportation, environmental protection, and other
infrastructure that will provide long-term economic benefits, stabilize State and local government
budgets, in order to minimize and avoid reductions in essential services and counterproductive
State and local tax increases. Recipients shall use grant funds in a manner that maximizes job
creation and economic benefit.

The Recipient shall comply with all terms and conditions in the Recovery Act relating generally to
governance, accountability, transparency, data collection and resources as specified in Act itself
and as discussed below.

Recipients should begin planning activities for their first tier subrecipients, including obtaining
a DUNS number (or updating the existing DUNS record), and registering with the Central Contractor
Registration (CCR).

Be advised that Recovery Act funds can be used in conjunction with other funding as necessary to
complete projects, but tracking and reporting must be separate to meet the reporting requirements
of the Recovery Act and related guidance. For projects funded by sources other than the Recovery
Act, Contractors must keep separate records for Recovery Act funds and to ensure those records
comply with the requirements of the Act.

The Government has not fully developed the implementing instructions of the Recovery Act,
particularly concerning specific procedural requirements for the new reporting requirements. The
Recipient will be provided these details as they become available. The Recipient must comply with
all requirements of the Act. If the recipient believes there is any inconsistency between ARRA
requirements and current award terms and conditions, the issues will be referred to the Contracting
Officer for reconciliation.

Definitions

For purposes of this clause, Covered Funds means funds expended or obligated from appropriations
under the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5.
Covered Funds will have special accounting codes and will be identified as Recovery Act funds in
the grant, cooperative agreement or TIA and/or modification using Recovery Act funds. Covered Funds
must be reimbursed by September 30, 2015.

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Non-Federal employer means any employer with respect to covered funds — the contractor,
subcontractor, grantee, or recipient, as the case may be, if the contractor, subcontractor,
grantee, or recipient is an employer; and any professional membership organization, certification
of other professional body, any agent or licensee of the Federal government, or any person acting
directly or indirectly in the interest of an employer receiving covered funds; or with respect to
covered funds received by a State or local government, the State or local government receiving the
funds and any contractor or subcontractor receiving the funds and any contractor or subcontractor
of the State or local government; and does not mean any department, agency, or other entity of the
federal government.

Recipient means any entity that receives Recovery Act funds directly from the Federal government
(including Recovery Act funds received through grant, loan, or contract) other than an individual
and includes a State that receives Recovery Act Funds.

Special Provisions

	A.	 	Flow Down Requirement

Recipients must include these special terms and conditions in any subaward.

	B.	 	Segregation of Costs

Recipients must segregate the obligations and expenditures related to funding under the Recovery
Act. Financial and accounting systems should be revised as necessary to segregate, track and
maintain these funds apart and separate from other revenue streams. No part of the funds from the
Recovery Act shall be commingled with any other funds or used for a purpose other than that of
making payments for costs allowable for Recovery Act projects.

	C.	 	Prohibition on Use of Funds

None of the funds provided under this agreement derived from the American Recovery and Reinvestment
Act of 2009, Pub. L. 111-5, may be used by any State or local government, or any private entity,
for any casino or other gambling establishment, aquarium, zoo, golf course, or swimming pool.

	D.	 	Access to Records

     With respect to each financial assistance agreement awarded utilizing at least some of the
funds appropriated or otherwise made available by the American Recovery and Reinvestment Act of
2009, Pub. L. 111-5, any representative of an appropriate inspector general appointed under section
3 or 8G of the Inspector General Act of 1988 (5 U.S.C. App.) or of the Comptroller General is
authorized —

	 	(1)	 	to examine any records of the contractor or grantee, any of its subcontractors
or subgrantees, or any State or local agency administering such contract that pertain
to, and involve transactions that relate to, the subcontract, subcontract, grant, or
subgrant; and

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	 	(2)	 	to interview any officer or employee of the contractor, grantee, subgrantee, or
agency regarding such transactions.

	E.	 	Publication

An application may contain technical data and other data, including trade secrets and/or privileged
or confidential information, which the applicant does not want disclosed to the public or used by
the Government for any purpose other than the application. To protect such data, the applicant
should specifically identify each page including each line or paragraph thereof containing the data
to be protected and mark the cover sheet of the application with the following Notice as well as
referring to the Notice on each page to which the Notice applies:

Notice of Restriction on Disclosure and Use of Data

The data contained in this application have been submitted in confidence and contain
trade secrets or proprietary information, and such data shall be used or disclosed only for
evaluation purposes, provided that if this applicant receives an award as a result of or in
connection with the submission of this application, DOE shall have the right to use or disclose the
data here to the extent provided in the award. This restriction does not limit the Government’s
right to use or disclose data obtained without restriction from any source, including the
applicant.

Information about this agreement will be published on the Internet and linked to the website
www.recovery.gov, maintained by the Accountability and Transparency Board. The Board may exclude
posting contractual or other information on the website on a case-by-case basis when necessary to
protect national security or to protect information that is not subject to disclosure under
sections 552 and 552a of title 5, United States Code.

	F.	 	Protecting State and Local Government and Contractor Whistleblowers.

The requirements of Section 1553 of the Act are summarized below. They include, but are not limited
to:

Prohibition on Reprisals: An employee of any non-Federal employer receiving covered funds under the
American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, may not be discharged, demoted, or
otherwise discriminated against as a reprisal for disclosing, including a disclosure made in the
ordinary course of an employee’s duties, to the Accountability and Transparency Board, an inspector
general, the Comptroller General, a member of Congress, a State or Federal regulatory or law
enforcement agency, a person with supervisory authority over the employee (or other person working
for the employer who has the authority to investigate,
discover or terminate misconduct), a court or grant jury, the head of a Federal agency, or their
representatives information that the employee believes is evidence of:

     • gross management of an agency contract or grant relating to covered funds; — a gross waste
of covered funds;

     • a substantial and specific danger to public health or safety related to the implementation
or use of covered funds;

     • an abuse of authority related to the implementation or use of covered funds; or

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     • as violation of law, rule, or regulation related to an agency contract (including the
competition for or negotiation of a contract) or grant, awarded or issued relating to covered
funds.

Agency Action: Not later than 30 days after receiving an inspector general report of an alleged
reprisal, the head of the agency shall determine whether there is sufficient basis to conclude that
the non-Federal employer has subjected the employee to a prohibited reprisal. The agency shall
either issue an order denying relief in whole or in part or shall take one or more of the following
actions:

     • Order the employer to take affirmative action to abate the reprisal.

     • Order the employer to reinstate the person to the position that the person held before the
reprisal, together with compensation including back pay, compensatory damages, employment benefits,
and other terms and conditions of employment that would apply to the person in that position if the
reprisal had not been taken.

     • Order the employer to pay the employee an amount equal to the aggregate amount of all costs
and expenses (including attorneys’ fees and expert witnesses’ fees) that were reasonably incurred
by the employee for or in connection with, bringing the complaint regarding the reprisal, as
determined by the head of a court of competent jurisdiction.

Nonenforceablity of Certain Provisions Waiving Rights and remedies or Requiring Arbitration: Except
as provided in a collective bargaining agreement, the rights and remedies provided to aggrieved
employees by this section may not be waived by any agreement, policy, form, or condition of
employment, including any predispute arbitration agreement. No predispute arbitration agreement
shall be valid or enforceable if it requires arbitration of a dispute arising out of this section.

Requirement to Post Notice of Rights and Remedies: Any employer receiving covered funds under the
American Recovery and Reinvestment Act of 2009, Pub. L. 111-5, shall post notice of the rights and
remedies as required therein. (Refer to section 1553 of the American Recovery and Reinvestment Act
of 2009, Pub. L. 111-5, www.Recovery.gov, for specific requirements of this section and prescribed
language for the notices.).

	G.	 	RESERVED
	 
	H.	 	False Claims Act

Recipient and sub-recipients shall promptly refer to the DOE or other appropriate Inspector General
any credible evidence that a principal, employee, agent, contractor, sub-grantee, subcontractor or
other person has submitted a false claim under the False Claims Act or has committed a criminal or
civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity or similar
misconduct involving those funds.

	I.	 	Information in Support of Recovery Act Reporting

Recipient may be required to submit backup documentation for expenditures of funds under the
Recovery Act including such items as timecards and invoices. Recipient shall provide copies of
backup documentation at the request of the Contracting Officer or designee.

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	J.	 	Availability of Funds

Funds appropriated under the Recovery Act and obligated to this award are available for
reimbursement of costs until September 30, 2015.

	27.	 	REPORTING AND REGISTRATION REQUIREMENTS UNDER SECTION 1512 OF THE RECOVERY ACT

	 	(a)	 	This award requires the recipient to complete projects or activities which are
funded under the American Recovery and Reinvestment Act of 2009 (Recovery Act) and to
report on use of Recovery Act funds provided through this award. Information from these
reports will be made available to the public.
	 
	 	(b)	 	The reports are due no later than ten calendar days after each calendar quarter
in which the Recipient receives the assistance award funded in whole or in part by the
Recovery Act.
	 
	 	(c)	 	Recipients and their first-tier subrecipients must maintain current
registrations in the Central Contractor Registration (http://www.ccr.gov) at all times
during which they have active federal awards funded with Recovery Act funds. A Dun and
Bradstreet Data Universal Numbering System (DUNS) Number (http://www.dnb.com) is one of
the requirements for registration in the Central Contractor Registration.
	 
	 	(d)	 	The recipient shall report the information described in section 1512(c) of the
Recovery Act using the reporting instructions and data elements that will be provided
online at http://www.FederalReporting.gov and ensure that any information that is
pre-filled is corrected or updated as needed.

	28.	 	REQUIRED USE OF AMERICAN IRON, STEEL, AND MANUFACTURED GOODS — SECTION 1605 OF THE AMERICAN
RECOVERY AND REINVESTMENT ACT OF 2009
	 
	 	 	If the Recipient determines at any time that any construction, alteration, or repair
activity on a public building or public works will be performed during the course of the
project, the Recipient shall notify the Contracting Officer prior to commencing such work
and the following provisions shall apply.

	 	(a)	 	Definitions. As used in this award term and condition
	 
	 	(1)	 	Manufactured good means a good brought to the construction site for
incorporation into the building or work that has been
	 
	 	(i)	 	Processed into a specific form and shape; or
	 
	 	(ii)	 	Combined with other raw material to create a material that has different
properties than the properties of the individual raw materials.

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	 	(2)	 	Public building and public work means a public building of, and a public work
of, a governmental entity (the United States; the District of Columbia; commonwealths,
territories, and minor outlying islands of the United States; State and local
governments; and multi-State, regional, or interstate entities which have governmental
functions). These buildings and works may include, without limitation, bridges, dams,
plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines,
pumping stations, heavy generators, railways, airports, terminals, docks, piers,
wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals, and the
construction, alteration, maintenance, or repair of such buildings and works.
	 
	 	(3)	 	Steel means an alloy that includes at least 50 percent iron, between .02 and 2
percent carbon, and may include other elements.
	 
	 	(b)	 	Domestic preference. (1) This award term and condition implements Section 1605
of the American Recovery and Reinvestment Act of 2009 (Recovery Act) (Pub. L. 111-5),
by requiring that all iron, steel, and manufactured goods used in the project are
produced in the United States except as provided in paragraph (b)(3) of this section
and condition.
	 
	 	(1)	 	This requirement does not apply to the material listed by the Federal
Government as follows:
	 
	 	 	 	none
	 
	 	(2)	 	The award official may add other iron, steel, and/or manufactured goods to the
list in paragraph (b)(2) of this section and condition if the Federal Government
determines that
	 
	 	(i)	 	The cost of the domestic iron, steel, and/or manufactured goods would be
unreasonable. The cost of domestic iron, steel, or manufactured goods used in the
project is unreasonable when the cumulative cost of such material will increase the
cost of the overall project by more than 25 percent;
	 
	 	(ii)	 	The iron, steel, and/or manufactured good is not produced, or manufactured in
the United States in sufficient and reasonably available quantities and of a
satisfactory quality; or
	 
	 	(iii)	 	The application of the restriction of section 1605 of the Recovery Act would
be inconsistent with the public interest.
	 
	 	(c)	 	Request for determination of inapplicability of Section 1605 of the Recovery
Act . (1)(i) Any recipient request to use foreign iron, steel, and/or manufactured
goods in accordance with paragraph (b)(3) of this section shall include adequate
information for Federal Government evaluation of the request, including
	 
	 	(A)	 	A description of the foreign and domestic iron, steel, and/or manufactured
goods;

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	 	(B)	 	Unit of measure;
	 
	 	(C)	 	Quantity;
	 
	 	(D)	 	Cost;
	 
	 	(E)	 	Time of delivery or availability;
	 
	 	(F)	 	Location of the project;
	 
	 	(G)	 	Name and address of the proposed supplier; and
	 
	 	(H)	 	A detailed justification of the reason for use of foreign iron, steel, and/or
manufactured goods cited in accordance with paragraph (b)(3) of this section.
	 
	 	(ii)	 	A request based on unreasonable cost shall include a reasonable survey of the
market and a completed cost comparison table in the format in paragraph (d) of this
section.
	 
	 	(iii)	 	The cost of iron, steel, and/or manufactured goods material shall include all
delivery costs to the construction site and any applicable duty.
	 
	 	(iv)	 	Any recipient request for a determination submitted after Recovery Act funds
have been obligated for a project for construction, alteration, maintenance, or repair
shall explain why the recipient could not reasonably foresee the need for such
determination and could not have requested the determination before the funds were
obligated. If the recipient does not submit a satisfactory explanation, the award
official need not make a determination.
	 
	 	(2)	 	If the Federal Government determines after funds have been obligated for a
project for construction, alteration, maintenance, or repair that an exception to
section 1605 of the Recovery Act applies, the award official will amend the award to
allow use of the foreign iron, steel, and/or relevant manufactured goods. When the
basis for the exception is nonavailability or public interest, the amended award shall
reflect adjustment of the award amount, redistribution of budgeted funds, and/or other
actions taken to cover costs associated with acquiring or using the foreign iron,
steel, and/or relevant manufactured goods. When the basis for the exception is the
unreasonable cost of the domestic iron, steel, or manufactured goods, the award
official shall adjust the award amount or redistribute budgeted funds by at least the
differential established in 2 CFR 176.110(a).
	 
	 	(3)	 	Unless the Federal Government determines that an exception to section 1605 of
the Recovery Act applies, use of foreign iron, steel, and/or manufactured goods is
noncompliant with section 1605 of the American Recovery and Reinvestment Act.

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	 	(d)	 	Data. To permit evaluation of requests under paragraph (b) of this section
based on unreasonable cost, the Recipient shall include the following information and
any applicable supporting data based on the survey of suppliers:

Foreign and Domestic Items Cost Comparison

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Cost
	Description	 	Unit of measure	 	Quantity	 	(dollars)*
	Item 1:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Foreign steel, iron, or manufactured good
	 	________	 	______	 	______
	 
	 	 	 	 	 	 
	Domestic steel, iron, or manufactured good
	 	________	 	______	 	______
	 
	 	 	 	 	 	 
	Item 2:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Foreign steel, iron, or manufactured good
	 	________	 	_______	 	_______
	 
	 	 	 	 	 	 
	Domestic steel, iron, or manufactured good
	 	________	 	_______	 	_______

	 	 	List name, address, telephone number, email address, and contact for suppliers surveyed.
Attach copy of response; if oral, attach summary.
	 
	 	 	Include other applicable supporting information. *Include all delivery costs to the
construction site.
	 
	29.	 	REQUIRED USE OF AMERICAN IRON, STEEL, AND MANUFACTURED GOODS (COVERED UNDER INTERNATIONAL
AGREEMENTS) — SECTION 1605 OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009

	 	(a)	 	Definitions. As used in this award term and condition

	 	 	Designated country —

	 	(1)	 	A World Trade Organization Government Procurement Agreement country (Aruba,
Austria, Belgium, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan,
Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands,
Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden,
Switzerland, and United Kingdom;
	 
	 	(2)	 	A Free Trade Agreement (FrA) country (Australia, Bahrain, Canada, Chile, Costa
Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Mexico, Morocco,
Nicaragua, Oman, Peru, or Singapore); or
	 
	 	(3)	 	A United States-European Communities Exchange of Letters (May 15, 1995)
country: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,

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	 	 	 	Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, and
United Kingdom.
	 
	 	 	 	Designated country, iron, steel, and/or manufactured goods —
	 
	 	(4)	 	Is wholly the growth, product, or manufacture of a designated country; or
	 
	 	(5)	 	In the case of a manufactured good that consist in whole or in part of
materials from another country, has been substantially transformed in a designated
country into a new and different manufactured good distinct from the materials from
which it was transformed.

	 	 	Domestic iron, steel, and/or manufactured good —

	 	(6)	 	Is wholly the growth, product, or manufacture of the United States; or
	 
	 	(7)	 	In the case of a manufactured good that consists in whole or in part of
materials from another country, has been substantially transformed in the United States
into a new and different manufactured good distinct from the materials from which it
was transformed. There is no requirement with regard to the origin of components or
subcomponents in manufactured goods or products, as long as the manufacture of the
goods occurs in the United States.

	 	 	Foreign iron, steel, and/or manufactured good means iron, steel and/or manufactured good
that is not domestic or designated country iron, steel, and/or manufactured good.
	 
	 	 	Manufactured good means a good brought to the construction site for incorporation into the
building or work that has been

	 	(8)	 	Processed into a specific form and shape; or
	 
	 	(9)	 	Combined with other raw material to create a material that has different
properties than the properties of the individual raw materials.

	 	 	Public building and public work means a public building of, and a public work of, a
governmental entity (the United States; the District of Columbia; commonwealths,
territories, and minor outlying islands of the United States; State and local governments;
and multi-State, regional, or interstate entities which have governmental functions). These
buildings and works may include, without limitation, bridges, dams, plants, highways,
parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy
generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys,
jetties, breakwaters, levees, and canals, and the construction, alteration, maintenance, or
repair of such buildings and works.
	 
	 	 	Steel means an alloy that includes at least 50 percent iron, between .02 and 2 percent
carbon, and may include other elements.

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	 	(b)	 	Iron, steel, and manufactured goods. (1) The award term and condition described
in this section implements —
	 
	 	(i)	 	Section 1605(a) of the American Recovery and Reinvestment Act of 2009 (Pub. L.
111-5) (Recovery Act), by requiring that all iron, steel, and manufactured goods used
in the project are produced in the United States; and
	 
	 	(ii)	 	Section 1605(d), which requires application of the Buy American requirement in
a manner consistent with U.S. obligations under international agreements. The
restrictions of section 1605 of the Recovery Act do not apply to designated country
iron, steel, and/or manufactured goods. The Buy American requirement in section 1605
shall not be applied where the iron, steel or manufactured goods used in the project
are from a Party to an international agreement that obligates the recipient to treat
the goads and services of that Party the same as domestic goods and services. This
obligation shall only apply to projects with an estimated value of $7,443,000 or more.
	 
	 	(2)	 	The recipient shall use only domestic or designated country iron, steel, and
manufactured goods in performing the work funded in whole or part with this award,
except as provided in paragraphs (b)(3) and (b)(4) of this section.
	 
	 	(3)	 	The requirement in paragraph (b)(2) of this section does not apply to the iron,
steel, and manufactured goods listed by the Federal Government as follows:

	 	 	none

	 	(4)	 	The award official may add other iron, steel, and manufactured goods to the
list in paragraph (b)(3) of this section if the Federal Government determines that
	 
	 	(i)	 	The cost of domestic iron, steel, and/or manufactured goods would be
unreasonable. The cost of domestic iron, steel, and/or manufactured goods used in the
project is unreasonable when the cumulative cost of such material will increase the
overall cost of the project by more than 25 percent;
	 
	 	(ii)	 	The iron, steel, and/or manufactured good is not produced, or manufactured in
the United States in sufficient and reasonably available commercial quantities of a
satisfactory quality; or
	 
	 	(iii)	 	The application of the restriction of section 1605 of the Recovery Act would
be inconsistent with the public interest.
	 
	 	(c)	 	Request for determination of inapplicability of section 1605 of the Recovery
Act or the Buy American Act. (1)(i) Any recipient request to use foreign iron, steel,
and/or manufactured goods in accordance with paragraph (b)(4) of this section shall
include adequate information for Federal Government evaluation of the request,
including
	 
	 	(A)	 	A description of the foreign and domestic iron, steel, and/or manufactured
goods;

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	 	(B)	 	Unit of measure;
	 
	 	(C)	 	Quantity;
	 
	 	(D)	 	Cost;
	 
	 	(E)	 	Time of delivery or availability;
	 
	 	(F)	 	Location of the project;
	 
	 	(G)	 	Name and address of the proposed supplier; and
	 
	 	(H)	 	A detailed justification of the reason for use of foreign iron, steel, and/or
manufactured goods cited in accordance with paragraph (b)(4) of this section.
	 
	 	(ii)	 	A request based on unreasonable cost shall include a reasonable survey of the
market and a completed cost comparison table in the format in paragraph (d) of this
section.
	 
	 	(iii)	 	The cost of iron, steel, or manufactured goods shall include all delivery
costs to the construction site and any applicable duty.
	 
	 	(iv)	 	Any recipient request for a determination submitted after Recovery Act funds
have been obligated for a project for construction, alteration, maintenance, or repair
shall explain why the recipient could not reasonably foresee the need for such
determination and could not have requested the determination before the funds were
obligated. If the recipient does not submit a satisfactory explanation, the award
official need not make a determination.
	 
	 	(2)	 	If the Federal Government determines after funds have been obligated for a
project for construction, alteration, maintenance, or repair that an exception to
section 1605 of the Recovery Act applies, the award official will amend the award to
allow use of the foreign iron, steel, and/or relevant manufactured goods. When the
basis for the exception is nonavailability or public interest, the amended award shall
reflect adjustment of the award amount, redistribution of budgeted funds, and/or other
appropriate actions taken to cover costs associated with acquiring or using the foreign
iron, steel, and/or relevant manufactured goods. When the basis for the exception is
the unreasonable cost of the domestic iron, steel, or manufactured goods, the award
official shall adjust the award amount or redistribute budgeted funds, as appropriate,
by at least the differential established in 2 CFR 176.110(a).
	 
	 	(3)	 	Unless the Federal Government determines that an exception to section 1605 of
the Recovery Act applies, use of foreign iron, steel, and/or manufactured goods other
than designated country iron, steel, and/or manufactured goods is noncompliant with the
applicable Act.

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	 	(d)	 	Data. To permit evaluation of requests under paragraph (b) of this section
based on unreasonable cost, the applicant shall include the following information and
any applicable supporting data based on the survey of suppliers:

Foreign and Domestic Items Cost Comparison

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Cost
	Description	 	Unit of measure	 	Quantity	 	(dollars)*
	Item 1:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Foreign steel, iron, or manufactured good
	 	________	 	_______	 	_______
	 
	 	 	 	 	 	 
	Domestic steel, iron, or manufactured good
	 	________	 	_______	 	_______
	 
	 	 	 	 	 	 
	Item 2:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Foreign steel, iron, or manufactured good
	 	________	 	______	 	______
	 
	 	 	 	 	 	 
	Domestic steel, iron, or manufactured good
	 	________	 	______	 	______

	 	 	List name, address, telephone number, email address, and contact for suppliers surveyed.
Attach copy of response; if oral, attach summary.
	 
	 	 	Include other applicable supporting information.

 

	*	 	Include all delivery costs to the construction site,
	 
	30.	 	RECOVERY ACT TRANSACTIONS LISTED IN SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND RECIPIENT
RESPONSIBILITIES FOR INFORMING SUBRECIPIENTS

	 	(a)	 	To maximize the transparency and accountability of funds authorized under the
American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) as
required by Congress and in accordance with 2 CFR 215.21 “Uniform Administrative
Requirements for Grants and Agreements” and 0MB Circular A-102 Common Rules provisions,
recipients agree to maintain records that identify adequately the source and
application of Recovery Act funds. 0MB Circular A-102 is available at
http://www.whitehouse.gov/omb/circulars/a102/al02.html.
	 
	 	(b)	 	For recipients covered by the Single Audit Act Amendments of 1996 and OMB
Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,”
recipients agree to separately identify the expenditures for Federal awards under the
Recovery Act on the Schedule of Expenditures of Federal Awards (SEFA) and the Data
Collection Form (SF-SAC) required by OMB Circular A-133. OMB Circular A-133 is
available at http://www.whitehouse.gov/omb/circulars/a133/a133.html. This shall be
accomplished by identifying expenditures for Federal awards made under the Recovery Act
separately on the SEFA, and as separate rows under Item 9 of Part III on the SF—SAC by
CFDA number, and inclusion of the prefix “ARRA-” in

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	 	 	 	identifying the name of the Federal program on the SEFA and as the first characters in Item 9d of Part III on the SF—SAC.
	 
	 	(c)	 	Recipients agree to separately identify to each subrecipient, and document at
the time of subaward and at the time of disbursement of funds, the Federal award
number, CFDA number, and amount of Recovery Act funds. When a recipient awards Recovery
Act funds for an existing program, the information furnished to subrecipients shall
distinguish the subawards of incremental Recovery Act funds from regular subawards
under the existing program.
	 
	 	(d)	 	Recipients agree to require their subrecipients to include on their SEFA
information to specifically identify Recovery Act funding similar to the requirements
for the recipient SEFA described above. This information is needed to allow the
recipient to properly monitor subrecipient expenditure of ARRA funds as well as
oversight by the Federal awarding agencies, Offices of Inspector General and the
Government Accountability Office.

	31.	 	WAGE RATE REQUIREMENTS UNDER SECTION 1606 OF THE RECOVERY ACT

	 	(a)	 	Section 1606 of the Recovery Act requires that all laborers and mechanics
employed by contractors and subcontractors on projects funded directly by or assisted
in whole or in part by and through the Federal Government pursuant to the Recovery Act
shall be paid wages at rates not less than those prevailing on projects of a character
similar in the locality as determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States Code.

	 	 	Pursuant to Reorganization Plan No. 14 and the Copeland Act, 40 U.S.C. 3145, the Department
of Labor has issued regulations at 29 CFR parts 1, 3, and 5 to implement the Davis-Bacon and
related Acts. Regulations in 29 CFR 5.5 instruct agencies concerning application of the
standard Davis-Bacon contract clauses set forth in that section. Federal agencies providing
grants, cooperative agreements, and loans under the Recovery Act shall ensure that the
standard Davis-Bacon contract clauses found in 29 CFR 5.5(a) are incorporated in any
resultant covered contracts that are in excess of $2,000 for construction, alteration or
repair (including painting and decorating).

	 	(b)	 	For additional guidance on the wage rate requirements of section 1606, contact
your awarding agency. Recipients of grants, cooperative agreements and loans should
direct their initial inquiries concerning the application of Davis-Bacon requirements
to a particular federally assisted project to the Federal agency funding the project.
The Secretary of Labor retains final coverage authority under Reorganization Plan
Number 14.

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	32.	 	DAVIS BACON ACT AND CONTRACT WORK HOURS AND SAFETY STANDARDS ACT

If the Recipient determines at any time that any construction, alteration, or repair activity as
defined by 29 CFR 5.2(j) (http://cfr.vlex.com/vid/5-2-definitions-19681309) will be performed
during the course of the project, the Recipient shall notify the Contracting Officer prior to
commencing such work and the following provisions shall apply. A modification to the award which
incorporates the appropriate Davis-Bacon wage rate determination(s) will constitute the Contracting
Officer’s approval to proceed.

Definitions: For purposes of this provision, “Davis Bacon Act and Contract Work Hours and Safety
Standards Act,” the following definitions are applicable:

	 	(1)	 	“Award” means any grant, cooperative agreement or technology investment
agreement made with Recovery Act funds by the Department of Energy (DOE) to a
Recipient. Such Award must require compliance with the labor standards clauses and wage
rate requirements of the Davis-Bacon Act (DBA) for work performed by all laborers and
mechanics employed by Recipients (other than a unit of State or local government whose
own employees perform the construction) Subrecipients, Contractors, and subcontractors.
	 
	 	(2)	 	“Contractor” means an entity that enters into a Contract. For purposes of these
clauses, Contractor shall include (as applicable) prime contractors, Recipients,
Subrecipients, and Recipients’ or Subrecipients’ contractors, subcontractors, and
lower-tier subcontractors. “Contractor” does not mean a unit of State or local
government where construction is performed by its own employees.”
	 
	 	(3)	 	“Contract” means a contract executed by a Recipient, Subrecipient, prime
contractor, or any tier subcontractor for construction, alteration, or repair. It may
also mean (as applicable) (i) financial assistance instruments such as grants,
cooperative agreements, technology investment agreements, and loans; and, (ii) Sub
awards, contracts and subcontracts issued under financial assistance agreements.
“Contract” does not mean a financial assistance instrument with a unit of State or
local government where construction is performed by its own employees.
	 
	 	(4)	 	“Contracting Officer” means the DOE official authorized to execute an Award on
behalf of DOE and who is responsible for the business management and non-program
aspects of the financial assistance process.
	 
	 	(5)	 	“Recipient” means any entity other than an individual that receives an Award of
Federal funds in the form of a grant, cooperative agreement, or technology investment
agreement directly from the Federal Government and is financially accountable for the
use of any DOE funds or property, and is legally responsible for carrying out the terms
and conditions of the program and Award.
	 
	 	(6)	 	“Subaward” means an award of financial assistance in the form of money, or
property in lieu of money, made under an award by a Recipient to an eligible

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	 	 	 	Subrecipient or by a Subrecipient to a lower-tier subrecipient. The term includes
financial assistance when provided by any legal agreement, even if the agreement is
called a contract, but does not include the Recipient’s procurement of goods and
services to carry out the program nor does it include any form of assistance which is
excluded from the definition of “Award” above.
	 
	 	(7)	 	“Subrecipient” means a non-Federal entity that expends Federal funds received
from a Recipient to carry out a Federal program, but does not include an individual
that is a beneficiary of such a program.
	 
	 	(b)	 	Davis Bacon Act
	 
	 	(1)	 	Minimum wages.
	 
	 	(i)	 	All laborers and mechanics employed or working upon the site of the work (or
under the United States Housing Act of 1937 or under the Housing Act of 1949 in the
construction or development of the project), will be paid unconditionally and not less
often than once a week, and, without subsequent deduction or rebate on any account
(except such payroll deductions as are permitted by regulations issued by the Secretary
of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona
fide fringe benefits (or cash equivalents thereof)
due at time of payment computed at rates not less than those contained in the wage
determination of the Secretary of Labor which is attached hereto and made a part
hereof, regardless of any contractual relationship which may be alleged to exist
between the Contractor and such laborers and mechanics.
	 
	 	 	 	Contributions made or costs reasonably anticipated for bona fide fringe benefits
under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are
considered wages paid to such laborers or mechanics, subject to the provisions of
paragraph (a)(1)(iv) of this section; also, regular contributions made or costs
incurred for more than a weekly period (but not less often than quarterly) under
plans, funds, or programs which cover the particular weekly period, are deemed to be
constructively made or incurred during such weekly period. Such laborers and
mechanics shall be paid the appropriate wage rate and fringe benefits on the wage
determination for the classification of work actually performed, without regard to
skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in
more than one classification may be compensated at the rate specified for each
classification for the time actually worked therein, provided that the employer’s
payroll records accurately set forth the time spent in each classification in which
work is performed. The wage determination (including any additional classification
and wage rates conformed under paragraph (a)(1)(ii) of this section) and the
Davis-Bacon poster (WH-I321) shall be posted at all times by the Contractor and its
subcontractors at the site of the work in a prominent and accessible place where it
can be easily seen by the workers.
	 
	 	(ii)	 	(A) The Contracting Officer shall require that any class of laborers or
mechanics, including helpers, which is not listed in the wage determination and which is to be

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	 	 	 	employed under the Contract shall be classified in conformance with the wage
determination. The Contracting Officer shall approve an additional classification and
wage rate and fringe benefits therefore only when the following criteria have been met:

	 	(1)	 	The work to be performed by the classification requested is not
performed by a classification in the wage determination;
	 
	 	(2)	 	The classification is utilized in the area by the construction
industry; and
	 
	 	(3)	 	The proposed wage rate, including any bona fide fringe
benefits, bears a reasonable relationship to the wage rates contained in the
wage determination.

	 	(B)	 	If the Contractor and the laborers and mechanics to be employed in the
classification (if known), or their representatives, and the Contracting Officer agree
on the classification and wage rate (including the amount designated for fringe
benefits where appropriate), a report of the action taken shall be sent by the
Contracting Officer to the Administrator of the Wage and Hour Division, U.S. Department
of Labor, Washington, DC 20210. The Administrator, or an authorized representative,
will approve, modify, or disapprove every additional
classification action within 30 days of receipt and so advise the Contracting
Officer or will notify the Contracting Officer within the 30-day period that
additional time is necessary.
	 
	 	(C)	 	In the event the Contractor, the laborers or mechanics to be employed in the
classification or their representatives, and the Contracting Officer do not agree on
the proposed classification and wage rate (including the amount designated for fringe
benefits, where appropriate), the Contracting Officer shall refer the questions,
including the views of all interested parties and the recommendation of the Contracting
Officer, to the Administrator for determination. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt and so advise the
Contracting Officer or will notify the Contracting Officer within the 30-day period
that additional time is necessary.
	 
	 	(D)	 	The wage rate (including fringe benefits where appropriate) determined pursuant
to paragraphs (a)(1)(ii)(B) or (C) of this section, shall be paid to all workers
performing work in the classification under this Contract from the first day on which
work is performed in the classification.
	 
	 	(iii)	 	Whenever the minimum wage rate prescribed in the Contract for a class of
laborers or mechanics includes a fringe benefit which is not expressed as an hourly
rate, the Contractor shall either pay the benefit as stated in the wage determination
or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.
	 
	 	(iv)	 	If the Contractor does not make payments to a trustee or other third person,
the Contractor may consider as part of the wages of any laborer or mechanic the

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	 	 	 	amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan
or program, provided that the Secretary of Labor has found, upon the written request of
the Contractor, that the applicable standards of the Davis-Bacon Act have been met. The
Secretary of Labor may require the Contractor to set aside in a separate account assets
for the meeting of obligations under the plan or program.
	 
	 	(2)	 	Withholding. The Department of Energy or the Recipient or Subrecipient shall
upon its own action or upon written request of an authorized representative of the
Department of Labor withhold or cause to be withheld from the Contractor under this
Contract or any other Federal contract with the same prime contractor, or any other
federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which
is held by the same prime contractor, so much of the accrued payments or advances as
may be considered necessary to pay laborers and mechanics, including apprentices,
trainees, and helpers, employed by the Contractor or any subcontractor the full amount
of wages required by the Contract. In the event of failure to pay any laborer or
mechanic, including any apprentice, trainee, or helper, employed or working on the site
of the work (or under the United States Housing Act of 1937 or under the Housing Act of
1949 in the construction or development of the project), all or part of the wages
required
by the Contract, the Department of Energy, Recipient, or Subrecipient, may, after
written notice to the Contractor, sponsor, applicant, or owner, take such action as
may be necessary to cause the suspension of any further payment, advance, or
guarantee of funds until such violations have ceased.
	 
	 	(3)	 	Payrolls and basic records.
	 
	 	(i)	 	Payrolls and basic records relating thereto shall be maintained by the
Contractor during the course of the work and preserved for a period of three years
thereafter for all laborers and mechanics working at the site of the work (or under the
United States Housing Act of 1937, or under the Housing Act of 1949, in the
construction or development of the project). Such records shall contain the name,
address, and social security number of each such worker, his or her correct
classification, hourly rates of wages paid (including rates of contributions or costs
anticipated for bona fide fringe benefits or cash equivalents thereof of the types
described in section l(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of
hours worked, deductions made, and actual wages paid. Whenever the Secretary of Labor
has found under 29 CFR 5.5(a)(l)(iv) that the wages of any laborer or mechanic include
the amount of any costs reasonably anticipated in providing benefits under a plan or
program described in section I (b)(2)(B) of the Davis-Bacon Act, the Contractor shall
maintain records which show that the commitment to provide such benefits is
enforceable, that the plan or program is financially responsible, and that the plan or
program has been communicated in writing to the laborers or mechanics affected, and
records which show the costs anticipated or the actual cost incurred in providing such
benefits. Contractors employing apprentices or trainees under approved programs shall
maintain written evidence of the registration of apprenticeship programs and certification

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	 	 	 	of trainee programs, the registration of the apprentices and trainees,
and the ratios and wage rates prescribed in the applicable programs.
	 
	 	(ii)	 	(A) The Contractor shall submit weekly for each week in which any Contract work
is performed a copy of all payrolls to the Department of Energy if the agency is a
party to the Contract, but if the agency is not such a party, the Contractor will
submit the payrolls to the Recipient or Subrecipient (as applicable), applicant,
sponsor, or owner, as the case may be, for transmission to the Department of Energy.
The payrolls submitted shall set out accurately and completely all of the information
required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security
numbers and home addresses shall not be included on weekly transmittals. Instead, the
payrolls shall only need to include an individually identifying number for each
employee (e.g., the last four digits of the employee’s social security number). The
required weekly payroll information may be submitted in any form desired. Optional Form
WH-347 is available for this purpose from the Wage and Hour Division Web site at
http://www.dol.gov/esa/whd/forms/wh347instr.htm or its successor site. The prime
Contractor is responsible for the submission of copies of payrolls by all
subcontractors. Contractors and subcontractors shall maintain the full social security
number and current address of each covered worker, and shall provide
them upon request to the Department of Energy if the agency is a party to the
Contract, but if the agency is not such a party, the Contractor will submit them to
the Recipient or Subrecipient (as applicable), applicant, sponsor, or owner, as the
case may be, for transmission to the Department of Energy, the Contractor, or the
Wage and Hour Division of the Department of Labor for purposes of an investigation
or audit of compliance with prevailing wage requirements. It is not a violation of
this section for a prime contractor to require a subcontractor to provide addresses
and social security numbers to the prime contractor for its own records, without
weekly submission to the sponsoring government agency (or the Recipient or
Subrecipient (as applicable), applicant, sponsor, or owner).
	 
	 	(B)	 	Each payroll submitted shall be accompanied by a “Statement of Compliance,”
signed by the Contractor or subcontractor or his or her agent who pays or supervises
the payment of the persons employed under the Contract and shall certify the following:

	 	(1)	 	That the payroll for the payroll period contains the
information required to be provided under § 5.5(a)(3)(ii) of Regulations, 29
CFR part 5, the appropriate information is being maintained under §
5.5(a)(3)(i) of Regulations, 29 CFR part 5, and that such information is
correct and complete;
	 
	 	(2)	 	That each laborer or mechanic (including each helper,
apprentice, and trainee) employed on the Contract during the payroll period has
been paid the full weekly wages earned, without rebate, either directly or
indirectly, and that no deductions have been made either directly or indirectly from

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	 	 	 	the full wages earned, other than permissible deductions as set forth in
Regulations, 29 CFR part 3;
	 
	 	(3)	 	That each laborer or mechanic has been paid not less than the
applicable wage rates and fringe benefits or cash equivalents for the
classification of work performed, as specified in the applicable wage
determination incorporated into the Contract.

	 	(C)	 	The weekly submission of a properly executed certification set forth on the
reverse side of Optional Form WH-347 shall satisfy the requirement for submission of
the “Statement of Compliance” required by paragraph (a)(3)(ii)(B) of this section.
	 
	 	(D)	 	The falsification of any of the above certifications may subject the Contractor
or subcontractor to civil or criminal prosecution under section 1001 of title 18 and
section 3729 of title 31 of the United States Code.
	 
	 	(iii)	 	The Contractor or subcontractor shall make the records required under
paragraph (a)(3)(i) of this section available for inspection, copying, or transcription
by authorized representatives of the Department of Energy or the Department of Labor,
and shall permit such representatives to interview employees during
working hours on the job. If the Contractor or subcontractor fails to submit the
required records or to make them available, the Federal agency may, after written
notice to the Contractor, sponsor, applicant, or owner, take such action as may be
necessary to cause the suspension of any further payment, advance, or guarantee of
funds. Furthermore, failure to submit the required records upon request or to make
such records available may be grounds for debarment action pursuant to 29 CFR 5.12.
	 
	 	(4)	 	Apprentices and trainees-
	 
	 	(i)	 	Apprentices. Apprentices will be permitted to work at less than the
predetermined rate for the work they performed when they are employed pursuant to and
individually registered in a bona fide apprenticeship program registered with the U.S.
Department of Labor, Employment and Training Administration, Office of Apprenticeship
Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized
by the Office, or if a person is employed in his or her first 90 days of probationary
employment as an apprentice in such an apprenticeship program, who is not individually
registered in the program, but who has been certified by the Office of Apprenticeship
Training, Employer and Labor Services or a State Apprenticeship Agency (where
appropriate) to be eligible for probationary employment as an apprentice. The allowable
ratio of apprentices to journeymen on the job site in any craft classification shall
not be greater than the ratio permitted to the Contractor as to the entire work force
under the registered program. Any worker listed on a payroll at an apprentice wage
rate, who is not registered or otherwise employed as stated above, shall be paid not
less than the applicable wage rate on the wage determination for the classification of

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	 	 	 	work actually performed. In addition, any apprentice performing work on the job site in
excess of the ratio permitted under the registered program shall be paid not less than
the applicable wage rate on the wage determination for the work actually performed.
Where a Contractor is performing construction on a project in a locality other than
that in which its program is registered, the ratios and wage rates (expressed in
percentages of the journeyman’s hourly rate) specified in the Contractor’s or
subcontractor’s registered program shall be observed. Every apprentice must be paid at
not less than the rate specified in the registered program for the apprentice’s level
of progress, expressed as a percentage of the journeymen hourly rate specified in the
applicable wage determination. Apprentices shall be paid fringe benefits in accordance
with the provisions of the apprenticeship program. If the apprenticeship program does
not specify fringe benefits, apprentices must be paid the full amount of fringe
benefits listed on the wage determination for the applicable classification. If the
Administrator determines that a different practice prevails for the applicable
apprentice classification, fringes shall be paid in accordance with that determination.
In the event the Office of Apprenticeship Training, Employer and Labor Services, or a
State Apprenticeship Agency recognized by the Office, withdraws approval of an
apprenticeship program, the Contractor will no longer be permitted to utilize
apprentices at less than the applicable predetermined rate for the work performed until
an acceptable program is approved.
	 
	 	(ii)	 	Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to
work at less than the predetermined rate for the work performed unless they are
employed pursuant to and individually registered in a program which has received prior
approval, evidenced by formal certification by the U.S. Department of Labor, Employment
and Training Administration. The ratio of trainees to journeymen on the job site shall
not be greater than permitted under the plan approved by the Employment and Training
Administration. Every trainee must be paid at not less than the rate specified in the
approved program for the trainee’s level of progress, expressed as a percentage of the
journeyman hourly rate specified in the applicable wage determination. Trainees shall
be paid fringe benefits in accordance with the provisions of the trainee program. If
the trainee program does not mention fringe benefits, trainees shall be paid the full
amount of fringe benefits listed on the wage determination unless the Administrator of
the Wage and Hour Division determines that there is an apprenticeship program
associated with the corresponding journeyman wage rate on the wage determination which
provides for less than full fringe benefits for apprentices. Any employee listed on the
payroll at a trainee rate who is not registered and participating in a training plan
approved by the Employment and Training Administration shall be paid not less than the
applicable wage rate on the wage determination for the classification of work actually
performed. In addition, any trainee performing work on the job site in excess of the
ratio permitted under the registered program shall be paid not less than the applicable
wage rate on the wage determination for the work actually performed. In the event the
Employment and Training Administration withdraws approval of a training program, the
Contractor will no longer be permitted to utilize trainees at less than

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	 	 	 	the applicable
predetermined rate for the work performed until an acceptable program is approved.
	 
	 	(iii)	 	Equal employment opportunity. The utilization of apprentices, trainees, and
journeymen under this part shall be in conformity with the equal employment opportunity
requirements of Executive Order 11246, as amended and 29 CFR part 30.
	 
	 	(5)	 	Compliance with Copeland Act requirements. The Contractor shall comply with the
requirements of 29 CFR part 3, which are incorporated by reference in this Contract.
	 
	 	(6)	 	Contracts and Subcontracts. The Recipient, Subrecipient, the Recipient’s, and
Subrecipient’s contractors and subcontractor shall insert in any Contracts the clauses
contained herein in(a)(1) through (10) and such other clauses as the Department of
Energy may by appropriate instructions require, and also a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts. The Recipient
shall be responsible for the compliance by any subcontractor or lower tier
subcontractor with all of the paragraphs in this clause.
	 
	 	(7)	 	Contract termination: debarment. A breach of the Contract clauses in 29 CFR 5.5
may be grounds for termination of the Contract, and for debarment as a contractor and a
subcontractor as provided in 29 CFR 5.12.
	 
	 	(8)	 	Compliance with Davis-Bacon and Related Act requirements. All rulings and
interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and
5 are herein incorporated by reference in this Contract.
	 
	 	(9)	 	Disputes concerning labor standards. Disputes arising out of the labor
standards provisions of this Contract shall not be subject to the general disputes
clause of this Contract. Such disputes shall be resolved in accordance with the
procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes
within the meaning of this clause include disputes between the Recipient, Subrecipient,
the Contractor (or any of its subcontractors), and the contracting agency, the U.S.
Department of Labor, or the employees or their representatives.
	 
	 	(10)	 	Certification of eligibility.
	 
	 	(i)	 	By entering into this Contract, the Contractor certifies that neither it (nor
he or she) nor any person or firm who has an interest in the Contractor’s firm is a
person or firm ineligible to be awarded Government contracts by virtue of section 3(a)
of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
	 
	 	(ii)	 	No part of this Contract shall be subcontracted to any person or firm
ineligible for award of a Government contract by virtue of section 3(a) of the
Davis-Bacon Act or 29 CFR 5.12(a)(1).

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	 	(iii)	 	The penalty for making false statements is prescribed in the U.S. Criminal
Code, 18 U.S.C. 1001.
	 
	 	(c)	 	Contract Work Hours and Safety Standards Act. As used in this paragraph, the
terms laborers and mechanics include watchmen and guards.
	 
	 	(1)	 	Overtime requirements. No Contractor or subcontractor contracting for any part
of the Contract work which may require or involve the employment of laborers or
mechanics shall require or permit any such laborer or mechanic in any workweek in which
he or she is employed on such work to work in excess of forty hours in such workweek
unless such laborer or mechanic receives compensation at a rate not less than one and
one-half times the basic rate of pay for all hours worked in excess of forty hours in
such workweek.
	 
	 	(2)	 	Violation; liability for unpaid wages; liquidated damages. In the event of any
violation of the clause set forth in paragraph (b)(1) of this section, the Contractor
and any subcontractor responsible therefor shall be liable for the unpaid wages. In
addition, such Contractor and subcontractor shall be liable to the United States (in
the case of work done under contract for the District of Columbia or a territory, to
such District or to such territory), for liquidated damages. Such liquidated damages
shall be computed with respect to each individual laborer or mechanic,
including watchmen and guards, employed in violation of the clause set forth in
paragraph (b)(1) of this section, in the sum of $10 for each calendar day on which
such individual was required or permitted to work in excess of the standard workweek
of forty hours without payment of the overtime wages required by the clause set
forth in paragraph (b)(1) of this section.
	 
	 	(3)	 	Withholding for unpaid wages and liquidated damages. The Department of Energy
or the Recipient or Subrecipient shall upon its own action or upon written request of
an authorized representative of the Department of Labor withhold or cause to be
withheld, from any moneys payable on account of work performed by the Contractor or
subcontractor under any such contract or any other Federal contract with the same prime
Contractor, or any other federally-assisted contract subject to the Contract Work Hours
and Safety Standards Act, which is held by the same prime contractor, such sums as may
be determined to be necessary to satisfy any liabilities of such Contractor or
subcontractor for unpaid wages and liquidated damages as provided in the clause set
forth in paragraph (b)(2) of this section.
	 
	 	(4)	 	Contracts and Subcontracts. The Recipient, Subrecipient, and Recipient’s and
Subrecipient’s contractor or subcontractor shall insert in any Contracts, the clauses
set forth in paragraph (b)(l) through (4) of this section and also a clause requiring
the subcontractors to include these clauses in any lower tier subcontracts. The
Recipient shall be responsible for compliance by any subcontractor or lower tier
subcontractor with the clauses set forth in paragraphs (b)(1) through (4) of this
section.

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	 	(5)	 	The Contractor or subcontractor shall maintain payrolls and basic payroll
records during the course of the work and shall preserve them for a period of three
years from the completion of the Contract for all laborers and mechanics, including
guards and watchmen, working on the Contract. Such records shall contain the name and
address of each such employee, social security number, correct classifications, hourly
rates of wages paid, daily and weekly number of hours worked, deductions made, and
actual wages paid. The records to be maintained under this paragraph shall be made
available by the Contractor or subcontractor for inspection, copying, or transcription
by authorized representatives of the Department of Energy and the Department of Labor,
and the Contractor or subcontractor will permit such representatives to interview
employees during working hours on the job.
	 
	 	(d)	 	Recipient Responsibilities for Davis Bacon Act
	 
	 	(1)	 	On behalf of the Department of Energy (DOE), Recipient shall perform the
following functions:
	 
	 	(i)	 	Obtain, maintain, and monitor all Davis Bacon Act (DBA) certified payroll
records submitted by the Subrecipients and Contractors at any tier under this Award;
	 
	 	(ii)	 	Review all DBA certified payroll records for compliance with DBA requirements,
including applicable DOL wage determinations;
	 
	 	(iii)	 	Notify DOE of any non-compliance with DBA requirements by Subrecipients or
Contractors at any tier, including any non-compliances identified as the result of
reviews performed pursuant to paragraph (ii) above;
	 
	 	(iv)	 	Address any Subrecipient and any Contractor DBA non-compliance issues; if DBA
non-compliance issues cannot be resolved in a timely manner, forward complaints,
summary of investigations and all relevant information to DOE;
	 
	 	(v)	 	Provide DOE with detailed information regarding the resolution of any DBA
non-compliance issues;
	 
	 	(vi)	 	Perform services in support of DOE investigations of complaints filed regarding
noncompliance by Subrecipients and Contractors with DBA requirements;
	 
	 	(vii)	 	Perform audit services as necessary to ensure compliance by Subrecipients and
Contractors with DBA requirements and as requested by the Contracting Officer; and
	 
	 	(viii)	 	Provide copies of all records upon request by DOE or DOL in a timely manner.

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	 	(e)	 	Rates of Wages

	 	 	The minimum wages to be paid laborers and mechanics under this award involved in performance
of work at the project site, as determined by the Secretary of Labor to be prevailing for
the corresponding classes of laborers and mechanics employed on projects of a character
similar to the contract work in the pertinent locality, are found at http://www.wdol.gov/,
by clicking on “Selecting DBA WDs”. The Wage Determination Number(s) and General Decision
Number(s) specific to this award are found below. These wage rates are minimum rates and are
not intended to represent the actual wage rates that the Contractor may have to pay.

	 	 	 	 	 
	CONSTRUCTION	 	WAGE DETERMINATION	 	 
	TYPE	 	NUMBER	 	GENERAL DECISION NUMBER
	Heavy Construction

	 	LAl1, LA15, LA6, MAll,

MA13, MA10
	 	LA100011 03/12/2010 LA11

LA100015 03/12/2010 LA15

LA100006 03/12/2010 LA6

MA100011 03/12/2010 MA11

MA100013 30/12/2010 MA13

MA100010 03/12/2010 MA10

	33.	 	CONTINGENCY

	 	(a)	 	Contingency Requirement. A minimum amount of Contingency is required
for awards selected under Funding Opportunity Announcement DE-FOA-0000096.
“Contingency” is defined in the Appendix as: “a provision in the Project
Management Plan to mitigate cost and/or schedule risk.” Contingency funds must be
(a) liquid, (b) immediately available, and (c) unrestricted funds dedicated
exclusively to the Project for the purpose of mitigating project performance
baseline risk. Contingency funds may come from a variety of sources, as approved by
the Contracting Officer on a case-by-case basis in accordance with the Appendix to
these Special Terms and Conditions (Attachment 5).
	 
	 	(b)	 	Minimum Amount of Contingency. Initial Contingency funds shall be not
less than 25 percent of the Total Project Cost that begins with Budget Period 2, as
more specifically described in Section B(2) of the Appendix to these Special Terms and
Conditions (Attachment 5).
	 
	 	(c)	 	Contingency Not Counted Toward Cost Share or DOE Reimbursement.
Contingency is in addition to the Total Project Cost and cannot count toward cost share
or result in reimbursement by DOE above the share approved in the award.
	 
	 	(d)	 	Appendix. All of the terms and conditions set forth in this provision
shall be further subject to the requirements and clarifications of Attachment 5.

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	34.	 	REOPENER TERM — PENDING INDIRECT RATES — FINANCIAL ASSISTANCE

	 	(a)	 	At the time the total budget cost for this award was established, agreement
could not be reached on indirect rates for the subrecipient, Myriant Technologies LLC.
However, agreement was reached on a total estimated budget cost that includes a dollar
amount for indirect costs and this amount is subject to adjustment in accordance with
the provisions of this term and other administrative provisions of the award.
	 
	 	(b)	 	By June 1, 2010 you shall submit an indirect rate proposal for Myriant
Technologies LLC to the Contracting Officer and Cognizant Auditor for determination of
a provisional billing rate.
	 
	 	(c)	 	If the approved provisional billing rates result in amounts for indirect costs
that are substantially lower the amount budgeted, you agree to commence negotiations to
revise the budget and the total estimated cost for this award.
	 
	 	(d)	 	Should you fail to submit the information in paragraph (b), or should there be
no agreement as to the amount of the adjustment contemplated by this term, then the
Contracting Officer may make a unilateral determination and modify the award
accordingly.

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Attachment 1

CDSB-1003

Intellectual Property Provisions (CDSB-1003)

Cooperative Agreement — Special Data Statute

Research, Development, or Demonstration

Domestic Small Businesses

	 	 	 

	01. FAR 52.227-1

	 	Authorization and Consent (JUL 1995)-Alternate I
(APR 1984)
	 
	 	 
	02. FAR 52.227-2

	 	Notice and Assistance Regarding Patent and Copyright
infringement (AUG 1996)
	 

	 	This clause is not applicable if the award is for less
than $100,000, in aggregate

	 
	 	 
	03. 10 CFR 600.325

	 	Rights in Data — Programs Covered Under Special Data Statutes (OCT 2003)
	Appendix A
	 	 
	 

	 	If the contracting officer, in consultation with DOE
patent counsel and the DOE program official,
determines that delivery of limited rights data or
restricted computer software is necessary, Alternates
I and II may be inserted into the clause after
negotiations with the applicant.

	 
	 	 
	04. FAR 52.227-23

	 	Rights to Proposal Data (Technical) (JUN 1987)
	 
	 	 
	05. 10 CFR 600.325

	 	Patent Rights (Small Business Firms and Nonprofit Organizations) (OCT 2003)
	Appendix A
	 	 

NOTE: In reading these provisions, any reference to “contractor” shall mean “recipient,” and any
reference to “contract” or “subcontract” shall mean “award” or “subaward.”

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Attachment 1

	01.	 	FAR 52.227-1 Authorization and Consent (JUL 1995)-Alternate I (APR 1984)

(a) The Government authorizes and consents to all use and manufacture of any invention described in
and covered by a United States patent in the performance of this contract or any subcontract at any
tier.

(b) The Contractor agrees to include, and require inclusion of, this clause, suitably modified to
identify the parties, in all subcontracts at any tier for research and development expected to
exceed the simplified acquisition threshold; however, omission of this clause from any subcontract,
including those at or below the simplified acquisition threshold, does not affect this
authorization and consent.

(End of clause)

	02.	 	FAR 52.227-2 Notice and Assistance Regarding Patent and Copyright infringement (AUG 1996)

(a) The Contractor shall report to the Contracting Officer, promptly and in reasonable written
detail, each notice or claim of patent or copyright infringement based on the performance of this
contract of which the Contractor has knowledge.

(b) in the event of any claim or suit against the Government on account of any alleged patent or
copyright Infringement arising out of the performance of this contract or out of the use of any
supplies furnished or work or services performed under this contract, the Contractor shall furnish
to the Government, when requested by the Contracting Officer, all evidence and information In
possession of the Contractor pertaining to such suit or claim. Such evidence and information shall
be furnished at the expense of the Government except where the Contractor has agreed to indemnify
the Government

(c) The Contractor agrees to include, and require inclusion of, this clause in all subcontracts at
any tier for supplies or services (including construction and architect-engineer subcontracts and
those for material, supplies, models, samples, or design or testing services) expected to exceed
the simplified acquisition threshold at FAR 2.101.

(End of clause)

	03.	 	10 CFR 600.325 Appendix A, Rights in Data — Programs Covered Under Special Data Statutes
(OCT 2003)

(a) Definitions

     Computer Data Bases, as used in this clause, means a collection of data In a form capable of,
and for the purpose of, being stored in, processed, and operated on by a computer. The term does
not include computer software.

     Computer software, as used in this clause, means (i) computer programs which are data
comprising a series of instructions, rules, routines, or statements, regardless of the media in
which recorded, that allow or cause a computer to perform a specific operation or series of

CDSB-1003

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operations and (ii) data comprising source code listings, design details, algorithms,
processes, flow charts, formulae and related material that would enable the computer program to be
produced, created or compiled. The term does not include computer data bases.

     Data, as used in this clause, means recorded information, regardless of form or the media on
which it may be recorded. The term includes technical data and computer software. The term does not
Include Information incidental to administration, such as financial, administrative, cost or
pricing or management information.

     Form, fit, and function data, as used In this clause, means data relating to items,
components, or processes that are sufficient to enable physical and functional interchangeability
as well as data identifying source, size, configuration, mating and attachment characteristics,
functional characteristics, and performance requirements except that for computer software it means
data identifying source, functional characteristics, and performance requirements but specifically
excludes the source code, algorithm, process, formulae, and flow charts of the software.

     Limited rights data, as used in this clause, means data (other than computer software)
developed at private expense that embody trade secrets or are commercial or financial and
confidential or privileged.

     Restricted computer software, as used in this clause, means computer software developed at
private expense and that is a trade secret; is commercial or financial and confidential or
privileged; or is published copyrighted computer software; including modifications of such computer
software.

     Protected data, as used in this clause, means technical data or commercial or financial data
first produced in the performance of the award which, if it had been obtained from and first
produced by a non-federal party, would be a trade secret or commercial or financial information
that is privileged or confidential under the meaning of 5 U.S.C. 552(b)(4) and which data Is marked
as being protected data by a party to the award.

     Protected rights, as used in this clause, mean the rights in protected data set forth in the
Protected Rights Notice of paragraph (g) of this clause.

     Technical data, as used in this clause, means that data which are of a scientific or technical
nature. ‘Technical data does not include computer software, but does include manuals and
instructional materials and technical data formatted as a computer data base.

     Unlimited rights, as used in this clause, means the right of the Government to use, disclose,
reproduce, prepare derivative works, distribute copies to the public, and perform publicly and
display publicly, in any manner and for any purpose whatsoever, and to have or permit others to do
so.

(b) Allocation of Rights

     (1) Except as provided In paragraph (c) of this clause regarding copyright, the Government
shall have unlimited rights in:

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     (i) Data specifically identified in this agreement as data to be delivered without
restriction;

     (ii) Form, fit, and function data delivered under this agreement;

     (iii) Data delivered under this agreement (except for restricted computer software)
that constitute manuals or instructional and training material for installation, operation,
or routine maintenance and repair of items, components, or processes delivered or furnished
for use under this agreement; and

     (iv) All other data delivered under this agreement unless provided otherwise for
protected data in accordance with paragraph (g) of this clause or for limited rights data or
restricted computer software in accordance with paragraph (h) of this clause.

     (2) The Recipient shall have the right to

     (i) Protect rights in protected data delivered under this agreement in the manner and
to the extent provided in paragraph (g) of this clause;

     (ii) Withhold from delivery those data which are limited rights data or restricted
computer software to the extent provided in paragraph (h) of this clause•

     (iii) Substantiate use of, add, or correct protected rights or copyrights notices and
to take other appropriate action, in accordance with paragraph (e) of this clause; and

     (iv) Establish claim to copyright subsisting in data first produced in the performance
of this agreement to the extent provided in subparagraph (c)(1) of this clause.

(c) Copyright

     (1) Data first produced In the performance of this agreement. Except as otherwise specifically
provided in this agreement, the Recipient may establish, without the prior approval of the
Contracting Officer, claim to copyright subsisting in any data first produced in the performance of
this agreement. If claim to copyright is made, the Recipient shall affix the applicable copyright
notice of 17 U.S.C. 401 or 402 and acknowledgment of Government sponsorship (including agreement
number) to the data when such data are delivered to the Government, as well as when the data are
published or deposited for registration as a published work in the U.S. Copyright Office. For such
copyrighted data, including computer software, the Recipient grants to the Government, and others
acting on its behalf, a paid-up nonexclusive, irrevocable, worldwide license to reproduce, prepare
derivative works, distribute copies to the public, and perform publicly and display publicly, by or
on behalf of the Government, for all such data.

     (2) Data not first produced in the performance of this agreement. The Recipient shall not,
without prior written permission of the Contracting Officer, Incorporate in data delivered under
this agreement any data that are not first produced in the performance of this agreement and that
contain the copyright notice of 17 U.S.C. 401 or 402, unless the Recipient identifies

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such data and grants to the Government, or acquires on its behalf, a license of the same scope
as set forth in subparagraph (c)(1) of this clause; provided, however, that if such data are
computer software, the Government shall acquire a copyright license as set forth in subparagraph
(h)(3) of this clause if included in this agreement or as otherwise may be provided in a collateral
agreement incorporated or made a part of this agreement.

     (3) Removal of copyright notices. The Government agrees not to remove any copyright notices
placed on data pursuant to this paragraph (c), and to include such notices on all reproductions of
the data.

(d) Release, Publication and Use of Data

     (1) The Recipient shall have the right to use, release to others, reproduce, distribute, or
publish any data first produced or specifically used by the Recipient in the performance of this
contract, except to the extent such data may be subject to the Federal export control or national
security laws or regulations, or unless otherwise provided in this paragraph of this clause or
expressly set forth in this contract.

     (2) The Recipient agrees that to the extent it receives or is given access to data necessary
for the performance of this agreement which contain restrictive markings, the Recipient shall treat
the data in accordance with such markings unless otherwise specifically authorized in writing by
the Contracting Officer.

(e) Unauthorized Marking of Data

     (1) Notwithstanding any other provisions of this agreement concerning inspection or
acceptance, if any data delivered under this agreement bears any restrictive or limiting markings
or notices not authorized by this agreement, the Contracting Officer may at any time either return
the data to the Recipient or cancel or ignore the markings. However, the following procedures shall
apply prior to canceling or ignoring the markings.

     (i) The Contracting Officer shall make written inquiry to the Recipient affording the
Recipient 30 days from receipt of the inquiry to provide written justification to
substantiate the propriety of the markings;

     (ii) If the Recipient fails to respond or fails to provide written justification to
substantiate the propriety of the markings within the 30-day period (or a longer time not
exceeding 90 days approved in writing by the Contracting Officer for good cause shown), the
Government shall have the right to cancel or ignore the markings at any time after said
period and the data will no longer be made subject to any disclosure prohibitions.

     (iii) If the Recipient provides written justification to substantiate the propriety of
the markings within the period set in subdivision (e)(1)(i) of this clause, the Contracting
Officer shall consider such written justification and determine whether or not the markings
are to be cancelled or Ignored. If the Contracting Officer determines that the marking’s are
authorized, the Recipient shall be so notified in writing. If the Contracting Officer
determines, with concurrence of the head of the contracting activity, that the markings are
not authorized, the Contracting Officer shall furnish the Recipient a written

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determination, which determination shall become the final agency decision regarding the
appropriateness of the markings unless the Recipient files suit in a court of competent
jurisdiction within 90 days of receipt of the Contracting Officer’s decision. The Government
shall continue to abide by the markings under this subdivision (e)(1)(I11) until final
resolution of the matter either by the Contracting Officer’s determination become final (in
which instance the Government shall thereafter have the right to cancel or ignore the
markings at any time and the data will no longer be made subject to any disclosure
prohibitions), or by final disposition of the matter by court decision if suit is filed.

     (2) The time limits in the procedures set forth in subparagraph (e)(1) of this clause may be
modified In accordance with agency regulations implementing the Freedom of information Act (5
U.S.C. 552) if necessary to respond to a request thereunder.

(f) Omitted or Incorrect Markings

     (1) Data delivered to the Government, without any restrictive or limiting markings or notices
authorized by this agreement, shall be deemed to have been furnished with unlimited rights, and the
Government assumes no liability for the disclosure, use, or reproduction of such data. However, to
the extent the data has not been disclosed without restriction outside the Government, the
Recipient may request, within 6 months (or a longer time approved by the Contracting Officer for
good cause shown) after delivery of such data, permission to have notices placed on qualifying data
at the Recipient’s expense, and the Contracting Officer may agree to do so if the Recipient:

     (i) Identifies the data to which the omitted notice is to be applied;

     (ii) Demonstrates that the omission of the notice was inadvertent;

     (iii) Este/Ashes that the use of the proposed notice is authorized; and

     (iv) Acknowledges that the Government has no liability with respect to the disclosure,
use, or reproduction of any such data made prior to the addition of the notice or resulting
from the omission of the notice.

(2) The Contracting Officer may also:

     (i) Permit correction at the Recipient’s expense of incorrect notices if the Recipient
identifies the data on which correction of the notice is to be made, and demonstrates that
the correct notice is authorized; or

     (ii) Correct any incorrect notices.

(g) Rights to Protected Data:

     (1) The Recipient may, with the concurrence of DOE, claim and mark as protected data, any data
first produced in the performance of this award that would have been treated as a trade secret If
developed at private expense. Any such claimed “Protected Data” will be clearly

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marked with the following Protected Rights Notice, and will be treated in accordance with such
Notice, subject to the provisions of paragraphs (e) and (f) of this clause.

	 	 	PROTECTED RIGHTS NOTICE
	 
	 	 	These protected data were produced under Agreement No. DE-EE0002878 with the U.S. Department
of Energy and may not be published, disseminated, or disclosed to others outside the
Government until, unless express written authorization is obtained from the recipient. Upon
expiration of the period of protection set forth in this Notice, the Government shall have
unlimited rights in this data. This Notice shall be marked on any reproduction of this data,
In whole or in part. (End of notice).

     (2) Any such marked Protected Data may be disclosed under obligations of confidentiality for
the following purposes:

	 	a)	 	For Internal DOE evaluation and planning purposes under the
restriction that the Protected Data be retained in confidence and not be
further disclosed; or
	 
	 	b)	 	To DOE staff members or authorized DOE contractors or
subcontractors performing work under the Government’s program under the
restriction that the Protected Data be retained in confidence and not be
further disclosed.

     (3) The obligations of confidentiality and restrictions on publication and dissemination shall
end for any Protected Data:

	 	a)	 	At the end of the protected period;

	 	b)	 	if the data become publicly known or available from other
sources without a breach of the obligation of confidentiality with respect to
the Protected Data;

	 	c)	 	if the same data are independently developed by someone who did
not have access to the Protected Data and such data are made available without
obligations of confidentiality; or

	 	d)	 	If the Recipient disseminates or authorizes another to
disseminate such data without obligations of confidentiality.

     (4) However, the Recipient agrees that the following types of data are not considered to be
protected and shall be provided to the Government when required by this award without any claim
that the data are Protected Data: General test results and data that demonstrate progress toward
meeting DOE’s technical goals to design, construct, build, and operate a demonstration- or
pilot-scale integrated biorefinery employing lignocellulosic or algal feedstocks, and In certain
special cases starch feedstocks, for the production of (i) liquid transportation fuels, (ii)
biobased chemicals, products or co-products, or (iii) substitutes for petroleum-based feedstocks
and products. These results and data will be made available to the

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public and included in the final project report, and in other reports and presentations, as
appropriate. The parties agree that notwithstanding the data enumerated above, nothing precludes
the Government from seeking delivery of additional data in accordance with this award, or from
making publicly available additional nonprotected data, nor does the preceding enumerated data
constitute any admission by the Government that technical data not so enumerated are Protected
Data. The general data described above shall not include the following types of data, which
Recipient intends, without (imitation, to claim and mark as Protected Data:

	 	a)	 	Process Flow Diagrams
	 
	 	b)	 	Mass & Energy Balances
	 
	 	c)	 	Process Performance Parameters and Costs by Unit Operation,
including the quality of the data used for those performance parameters, (e.g.,
scale, replication, degree of integration, range of values, etc.)
	 
	 	d)	 	Capital Cost Estimate and Basis thereof: e.g. factored, vendor
quotes, actual purchase prices, etc.
	 
	 	e)	 	Pro Forma with best reproducible results to date with all
assumptions listed and the basis/rationale behind all pro forma input
parameters explained, including but not necessarily limited to:

	 	i	 	Production cost parameters: e.g. consumables, utilities, labor, etc.
	 
	 	ii	 	Water consumption requirements and costs
	 
	 	iii	 	Waste disposal requirements and costs

	 	f)	 	Any additional financial and technical project information
necessary and sufficient to validate the current and actual conversion costs
associated with the facility or system as constructed and projected to be
operated for converting lignocellulosic or algal feedstocks, and in certain
special cases starch feedstocks, into (i) liquid transportation fuels, or (ii)
biobased chemicals, products or co-products, or (iii) substitutes for
petroleum-based feedstocks and products.

	 	g)	 	Technical results based on data collected, to enable the
analysis, assessment and evaluation of other areas of interest, including but
not necessarily limited to life cycle assessments, green house gas emissions,
and sustainability metrics.

     (5) The Government’s sole obligation with respect to any protected data shall be as set forth
in this paragraph (g).

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(h) Protection of Limited Rights Data

     (1) When data other than that listed in subparagraphs (b)(1)(i), (ii), and OM of this clause
are specified to be delivered under this agreement and such data qualify as either limited rights
data or restricted computer software, the Recipient, if the Recipient desires to continue
protection of such data, shall withhold such data and not furnish them to the Government under this
agreement. As a condition to this withholding the Recipient shall Identify the data being withheld
and furnish form, fit, and function data In lieu thereof.

     (2) Notwithstanding subparagraph (h)(1) of this clause, the agreement may identify and specify
the delivery of limited rights data, or the Contracting Officer may require by written request the
delivery of limited rights data that has been withheld or would otherwise be withholdable. If
delivery of such data is so required, the Recipient may affix the following “Limited Rights Notice”
to the data and the Government will thereafter treat the data, in accordance with such Notice:

LIMITED RIGHTS NOTICE

(a) These data are submitted with limited rights under Government Agreement No. DE-EE0002878 (and
subaward/contract No. N/A , if appropriate). These data may be reproduced and used by the
Government with the express limitation that they will not, without written permission of the
Recipient, be used for purposes of manufacture nor disclosed outside the Government; except that
the Government may disclose these data outside the Government for the following purposes, if any,
provided that the Government makes such disclosure subject to prohibition against further use and
disclosure:

     (3) Use (except for manufacture) by Federal support services contractors within the scope of
their contracts;

     (4) These “limited rights data” may be disclosed for evaluation purposes under the restriction
that the “limited rights data” be retained in confidence and not be further disclosed;

     (5) These “limited rights data” may be disclosed to other contractors participating in the
Government’s program, of which this Recipient is a part, for information or use (except for
manufacture) in connection with the work performed under their awards, and under the restriction
that the “limited rights data” be retained in confidence and not be further disclosed;

     (6) These “limited rights data” may be used by the Government or others on its behalf for
emergency repair or overhaul work under the restriction that the “limited rights data” be retained
in confidence and not be further disclosed; and

     (7) Release to a foreign government, or instrumentality thereof, as the Interests of the
United States Government may require, for Information or evaluation, or for emergency repair or
overhaul work by such government.

(b) This Notice shall be marked on any reproduction of these data, in whole or in part.

(End of notice)

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(i) Subaward/Contract

     The Recipient has the responsibility to obtain from its subrecipients/ contractors all data
and rights therein necessary to fulfill the Recipient’s obligations to the Government under this
agreement. if a subrecipient/contractor refuses to accept terms affording the Government such
rights, the Recipient shall promptly bring such refusal to the attention of the Contracting Officer
and not proceed with subaward/contract award without further authorization.

(j) Additional Data Requirements

     In addition to the data specified elsewhere in this agreement to be delivered, the Contracting
Officer may, at anytime during agreement performance or within a period of 3 years after acceptance
of all items to be delivered under this agreement, order any data first produced or specifically
used in the performance of this agreement. This clause is applicable to all data ordered under this
subparagraph. Nothing contained in this subparagraph shall require the Recipient to deliver any
data the withholding of which is authorized by this clause or data which are specifically
identified in this agreement as not subject to this clause. When data are to be delivered under
this subparagraph, the Recipient will be compensated for converting the data into the prescribed
form, for reproduction, and for delivery.

(k) The Recipient agrees, except as may be otherwise specified in this agreement for specific data
items listed as not subject to this paragraph, that the Contracting Officer or an authorized
representative may, up to 3 years after acceptance of all items to be delivered under this
contract, inspect at the Recipient’s facility any data withheld pursuant to paragraph (h) of this
clause, for purposes of verifying the Recipient’s assertion pertaining to the limited rights or
restricted rights status of the data or for evaluating work performance. Where the Recipient whose
data are to be inspected demonstrates to the Contracting Officer that there would be a possible
conflict of interest if the inspection were made by a particular representative, the Contracting
Officer shall designate an alternate inspector.

(End of clause)

	04.	 	FAR 52.227-23 Rights to Proposal Data (Technical) (JUN1987)

Except for data contained on pages 3, 4, 7, 12 of the Project Narrative; the Budget Information in
Section D; The Budget Justification file in Section E; the Environmental Questionnaire pages 1, 11,
13, 14, and 15; the Project Management Plan pages 8-9, 11-14, and 18-28; the Historical Current and
Technical Financial Data; the Business and Commercialization Plan pages 3, 5-8, 10, 12, and 15; the
Pro Forma In Section N; the Intellectual Property Statement in Section 0; the Process Flow Diagram
in Section P; the Life Cycle Analysis in Section Q; and the Project Execution Plan in Section S; It
is agreed that as a condition of award of this contract, and notwithstanding the conditions of any
notice appearing thereon, the Government shall have unlimited rights (as defined in the “Rights in
Data — General” clause contained in this contract) in and to the technical data contained In the
proposal dated June 30, 2009, upon which this contract is based.

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	05.	 	10 CPR 600.325 Appendix A, Patent Rights (Small Business Firms and Nonprofit Organizations)
(OCT 2003)

	(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 which is or may
be protected under the Plant Variety Protection Act (7 U.S.C. 2321 at seq.).

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

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

     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 Public Law
85-536 (16 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 through 121.8 and 13 CFR
121.3 through 121.12, respectively, will be used.

     Subject invention means any invention of the Recipient conceived or first actually reduced to
practice in the performance of work under this award, 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 award performance.

	(b)	 	Allocation of Principal Rights

     The Recipient may retain the entire right, title, and interest throughout the world to each
subject invention subject to the provisions of this Patent Rights clause and 35 U.S.C. 203. With
respect to any subject invention in which the Recipient retains title, the Federal Government shall
have a non-exclusive, nontransferable, irrevocable, paid-up license to practice or have practiced
for or on behalf of the U.S. the subject invention throughout the world.

	(c)	 	Invention Disclosure, Election of Title and Filing of Patent Applications by Recipient

     (1) The Recipient will disclose each subject invention to DOE within two months after the
inventor discloses it in writing to Recipient personnel responsible for the administration of
patent matters. The disclosure to DOE shall be in the form of a written report and shall

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identify the award 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 disclosure, of the nature, purpose, operation, and the physical, chemical, biological
or electrical characteristics of the invention. The disclosure shall also identify any publication,
on sale or public use of the invention and whether a manuscript describing the Invention has been
submitted for publication and, if so, whether it has been accepted for publication at the time of
disclosure. In addition, after disclosure to DOE, the Recipient will promptly notify DOE of the
acceptance of any manuscript describing the invention for publication or of any on sale or public
use planned by the Recipient.

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

     (3) The Recipient will file its initial patent application on an invention to which It elects
to retain title within one year after election of title or, it earlier, prior to the end of any
statutory period wherein valid patent protection can be obtained in the U.S. after a publication,
on safe, or public use. The Recipient will file patent applications in additional countries or
international patent offices within either ten months of the corresponding initial patent
application, or six months from the date when permission is granted by the Commissioner of Patents
and Trademarks to file foreign patent applications when such filing has been prohibited by a
Secrecy Order.

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

	(d)	 	Conditions When the Government May Obtain Title

     The Recipient will convey to DOE, upon written request, title to any subject invention:

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

     (2) In those countries in which the Recipient fails to file patent applications within the
times specified In paragraph (c) of this Patent Rights clause; provided, however, that If the
Recipient has filed a patent application in a country after the times specified in paragraph (c) of
this Patent Rights clause, but prior to its receipt of the written request of DOE, the Recipient
shall continue to retain title in that country; or

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

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	(e)	 	Minimum Rights to Recipient and Protection of the Recipient Right to File

     (1) The Recipient will retain a non-exclusive royalty-free license throughout the world in
each subject invention to which the Government obtains title, except if the Recipient fails to
disclose the subject invention within the times specified in paragraph (c) of this Patent Rights
clause. The Recipient’s license extends to its domestic subsidiaries and affiliates, if any, within
the corporate structure of which the Recipient is a party and includes the right to grant
sublicenses of the same scope of the extent the Recipient was legally obligated to do so at the
time the award was awarded. The license is transferable only with the approval of DOE except when
transferred to the successor of that part of the Recipient’s business to which the invention
pertains.

     (2) The Recipient’s domestic license may be revoked or modified by DOE 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 at 37 CFR part 404 and
the agency’s licensing regulation, if any. This license will not be revoked in that field of use or
the geographical areas in which the Recipient 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 discretion of the funding Federal agency to the extent the
Recipient, 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 will furnish
the Recipient a written notice of its intention to revoke or modify the license, and the Recipient
will be allowed thirty days (or such other time as may be authorized by DOE for good cause shown by
the Recipient) after the notice to show cause why the license should not be revoked or modified.
The Recipient has the right to appeal, in accordance with applicable regulations In 37 CFR part 404
and the agency’s licensing regulations, if any, concerning the licensing of Government-owned
inventions, any decision concerning the revocation or modification of its license.

	(f)	 	Recipient Action to Protect Government’s Interest

     (1) The Recipient agrees to execute or to have executed and promptly deliver to DOE all
instruments necessary to:

     (i) Establish or confirm the rights the Government has throughout the world in those
subject inventions for which the Recipient retains title; and

     (ii) Convey title to DOE when requested under paragraph (d) of this Patent Rights
clause, and to enable the government to obtain patent protection throughout the world in
that subject Invention.

     (2) The Recipient agrees to require, by written agreement, its employees, other than clerical
and non-technical employees, to disclose promptly in writing to personnel identified as responsible
for the administration of patent matters and in a format suggested by the Recipient each subject
invention made under this award in order that the Recipient can comply with the

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disclosure provisions of paragraph (c) of this Patent Rights clause, and to execute all papers
necessary to file patent applications on subject inventions and to establish the Government’s
rights in the subject inventions. The disclosure format should require, as a minimum, the
information requested by paragraph (c)(1) of this Patent Rights clause. The Recipient shall
instruct such employees through the 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 Recipient will notify DOE of any decision not to continue 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 Recipient agrees to include, within the specification of any U.S. patent application
and any patent issuing thereon covering a subject invention, the following statement: “This
invention was made with Government support under (identify the award) awarded by (identify DOE).
The Government has certain rights in this invention.”

(g) Subaward/Contract

     (1) The Recipient will include this Patent Rights clause, suitably modified to identify the
parties, In all subawards/contracts, regardless of tier, for experimental, developmental or
research work to be performed by a small business firm or nonprofit organization. The
subrecipient/contractor will retain all rights provided for the Recipient in this Patent Rights
clause, and the Recipient will not, as part of the consideration for awarding the subcontract,
obtain rights in the subcontractors’ subject inventions.

     (2) The Recipient will include in all other subawards/contracts, regardless of tier, for
experimental, developmental or research work, the patent rights clause required by 10 CFR
600.325(c).

     (3) In the case of subawards/contracts at any tier, DOE, the Recipient, and the
subrecipient/contractor agree that the mutual obligations of the parties created by this clause
constitute a contract between the subrecipient/contractor and DOE with respect to those matters
covered by the clause.

(h) Reporting on Utilization of Subject Inventions

     The Recipient 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 Recipient 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 Recipient and such other data and information as DOE may reasonably specify. The Recipient
also agrees to provide additional reports in connection with any march-in proceeding undertaken by
DOE in accordance with paragraph (j) of this Patent Rights clause. As required by 35 U.S.C.
202(c)(5), DOE agrees it will not disclose such information to persons outside the Government
without the permission of the Recipient.

CDSB-1003

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Attachment 1

(i) Preference for United States industry.

     Notwithstanding any other provision of this Patent Rights clause, the Recipient agrees that
neither it nor any assignee will grant to any person the exclusive right to use or sell any subject
invention in the U.S. unless such person agrees that any products embodying the subject invention
or produced through the use of the subject invention will be manufactured substantially in the U.S.
However, in individual cases, the requirement for such an agreement may be waived by DOE upon a
showing by the Recipient 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 U.S. or that under the circumstances domestic manufacture is not commercially
feasible.

(j) March-in-Rights

     The Recipient agrees that with respect to any subject invention in which it has acquired
title, DOE has the right in accordance with procedures at 37 CFR 401.6 and any supplemental
regulations of the Agency to require the Redolent, an assignee or exclusive licensee of a subject
invention to grant a non-exclusive, 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 Recipient, assignee, or exclusive licensee refuses such a request, DOE has the right to
grant such a license itself if DOE determines that:

     (1) Such action is necessary because the Recipient 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 Recipient, 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 Recipient, assignee, or
licensee; or

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

(k) Special Provisions for Awards with Nonprofit Organizations

     If the Recipient is a nonprofit organization, it agrees that:

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

CDSB-1003

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Attachment 1

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

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

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

(l) Communications

     All communications required by this Patent Rights clause should be sent to the DOE Patent
Counsel address listed in the Award Document.

(m) Electronic Filing

     Unless otherwise Specified in the award, the information identified in paragraphs (f)(2) and
(f)(3) may be electronically filed.

[End of clause]

CDSB-1003

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DE-EE0002878/110

Attachment 2

STATEMENT OF PROJECT OBJECTIVES

Recovery Act: BioEnergy International

Myriant Succinic Acid Biorefinery (MySAB)

A. PROJECT OBJECTIVES

Key Project Goals

	•	 	To produce renewable succinic acid — a “high value” bio-based chemical derived from
renewable feedstocks (i.e. grain sorghum and lignocellulosic feedstocks).
	 
	•	 	To scale up and demonstrate BEI’s proprietary succinic acid process.
	 
	•	 	To supply large volumes of bio-based succinic acid to the market, in order to secure long
term off take agreements.
	 
	•	 	Use less energy per ton of succinic acid produced than its petroleum based alternative.
	 
	•	 	Show significant greenhouse gas benefits in the process’s net consumption of CO2 and in the
reduction of petroleum use.
	 
	•	 	Develop necessary data package to conform to the requirements for project finance of the
commercial facility.
	 
	•	 	Create up to 300 jobs required for construction and operations of the demonstration
facility in Lake Providence, LA. Each subsequent commercial scale plant has the potential to
create up to 475 jobs each in the United States.

Key Project Objectives

BEI’s objectives are to drive down costs of production while driving up revenues for renewable and
sustainable bioproducts, in order to spur petroleum and energy independence, job growth, and
climate change solutions.

	•	 	To validate performance of the proposed technology at demonstration scale and replicate
operational data previously achieved in BEI’s pilot plant facility.
	 
	•	 	To validate key process metrics (fermentation and separation yield, productivity chemical
consumption) at scale and In commercially configured equipment and an industrial environment.
	 
	•	 	To provide continuous operational data at a scale needed to lower the technical risks
associated with proceeding to commercial scale plants.
	 
	•	 	To proceed rapidly to demonstration and commercial scale.
	 
	•	 	To demonstrate that BEI has a sound business and technology strategy to deploy succinic
acid on a commercial scale and market succinic acid at commercial volumes.

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B. PROJECT SCOPE

BEI’s project for a 55.1 dry tons/day (50 dry tonnes/day) demonstration scale biorefinery to
produce succinic acid from grain sorghum and lignocellulosic feedstocks will facilitate rapid
commercialization of biobased succinic acid by providing a platform for scale up and optimization
of the process, while displaying and confirming to the market place that succinic acid can be
produced at high volumes at competitive cost levels from renewable feedstocks. BEI has already
confirmed the viability and economics of the process on pilot plant scale. The demonstration
facility will be built on BEI’s existing site in Lake Providence, LA. The project will create up to
300 construction and operations jobs. The demonstration facility will fast track a larger
commercial scale facility, outside the scope of this project, to be built on the same site creating
synergies from an engineering, permitting, infrastructure, and resources point of view.

C. TASKS TO BE PERFORMED

The Work Breakdown Structure (WBS) for the design, construction, and operation of this
demonstration facility was established to define the key steps necessary to execute the project.
The WBS is divided into two budget periods.

BUDGET PERIOD 1 Basic Engineering, Process Development, Detailed Design, Permitting/NEPA

The focus of activities during Period 1 will be on finalizing the basic engineering design, perform
detailed design, and contract with critical path equipment vendors to perform sufficient
engineering to allow completion and issuance of equipment drawings to facilitate the detailed
design effort. Period 1 activities also include development of the Risk Mitigation Plan, securing
permits to allow construction and operation of the demonstration plant facility, National
Environmental Policy Act (NEPA) determination and approval, and achieving approvals to proceed and
checks against Go / NoGo activities by the DOE and the Independent Engineer.

Task A Project Management

Project management activities will be performed by BEI throughout the duration of the project. The
project management activities will include project and engineering/contractor team meetings,
reviews of project schedules and budgets, agency and DOE coordination, project reporting and
accounting activities and communication to the project team and stakeholders.

Task B Preliminary Design

Preliminary design includes developing the design basis document, followed by standard basic
engineering activities including developing heat and material balances, Process Flow Diagrams,
Process and Instrumentation Diagrams and equipment data sheets especially for critical path
equipment procurement. Equipment and site layout activities and cost estimation is also conducted.
An initial Process Hazard Analysis (PHA) will be performed. Process optimization activities will
also be incorporated in the preliminary design activities at BEI’s R&D and pilot plant facilities
and at vendor sites.

56

 

DE-EE0002878/001

Attachment 2

Task C Preliminary Procurement

During this task equipment and materials that require a long lead time will be identified, vendors
contacted and a bidding process conducted. Procurement of service and material agreements needed
for design and site/infrastructure will be started.

Task D Permitting

A permitting plan will be completed based on the plant design to determine any modifications to
existing permits, or any new permits that are necessary. Applications, modifications, and
notifications will be submitted as appropriate. Confirmation will be made that all permits and
modifications needed are obtained, allowing the project to go forward.

Task E NEPA Documentation

This task will include confirmation of the requirements and execution of needed activities for the
NEPA review and approval process.

Task F Risk Mitigation Plan

BEI will generate a Risk Mitigation Plan (RMP) to confirm that all risks are identified and an
action plan developed to address them. The RMP will also confirm that contracts are in place or
positioned for execution, confirmation that no license or patent issues exist that would obstruct
the project, and contracts for construction and operations are in place to meet the process
schedule. It will be verified that risk issues are identified and addressed sufficiently to allow
the project to proceed to the next phase.

Task G Preliminary Construction Definition

During this task, Construction Execution and Site Mobilization Plans will be developed.

Task H Cellulosic program

BEI has an on-going lignocellulosic feedstock conversion development program. During Budget Period
1 the activities will include fermentation testing on hydrolyzed cellulosic materials at the lab
scale.

Task I Approvals to Proceed

BEI will achieve key goals of NEPA approval, RMP preparation, and EPC contract agreement prior to
proceeding from Budget Period 1 to Budget Period 2.

Task J Detail Design — Initial Phase

During detail design, P&IDs will be finalized and issued, the PHA will be updated as necessary, and
the remaining equipment data sheets and specifications will be issued. Site upgrades will begin in
preparation for construction. Arrangement drawings including the location of equipment, platforms,
and other significant items will be completed. Steel construction drawings

57

 

DE-EE0002878/001

Attachment 2

will be prepared for fabrication. Piping drawings, instrument drawings, electrical drawings, and
control systems specifications will be prepared. it will be confirmed that no design issues were
identified that would prevent the project from proceeding to the next phase.

Task K — Procurement

During procurement equipment, instrumentation and electrical services, and materials for
construction infrastructure will be purchased. Construction services agreements will be acquired.
It will be confirmed that all applicable contracts are in place and executable to meet the project
requirements. An evaluation of working capital and financing status for equipment deliveries will
also be performed.

Task L — Check against go / nogo criteria

Before proceeding to Budget Period 2 BEI will complete key go / no-go criteria that relate to
achieving DOE core requirements and contractual agreement required to move into Budget Period 2.

BUDGET PERIOD 2 — Construction, Operations. Testing, and Reporting

Activities to be performed during budget period 2 are completion of procurement activities, plant
construction, shakedown and start up, acceptance testing, Independent Engineer’s review, and
operating the demonstration scale plant for data collection and analysis. The period concludes with
the project reporting results to the DOE, and completion of the demonstration plant summary report.

Task A Project Management

Project management activities will be performed by BEI throughout the duration of the project. The
project management activities will include project and engineering/contractor team meetings,
reviews of project schedules and budgets, agency and DOE coordination, project reporting and
accounting activities and communication to the project team and stakeholders.

Task H Cellulosic program

BEI has an on-going lignocellulosic feedstock conversion development program. During Budget Period
2 the activities will include fermentation testing on hydrolyzed cellulosic materials at the MySAB
demonstration plant.

Task M Construction

Modifications to existing site elements and infrastructure, including roads, pilings, foundations,
etc would begin. Construction would begin in project areas, laboratory, offices, facilities
buildings, utilities, and supporting operations. Performance metrics will be confirmed during check
out and testing. It will also be confirmed that construction has achieved mechanical completion and
has been handed over to the start up team.

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Attachment 2

Task N Operations

Operations of the facility begin when the plant is handed over after mechanical completion is
achieved. Initial start up and shakedown activities will be performed to confirm proper operation
and operational issues identified and resolved through troubleshooting. Process drawings will also
be finalized based on as built specifications. When it is confirmed that the plant is operable,
ready for demonstration operations, and initial product analysis is acceptable, an independent
engineer will be engaged for a review of operations and data to confirm performance metrics. Test
runs will be performed to confirm performance acceptance against predetermined metrics after which
the facility will move into full operations. Operation will be maintained for the required period
at a minimum to demonstrate the technology and confirmation will be made that performance metrics
were met. During operation, data will be collected, reviewed, and analyzed. The project will
conclude with generation of the project final report.

59

 

			
	DOE F 4600.2

(02/09) 

All Other Editions Are Obsolete
	 	Attachment 3

U.S. Department of Energy

FEDERAL ASSISTANCE REPORTING CHECKLIST

AND INSTRUCTIONS

	 	 	 

	1. Identification Number:

	 	2. Program/Project Title:
	     DE-EE0002878.001

	 	     BEI — Myriant Succinic Acid Biorefinery (MySAB)

3. Recipient:

     BioEnergy International, LLC

	 	 	 	 	 	 	 
	4. Reporting Requirements:	 	Frequency	 	No. of Copies	 	Address
	A. MANAGEMENT REPORTING
	 	 	 	 	 	 
	þ Progress Report
	 	A	 	 	 	https://www.eere-
	þ Special Status Report (see special instructions)
	 	A	 	 	 	pmc.energy.gov/SubmitReports.aspx
	 
	 	 	 	 	 	 
	B. SCIENTIFIC/TECHNICAL REPORTING
	 	 	 	 	 	 
	(Reports/Products must be submitted with appropriate
DOE F 241. The forms are available at www.osti.gov/clink)
	 	 	 	 	 	 
	                    Report/Product                           Form
	 	 	 	 	 	 
	þ Final Scientific Report                        DOE F 241.3
	 	F	 	 	 	http://www.osti.gov/elink-2413
	þ Conference papers/proceedings*        DOE F 241.3
	 	A	 	 	 	http://www.osti.gov/elink-2413 
	þ Software/Manual                                 DOE F 241.4
	 	A	 	 	 	http://www.osti.gov/estsc/241-
	o Other (see special instructions)           DOE F 241.3
	 	 	 	 	 	4pre.jsp 
	*Scientific and technical conferences only
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	C. FINANCIAL REPORTING
	 	 	 	 	 	http://www.eere- 
	þ SF-425, Federal Financial Report
	 	FQ	 	 	 	pmc.energy.gov/SubmitReports.aspx
	 
	 	 	 	 	 	 
	D. CLOSEOUT REPORTING
	 	 	 	 	 	 
	þ Patent Certification
	 	F	 	 	 	http://www.eere-
	þ Property Certification
	 	F	 	 	 	pmc.energy.gov/SubmitReports.aspx 
	o Other (see Special Instructions)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	E. OTHER REPORTING
	 	 	 	 	 	 
	þ Annual Indirect Cost Proposal
	 	FY	 	 	 	 
	þ Annual Inventory of Federally Owned Property, If Any
	 	FY	 	 	 	 
	o Other (see Special Instructions)
	 	A Y Q	 	 	 	 

FREQUENCY CODES AND DUE DATES:

     A — Within 5 calendar days after events or as specified

     F — Final; 90 calendar days after expiration or termination of the award.

     Y — Yearly; 90 days after the end of the reporting period.

     S — Semiannually; within 30 days after end of the reporting period.

     Q — Quarterly; within 30 days after end of the reporting period.

5. Special Instructions: The forms identified in the checklist are available at:

     http://management.energy.gov/business_doe/business_forms.htm.

     MANAGEMENT REPORTING

Special Instructions for the Progress Report: 1) The monthly progress report and financial spreadsheet templates will be forwarded to the Recipient after award. These reports are
due within 30 days following the end of each month the project is active.

     OTHER REPORTING

Special Instructions: 1) A Project management Plan (PMP) is due to the Project Officer 30 days after award and should be revised on a yearly basis. An electronic template will be
provided to the Recipient to complete or update as needed. 2) An Annual Technical and Financial Report must be developed and submitted to the DOE Project Officer after award and must be
updated annually throughout the duration of the award. Subject to the availability of project funding, the Report will also be due annually for three (3) years after the facility is
substantially completed. The schedule for submission will be established by the DOE Project Officer after award. The format of the report with instructions for completion, the
electronic template for reporting data, and the schedule will be forwarded to the Recipient after award. 3) Comprehensive Annual Project Review — The Recipient will be required to
present the Annual Technical and Financial Report at a Comprehensive Annual Project Review Meeting. The schedule for the Comprehensive Annual Project Review ill be established by the
DOE Project Officer after the award. AMERICAN RECOVERY AND REINVESTMENT ACT REPORTING: See the Special Terms and Conditions for Recovery Act reporting requirements, along with the
following website: http:/www.federalreporting.gov. The required reports are due no later than ten calendar days after each calendar quarter in which the recipient receives the
assistance award funded in whole or in part by the Recovery Act. Recipients are to report according to ARRA reporting instructions.

60

 

Federal Assistance Reporting Instructions (02/09)

	A.	 	MANAGEMENT REPORTING
	 
	 	 	Progress Report
	 
	 	 	The Progress Report must provide a concise narrative assessment of the status of work and
include the following information and any other information identified under Special
Instructions on the Federal Assistance Reporting Checklist:

	 	1.	 	The DOE award number and name of the recipient.
	 
	 	2.	 	The project title and name of the project director/principal investigator.
	 
	 	3.	 	Date of report and period covered by the report.
	 
	 	4.	 	A comparison of the actual accomplishments with the goals and objectives
established for the period and reasons why the established goals were not met.
	 
	 	5.	 	A discussion of what was accomplished under these goals during this reporting
period, including major activities, significant results, major findings or conclusions,
key outcomes or other achievements. This section should not contain any proprietary
data or other information not subject to public release. If such information is
important to reporting progress, do not include the information, but include a note in
the report advising the reader to contact the Principal Investigator or the Project
Director for further information.
	 
	 	6.	 	Cost Status. Show approved budget by budget period and actual costs incurred.
If cost sharing is required break out by DOE share, recipient share, and total costs.
	 
	 	7.	 	Schedule Status. List milestones, anticipated completion dates and actual
completion dates. If you submitted a project management plan with your application, you
must use this plan to report schedule and budget variance. You may use your own project
management system to provide this information.
	 
	 	8.	 	Any changes in approach or aims and reasons for change. Remember significant
changes to the objectives and scope require prior approval by the contracting officer.
	 
	 	9.	 	Actual or anticipated problems or delays and actions taken or planned to
resolve them.
	 
	 	10.	 	Any absence or changes of key personnel or changes in consortium/teaming
arrangement.
	 
	 	11.	 	A description of any product produced or technology transfer activities
accomplished during this reporting period, such as:

61

 

	 	A.	 	Publications (list journal name, volume, issue); conference
papers; or other public releases of results.
	 
	 	B.	 	Web site or other Internet sites that reflect the results of
this project.
	 
	 	C.	 	Networks or collaborations fostered.
	 
	 	D.	 	Technologies/Techniques.
	 
	 	E.	 	Inventions/Patent Applications.
	 
	 	F.	 	Other products, such as data or databases, physical
collections, audio or video, software or netware, models, educational aid or
curricula, instruments or equipment.

	 	 	Special Status Report
	 
	 	 	The recipient must report the following events as soon as possible after they occur:

	 	12.	 	Developments that have a significant favorable impact on the project.
	 
	 	13.	 	Problems, delays, or adverse conditions which materially impair the recipient’s
ability to meet the objectives of the award or which may require DOE to respond to
questions relating to such events from the public. The recipient must report any of the
following incidents and include the anticipated impact and remedial action to be taken
to correct or resolve the problem/condition:

	 	a.	 	Any single fatality or injuries requiring hospitalization of
five or more individuals.
	 
	 	b.	 	Any significant environmental permit violation.
	 
	 	c.	 	Any verbal or written Notice of Violation of any Environmental,
Safety, and Health statutes or regulations.
	 
	 	d.	 	Any incident which causes a significant process or hazard
control system failure.
	 
	 	e.	 	Any event which is anticipated to cause a significant schedule
slippage or cost increase.
	 
	 	f.	 	Any damage to Government-owned equipment valued in excess of
$50,000.
	 
	 	g.	 	Any other incident that has the potential for high visibility
in the media.

62

 

	B.	 	SCIENTIFIC/TECHNICAL REPORTS
	 
	 	 	Final Scientific/Technical Report
	 
	 	 	Content. The final scientific/technical report must include the following
information and any other information identified under Special Instructions on the Federal
Assistance Reporting Checklist:

	 	1.	 	Identify the DOE award number; name of recipient; project title; name of
project director/principal investigator; and consortium/teaming members.
	 
	 	2.	 	Display prominently on the cover of the report any authorized distribution
limitation notices, such as patentable material or protected data. Reports delivered
without such notices may be deemed to have been furnished with unlimited rights, and
the Government assumes no liability for the disclosure, use or reproduction of such
reports.
	 
	 	3.	 	Provide an executive summary, which includes a discussion of 1) how the
research adds to the understanding of the area investigated; 2) the technical
effectiveness and economic feasibility of the methods or techniques investigated or
demonstrated; or 3) how the project is otherwise of benefit to the public. The
discussion should be a minimum of one paragraph and written in terms understandable by
an educated layman.
	 
	 	4.	 	Provide a comparison of the actual accomplishments with the goals and
objectives of the project
	 
	 	5.	 	Summarize project activities for the entire period of funding, including
original hypotheses, approaches used, problems encountered and departure from planned
methodology, and an assessment of their impact on the project results. Include, if
applicable, facts, figures, analyses, and assumptions used during the life of the
project to support the conclusions.
	 
	 	6.	 	Identify products developed under the award and technology transfer activities,
such as:

	 	a.	 	Publications (list journal name, volume, issue), conference
papers, or other public releases of results.
	 
	 	b.	 	Web site or other Internet sites that reflect the results of
this project;
	 
	 	c.	 	Networks or collaborations fostered;
	 
	 	d.	 	Technologies/techniques;
	 
	 	e.	 	Inventions/Patent Applications, licensing agreements; and

63

 

	 	f.	 	Other products, such as data or databases, physical
collections, audio or video, software or netware, models, educational aid or
curricula, instruments or equipment.

	 	7.	 	For projects involving computer modeling, provide the following information
with the final report:

	 	a.	 	Model description, key assumptions, version, source and
intended use;
	 
	 	b.	 	Performance criteria for the model related to the intended use;
	 
	 	c.	 	Test results to demonstrate the model performance criteria were
met (e.g., code verification/validation, sensitivity analyses, history matching
with lab or field data, as appropriate);
	 
	 	d.	 	Theory behind the model, expressed in non-mathematical terms;
	 
	 	e.	 	Mathematics to be used, including formulas and calculation
methods;
	 
	 	f.	 	Whether or not the theory and mathematical algorithms were peer
reviewed, and, if so, include a summary of theoretical strengths and
weaknesses;
	 
	 	g.	 	Hardware requirements; and
	 
	 	h.	 	Documentation (e.g., users guide, model code).

	 	 	Electronic Submission. The final scientific/technical report must be submitted
electronically via the DOE Energy Link System (E-Link) at
http://www.osti.gov/elink-2413.
	 
	 	 	Electronic Format. Reports must be submitted in the ADOBE PORTABLE DOCUMENT FORMAT
(PDF) and be one integrated PDF file that contains all text, tables, diagrams, photographs,
schematic, graphs, and charts.
	 
	 	 	Submittal Form. The report must be accompanied by a completed electronic version of
DOE Form 241.3, “U.S. Department of Energy (DOE), Announcement of Scientific and Technical
Information (STI).” You can complete, upload, and submit the DOE F.241.3 online via E-Link.
You are encouraged not to submit patentable material or protected data in these reports, but
if there is such material or data in the report, you must: (I) clearly identify patentable
or protected data on each page of the report; (2) identify such material on the cover of the
report; and (3) mark the appropriate block in Section K of the DOE F 2413. Reports must not
contain any limited rights data (proprietary data), classified information, information
subject to export control classification, or other information not subject to release.
Protected data is specific technical data, first produced in the performance of the award
that is protected from public release for a period of time by the terms of the award
agreement.

64

 

	 	 	Protected Personally Identifiable Information (PII). Management Reports or
Scientific/Technical Reports must not contain any Protected PH. PEI b any information about
an individual which can be used to distinguish or trace an individual’s identity. Some
information that is considered to be Pill is available in public sources such as telephone
books, public websites, university listings, etc. This type of information h considered to
be Public PH and includes, for example, first and, last name, address, work telephone
number, e-mail address, home telephone number, and general educational credentials. In
contrast, Protected PH is defined as an individual’s first name or first initial and last
name in combination with any one or more of types of information, including, but not limited
to, social security number, passport number, credit card numbers, clearances, bank numbers,
biometrics, date and place of birth, mother’s maiden name, criminal, medical and financial
records, educational transcripts, etc.
	 
	 	 	Conference Papers/Proceedings
	 
	 	 	Content. The recipient must submit a copy of any conference papers/proceedings, with
the following information: (I) Name of conference; (2) Location of conference; (3) Date of
conference; and (4) Conference sponsor.
	 
	 	 	Electronic Submission. Scientific/technical conference paper/proceedings must be
submitted electronically via the DOE Energy Link System (E-Link) at
http://www.osti.gov/elink-2413. Non-scientific/technical conference
papers/proceedings must be sent to the URL listed on the Reporting Checklist.
	 
	 	 	Electronic Format. Conference papers/proceedings must be submitted in the ADOBE
PORTABLE DOCUMENT FORMAT (PDF) and be one integrated PDF file that contains all text,
tables, diagrams, photographs, schematic, graphs, and charts.
	 
	 	 	Submittal Form. Scientific/technical conference papers/proceedings must be
accompanied by a completed DOE Form 241.3. The form and instructions are available on E-Link
at http://www.osti.gov/elink-2413. This form is not required for non-scientific or
non-technical conference papers or proceedings.
	 
	 	 	Software/Manual
	 
	 	 	Content. Unless otherwise specified in the award, the following must be delivered:
source code, the executable object code and the minimum support documentation needed by a
competent user to understand and use the software and to be able to modify the software in
subsequent development efforts.
	 
	 	 	Electronic Submission. Submissions may be submitted electronically via the DOE
Energy Link System (E-Link) at http://www.osti.gov/estsc/241-4pre.jsp They may also
be submitted via regular mail to:

Energy Science and Technology Software Center

P.O. Box 1020

Oak Ridge, TN 37831

65

 

	 	 	Submittal Form. Each software deliverable and its manual must be accompanied by a
completed DOE Form 241.4 “Announcement of U.S. Department of Energy Computer Software.” The
form and instructions are available on E-Link at http://www.osti.gov/estsc//24l
-4pre.jsp.
	 
	C.	 	FINANCIAL REPORTING
	 
	 	 	Recipients must complete the SF-425 as identified on the Reporting Checklist in accordance
with the report instructions. A fillable version of the form is available at
http://www,whitehouse.gov/omb/grants/grants_forrns.aspx.
	 
	D.	 	CLOSEOUT REPORTS
	 
	 	 	Final Invention and Patent Report
	 
	 	 	The recipient must provide a DOE Form 2050.11, “PATENT CERTIFICATION.” This form is
available at http://www.directives.doe.gov/pdfs/forms/2050-11.pdf and
http://managemente.energy.gov/business_doe/business_forms.htm.
	 
	 	 	Property Certification
	 
	 	 	The recipient must provide the Property Certification, including the required inventories of
non-exempt property, located at
http://management.energy.gov/business_doe/business_forms.htm.
	 
	E.	 	OTHER REPORTING
	 
	 	 	Annual Indirect Cost Proposal and Reconciliation
	 
	 	 	Requirement. In accordance with the applicable cost principles, the recipient must
submit an annual indirect cost proposal, reconciled to its financial statements, within six
months after the close of the fiscal year, unless the award is based on a predetermined or
fixed indirect rate (s), or a fixed amount for indirect facilities and administration (F&A)
costs.
	 
	 	 	Cognizant Agency. The recipient must submit its annual indirect cost proposal
directly to the cognizant agency for negotiating and approving indirect costs.
	 
	 	 	Annual Inventory of Federally Owned Property
	 
	 	 	Requirement. If at any time during the award the recipient is provided with
Government-furnished property or acquires property with project funds and the
award-specifies that the property vests in the Federal Government (i.e. federally owned
property), the recipient must submit an annual inventory of this property to the DOE Award
Administrator identified in Block 12 of the Notice of Financial Assistance Award no later
then October 30th of each calendar year, to cover an annual reporting period ending on the
preceding September 30th.

66

 

	 	 	Content of Inventory. The inventory must include a description of property, tag
number, acquisition date, location of property, and acquisition cost, if purchased with
project funds. The report must list all federally owned property, including property located
at subcontractor’s facilities or other locations.

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Attachment 5

APPENDIX

To

SPECIAL TERMS AND CONDITIONS, PROVISION 31

REQUIREMENTS FOR CONTINGENCY FUNDS FOR

INTEGRATED BIOREFINERY PROJECTS

TO DE-EE0002878 — “BEI — Myriant Succinic Acid Biorefinery (MYSAB)”

Biorefinery Project

I. Background

Recipients of awards selected under Funding Opportunity Announcement DE-FOA-0000096 are required to
provide an initial amount of Contingency funds equal to not less than 25 percent of the Total
Project Cost (TPC), subject to the requirements and clarifications provided in this Appendix. TPC
Includes the approved combined Federal and Recipient cost share funding amounts to accomplish the
approved scope in the Statement of Project Objectives that are allowable, reasonable and allocable
to the project in accordance with 10 Code of Federal Regulations (CFR) 600.317.

II. Definition

For the purposes of this award, Contingency is defined as follows:

A provision in the project management plan to mitigate cost and /or schedule risk (Project
Management Body of Knowledge, Third Edition).

III. Requirements

A. Purpose

	 	 	The Recipient may expend Contingency funds solely for the purpose of mitigating risks to the
cost and/or schedule associated with the project performance baseline and consistent with
the Risk Mitigation or Management Plan (RMP) and Risk Register. Schedule risks ultimately
would be reflected as cost overruns. It is expected that those risks will either be: a)
performance baseline schedule and/or cost risks that are identified in the RMP and Risk
Register (known risks or opportunities); or, b) to mitigate unknown performance baseline
risks or uncertainties that become incorporated into the RMP and Risk Register as they are
discovered.

B. Framework and Criteria

	 	1.	 	The framework that governs the use of Contingency funds on the project
authorized under this award relies on the Recipient to manage and control project

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Attachment 5

	 	 	 	performance baseline risks, opportunities and uncertainties utilizing the most
recent, change-controlled performance baseline, Risk RMP and Risk Register. As risks
are successfully mitigated throughout the duration of the project, the need for
contingency is anticipated to decline. At the point when the performance test has
been completed, the number and magnitude of risks and the available project and
Contingency funds will need to be evaluated prior to DOE’s Critical Decision 4 —
Approval of Operations.
	 
	 	2.	 	The initial 25 percent minimum Contingency is calculated based on the TPC (DOE
share 4- Recipient cost share) in dollars. The award is divided into two budget periods
Budget Periods 1 and 2 (BP1 and BP2). BP1 primarily involves relatively low risk
activities associated with design work, permitting, environmental baseline data
gathering and analysis, financial dose, and other activities that should not require
significant contingency to be managed effectively. Therefore, for the purposes of this
award, the 25% minimum Contingency requirement will be calculated based on the
estimated TPC balance that begins with Budget Period 2 (BP2 — construction and
operations). The Recipient will need to provide evidence (consistent with evidence
standards identified in C. below) of meeting the required 25% minimum Contingency prior
to DOE authorizing Critical Decision 3 — Approve Start of Construction. For example,
if the BP2 estimate for construction and operations equals a TPC of $100 million, with
$50 million DOE funds and $50 million Recipient cost share funds, a minimum of $25
million in initial Contingency funds would be required at the start of BP2. Any
increase in the TPC resulting from cost and/or schedule overruns incurred during BP1
will be added to the BP2 TPC before calculating the initial 25% Contingency minimum.
	 
	 	3.	 	Contingency Funds must be: a) liquid, b) immediately available, and c)
unrestricted funds that are dedicated to the project.
	 
	 	4.	 	Expenditures of Contingency funds is in addition to the TPC, and cannot count
towards cost share. Similarly, expenditures of Contingency cannot result in
reimbursement by DOE above the share approved for the project.
	 
	 	5.	 	Contingency is NOT to be included in the project budget estimate.
	 
	 	6.	 	The use of Contingency funds cannot be considered allowable costs under the
award unless and until Recipient has actually expended such funds to address cost
and/or schedule overruns to the performance baseline.
	 
	 	7.	 	Estimated or projected program income CANNOT count towards contingency up
front. However, the Recipient may use program income to reimburse actual expenditures
of Contingency funds upon approval by the DOE Contracting Officer.

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DE-EE0002878/001

Attachment 5

C. Acceptable Evidence of Sufficient Contingency Funds

	 	1.	 	Recipient must provide evidence of Contingency funds that are dedicated to the
project and sufficient to meet the 25 percent minimum, which must be documented and
reported on a monthly basis consistent with the reporting requirements for this award.
	 
	 	2.	 	Below is a list of the types of evidence the Contracting Officer may consider.
Although this list is not all-inclusive, it represents some of the types of documents
the Contracting Officer may consider as evidence of adequate Contingency. DOE will
review evidence of adequate Contingency provided by the Recipient on a case-by-case
basis to determine its acceptability. This evidence may include, but not is not limited
to, one or a combination of the following:

	 	(i)	 	Bank statement of availability of funds
	 
	 	(ii)	 	Letter of credit
	 
	 	(iii)	 	Evidence of sufficient cash funds (e.g., a letter from the
bank or investors certifying to the specific amounts and availability of cash
contributions)
	 
	 	(iv)	 	EPC Performance Guarantees
	 
	 	(v)	 	Evidence of funds in an escrowed account dedicated to the
project
	 
	 	(vi)	 	Performance bond(s) — Terms and conditions must be approved by
the Contracting Officer

	 	3.	 	Self-certification of the availability of Contingency funds is generally NOT
acceptable evidence. In order for self-certification to be considered acceptable by the
Contracting Officer, the following minimum requirements must be met:

	 	a.	 	An executive officer from the Recipient (typically, the Chief
Financial Officer) who has control of the disbursement of Contingency funds
must:

	 	i.	 	Certify to no less than the minimum required
initial specific amount, types and availability of Contingency funds;
	 
	 	ii.	 	Report on the expenditure of those funds
monthly to the Contracting Officer; and
	 
	 	iii.	 	Recertify to the specific amount, type and
availability of Contingency funds each month.

	 	b.	 	Any Contingency funds expended to address risks and/or
opportunities In the performance baseline must be transparent and documented
through the most recent approved baseline change control procedure; and

70

 

DE-EE0002878/001

Attachment 5

	 	c.	 	The documentation of expenditures of Contingency funds must be
transparent such that an independent auditor would be able to easily track the
use of such funds through the financial accounting system to the project code
of accounts and to the performance baseline cost overruns.

D. Control and Management of Contingency Funds

	 	1.	 	Cost overruns that result in changes to the performance baseline must go
through baseline change control. Cost overruns involving the use of Contingency must be
documented through the most recent, approved baseline change control procedure. Those
cost or schedule overruns that exceed the DOE-approved change control threshold must be
approved by DOE. Exception: in the situation where an event occurs that compromises
safety or threatens human health or the environment, the Recipient is expected to
expend the appropriate amount of resources and/or Contingency necessary to manage the
event and the project to a safe configuration. Changes to the performance baseline and
any cost overruns resulting from the event shall be addressed after the Recipient has
achieved a safe project configuration.
	 
	 	2.	 	Any month In which the amount of Contingency becomes Insufficient to meet the
required minimum, it must be reported to the Contracting Officer within five (5)
calendar days of discovery.
	 
	 	3.	 	Incorporation of Contingency within the basis of estimates for each activity
shall not be allowed. Activity estimates should be consistent with standard Recipient
project estimating methods (e.g., activity-based cost estimating, parametric cost
estimating, etc.), but shall avoid the embedding and layering of contingency throughout
the Work Breakdown Structure (WBS).
	 
	 	4.	 	At the completion of performance test (as described in the performance
baseline), DOE will conduct the Critical Decision 4 (CD-4) — Approval of Operations
review. This review will also be the point at which DOE will determine the amount of
Contingency the Recipient will be required to have available during the operations
phase. The criteria for this determination will be as follows:

	 	a.	 	Pilot plants — The amount of the Contingency typically
required will be based on a minimum of 10 percent of the initial capital cost
(BP2 TPC). Using this as a base, the amount of Contingency will be adjusted
taking into account risk mitigation trends through the end of the performance
test. For example, if the estimate to complete (ETC) and remaining risks
through the end of the performance test reflect successful risk mitigation and
cost effective project performance management, DOE would factor that into its
decision on what percentage contingency will be required for the operations
phase. DOE will withhold a percentage of its funds to assure that the
operations phase is completed in accordance with the performance baseline and
that DOE receives operations data in the form required.

71

 

DE-EE0002878/001

Attachment 5

	 	b.	 	Demonstration plants — The required amount of Contingency
typically will be based on a minimum of 10 percent of the Initial capital cost
(BP2 TPC). Using this as a base, the amount of Contingency will be adjusted
using risk mitigation trends through completion of the performance test. For
example, if the ETC and risks remaining through the end of the performance test
reflect successful risk mitigation and cost effective project performance
management, DOE could factor that into its decision on what percentage
contingency will be required for the operations phase. Furthermore, if the cost
of the core technology exceeds 10 percent of the initial capital cost (BP2
TPC), DOE will factor this into the percentage of DOE funds to be withheld to
assure that the operations phase is completed in accordance with the
performance baseline.

72

 

					
	Applicant Name:BioEnegy International LLC
	 	Award Number: DE-EE00002878/001
	 	Attachment 4

Budget Information — Non Construction Programs

DMB Approval No. 0348-0044

Section A — Budget Summary

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Catalog of	 	 	 	 	 	 	 
	 	 	Federal Domestic	 	 	 	 	 	 	 
	 	 	Assistance	 	 	Estimated Unobligated Funds	 	 	New or Revised Budget	 
	Grant Program Function or Activity	 	Number	 	 	Federal	 	 	Non-Federal	 	 	Federal	 	 	Non-Federal	 	 	Total	 
	(a)	 	(b)	 	 	(c)	 	 	(d)	 	 	(e)	 	 	(f)	 	 	(g)	 
	1. Budget Period 1
	 	 	 	 	 	 	 	 	 	 	 	 	 	$	10,419,044	 	 	$	10,419,044	 	 	$	10,419,044	 
	2. Budget Period 2
	 	 	 	 	 	 	 	 	 	 	 	 	 	TBD	 	TBD	 	TBD
	3.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5. Totals
	 	 	 	 	 	$	0	 	 	$	0	 	 	$	10,419,044	 	 	$	10,419,044	 	 	$	20,838,087	 

Section B — Budget Categories

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Grant program, Function or Activity	 
	6. Object Class Categories	 	(1) BP1	 	 	(2) BP2	 	 	(3)	 	 	(4)	 	 	Total (5)	 
	a. Personnel
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	b. Fringe Benefits
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	c. Travel
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	d. Equipment
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	e. Supplies
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	f. Contractual
	 	$	20,838,087	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	20,838,087	 
	g. Construction
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	h. Other
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	i. Total Direct Charges (sum of 6a-6h)
	 	$	20,838,087	 	 	TBD	 	$	0	 	 	$	0	 	 	$	20,838,087	 
	j. Indirect Charges
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 
	k. Totals (sum of 6i-6j)
	 	$	20,838,087	 	 	TBD	 	$	0	 	 	$	0	 	 	$	20,838,087	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7. Program Income
	 	$	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0	 

			
	 	 	 
	Previous Edition Usable
	 	SE-474A/Rev.4-92)

Prescribed by OMB Circular A-102

Authorized for Local Reproduction

73

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