The EURATOM Supply Agency has concluded the subject contract in accordance with Article 52 of the EURATOM Treaty and allocated the reference AG/3008 to the transaction.

  Please find herewith two originals of the contract signed by the Supply Agency. We have kept the third original for our records.

Michael Goppel

Director General

24 April 1998

TRANSFER AGREEMENT

  The Government of the United States of America (hereinafter "transferor") desires to transfer and the Government of the United Kingdom of Great Britain and Northern Ireland (hereinafter "transferee") desires to receive the material described herein. The transferor and transferee agree more particularly as follows:

Article I—Authority to Transfer

  The United States Government enters into this agreement pursuant to section 504 of the Freedom Support Act (P.L. 102-511) and Title II of the Foreign Operations, Export Financing and Related Programs Appropriations Act, 1996 (P.L. 104-107).

Article II—Description of Material

  The transferee hereby agrees to receive the material (hereinafter "the nuclear material") on behalf of the European Atomic Energy Community and the transferor agrees to transfer all its rights, title and interest in and to the nuclear material which is identified as:

—  83 IVV-2 fuel pins in the form of U-Al alloy with Al cladding 4.5 mm diameter x 550 mm, active length is 500 mm.

—  594 TTR fuel rods in the form of U-Al alloy with Al cladding 5.5 mm diameter x 550-560 mm, active length is 500 mm.

—  29 (central core) IRT-2M fuel elements in the form of U-Al alloy with Al cladding 28 mm x 28 mm x 700 mm, active length is 580-600 mm.

—  72 EK-10 fuel rods in the form of UO2 dispersed in magnesium or magnesium oxide with 1 mm thick aluminium cladding 10 mm x 550-555 mm, active length is 500 mm.

—  1 bottle of powdered fuel pellets from one EK-10 rod in the form of UO2 dispersed in magnesium or magnesium oxide with Al cladding (if present).

—  1 TTR fuel assembly after 1.5 per cent burn-up in the form of U-Al alloy 81.7 mm diameter x 800 mm.

—  3 IRT-1000 fuel assemblies, each having 16 EK-10 rods after 10 per cent burn-up in the form of UO2 dispersed in magnesium or magnesium oxide 68 mm x 76.5 mm x 765 mm.

UO2 dispersed in magnesium or magnesium oxide 68 mm x 76.5 mm x 765 mm.

—  1 IRT-2M spent fuel assembly after 3 per cent burn-up in the form of U-Al alloy 67 mm x 67 mm x 880 mm.

  The transferor warrants that it shall be the owner of the nuclear material from the time it is loaded onto the transferor's conveyance until the time of delivery and that the nuclear material will be free from encumbrances at the time of delivery.

Article III—Other Obligations

  A.  The transferor shall:

(1)  As requested by the transferee, render technical co-operation during the unloading of the nuclear material from the transferor's conveyance and its unloading at the destination site.

(2)  Supply the transferee with the necessary documentation confirming the contents of the transferred cargo.

  B.  The transferor, its contractors, and subcontractors shall not assert against the transferee, its contractors, or subcontractors any claims for damages resulting from activity during the period of transferor ownership. During the period of transferor ownership, the transferor shall be considered the operator for the purposes of the Paris Convention on Third Party Liability in the Field of Nuclear Energy 1960 ("the Paris Convention") and shall bear responsibility for any legal liability that the transferee or the United Kingdom Atomic Energy Authority otherwise would incur as the liable operator within the meaning of the Paris Convention. Notwithstanding the preceding sentence, in the event the transferee or the United Kingdom Atomic Energy Authority incurs any legal liability under the Paris Convention, the Brussels Convention 1963 Supplementary to the Paris Convention, or the United Kingdom Nuclear Installations Act 1965, as amended, because the United Kingdom Atomic Energy Authority is considered the liable operator within the meaning of the Paris Convention with respect to a nuclear incident during the period of transferor ownership, the transferor shall indemnify either or both of them for any such liability under the Paris Convention, the Brussels Convention or the Nuclear Installations Act. Nothing in this agreement shall be interpreted as waiving any immunity of the transferor, its contractors or subcontractors.

waiving any immunity of the transferor, its contractors or subcontractors.

  C.  The transferee shall use the nuclear material within the territorial jurisdiction of any country of the European Atomic Energy Community for peaceful non-explosive purposes. No retransfer shall occur outside the European Atomic Energy Community without the prior approval of the transferor.

Article IV—Consideration for Material

  The transferee and transferor hereby agree that for a consideration of one dollar (dollars 1) US, the transferor shall provide the nuclear material as identified herein.

Article V—Place of Delivery

  The transferor shall make delivery of the material specified in Article II to the transferee when it has been unloaded from the transferor's conveyance at a designated site in the United Kingdom.

Article VI—Notices and Point of Contact

  All notices and contracts concerning this agreement are to be made in writing and shall be submitted to the following address, and subsequently acknowledged in writing.

  On behalf of the transferor:

  The Embassy of the United States of America, London, UK

  On behalf of the transferee:

  Department of Trade and Industry

Article VII—Disputes

  Any dispute arising between the parties to the agreement concerning the application or interpretation of this agreement shall be settled by the parties by mutual agreement, and shall not be referred to a third party or domestic or international tribunal.

Article VIII—Modification or Termination of Agreement

  This agreement may only be modified or terminated by written agreement by the parties.

Article IX—US Officials Not to Benefit

  No member of or delegate to the United States Congress shall be admitted to any share or part of this contract, or to any benefit arising from it.

Article X—Exemptions from Taxes, Duties or Tariffs

  No taxes, duties or tariffs shall be incurred by the transferor for activities undertaken pursuant to this agreement.

Article XI—Contract Law

  The parties confirm that this agreement is a private law contract and shall be governed and construed in accordance with English law.

  Completed this 23rd day of April 1998 in three copies in the English language, all three texts being equally authentic.

Michael Goppel

Director General

24 April 1998

BRINGING IRRADIATED FUEL ONTO THE DOUNREAY NUCLEAR LICENSED SITE

  The Health and Safety Executive, for the purposes of arrangements made by the licensee under Condition 22(1) of Schedule 2 to Nuclear Site License No Sc6 to control any modification or experiment carried out on any part of the existing plant or process which may affect safety hereby agrees that the fuel described in the licensee's letter DNE UNS 152782R dated 13 March 1995 may be brought on to the Dounreay Nuclear Licensed Site.

  I am copying this agreement to Dr Nelson, Dounreay Site Director and to Mr Butler, Head of Dounreay Site Safety.

Miss FE Taylor

HM Superintending Inspector: (Nuclear Installations)

23 March 1998

BRINGING IRRADIATED FUEL ONTO THE DOUNREAY NUCLEAR LICENSED SITE

  The Health and Safety Executive, for the purposes of arrangements made by the licensee under Condition 22(1) of Schedule 2 to Nuclear Site Licence No.Sc6 to control any modification or experiment carried out on any part of the existing plant or process which may affect safety hereby specifies that no irradiated fuel shall be brought onto the Dounreay Nuclear Licensed Site without the agreement of the Executive.

  I am copying this specification to Dr Nelson, Dounreay Site Director and to Mr Butler, Head of Dounreay Site Safety.

Miss F E Taylor

HM Superintending Inspector: (Nuclear Installations)

12 December 1997