PUBLIC LAW 103-355 —OCT. 13, 1994 108 STAT. 3311 foreign laws and regulations, except when incurred as a result of compliance with specific terms and conditions of the contract or specific written instructions from the contracting officer authorizing in advance such payments in accordance with applicable provisions of the Federal Acquisition Regulation. "(E) Costs of membership in any social, dining, or country club or organization. "(F) Costs of alcoholic beverages. "(G) Contributions or donations, regardless of the recipient. "(H) Costs of advertising designed to promote the contractor or its products. "(I) Costs of promotional items and memorabilia, including models, gifts, and souvenirs. "(J) Costs for travel by commercial aircraft which exceed the amount of the standard commercial fare. "(K) Costs incurred in making any payment (commonly known as a 'golden parachute payment') which is— "(i) in an amount in excess of the normal severance pay paid by the contractor to an employee upon termination of employment; and "(ii) is paid to the employee contingent upon, and following, a change in management control over, or ownership of, the contractor or a substantial portion of the contractor's assets. "(L) Costs of commercial insurance that protects against the costs of the contractor for correction of the contractor's own defects in materials or workmanship. "(M) Costs of severance pay paid by the contractor to foreign nationals employed by the contractor under a service contract performed outside the United States, to the extent that the amount of severance pay paid in any case exceeds the amount paid in the industry involved under the customary or prevailing practice for firms in that industry providing similar services in the United States, as determined under the Federal Acquisition Regulation. "(N) Costs of severance pay paid by the contractor to a foreign national employed by the contractor under a service contract performed in a foreign country if the termination of the employment of the foreign national is the result of the closing of, or the curtailment of activities at, a United States facility in that country at the request of the government of that country. "(O) Costs incurred by a contractor in connection with any criminal, civil, or sidministrative proceeding commenced by the United States or a State, to the extent provided in subsection (k). "(2)(A) Pursuant to the Federal Acquisition Regulation and subject to the availability of appropriations, an executive agency, in awarding a covered contract, may waive the application of the - provisions of paragraphs (1)(M) and (1)(N) to that contract if the executive agency determines that— "(i) the application of such provisions to the contract would adversely affect the continuation of a program, project, or activity that provides significant support services for employees of the executive agency posted outside the United States; "(ii) the contractor has taken (or has established plans to take) appropriate actions within the contractor's control to
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