Document:

EXHIBIT 10.24

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         SUBCONTRACT                      University of California
         NO. B514527                      Lawrence Livermore National Laboratory
                                          Procurement & Material
                                          P.O. Box 5012
                                          Livermore, CA 94551
--------------------------------------------------------------------------------
SUBCONTRACTOR:                         UNIVERSITY PROCUREMENT REPRESENTATIVE:

ZYGO CORPORATION                       William V. Karleskind
Attention: Karen DuPerry               Subcontract Administrator Specialist
P.O. Box 448
Middlefield, CT 06455-0448             PHONE #: (925) 422-7503
                                       FAX #:      (925) 422-9294
                                       E-MAIL:    karleskindl@llnl.gov
--------------------------------------------------------------------------------

INTRODUCTION

This is a subcontract for the finishing of 460 NIF optics as further described
herein.

The parties to this Subcontract are The Regents of the University of California
(hereinafter called "University") and the party identified above as the
"Subcontractor."

This is a subcontract under Prime Contract No. W-7405-ENG-48 between the
University and the United States Government (hereinafter called "Government"),
represented by the Department of Energy (hereinafter called "DOE"), for the
management and operation of the Lawrence Livermore National Laboratory
(hereinafter called "LLNL") and the performance of certain research and
development work.

AGREEMENT

The parties agree to perform their respective obligations in accordance with the
terms, conditions, and provisions of the attached SCHEDULE OF ARTICLES and any
documents referenced or incorporated therein, which together with this
Subcontract Signature Page shall collectively constitute the entire Subcontract
and shall supersede all prior negotiations, representations, or agreements,
whether verbal or written.

         ZYGO CORPORATION                                THE REGENTS OF
                                                  THE UNIVERSITY OF CALIFORNIA

BY:             /s/ Peter B. Mumola      BY:           /s/ R.W. Callaghan
         --------------------------------         ------------------------------
                                                         R.W. Callaghan

TITLE:        Vice President - Optics    TITLE:     NIF Procurement Manager
         --------------------------------         ------------------------------
                                                  LLNL Procurement & Material

DATE:                 4/14/01            DATE:              4/13/01
         --------------------------------         ------------------------------

                                      -66-

<PAGE>

                              SCHEDULE OF ARTICLES

                                       FOR

                             SUBCONTRACT NO. B514527

ARTICLE 1 - INCORPORATED DOCUMENTS

The following documents and forms are hereby incorporated as a part of this
Schedule of Articles of the Subcontract and are attached hereto:

DOCUMENTS

  GENERAL PROVISIONS FOR FIXED PRICE SUPPLIES AND SERVICES
    (GPs #600C; Rev. 08/01/00)
  STATEMENT OF WORK (DATE 12/1/00)
  SUBCONTRACT PRODUCTION SCHEDULE

ARTICLE 2 - SCOPE OF WORK

A.   The Subcontractor shall conduct certain work generally described as
     finishing of 460 NIF Optics. This work is more specifically described in
     the attached Statement of Work (SOW) and the applicable referenced LLNL
     drawings.

B.   The Subcontractor shall furnish all personnel, supervision, materials,
     supplies, equipment, tools, facilities, transportation, testing, and other
     incidental items and services necessary for performance of the work, except
     for Government Property specified herein to be furnished by the University.
     The Subcontractor shall deliver the materials, products, supplies, reports
     and residuals, as specified.

C.   The work shall be performed by the Subcontractor at the Subcontractor's
     facility located at Middlefield, Connecticut and at other locations
     approved by the University.

D.   This Subcontract is designated as a DX-E1 Rated Order. The Subcontractor
     shall comply with the provisions of the Defense Priorities and Allocations
     System Regulation (15 CFR Part 700) in obtaining controlled materials and
     other products and services needed to perform this Subcontract.

ARTICLE 3 - PERIOD OF PERFORMANCE

The work described in ARTICLE 2 - SCOPE OF WORK shall be completed on or before
February 13, 2002, in accordance with the attached Subcontract Production
Schedule.

                                      -67-

<PAGE>

ARTICLE 4 - PRICE, PAYMENT AND TRANSPORTATION

A.   Price

     The Subcontractor shall be paid as follows for the finishing of 460 NIF
     optics. These optics shall be finished in accordance with the technical
     specifications of the ARTICLE 2 - SCOPE OF WORK:

     1.   The Subcontractor shall be paid the fixed unit prices indicated for
          the finishing of the following 152 optics:

     ---------------------------------------------------------------------------
     Optic Type             Drawing Number   Quantity   Fixed    Extended price
                                                      Unit price
     --------------------------------------------------------------------------
     LM3                    AAA96-105332-OE     25      $3,698        $92,450.00
     --------------------------------------------------------------------------
     LM7B                   AAA96-105462-I/c    9       $4,042        $36,378.00
     --------------------------------------------------------------------------
     LM7C                   AAA96-105472-OC     16      $4,042        $64,672.00
     --------------------------------------------------------------------------
     WIP Amplifier Slabs*   AAA96-105113-OB     75      $4,617       $346,275.00
     --------------------------------------------------------------------------
     WIP Polarizers*        AAA96-105114-OA     27      $3,673        $99,171.00
     --------------------------------------------------------------------------
     Total Firm Fixed Price                    152                   $638,946.00
     --------------------------------------------------------------------------

     *    These shall be the first 75 amplifiers and 27 polarizers delivered
          under this Subcontract. The difference in value for these units shall
          be compensated for under Subcontract B507150.

2.   The Subcontractor shall finish an additional 275 amplifier slabs and 33
     Polarizers at the fixed unit prices indicated below. Each amplifier and
     polarizer shall be finished to one of two different specifications,
     depending on the homogeneity of the unfinished optics, provided by the
     University. The total price for all 308 optics shall be subject to a
     not-to-exceed ceiling amount of $2,075,348.00, which is based on the
     highest priced scenario. The following scenario, however, is a "best guess"
     estimate of what the actual mix may look like. As the final mix is not
     known, the Subcontractor shall be limited to the ceiling amount, a total
     quantity of 308, and the fixed unit prices indicated below:

--------------------------------------------------------------------------------
                                              Estimated   Fixed   Extended price
Optic Type                  Drawing Number    Quantity  Unit Price (Estimated)
--------------------------------------------------------------------------------
Amplifier Slab (full spec)  AAA96-105113-OB      274*     $6,916  $1,894,984.00*
--------------------------------------------------------------------------------
Polarizer (full spec)       AAA96-105112-OD      12*      $5,256     $63,072.00*
--------------------------------------------------------------------------------
Amplifier Slab (lower spec) AAA96-105514-OA       1*      $6,647      $6,647.00*
--------------------------------------------------------------------------------
Polarizer (lower spec)      AAA96-105114-OA      21*      $5,051    $106,071.00*
--------------------------------------------------------------------------------
Total                                            308              $2,070,774.00*
--------------------------------------------------------------------------------
* Estimate Only

                                      -68-

<PAGE>

     3.   The Subcontractor shall be paid an incentive for reduced breakage as
          follows:

          Amplifier Slabs:

          For the 350 amplifier slabs requiring finishing under this
          Subcontract, the Subcontractor shall be paid the incentive shown below
          for reduced breakage amounts achieved. The incentive for amplifier
          slabs shall be evaluated three times during this Subcontract, after
          the first 117 slabs are completed, after the next 117 and after the
          final 116. These periods shall be mutually exclusive with regard to
          determining breakage and incentive amounts.

          Number of Slabs:            117               117                 116

         *Number of Broken Slabs:                Incentive Amount
         -------------------------    ------------------------------------------
                0                     $40,000        $40,000             $40,000
                1                     $30,000        $30,000             $30,000
                2                     $20,000        $20,000             $20,000
                3                     $10,000        $10,000             $10,000
                4                       $   0          $   0               $   0

         Polarizers:

         For the 60 polarizers requiring finishing under this Subcontract, the
         Subcontractor shall be paid the incentive shown below for reduced
         breakage amounts achieved. The incentive for polarizers shall be
         evaluated once during this Subcontract, after completion of all units.

                                                         Total
         Number of Polarizers                             60

         Number Broken:                            Incentive Amount
         --------------                   -----------------------------------
               0                                     $15,000
               1                                      $7,500
               2                                        $  0

         For this Subcontract, the incentive amount paid for both amplifier
         slabs and polarizers shall be subject to a total ceiling amount of
         $135,000.00, which shall be the limit of the University's obligation.

         4. The total not-to-exceed amount of this Subcontract is $2,849,294.00.

                                      -69-

<PAGE>

          The prices stated above do not include, and the University shall not
          be charged for, any State Sales & Use Tax. The university holds
          California State Resale Permit No. SR-CHA 21-135323.

B.   Pricing of Adjustments

          When costs are a factor in any determination of a Subcontract price
          adjustment, pursuant to the "Changes" clause of the GENERAL PROVISIONS
          or any other provision of this Subcontract, such costs shall be in
          accordance with the contract cost principles and procedures in Part 31
          of the Federal Acquisition Regulation (48 CFR Part 31), as
          supplemented or modified by DEAR Part 931 (48 CFR Part 931) in effect
          as of the date of award of this Subcontract.

C.   Invoices

          The Subcontractor shall submit its invoice upon completion of the work
          to the following address:

                  University of California
                  Lawrence Livermore National Laboratory
                  Attn.: Bill Darleskind, L-443
                  P.O. Box 5001
                  Livermore, CA 94551

D.   Payment and Shipment

          Payment shall be made within 30 days after receipt of the
          Subcontractor's invoice, upon the University's acceptance of any
          portion of the work delivered or rendered for which a price is
          separately stated or an invoice is allowed. Shipment of optics may
          occur as soon all specifications are achieved, prior acceptance of the
          metrology data is not required. Payment, however, will continue to be
          upon acceptance of the metrology data.

E.   Transportation Terms

         F.O.B point:             Origin

         Shipping Point:          Zygo Corporation, Middlefield, Connecticut

         Shipping Instructions:   Burlington Express

                                  Mark airway bill: "Bill Recipient
                                                     Account 411-288-721"

ARTICLE 5 - COORDINATION AND ADMINISTRATION

A.   The University Procurement Representative for this Subcontract is Bill
     Karleskind. All matters relating to the administration, performance and
     non-technical interpretation of this Subcontract shall be referred to the
     University Procurement Representative. The Subcontractor shall direct all
     notices and requests for approval to the University Procurement
     Representative. The University Procurement Representative will issue any
     notices or non-technical approvals to the Subcontractor.

                                      -70-

<PAGE>

B.   The University Technical Representative for this Subcontract is Chris
     Stolz. The University Technical Representative will provide technical
     direction in connection with the work to be performed under this
     Subcontract. The term "technical directions" is defined to include (1)
     direction to the Subcontractor which assist in the interpretation of
     drawings, specifications, or technical portions of the work description;
     and (2) the review and approval of technical reports, drawings,
     specifications, and information to be delivered by the Subcontractor under
     the Subcontract, where required. The University Technical Representative
     will issue all technical direction in writing.

C.   The University Technical Representative is not authorized to issue any
     technical direction which would (1) constitute an assignment of work
     outside the general scope of the work covered by this Subcontract; (2)
     change the description of the work to be performed or any applicable
     drawings, designs, and specifications; (3) change the time or place of
     performance; the method of shipment or packaging, or the place of
     inspection, delivery or acceptance; (4) increase the estimated cost for
     performance of the work or the time required for performance of the work;
     (5) change any expressed term or condition of the Subcontract; or (6)
     unreasonably interfere with the Subcontractor's ability to perform and
     complete the work. Any such change must first be authorized by a written
     modification to this Subcontract issued by the University Procurement
     Representative.

ARTICLE 6 - REPORTS

As indicated in the attached SOW, the Subcontractor shall submit weekly
Inventory Tracking Sheet (ITS) reports to the University Technical
Representative, consistent with the previous pilot production Subcontract
B507150. Also required by the attached SOW is a requirement to maintain certain
technical documentation and procedures consistent with the previous Subcontract
B507150. These reports, documentation and procedures shall be coordinated on an
informal basis with the University Technical Representative, no formal
distribution shall be required.

ARTICLE 7 - PROPERTY

A.   The Subcontractor shall acquire, and/or the University will furnish to the
     Subcontractor, the materials, equipment, supplies, and/or tangible personal
     property items identified below, for use under this Subcontract:

     Subcontractor Acquired Property:

          None

                                      -71-

<PAGE>

     University Furnished Government Property:

     The property currently identifiable and accountable under Subcontract
     B507150 will be transferred to this Subcontract. At such time, the
     appropriate property will be identified and listed in this Subcontract.
     Until that time the Subcontractor is hereby authorized to use the
     University Furnished Government Property provided under B507150 in
     performance of this Subcontract.

B.   All property acquired by the Subcontractor and/or furnished by the
     University shall be identified, utilized, accounted for, and dispositioned
     in accordance with the clause of the General Provisions entitled GOVERNMENT
     PROPERTY (FIXED PRICE SUBCONTRACT). Disposition directions and
     authorization will be provided by the University's Property Management
     Department.

C.   Non-Subcontract Use of Government Owned Equipment:

     1.   Notwithstanding the limitation on Subcontractor use of Government
          property in the GENERAL PROVISION entitled GOVERNMENT PROPERTY, the
          Subcontractor may use the government owned equipment listed above
          without charge in the performance of, in order of preference:

          a.   Subcontracts under Department of Energy Contract No. W
               -7405-ENG-48;

          b.   Prime contracts with the Government that specifically authorize
               such use without charge;

          c.   Subcontracts of any tier under Government prime contracts other
               than W-7405-ENG-48 if the Contracting Officer having cognizance
               of the prime contract (i) approves a Subcontract specifically
               authorizing such use or (ii) otherwise authorizes such use in
               writing; and

          d.   Other work to the extent that such use does not interfere with
               work under a, b, and c above.

     2.   The Subcontractor agrees not to include in the price or prices of any
          such contracts or Subcontracts the cost of said listed property, or
          any allowance or charge to cover depreciation or amortization. The
          Subcontractor further agrees to allocate the cost of maintenance,
          upkeep, repairs and consumables to the appropriate indirect cost pool.
          In the case of the three ring polishers (RPs), the Subcontractor
          agrees to absorb the cost of normally scheduled maintenance, repairs
          and upkeep. If the RPs are used on non-Subcontract work, these costs
          may be allocated to the appropriate customer, provided the allocation
          does not include the University. In the case of RP consumables, the
          Subcontractor agrees to provide those utilized in the continuous
          operation of the RPs,

                                      -72-

<PAGE>

          while those used in the actual processing of optics are to be properly
          allocated to the price of the optics themselves.

     3.   Nothing in this Subcontract shall abrogate any right of the University
          to withdraw Government Owned Equipment from the Subcontractor upon
          reasonable notice, subject to provision for equitable adjustment that
          may exist in an active University Subcontract affected by such
          withdrawal on any work being performed by the Subcontractor under any
          other contract or subcontract.

ARTICLE 8 - APPROVAL OF TECHNICAL DATA

If this Subcontract requires the Subcontractor to furnish any drawings,
specifications, diagrams, layouts, schematics, descriptive literature,
illustrations, schedules, performance or test data, or other technical data for
approval by the University prior to Subcontractor performance, the approval of
the data by the University shall not relieve the Subcontractor from
responsibility for any errors or omissions in such data or from responsibility
for complying with the requirements of this Subcontract, except as specified
below. Any work done prior to such approval shall be at the Subcontractor's
risk.

If the data includes any variations from the Subcontract requirements, the
Subcontractor shall describe such variations in writing at the time of
submission of the data. If the University approves any such variation(s), a
change order to the Subcontract shall be issued by the University and, if
appropriate, a bilateral modification to the Subcontract shall be negotiated.

ARTICLE 9 - ASSIGNMENT OF PERSONNEL

It is understood and agreed that the Subcontractor's key technical personnel
assigned to this work shall not be reassigned or replaced without prior
University approval, except where such circumstances are beyond the reasonable
control of the Subcontractor.

The Subcontractor shall not employ unfit or unqualified personnel in the
performance of this Subcontract. Should the University deem anyone employed on
the work incompetent or unfit for his or her duties and so inform the
Subcontractor, the Subcontractor shall remove such person from work under this
Subcontract and he or she shall not again, without permission of the University,
be assigned to work under this Subcontract.

ARTICLE 10 - GENERAL PROVISIONS

A.   The clauses incorporated by reference in the attached GENERAL PROVISIONS
     shall be applicable to this Subcontract based on the value of the
     Subcontract, the status of the Subcontractor, and the nature and location
     of the work as indicated in the GENERAL PROVISIONS. As used therein, the
     term "Seller" shall mean "Subcontractor," and the terms "Purchase Order"
     and "PO" shall mean "Subcontract."

                                      -73-

<PAGE>

B.   This Subcontract shall not involve access to or the generation of
     classified information or access to "limited" or "exclusion" security
     areas. Accordingly, the clauses listed in the GENERAL PROVISIONS related to
     such work shall not apply.

C.   This Subcontract is not for the conduct of research, development, or
     demonstration (RD&D) work, or design work involving non-standard types of
     construction. Accordingly, the clauses listed in the GENERAL PROVISIONS
     related to such work shall not apply.

                                      -74-EXHIBIT 10.25

--------------------------------------------------------------------------------
          SUBCONTRACT                   University of California
                                        Lawrence Livermore National Laboratory
          NO. B519044                   Procurement & Material
                                        P.O. Box 5012
                                        Livermore, CA 94551
--------------------------------------------------------------------------------
SUBCONTRACTOR:                          UNIVERSITY PROCUREMENT REPRESENTATIVE:

ZYGO CORPORATION                        William V. Karleskind
Attention:  Karen DuPerry               Subcontract Administrator Specialist
P.O. Box 448
Middlefield, CT 06455-0448              Phone #:     (925) 422-7503
                                        Fax #:       (925) 422-9294
                                        E-Mail:      karleskind1@llnl.gov
--------------------------------------------------------------------------------

INTRODUCTION

This is a subcontract for the finishing of 588 NIF optics, as further described
herein.

The parties to this Subcontract are The Regents of the University of California
(hereinafter called "University") and the party identified above as the
"Subcontractor."

This is a subcontract under Prime Contract No. W-7405-ENG-48 between the
University and the United States Government (hereinafter called "Government"),
represented by the Department of Energy (hereinafter called "DOE"), for the
management and operation of the Lawrence Livermore National Laboratory
(hereinafter called "LLNL"), and the performance of certain research and
development work.

AGREEMENT

The parties agree to perform their respective obligations in accordance with the
terms, conditions, and provisions of the attached SCHEDULE OF ARTICLES and any
documents referenced or incorporated therein, which together with this
Subcontract Signature Page shall collectively constitute the entire Subcontract
and shall supersede all prior negotiations, representations, or agreements,
whether verbal or written.

          ZYGO CORPORATION           THE REGENTS OF

                                           THE UNIVERSITY OF CALIFORNIA

BY:       /s/ Peter B. Mumola        BY:            /s/ E.M. Moffet
        -------------------------          -------------------------------------
                                                        E.M. Moffet

TITLE     Vice President, Optics     TITLE          Deputy for Subcontracts
        -------------------------          -------------------------------------
                                                    LLNL Procurement & Material

DATE:     1/14/02                    DATE:          1-11-02
        -------------------------          -------------------------------------

Signature Page

                                      -75-

<PAGE>

                              SCHEDULE OF ARTICLES
                                       FOR
                             SUBCONTRACT NO. B519044

ARTICLE 1 - INCORPORATED DOCUMENTS

The following documents and forms are hereby incorporated as a part of this
Schedule of Articles of the Subcontract and are attached hereto:

DOCUMENTS

     GENERAL PROVISIONS FOR FIXED PRICE SUPPLIES AND SERVICES (GPS#600C; REV
     05/23/01) STATEMENT OF WORK (DATE 12/13/01)

ARTICLE 2 - SCOPE OF WORK

A.   The Subcontractor shall conduct certain work generally described as
     finishing of 588 NIF Optics. This work is more specifically described in
     the attached Statement of Work (SOW) and the applicable referenced LLNL
     drawings.

B.   The Subcontractor shall furnish all personnel, supervision, materials,
     supplies, equipment, tools, facilities, transportation, testing, and other
     incidental items and services necessary for performance of the work, except
     for Government Property specified herein to be furnished by the University.
     The Subcontractor shall deliver the materials, products, supplies, reports,
     and residuals, as specified.

C.   The work shall be performed by the Subcontractor at the Subcontractor's
     facility located at Middlefield, Connecticut, and at other locations
     approved by the University.

D.   This Subcontract is designated as a DX-E1 Rated Order. The Subcontractor
     shall comply with the provisions of the Defense Priorities and Allocations
     System Regulation (15 CFR Part 700) in obtaining controlled materials and
     other products and services needed to perform this Subcontract.

E.   The University may, at its option, by written unilateral modification to
     this Subcontract, require the continued performance of the Scope of Work
     described herein for the option period specified in Article 3 - PERIOD OF
     PERFORMANCE. Exercise of the option will be at least 60 days prior to the
     completion of the initial Subcontract period of performance.

ARTICLE 3 - PERIOD OF PERFORMANCE

The work described in ARTICLE 2 - SCOPE OF WORK shall be completed on or before
February 3, 2002, in accordance with the subcontract production schedule
indicated in the SOW.

                                      -76-

<PAGE>

ARTICLE 4 - PRICE, PAYMENT, AND TRANSPORTATION

A.   Price

     1.   The Subcontractor shall be paid the following fixed prices for the
          finishing of 588 NIF optics in accordance with the schedule and
          technical specifications of the ARTICLE 2 - SCOPE OF WORK.

                                                      YEAR 1

--------------------------------------------------------------------------------
Optic Type                  Drawing Number  Quantity      Fixed     Extended
                                                       Unit Price    Price
--------------------------------------------------------------------------------
Amplifier Slab (full spec)  AAA96-105113-OC   432*       $6,311     $2,726,352
--------------------------------------------------------------------------------
Amplifier Slab (lower spec) AAA96-105115-QA   TBD*       $6,065*    $TBD*
--------------------------------------------------------------------------------
Polarizer (lower spec)      AAA96-105515-QA    19        $3,739     $71,041
--------------------------------------------------------------------------------
LM1 Mirror                  AAA96-105312-OD    24        $8,304     $199,296
--------------------------------------------------------------------------------
All other mirrors           See Attached SOW  113        $3,883     $438,779
--------------------------------------------------------------------------------
Total Maximum Fixed Price                     588                   $3,435,468
--------------------------------------------------------------------------------

     *    The possibility of the Subcontractor having to finish an amplifier
          slab to the lower specification is dependent on the homogeneity of the
          unfinished optics provided by the University, however, it is
          considered unlikely. Unit pricing is included above in the event that
          this should occur.

     2.   The Subcontractor shall be paid an incentive for reduced breakage as
          follows:

          Amplifier Slabs:

          For the 432 amplifier slabs requiring finishing under this
          Subcontract, the Subcontractor shall be paid the incentive shown below
          for reduced breakage amounts achieved. The incentive for amplifier
          slabs shall be evaluated four times during this Subcontract, after
          each 108 slabs are completed. These periods shall be mutually
          exclusive with regard to determining breakage and incentive amounts.

          Number of Slabs:           108       108           108       108
          *Number of Broken Slabs                Incentive Amount
          -----------------------  ---------------------------------------------
                 0                 $40,000   $40,000       $40,000    $40,000
                 1                 $30,000   $30,000       $30,000    $30,000
                 2                 $10,000   $10,000       $10,000    $10,000
                 3                 $     0   $     0       $     0    $     0

                                      -77-

<PAGE>

          Polarizers:

          For the 19 polarizers requiring finishing under this Subcontract, the
          Subcontractor shall be paid the incentive shown below for reduced
          breakage amounts achieved. The incentive for polarizers shall be
          evaluated once during this Subcontract, after completion of all units.

                                     Total

           Number of Polarizers                                   19

           Number Broken                      Incentive Amount
                                     -------------------------------
           0                                     $5,000
           1                                     $    0

          For this Subcontract, the incentive amount paid for both amplifier
          slabs and polarizers shall be subject to a total ceiling amount of
          $165,000.00, which shall be the limit of the University's obligation.

     3.   The total maximum price is $3,600,468.00.

     4.   If exercised by a unilateral modification to this Subcontract, the
          Subcontractor shall finish an additional 690 optics at the fixed unit
          prices indicated below, consistent with the specifications and
          schedule of the ARTICLE 2 - SCOPE OF WORK. Delivery of these option
          quantities, if exercised, will be after successful completion of the
          initial 588 optics.

                                 OPTION (YEAR 2)

--------------------------------------------------------------------------------
                                                          Fixed      Extended
Optic Type                  Drawing Number   Quantity   Unit Price    Price
--------------------------------------------------------------------------------
Amplifier Slab (full spec)  AAA96-105113-OC  462         $6,311      $2,915,682
--------------------------------------------------------------------------------
Amplifier Slab (lower spec) AAA96-105115-QA  TBD*        $6,065*     $TBD
--------------------------------------------------------------------------------
LM1 Mirror                  AAA96-105312-OD  48          $8,304      $398,592
--------------------------------------------------------------------------------
All other mirrors           See Attached SOW 180         $3,883      $698,940
--------------------------------------------------------------------------------
Total Maximum Fixed Price                    690                     $4,013,214
--------------------------------------------------------------------------------

     *    The possibility of the Subcontractor having to finish an amplifier
          slab to the lower specification is dependent on the homogeneity of the
          unfinished optics provided by the University, however, it is
          considered unlikely. Unit pricing is included above in the event that
          this should occur.

                                      -78-

<PAGE>

          Consistent with the incentive for the first year, the Subcontractor
          shall be paid the following incentive for reduced breakage on the 462
          amplifier slabs under this option:

           Number of Slabs:          15       115            116       116
           *Number of Broken Slabs             Incentive Amount
           ----------------------- ---------------------------------------------
                  0                $40,000   $40,000    $40,000      $40,000
                  1                $30,000   $30,000    $30,000      $30,000
                  2                $10,000   $10,000    $10,000      $10,000
                  3                $     0   $     0    $     0      $     0

          For this option, the incentive amount paid for amplifier slabs shall
          be subject to a total ceiling amount of $160,000.00, which shall be
          the limit of the University's obligation.

          If this option is exercised by the University per a unilateral
          modification, the total maximum price of this Subcontract will be
          $7,773,682.00.

          The prices stated above do not include, and the University shall not
          be charged for, any State Sales & Use Tax. The University holds
          California State Resale Permit No. SR-CHA 21-135323.

     B.   Pricing of Adjustments

          When costs are a factor in any determination of a Subcontract price
          adjustment, pursuant to the "Changes" clause of the GENERAL PROVISIONS
          or any other provision of this Subcontract, such costs shall be in
          accordance with the contract cost principles and procedures in Part 31
          of the Federal Acquisition Regulation (48 CFR Part 31), as
          supplemented or modified by DEAR Part 931 (48 CFR Part 931) in effect
          as of the date of award of this Subcontract.

     C.   Invoices

          The Subcontractor shall submit its invoice upon completion of the work
     to the following address:

                           University of California
                           Lawrence Livermore National Laboratory
                           Attn:  Bill Karleskind, L-443
                           P.O. Box 5001
                           Livermore, CA 94551

                                      -79-

<PAGE>

     D.   Payment and Shipment

          Payment shall be made within 30 days after receipt of the
          Subcontractor's invoice, upon the University's acceptance of any
          portion of the work delivered or rendered for which a piece is
          separately stated or an invoice is allowed. Shipment of optics may
          occur as soon as all specifications are achieved, prior acceptance of
          the metrology data is not required. Payment, however, will continue to
          be upon acceptance of the metrology data.

     E.   Transportation Terms

          F.O.B. point:           Origin
          Shipping Point:         Zygo Corporation, Middlefield, Connecticut
          Shipping Instructions:  Burlington Express
                                  Mark airway bill:  "Bill Recipient
                                                      Account 411-288-721"

     ARTICLE 5 - COORDINATION AND ADMINISTRATION

     A.   The University Procurement Representative is Bill Karleskind. All
          matters relating to the administration, performance, and non-technical
          interpretation of this Subcontract shall be referred to the University
          Procurement Representative. The Subcontractor shall direct all notices
          and requests for approval to the University Procurement
          Representative. The University Procurement Representative will issue
          any notices or non-technical approvals to the Subcontractor.

     B.   The University Technical Representative for this Subcontract is Joe
          Menapace. The University Technical Representative will provide
          technical direction in connection with the work to be performed under
          this Subcontract. The term "technical direction" is defined to include
          91) direction to the Subcontractor which assist in the interpretation
          of drawings, specifications, or technical portions of the work
          description; and (2) the review and approval of technical reports,
          drawings, specifications, and information to be delivered by the
          Subcontractor under the Subcontract, where required. The University
          Technical Representative will issue all technical direction in
          writing.

     C.   The University Technical Representative is not authorized to issue any
          technical direction which would (1) constitute an assignment of work
          outside the general scope of the work covered by this Subcontract; (2)
          change the description of the work to be performed or any applicable
          drawings, designs, and specifications; (3) change the time or place of
          performance; the method of shipment or packaging, or the place of
          inspection, delivery, or acceptance; (4) increase the estimated cost
          for performance of the work or the time required for performance of
          the work; (5) change any expressed term or condition of the
          Subcontract; or (6) unreasonably interfere with the Subcontractor's
          ability to perform and complete the work. Any such change must first
          be authorized by a written modification to this Subcontract issued by
          the University Procurement Representative.

                                      -80-

<PAGE>

     ARTICLE 6 - REPORTS

     As indicated in the attached SOW, the Subcontractor shall submit weekly
     Inventory Tracking Sheet (ITS) reports to the University Technical
     Representative, consistent with the previous production subcontract
     B514527. Also required by the attached SOW is a requirement to maintain
     certain technical documentation and procedures consistent with the same
     previous subcontract. These reports, documentation, and procedures shall be
     coordinated on an informal basis with the University Technical
     Representative, no formal distribution shall be required.

     ARTICLE 7 - PROPERTY

     A.   The Subcontractor shall acquire, and/or the University will furnish to
          the Subcontractor, the materials, equipment, supplies, and/or tangible
          personal property items identified below, for use under this
          Subcontract:

          Subcontractor Acquired Property:
                           None
          University Furnished Government Property

          In addition to the material to be supplied by the University as
          indicated in the SOW, the property currently identifiable and
          accountable under Subcontract B514527 will be transferred to this
          Subcontract. At such time, the appropriate property will be identified
          and listed in this Subcontract. Until that time the Subcontractor is
          hereby authorized to use the University Furnished Government Property
          provided under B514527 in performance of this Subcontract.

     B.   All property acquired by the Subcontractor and/or furnished by the
          University shall be identified, utilized, accounted for, and
          dispositioned in accordance with the clause of the General Provisions
          entitled GOVERNMENT PROPERTY (FIXED PRICE SUBCONTRACT). Disposition
          directions and authorization will be provided by the University's
          Property Management Department.

     C.   Non-Subcontract Use of Government Owned Equipment:

       1. Notwithstanding the limitation on Subcontractor use of Government
          property in the GENERAL PROVISION entitled GOVERNMENT PROPERTY, the
          Subcontractor may use the government owned equipment listed above
          without charge in the performance of, in order of preference:

          a.   Subcontracts under Department of Energy Contract No.
               W-7405-ENG-48;

                                      -81-

<PAGE>

          b.   Prime contracts with the Government that specifically authorize
               such use without charge;

          c.   Subcontracts of any tier under Government prime contracts other
               than W-7405-ENG-48 if the Contracting Officer having cognizance
               of the Prime contract (i) approves a Subcontract specifically
               authorizing such Use or (ii) otherwise authorizes such use in
               writing; and

          d.   Other work to the extent that such use does not interfere with
               work under a, b, and c above.

     2.   The Subcontractor agrees not to include in the price or prices of any
          such contracts or Subcontracts the cost of said listed property, or
          any allowance or charge to cover depreciation or amortization. The
          Subcontractor further agrees to allocate the cost of maintenance,
          upkeep, repairs, and consumables to the appropriate customers as
          defined in paragraph C1 above, or to the appropriate indirect cost
          pool. In the case of the three ring polishers (RPs), the Subcontractor
          agrees to absorb the cost of normally scheduled maintenance, repairs,
          and upkeep. If the RPs are used on non-Subcontract work, these costs
          may be allocated to the appropriate customer, provided the allocation
          does not include the University. In the case of RP consumables,, the
          Subcontractor agrees to provide those utilized in the continuous
          operation of the RPs, while those used in the actual processing of
          optics are to be properly allocated to the price of the optics
          themselves.

     3.   Nothing in this Subcontract shall abrogate any right of the University
          to withdraw Government Owned Equipment from the Subcontractor upon
          reasonable notice, subject to provision for equitable adjustment that
          may exist in an active University Subcontract affected by such
          withdrawal. The University is not responsible for the effect of such
          withdrawal on any work being performed by the Subcontractor under any
          other contract or subcontract.

ARTICLE 8 - APPROVAL OF TECHNICAL DATA

If this Subcontract requires the Subcontractor to furnish any drawings,
specifications, diagrams, layouts, schematics, descriptive literature,
illustrations, schedules, performance or test data, or other technical data for
approval by the University prior to Subcontractor performance, the approval of
the data by the University shall not relieve the Subcontractor from
responsibility for any errors or omissions in such data or from responsibility
for complying with the requirements of this Subcontract, except as specified
below. Any work done prior to such approval shall be at the Subcontractor's
risk.

If the data includes any variations from the Subcontract requirements, the
Subcontractor shall describe such variations in writing at the time of
submission of the data. If the University approves any such variation(s), a
change order to the Subcontract shall be issued by the University and, if
appropriate, a bilateral modification to the Subcontract shall be negotiated.

                                      -82-

<PAGE>

ARTICLE 9 - ASSIGNMENT OF PERSONNEL

It is understood and agreed that the Subcontractor's key technical personnel
assigned to this work shall not be reassigned or replaced without prior
University approval, except where such circumstances are beyond the reasonable
control of the Subcontractor.

The Subcontractor shall not employ unfit or unqualified personnel in the
performance of this Subcontract. Should the University deem anyone employed on
the work incompetent or unfit for his or her duties and so inform the
Subcontractor, the Subcontractor shall remove such person from work under this
Subcontract and he or she shall not again, without written permission of the
University, be assigned to work under this Subcontract.

ARTICLE 9 - GENERAL PROVISIONS

     A.   The clauses incorporated by reference in the attached GENERAL
          PROVISIONS shall be applicable to this Subcontract based on the value
          of the Subcontract, the status of the Subcontractor, and the nature
          and location of the work as indicated in the GENERAL PROVISIONS. As
          used therein, the term "Seller" shall mean "Subcontractor," and the
          terms "Purchase Order" and "PO" shall mean "Subcontract."

     B.   This Subcontract shall not involve access to or the generation of
          classified information or access to "limited" or "exclusion" security
          areas. Accordingly, the clauses listed in the GENERAL PROVISIONS
          related to such work shall not apply.

     C.   This Subcontract is not for the conduct of research, development, or
          demonstration (RD&D) work, or design work involving non-standard types
          of construction. Accordingly, the clauses listed in the GENERAL
          PROVISIONS related to such work shall not apply.

                           END OF SCHEDULE OF ARTICLES

                                      -83-

<PAGE>

                                STATEMENT OF WORK

                               Production (P3/P4)

                                   NID0075521

1.   OBJECTIVE

The objective of this Subcontract is to perform optical finishing on 588
production optics (amplifiers, polarizers, and mirrors) to support the National
Ignition Facility (NIF), a 192 beam laser capable of fusion ignition. An option
for an additional 690 optics is also included in this Subcontract. The
Subcontractor shall utilize the technologies and facilities established by them
under NIF/ICF development, facilitization, and pilot production for the
manufacturing of these optics.

2.   WORK REQUIREMENTS

The Subcontractor shall provide all labor, facilities, equipment (other than
that provided as GFE) and processes needed to finish the quantities of optics
listed in section 3 of this SOW. Much of the equipment required to finish these
optics has been provided as GFE. Consistent with ARTICLE 7 - PROPERTY of the
Subcontract Schedule of Articles, the Subcontractor shall be responsible for the
cost of maintenance and repairs of all GFE. However, no equipment modifications
or upgrades shall be performed on GFE without the written approval of the
University's Procurement Representative. In addition, the Subcontractor shall
maintain a qualified workforce capable of manufacturing NIF optics with
stringent specifications.

The University shall provide all optical blanks for finishing under this
Subcontract as well as the epoxy kits, shaped cladding strips for the laser slab
assemblies, PET-G containers and shipping crates. The Subcontractor shall notify
the University in writing sixty days in advance of their needs for this
University supplied material. The University will ensure that all requests are
met in a timely manner to avoid shortages that may impact the Subcontractor's
production schedule.

3.   QUANTITIES

Table 1 shows the number and types of optics to be fabricated under this
Subcontract that covers twelve months of what is referred to by the University
as P3 Production. The numbers and types correspond to a baseline production
scenario that represent the required production rate for this Subcontract.

SOW                                   -1-

     This document contains information proprietary to the Zygo Corporation

                                      -84-

<PAGE>

Table 2 shows those optics that the University requires as an additional
one-year option (P4) with the quantities and optic mix shown. The University
anticipates exercising this option at least sixty days prior to the completion
of the baseline quantities.

SOW                                    -2-

     This document contains information proprietary to the Zygo Corporation

                                      -85-

<PAGE>

Table 1.  Optics to be finished under this Subcontract:
--------------------------------------------------------------------------------
OPTIC            Drawing number     Mar-02   Apr-02  May-02 Jun-02 Jul-02 Aug-02
--------------------------------------------------------------------------------
LASER GLASS

--------------------------------------------------------------------------------
Amplifier slab   AAA96-105113-OC        35       35      35     35     35     35
--------------------------------------------------------------------------------
POLARIZER

--------------------------------------------------------------------------------
Polarizer        AAA96-105112-OD
--------------------------------------------------------------------------------
MIRRORS

--------------------------------------------------------------------------------
LM1              AAA96-105312-OD                                       2      2
--------------------------------------------------------------------------------
LM2              AAA96-105322-OE         1       11      11     5
--------------------------------------------------------------------------------
LM3              AAA96-105332-OE

--------------------------------------------------------------------------------
LM4a             AAA96-105412-OC

--------------------------------------------------------------------------------
LM4b             AAA96-105422-OC

--------------------------------------------------------------------------------
LM5              AAA96-105432-OC        10
--------------------------------------------------------------------------------
LM6              AAA96-105442-OC                                6      9      9
--------------------------------------------------------------------------------
LM7a             AAA96-105452-OD
--------------------------------------------------------------------------------
LM7b             AAA96-105462-OD
--------------------------------------------------------------------------------
LM7c             AAA96-105472-OD
--------------------------------------------------------------------------------
LM7d             AAA96-105342-OD
--------------------------------------------------------------------------------
LM7e             AAA96-105352-OE
--------------------------------------------------------------------------------
LM8a             AAA96-105482-OD
--------------------------------------------------------------------------------
LM8at            AAA96-105362-OC
--------------------------------------------------------------------------------
LM8b             AAA96-105492-OD
--------------------------------------------------------------------------------
LM8bt            AAA96-105372-OC
--------------------------------------------------------------------------------
Total                                   46       46      46     46     46     46
--------------------------------------------------------------------------------
LM1, LM2, LM3, and Polarizer are being revised per ECR 2031 (relaxation of
roughness from 0.4 nm to 1.0 nm)
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
OPTIC          Drawing number  Sep-02  Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Total
--------------------------------------------------------------------------------
LASER GLASS
--------------------------------------------------------------------------------
Amplifier slab AAA96-105113-OC     37      37     37     37     37     37    432
--------------------------------------------------------------------------------
POLARIZER
--------------------------------------------------------------------------------
Polarizer      AAA96-105112-OD     12       7                                 19
--------------------------------------------------------------------------------
MIRRORS
--------------------------------------------------------------------------------
LM1            AAA96-105312-OD      2       2     4      4      4      4      24
--------------------------------------------------------------------------------
LM2            AAA96-105322-OE                                                28
--------------------------------------------------------------------------------
LM3            AAA96-105332-OE                                                0
--------------------------------------------------------------------------------
LM4a           AAA96-105412-OC                    1      11     11     11     34
--------------------------------------------------------------------------------
LM4b           AAA96-105422-OC                                                0
--------------------------------------------------------------------------------
LM5            AAA96-105432-OC                                                10
--------------------------------------------------------------------------------
LM6            AAA96-105442-OC      1                                         25
--------------------------------------------------------------------------------
LM7a           AAA96-105452-OD                                                0
--------------------------------------------------------------------------------
LM7b           AAA96-105462-OD              6     10                          16
--------------------------------------------------------------------------------
LM7c           AAA96-105472-OD                                                0
--------------------------------------------------------------------------------
LM7d           AAA96-105342-OD                                                0
--------------------------------------------------------------------------------
LM7e           AAA96-105352-OE                                                0
--------------------------------------------------------------------------------
LM8a           AAA96-105482-OD                                                0
--------------------------------------------------------------------------------
LM8at          AAA96-105362-OC                                                0
--------------------------------------------------------------------------------
LM8b           AAA96-105492-OD                                                0
--------------------------------------------------------------------------------
LM8bt          AAA96-105372-OC                                                0
--------------------------------------------------------------------------------
Total                              52      52     52     52     52     52    588
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
LM1, LM2, LM3, and Polarizer are being revised per ECR 2031 (relaxation of
roughness from 0.4 nm to 1.0 nm)
--------------------------------------------------------------------------------

                                      -86-

<PAGE>

Table 2.  Optics to be finished as a follow-on option:
--------------------------------------------------------------------------------
OPTIC          Drawing number    Mar-03   Apr-03 May-03  Jun-03 Jul-03  Aug-03
--------------------------------------------------------------------------------
LASER GLASS
--------------------------------------------------------------------------------
Amplifier slab AAA96-105113-OC       38       38     38      38     38      38
--------------------------------------------------------------------------------
POLARIZER
--------------------------------------------------------------------------------
Polarizer      AAA96-105112-OD
--------------------------------------------------------------------------------
MIRRORS
--------------------------------------------------------------------------------
LM1            AAA96-105312-OD          4      4      4      4      4       4
--------------------------------------------------------------------------------
LM2            AAA96-105322-OE
--------------------------------------------------------------------------------
LM3            AAA96-105332-OE
--------------------------------------------------------------------------------
LM4a           AAA96-105412-OC          6
--------------------------------------------------------------------------------
LM4b           AAA96-105422-OC          8     14     14      11
--------------------------------------------------------------------------------
LM5            AAA96-105432-OC                               3      14      14
--------------------------------------------------------------------------------
LM6            AAA96-105442-OC
--------------------------------------------------------------------------------
LM7a           AAA96-105452-OD
--------------------------------------------------------------------------------
LM7b           AAA96-105462-OD
--------------------------------------------------------------------------------
LM7c           AAA96-105472-OD
--------------------------------------------------------------------------------
LM7d           AAA96-105342-OD
--------------------------------------------------------------------------------
LM7e           AAA96-105352-OE
--------------------------------------------------------------------------------
LM8a           AAA96-105482-OD
--------------------------------------------------------------------------------
LM8at          AAA96-105362-OC
--------------------------------------------------------------------------------
LM8b           AAA96-105492-OD
--------------------------------------------------------------------------------
LM8bt          AAA96-105372-OC
--------------------------------------------------------------------------------
Total                                56       56     56      56     56      56
--------------------------------------------------------------------------------
LM1, LM2, LM3, and Polarizer are being revised per ECR 2031 (relaxation of
roughness from .4 nm to 1.0 nm)
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
OPTIC          Drawing number  Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04  Total
--------------------------------------------------------------------------------
LASER GLASS
--------------------------------------------------------------------------------
Amplifier slab AAA96-105113-OC     39     39     39     39     39     39     462
--------------------------------------------------------------------------------
POLARIZER
--------------------------------------------------------------------------------
Polarizer      AAA96-105112-OD     12      7                                  0
--------------------------------------------------------------------------------
MIRRORS
--------------------------------------------------------------------------------
LM1            AAA96-105312-OD      4      4     4      4      4      4       48
--------------------------------------------------------------------------------
LM2            AAA96-105322-OE                                                0
--------------------------------------------------------------------------------
LM3            AAA96-105332-OE                                 10     16      26
--------------------------------------------------------------------------------
LM4a           AAA96-105412-OC                                                6
--------------------------------------------------------------------------------
LM4b           AAA96-105422-OC                                                47
--------------------------------------------------------------------------------
LM5            AAA96-105432-OC     10                                         41
--------------------------------------------------------------------------------
LM6            AAA96-105442-OC                                                0
--------------------------------------------------------------------------------
LM7a           AAA96-105452-OD                          14     6              20
--------------------------------------------------------------------------------
LM7b           AAA96-105462-OD             6     16     2                     24
--------------------------------------------------------------------------------
LM7c           AAA96-105472-OD                                                0
--------------------------------------------------------------------------------
LM7d           AAA96-105342-OD                                                0
--------------------------------------------------------------------------------
LM7e           AAA96-105352-OE      6     10                                  16
--------------------------------------------------------------------------------
LM8a           AAA96-105482-OD                                                0
--------------------------------------------------------------------------------
LM8at          AAA96-105362-OC                                                0
--------------------------------------------------------------------------------
LM8b           AAA96-105492-OD                                                0
--------------------------------------------------------------------------------
LM8bt          AAA96-105372-OC                                                0
--------------------------------------------------------------------------------
Total                              59     59     59     59     59     59     690
--------------------------------------------------------------------------------
LM1, LM2, LM3, and Polarizer are being revised per ECR 2031 (relaxation of
roughness from 0.4 nm to 1.0 nm)
--------------------------------------------------------------------------------

                                      -87-

<PAGE>

4.   SPECIFICATIONS

The specifications for each optical component are contained within the drawings
that are listed in Appendix A. Prior to commencement of work the Subcontractor
shall confirm with the University Technical Representative that they have the
most current drawings. All drawings and appendices should already be in the
Subcontractor's possession, however, any that are not will be sent upon request.
Note that these drawings have been written in accordance with the ISO 10110
standard. The optics shall be finished to meet the specifications on the
finished optics drawings listed in Appendix A. The corresponding material
drawings and specifications are listed in Appendix B. The attachment "Detailed
Cladding Guidance," Appendix D, provides details on cladding that augments the
drawings and supersedes them in places.

The ability of the Subcontractor to meet the transmitted wavefront requirements
of polarizers is dependent on the material inhomogeneity. The best commercially
available material may be insufficient to meet the transmitted wavefront
specification. Any material that is unable to be finished, meaning a reasonable
effort has been made by the Subcontractor to meet the transmitted wavefront
specification, shall be finished to the prefigured specifications in drawing
AAA96-105515. If after award of this Subcontract, the Subcontractor should
develop the capability to preferentially figure optics to compensate for
material inhomogeneity, then the additional cost for that effort will be
negotiated as a separate subcontract action.

Laser glass inhomogeneity will also impact finished transmitted wavefront
performance. To address this issue amplifier slabs shall be divided into two
classes of material as illustrated in the table below.

                   Table 2: Finished amplifier slab RMS gradient specification
                            For different grades of blank homogeneity

                   -------------------------------------------------------------
                   Blank RMS gradient           <=0.0083            >0.0083
                   specification
                   (waves/cm @ 633nm)
                   -------------------------------------------------------------
                   Finished RMS                 <=0.0111           >0.0111
                   Gradient specification                      (<1(lambda) p-v)
                   (waves/cm @ 633nm)                           (<1.8 nm PSD1)
                   -------------------------------------------------------------

For amplifier slabs with blank RMS gradient <=0.0065 waves/cm the vendor shall
finish the parts to full specification as per drawing AAA96-105113-OC. For
optics with blank RMS gradient 0.0065 <= X <= 0.0083, the vendor shall finish
the optics under best effort to wavefront specifications as per drawing
AAA96-105113-OC. For amplifiers with RMS gradient > 0.0083, the vendor shall
finish the optics to the specifications as per drawing AAA96-105115-0A.

SOW                                    -5-

     This document contains information proprietary to the Zygo Corporation

                                      -88-
<PAGE>

5.   MANUFACTURING YIELD/BREAKAGE

The optical blanks that are shaped by the Subcontractor have significant value,
particularly amplifier slabs ($15K - $30K each) and polarizers ($11K - $15K
each). Breakage of these optics results in a loss to the NIF program. Also,
excessive breakage of amplifier slabs may force the University to initiate an
additional melting campaign at an approximate cost of $10M - $15M. Given the
value of these blanks, it is imperative that reasonable efforts be taken by the
Subcontractor to protect these optics from damage during processing.

Based on breakage rates from past ICF projects, the University expects the
breakage rate not to exceed 2% over a quantity of at least 25 of each optic type
(amplifier slab, polarizer, or mirror). A breakage rate from 2%-5% shall result
in a report to the University Technical Representative to present the current
issues and mitigation strategy. Breakage rates exceeding 5% may result in a
STOP-WORK ORDER being issued by the University, consistent with the General
Provisions of this Subcontract. If a STOP-WORK ORDER is issued the Subcontractor
shall cease all work until a mitigation strategy aimed at solving the problem,
is implemented. Mitigation measures could include such actions as improved
training, fixture modifications, machine interlock systems, removal of an
employee from this subcontract. Etc.

Breakage shall be defined as damage caused by the Subcontractor that renders the
optic useless. Non-Conformance Reports (NCRs) shall not apply against breakage
determinations.

6.   REPORTING REQUIREMENTS

          A)   WEEKLY PROGRESS REPORTS - INVENTORY TRACKING SHEET (ITS)

               The Subcontractor shall send a status list of all optics within
               their Facility utilizing the established Excel compatible ITS
               spreadsheet Utilized in previous subcontracts B335188 and
               B514527.

The following documents, while not specific deliverables under this Subcontract,
shall be maintained by the Subcontractor and updated as necessary to reflect any
changes or improvements. These documents were originally developed and approved
as part of the scope of work under Subcontract B335188 and maintained under
Subcontract B514527. The Subcontractor shall notify the University's Technical
Representative if any changes are made to the QA/QC Plan or to any of the
Process Materials and Procedures, providing appropriate details for the
University to determine the impact to finished optics. A brief description of
each document follows, though the complete requirement is contained in the
statements of work for B335188 and B514527 and is incorporated by reference
herein:

SOW                                   -6-

     This document contains information proprietary to the Zygo Corporation

                                      -89-

<PAGE>

          B)   QUALITY ASSURANCE PLAN

               The Subcontractor shall maintain and adhere to a documented
               Quality Assurance/Quality Control (QA/QC) plan and program. This
               plan and program shall provide for the control of the design,
               procurement, manufacturing, delivery, and test activities of the
               production of items, systems, and services required by this SOW
               and applicable Drawings. Procedures implementing the requirements
               of the Subcontractor's QA/QC program plan shall be maintained as
               well.

               The Subcontractor shall retain interferometric production data,
               surface quality maps and final inspection records on all finished
               optics delivered under this Subcontract for a minimum of seven
               years after expiration of this Subcontract. These records shall
               be made available to the University Technical Representative upon
               request. Within a reasonable time prior to the end of the
               retention period, the Subcontractor shall request disposition
               instructions of the records from the University Technical
               Representative.

          C)   PROCESS MATERIALS AND PROCEDURES (PMP)

          The Subcontractor shall maintain PMP documentation, which shall
          contain:

               1.   A description of the process used to fabricate the optical
                    components from material arrival at the Subcontractor
                    through finishing, final cleaning, testing, and packaging (a
                    flow chart);

               2.   A list of all materials including brand names and/or
                    compositions of grinding and polishing compounds, blocking
                    waxes, polishing pitch, in-process surface protectors, strip
                    coatings, in-process surface identification markers, etc.;

               3.   A detailed description of the surface figure generation
                    (grinding) and polishing procedures used to ensure no
                    subsurface damage or surface microcracks remain in the
                    finished optical surfaces, including grit sizes, dept of
                    material removed during each step, acid etches, etc.
                    (process sheets);

               4.   A detailed description of in-process procedures and solvents
                    used for removing surface treatments, residues, etc.;

               5.   A description of steps taken to protect the optics from
                    damage due to dirt and/or chemical contamination;

  SOW                                  -7-

     This document contains information proprietary to the Zygo Corporation

                                      -90-

<PAGE>

               6.   A description of any forms generated for internal use
                    documenting immediate processing steps, etc.

          The detailed PMP shall be retained at the Subcontractor's facility for
          the duration of this Subcontract. The University does not need or
          desire copies of the detailed procedures. In the event that there are
          specific PMIs that could materially impact the performance of the
          laser system, the University will request access to the specific
          PMP(s) of interest. The Subcontractor shall either grant access to the
          University Technical Representative and/or his designee at the
          Subcontractor's facility or prepare a non-proprietary version with as
          much detail as possible.

     D)   FINAL TEST PROCEDURES (FTP)

          The Subcontractor shall maintain an FTP document that shall include:

               1.   A list and detailed description of all test equipment;

               2.   A description of all test equipment calibration;

               3.   A list and description of all test equipment calibration
                    references and a copy of their accuracy certification and/or
                    traceability to another standard;

               4.   A sequence of steps required to check the compliance of each
                    finished substrate to the physical and performance
                    requirements as specified on the drawing.

     E)   FINAL CLEANING PROCEDURES (FCP)

          The Finisher shall maintain an FCP document that shall contain:

               1.   A detailed description of each step in the final cleaning
                    process, including the equipment used and the approximate
                    duration of each step.

               2.   A list of brand names of all cleaning and drying agents used
                    in the FCP, and

               3.   A detailed description of the final cleanliness inspection
                    and packaging facilities.

SOW                                   -8-

     This document contains information proprietary to the Zygo Corporation

                                      -91-

<PAGE>

7.   ROUTINE/SCHEDULED MAINTENANCE AND UNFORESEEN/CATASTROPHIC FAILURE ON GFE

Consistent with the previous production subcontract for P2 (B514527), the
Subcontractor shall continue to be responsible for routine/schedule maintenance
on all GFE, however, the cost of replacement parts, only, for
unforeseen/catastrophic failures on GFE, will be the responsibility of the
University. The cost of replacement parts for unforeseen/catastrophic failures
will be managed under a separate blanket subcontract. The Subcontractor shall
continue to provide its labor for replacement of these parts.

8.   APPENDICES

As stated above, all of the following appendices are already in the possession
of the Subcontractor and are, therefore, incorporated by reference. Any
additional copies will be supplied upon request.

Appendix A  Finished Optics Drawing Package

Appendix B  Material Drawings and Specifications Package

Appendix C  NIF Optics Production Plan - Rev 7/26/99

Appendix D  Detailed Cladding Guidance - NIF OPT 97-0003373;
            Revision 2; May 1, 1999

Appendix E  Guidance for Cleaning Pet-G Containers and Packaging and Handling
            Of Large NIF Optical Components - NIF 0026182

Appendix F  Identification Requirements for NIF Large Optics - NIF 0017092A

Appendix G  Optical Inventory Tracking Procedure - Finishing Vendors

Appendix H  Scratch Dig Memo

SOW                                   -9-

     This document contains information proprietary to the Zygo Corporation

                                      -92-

<PAGE>

APPENDIX A:                FINISHED OPTICS DRAWINGS

The following drawings comprise this set:

--------------------------------------------------------------------------------
                 OPTIC TYPE          DRAWING NUMBER     REVISION NUMBER
--------------------------------------------------------------------------------
Slab, Amplifier                       AAA96-105113             OC
--------------------------------------------------------------------------------
Slab, Amplifier, Prefigured           AAA96-105115             OA
--------------------------------------------------------------------------------
Polarizer                             AAA96-105512             OD
--------------------------------------------------------------------------------
Polarizer, Prefigured                 AAA96-105515             OA
--------------------------------------------------------------------------------
LM1                                   AAA96-105312             OE
--------------------------------------------------------------------------------
LM2                                   AAA96-105322             OF
--------------------------------------------------------------------------------
LM3                                   AAA96-105332             OF
--------------------------------------------------------------------------------
LM4A                                  AAA96-105412             OC
--------------------------------------------------------------------------------
LM4B                                  AAA96-105422             OC
--------------------------------------------------------------------------------
LM5                                   AAA96-105432             OC
--------------------------------------------------------------------------------
LM6                                   AAA96-105442             OC
--------------------------------------------------------------------------------
LM7A                                  AAA96-105452             OD
--------------------------------------------------------------------------------
LM7B                                  AAA96-105462             OE
--------------------------------------------------------------------------------
LM7C                                  AAA96-105472             OD
--------------------------------------------------------------------------------
LM7D                                  AAA96-105342             OD
--------------------------------------------------------------------------------
LM7E                                  AAA96-105352             OE
--------------------------------------------------------------------------------
LM8A                                  AAA96-105482             OD
--------------------------------------------------------------------------------
LM8AT                                 AAA96-105362             OC
--------------------------------------------------------------------------------
LM8B                                  AAA96-105492             OD
--------------------------------------------------------------------------------
LM8BT                                 AAA96-105372             OC
--------------------------------------------------------------------------------

SOW                                   -11-

     This document contains information proprietary to the Zygo Corporation

                                      -93-

<PAGE>

APPENDIX B:                BLANK OPTICS DRAWINGS

The following drawings comprise this set:

--------------------------------------------------------------------------------
                 OPTIC TYPE          DRAWING NUMBER           REVISION NUMBER
--------------------------------------------------------------------------------
Slab, Amplifier                       AAA96-10511                    OD
--------------------------------------------------------------------------------
Polarizer                             AAA96-105511                   OC
--------------------------------------------------------------------------------
LM1                                   AAA96-105311                   OA
--------------------------------------------------------------------------------
LM2                                   AAA96-105321                   OA
--------------------------------------------------------------------------------
LM3                                   AAA96-05331                    OB
--------------------------------------------------------------------------------
LM4A                                  AAA96-105411                   OB
--------------------------------------------------------------------------------
LM4B                                  AAA96-105421                   OB
--------------------------------------------------------------------------------
LM5                                   AAA96-105431                   OB
--------------------------------------------------------------------------------
LM6                                   AAA96-105441                   OB
--------------------------------------------------------------------------------
LM7A                                  AAA96-105451                   OB
--------------------------------------------------------------------------------
LM7B                                  AAA96-105461                   OB
--------------------------------------------------------------------------------
LM7C                                  AAA96-105471                   OB
--------------------------------------------------------------------------------
LM7D                                  AAA96-105341                   OB
--------------------------------------------------------------------------------
LM7E                                  AAA96-105351                   OB
--------------------------------------------------------------------------------
LM8A                                  AAA96-105481                   OB
--------------------------------------------------------------------------------
LM8AT                                 AAA96-105361                   OA
--------------------------------------------------------------------------------
LM8B                                  AAA96-105491                   OB
--------------------------------------------------------------------------------
LM8BT                                 AAA96-105371                   OA
--------------------------------------------------------------------------------

SOW                                   -12-

     This document contains information proprietary to the Zygo Corporation

                                      -94-

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