; and (B) be subject to the applicable fines described in paragraph (4). (4) Fines for violations The Secretary shall impose a fine on an institution that knowingly or willfully fails to comply with a requirement of this section as follows: (A) First-time violations In the case of an institution that knowingly or willfully fails to comply with a requirement of this section with respect to a calendar year, and that has not previously knowingly or willfully failed to comply with such a requirement, the Secretary shall impose a fine on the institution of not less than $250,000, but not more than the total amount of gifts or contracts reported by such institution in the database required under subsection (a)(2). (B) Subsequent violations In the case of an institution that has been fined pursuant to clause (i) with respect to a calendar year, and that knowingly or willfully fails to comply with a requirement of this section with respect to any additional calendar year, the Secretary shall impose a fine on the institution with respect to any such additional calendar year in an amount that is not less than $500,000, but not more than twice the total amount of gifts or contracts reported by such institution in the database required under subsection (a)(2). (d) Definitions In this section: (1) Contract the term contract — (A) means any— (i) agreement for the acquisition, by purchase, lease, or barter, of property or services by a foreign source for the direct benefit or use of any of the parties to the agreement; (ii) affiliation, agreement, or similar transaction with a foreign source based on the use or exchange of the name, likeness, time, services, or resources of faculty, professional staff, or other staff engaged in research and development (as determined by the institution and measured by the Higher Education Research and Development Survey of the National Center for Science and Engineering Statistics) employed at an institution described in subsection (b)