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BAE SYSTEMS ADVANCED TECHNOLOGIES, INC. 1250 TWENTY-FOURTH ST, NW WASHINGTON, DC 20037

Construction Agreement

BAE SYSTEMS ADVANCED TECHNOLOGIES, INC.

                            1250 TWENTY-FOURTH ST, NW

                              WASHINGTON, DC 20037 | Document Parties: PHAZAR CORP | BAE SYSTEMS ADVANCED TECHNOLOGIES, INC. You are currently viewing:
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PHAZAR CORP | BAE SYSTEMS ADVANCED TECHNOLOGIES, INC.

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Title: BAE SYSTEMS ADVANCED TECHNOLOGIES, INC. 1250 TWENTY-FOURTH ST, NW WASHINGTON, DC 20037
Governing Law: Delaware     Date: 2/7/2005
Industry: Communications Equipment    

BAE SYSTEMS ADVANCED TECHNOLOGIES, INC.

                            1250 TWENTY-FOURTH ST, NW

                              WASHINGTON, DC 20037, Parties: phazar corp , bae systems advanced technologies  inc.
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                             SUBCONTRACT 511-05-191

 

 

  PROJECT TITLE: HAARP, HIGH & LOW BAND ANTENNA MATCHING UNIT ASSEMBLY PROJECT

          PRIME CONTRACT NO. N00014-02-D-0479, DELIVERY ORDER 011 & 013

 

 

 

                                FIRM FIXED PRICE

 

 

 

 

                                   ISSUED TO:

 

                          ANTENNA PRODUCTS CORPORATION

                              101 S.E. 25th AVENUE

                             MINERAL WELLS, TX 76067

 

                                   ISSUED BY:

 

                     BAE SYSTEMS ADVANCED TECHNOLOGIES, INC.

                            1250 TWENTY-FOURTH ST, NW

                              WASHINGTON, DC 20037

 

 

 

 

                                  Anthony Pugh

                             Contract Administrator

 

                             Phone: (202) 223 - 8808

                              Fax: (202) 223 -1377

                       E-Mail: anthony.pugh@baesystems.com

                               ---------------------------

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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<PAGE>

                                                      SUBCONTRACT NO. 511-05-191

-------------------------------------------------------------

 

 

 

                           SUBCONTRACT NO. 511-05-191

 

                                     BETWEEN

 

                          ANTENNA PRODUCTS CORPORATION

 

 

                                       AND

 

 

 

                     BAE SYSTEMS ADVANCED TECHNOLOGIES, INC.

 

EFFECTIVE DATE:                          DATE OF EXECUTION

SUBCONTRACT TYPE:                        FIRM FIXED PRICE

PERIOD OF PERFORMANCE                    20 January 2005 to 1 November 2005

SUBCONTRACT VALUE:                               FIRM FIXED PRICE: $3,723,530.70

PAYMENT TERMS:                            NET 30 DAYS

PRIME CONTRACT NO.:                      N00014-02-D-0479

PRIME CONTRACT DELIVERY ORDER NO:        0011 & 0013

SECURITY CLASSIFICATION:                 UNCLASSIFIED

DPAS RATING:                             DO-C9(J)

SUBCONTRACTOR EIN:                        75-1964534

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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                                                      SUBCONTRACT NO. 511-05-191

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                                 TABLE OF CONTENTS

 

 

 

SECTION A .............................................................CONTRACT

 

 

SECTION B   ........................................SUPPLIES/SERVICES AND PRICES

 

 

SECTION C     .......................................DESCRIPTIONS/SPECIFICATIONS

 

 

SECTION D    ............................................. PACKAGING AND MARKING

 

 

SECTION E     ........................................ INSPECTION AND ACCEPTANCE

 

 

SECTION F     .........................................DELIVERIES OR PERFORMANCE

 

 

SECTION G     ...................................SUBCONTRACT ADMINISTRATION DATA

 

 

SECTION H      ....................................SPECIAL CONTRACT REQUIREMENTS

 

 

SECTION I      ...................GENERAL PROVISIONS AND FAR FLOWDOWN PROVISIONS

 

 

SECTION J     ...............................................LIST OF ATTACHMENTS

 

 

SECTION K    .................................REPRESENTATIONS AND CERTIFICATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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                                                       SUBCONTRACT NO. 511-05-191

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SECTION A CONTRACT

 

A-1       INTRODUCTION

This FIRM FIXED PRICE SUBCONTRACT is hereby made and entered into by and between

BAE SYSTEMS   Advanced   Technologies   Inc., a corporation   organized and existing

under the laws of the State of   Delaware   (hereinafter   also   called BAE SYSTEMS

ATI, BAE,   Contractor,   or Buyer),   and Antenna   Products   Corporation   having a

principal   place of business in Mineral Wells,   Texas   (hereinafter   also called

APC, Subcontractor, or Seller).

 

WITNESS   THAT   WHEREAS,   BAE   SYSTEMS ATI has entered   into Prime   Contract   No.

N00014-02-D-0479   to perform certain work and services for the U.S.   Government;

and

 

WHEREAS,   BAE SYSTEMS ATI desires to have APC perform   certain work and services

hereinafter described,   and APC desires to perform certain work and services for

BAE SYSTEMS ATI; and

 

WHEREAS, the work and services hereinafter   described to be performed by APC are

related to the work and   services to be furnished by BAE SYSTEMS ATI to the U.S.

Government,

 

NOW, THEREFORE, the parties mutually agree as follows:

 

A-2       SUBCONTRACT TYPE

 

Firm Fixed Price

 

A-3       SUBCONTRACT VALUE

 

The   total   cost   for   performance   of the   Work   as   defined   in   Section   C is

$3,723,530.70   which amount shall   represent BAE SYSTEMS   ATI's total   hereunder

unless changed by written   modification   to this   Agreement,   which is signed by

authorized representatives of both parties.

 

A-4       SUBCONTRACT EXECUTION

In witness whereof, the duly authorized representatives of Buyer and Seller have

executed this Subcontract.

 

 

SELLER                                  BUYER

Antenna Products Corporation            BAE SYSTEMS ADVANCED TECHNOLOGIES, INC.

 

 

BY:         Clark D. Wraight                    BY: Michael J. Murphy

           /s/Clark D. Wraight                     /s/Michael J. Murphy

SIGNATURE: -----------------------      SIGNATURE: ------------------------------

TITLE:      President                        TITLE: Contracts Manager

DATE:       January 21, 2005                  DATE: January 24, 2005

 

 

 

 

 

 

                                       4

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                                                      SUBCONTRACT NO. 511-05-191

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SECTION B SUPPLIES/SERVICES AND PRICES

 

B-1       SCOPE OF CONTRACT

The general description of services to be provided under this Subcontract is for

the manufacture, packing and the shipping to the HAARP site in Gakona, AK of the

following items: 270 Low Band Antenna Matching Units (AMU's), 346 High Band

AMU's, and various other antenna tower component mounting kit assemblies. A

detailed Statement of Work is included in Subcontract Section C, Statement of

Work.

 

B-2       SUBCONTRACT LINE ITEM DESCRIPTION (SLIN) LIST

 

SLIN #   Description                                            Qty     FFP Amount

------   -----------                                            ---     ----------

0001     Manufacture, Packing and Shipping of Low Band          135     $737,364.14

        AMU's, BAE P/N ECE-98-4000-1

 

0002     Manufacture, Packing and Shipping of Low Band          135     $737,364.14

        AMU's, BAE P/N ECE-98-4000-2

 

0003     Manufacture, Packing and Shipping of High Band         173   $1,009,887.76

        AMU's BAE P/N CSI-04-4000-1

 

0004     Manufacture, Packing and Shipping of High Band         173   $1,009.887.76

        AMU's BAE P/N CSI-04-4000-2

 

0005     Manufacture, Packing and Shipping of Current Sensor's 100      $21,500.00

        BAE P/N ECE-98-4001

 

0006     Tower Component Mounting Kit                           2800    $147,728.00

        APC P/N 0004-1072-201

 

0007     Switch Control Box Mounting Kits                       140       $5,835.20

        APC P/N 0004-1074-201

 

0008     Current Monitor Mounting Kit                           140       $9,979.20

        APC P/N 0004-1076-201

 

0009     Cable Mounting Kit                                     1050     $43,984.50

        APC P/N 0004-1078-201

 

 

SECTION C DESCRIPTIONS/SPECIFICATIONS

 

C-1       DESCRIPTIONS/SPECIFICATIONS

 

Statement of Work:

------------------

Subcontractor   shall   provide   all   labor,   materials,   facilities,    equipment,

packaging material, shipping and other services necessary to accomplish the Work

and to produce and deliver the Deliverables described as follows:

 

  Deliverables:

  -------------

 

                                       5

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                                                      SUBCONTRACT NO. 511-05-191

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<TABLE>

<S>                         <C>                             <C>        <C>

  Part Number and Rev Level Description                     Quantity   Documentation Source

  ---------------------------------------------------------------------------------------

  ECE-98-4000-1 rev C        LB AMU                             135     BAE Drawing Package

  ECE-98-4000-2 rev C        LB AMU                             135     BAE Drawing Package

  CSI-04-4000-1 rev B        HB AMU                             173     BAE Drawing Package

  CSI-04-4000-2 rev B        HB AMU                             173     BAE Drawing Package

  ECE-98-4001 rev E          Current Sensor                     100     BAE Drawing Package

  0004-1072-201               Tower Component Mounting Kit      2800     Antenna Products Part Number

  0004-1074-201              Switch Control Box Mounting Kit    140     Antenna Products Part Number

  0004-1076-201              Current Monitor Box Mounting Kit   140     Antenna Products Part Number

  0004-1078-201              Cable Mounting Kit                1050     Antenna Products Part Number

</TABLE>

 

     Antenna   Products Corp is responsible for shipping the   deliverables to the

     HAARP site in Gakona,   AK per the schedule   outlined in Section   F-1.   This

     delivery   schedule   provides firm arrival deadlines for the deliverables at

     the HAARP   site.   It is   permissible   to ship   earlier   than the   schedule.

     Antenna   Products   Corp is   responsible   for   preparing   and   packaging the

     deliverables for shipment and for the shipping to the HAARP site. Notice of

     shipments must be provided to BAE Systems ATI so that   preparations   at the

     site   can   be   made   for   their   arrival.   Transfer   of   ownership   of   the

     deliverables will occur at the HAARP site.

 

     As part of this subcontract, BAE Systems ATI will supply a complete drawing

     package   (CD   with   drawing   files   in DWG   format)   for the Low   Band   AMU

     (ECE-98-4000),   the High   Band AMU   (CSI-04-4000)   and the   Current   Sensor

     (ECE-98-4001).   All required   prints and their correct   revision   level are

     listed in Attachment A.

 

     BAE Systems   ATI will supply the   following   Customer   Furnished   Materials

     (CFM) to Antenna   Products   Corp in a timely manner to support the delivery

     schedule in Section F-1.   Antenna Products Corp will not be responsible for

     the purchase of these   materials but will need to handle and safeguard this

     material as normal   inventory   items. All unused material shall be returned

     to BAE Systems ATI at the completion of this subcontract.

 

     CFM for Low Band AMU's

 

       1100 Capacitors, Draloric (Round),PE 140-300-5,Print ECE-98-4000(item 23)

       275 Capacitors, Jennings, CKT 150-0030, Print ECE-98-4017 (item 12)

       550 Relays, Kilovac, KC-22, Print ECE-98-4017 (item 27)

       8000 ft Cable, HP-850-B, listed in notes on Prints ECE-98-4013,

       ECE-98-4014 and ECE-98-4015

 

     CFM for High Band AMU's

 

       360 Capacitors, MC2C-75, Print CSI-04-4001 (item 22)

       360 Capacitors, MC3C-175, Print CSI-04-4001 (item 12)

       360 Capacitors, MC3C-235, Print CSI-04-4001 (item 6)

       700 Relays, KC-22, Print CSI-04-4001 (item 27)

       7000 ft Cable, HP-850-B, listed in notes on Print CSI-04-4011

       2500 ft Cable, HP-950-33, listed in notes on Print CSI-04-4010

 

                                       6

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                                                      SUBCONTRACT NO. 511-05-191

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     Antenna   Products   Corp shall   provide to BAE SYSTEMS ATI a copy of Antenna

     Products   Corp's   QA   Plan   that   will   be   used   to   monitor   progress   of

     manufacturing by including the manufacturing processes,   inspection,   test,

     and   acceptance.   Antenna   Products Corp's QA Plan is subject to review and

     approval   by   BAE   SYSTEMS    ATI's   QA   POC   prior   to   the   start   of   any

     manufacturing effort by Antenna Products Corp.

 

SECTION D PACKAGING AND MARKING

 

D-1       PACKAGING

Packaging   is to be   supplied   by the   subcontractor.   Each   AMU   unit   is to be

individually packaged within its own shipping container. Transportation is to be

via air ride van from Antenna Products Corp facility to the Seattle,   Washington

area, by water to Anchorage,   Alaska and again by air ride van to the HAARP Site

in Gakona,   Alaska.   Any deviations from the above will require written approval

from BAE Systems   ATI.   Packaging   and marking of all   deliverables   shall be in

accordance with the best commercial practice necessary to ensure safe and timely

delivery at destination.

 

D-2       CONTAINER MARKINGS

A complete   packing   list shall be included   with all   shipments.   Subcontractor

shall mark containers or packages with necessary lifting,   loading, and shipping

information,   including the BAE SYSTEMS ATI agreement number, item number, dates

of shipment,   and the names and address of   consignor   and   consignee.   Bills of

lading shall include this agreement number.

 

D-3       MARKING OF SUBCONTRACTOR REPORTS

All reports submitted under this subcontract shall include:

 

o The Prime Contract Number/ Delivery Order Number

o Subcontract Number

o Forwarded Prepaid

o Provide   preservation,   packaging   and   marking   which   shall   afford adequate

  protection   against   physical   damage   during   shipment   for   all   deliverable

  items.

o All reports shall be packaged and forwarded to:

      BAE Systems Advanced Technologies Inc.

      1250 24th Street, N.W.

      Washington, D.C. 20037

      Attn: Paul Darling

 

 

SECTION E INSPECTION AND ACCEPTANCE

 

E-1       INSPECTION AND ACCEPTANCE

Final inspection and acceptance of all work,   deliverables and report items will

be   performed   by BAE SYSTEMS ATI quality   assurance   personal or by the Program

Manager's   designee.   The   Subcontractor   shall be responsible for all materials

delivered and work performed until   completion and acceptance of the entire work

for any   completed   unit   of   work   that   may   have   been   accepted   under   this

subcontract.

 

 

 

 

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                                                      SUBCONTRACT NO. 511-05-191

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      1. The   Subcontractor   shall   submit   a   complete   and   signed   "Travelers

         Checklist",   which will be audited by BAE   Systems ATI POC on a regular

         basis showing AMU completion.   This traveler   checklist   should include

         critical    quality   items   (such   as   hardware    torque   and   soldering

         inspection)   that are to be signed   off by QA   inspectors   at   specific

         assembly and test points. BAE Systems ATI will do random audits of this

         process.

 

      2. Subcontractor will test the AMU's using a network analyzer to catch any

         assembly   errors   and loose   connections.   This test   will   consist   of

         hooking up, testing,   print out results, and unhooking the AMU's from a

         network   analyzer.   The person performing the test must be qualified to

         support the use of/or   troubleshoot the network   analyzer.   BAE Systems

         ATI will   provide   the   initial   training   and   support   as well as the

         software, computer, GPIB card, and connectors for the network analyzer.

 

      3. The units can be shipped to the HAARP Site only after the   receipt   and

         acceptance of the Traveler Checklist and Test Data for each unit.

 

SECTION F   DELIVERIES OR PERFORMANCE

 

F-1       DELIVERIES

Deliveries   required in performance of this subcontract as set forth herein will

be made in accordance with the following delivery schedule:

<TABLE>

<S><C>            <C>                          <C>      <C>      <C>     <C>      <C>      <C>

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   Part Number    Description                  6/27/05 7/18/05 8/8/05 8/29/05 9/12/05 Total

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   ECE-98-4000-1 LB AMU                           35       35      33       32              135

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   ECE-98-4000-2 LB AMU                          35       35      33       32              135

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   CSI-04-4000-1 HB AMU                          35       35      33       34       36      173

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   CSI-04-4000-2 HB AMU                          35       35      33       34       36      173

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   ECE-98-4001    Current Sensor                                                 100     100

    ------------- --------------------------- ------- ------- ------ ------- ------- -----

   0004-1072-201 Tower Component   Mtg Kit       700      700     700      700             2800

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   0004-1074-201 Switch Control Box Mtg Kit     140                                     140

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   0004-1076-201 Current Monitor Box Mtg Kit    140                                      140

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

   0004-1078-201 Cable Mtg Kit                  250      200     200      200      200     1050

   ------------- --------------------------- ------- ------- ------ ------- ------- -----

</TABLE>

Delivery of the QA Plan, and other documentation required in performance of this

subcontract as set forth herein will be made to:

         BAE SYSTEMS Advanced Technologies, Inc.

         1250 Twenty-Fourth St., NW, Suite 850

         Washington, DC 20037

         Attn: Paul Darling

 

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                                                      SUBCONTRACT NO. 511-05-191

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Delivery of the Deliverables required in performance of this   Subcontract as set

forth herein will be made to:

         BAE SYSTEMS Advanced Technologies, Inc.

         HAARP DP Site

         Milepost 11.3 TOK Cutoff

         Gakona, AK 99586

         Attn: Program Manager/Designee

 

All Deliveries shall be FOB Destination.

 

A copy of all   transmittal   letters   shall   be   mailed   to the BAE   SYSTEMS   ATI

Contractual Point of Contact identified in Section G-4 of this Subcontract.

 

F-2       PERIOD OF PERFORMANCE

The Period of Performance for this Subcontract is 20 January 2005 through 1

November 2005. The subcontractor shall plan and execute the work accordingly.

 

F-3       PLACE OF PERFORMANCE

Performance under this subcontract will take place at the Subcontractor's

facility in Mineral Wells, Texas.

 

SECTION G   SUBCONTRACT ADMINISTRATION DATA

 

G-1       INVOICING AND PAYING INSTRUCTIONS

 

Submit one original invoice to:

         BAE SYSTEMS Advanced Technologies, Inc.

         1250 Twenty-Fourth St., NW

         Washington, DC 20037

         Attention:   Anthony Pugh

 

Invoices may be submitted no more often than monthly after   approved   "Travelers

Checklist" has been received by BAE SYSTEMS ATI, on a per unit completed   basis.

Anticipated payment schedule as follows:

 

Milestone Payments

 

Description                           Payment         Anticipated Date       

---------------------------------------------------------------------

Payment # 1 (With Notice to Proceed)   $494,945.66       Jan 25, 2005

Payment # 2                            $249,760.48       Mar 15, 2005

 

                 Total Milestones      $744,706.14

 

Delivery Payments

         Per delivery schedule or sooner

         Invoices to use the following part numbers and price per unit

 

Part # / Description                      Quantity   Price/Unit     Total Value

-----------------------------------------------------------------------------

ECE-98-4000-1 / LB AMU                        135    $4,369.5653    $589,891.31

ECE-98-4000-2 / LB AMU                         135    $4,369.5653    $589,891.31

CSI-04-4000-1 / HB AMU                        173    $4,670.0012    $807,910.21

 

 

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                                                      SUBCONTRACT NO. 511-05-191

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CSI-04-4000-2 / HB AMU                        173    $4,670.0012    $807,910.21

ECE-98-4001 / Current Sensor                  100      $172.0000     $17,200.00

0004-1072-201 / Tower Component Mtg Kit       2800       $42.2080    $118,182.40

0004-1074-201 / Switch Control Box Mtg Kit    140       $33.3440      $4,668.16

0004-1076-201 / Current Monitor Box Mtg Kit   140       $57.0240      $7,983.36

0004-1078-201 / Cable Mtg Kit                1050       $33.5120     $35,187.60

 

                          Total Delivery Payments               $2,978,824.56

 

                          Total Payments                        $3,723,530.70

 

In   accordance   with the   provisions   of this   Agreement   and   conditioned   upon

satisfactory   performance of Subcontractor's   obligations hereunder, BAE SYSTEMS

ATI will pay the approved   amounts of   Subcontractor's   interim payment vouchers

within   thirty   (30)   days   after   BAE   SYSTEMS   ATI's   receipt   thereof   at the

aforementioned   address; except that if BAE SYSTEMS ATI, in good faith, disputes

and does not approve an item billed BAE SYSTEMS ATI will notify Subcontractor of

the portion disputed within 5 days and withhold payment thereof until settlement

of the dispute.   Such right of BAE SYSTEMS ATI to withhold such   payments   shall

not constitute or imply acceptance of the Work or Deliverables.

 

BAE SYSTEMS ATI will have no direct or indirect   obligation to pay, reimburse or

otherwise   bear   any   rates,   costs,    expenses   or   other   charges   or   amounts

whatsoever,   except   as   agreed   to   herein;   it   being   understood   that all of

Subcontractor's work shall be performed by Subcontractor at Subcontractor's sole

cost, risk and expense, except as otherwise expressly agreed to in writing.

 

Completion   criteria for invoice   purposes will be when a "Travelers   Checklist"

has been   completed   by both APC and BAE Quality   Assurance   personnel,   and BAE

Quality   Assurance    personnel   has   approved   work   as   being   satisfactory   or

completed.

 

Final   Payment   under this   subcontract   shall be   predicated   upon   receipt and

acceptance by BAE SYSTEMS ATI of all   performance   and   Deliverables   called for

hereunder;   final   accounting for and   disposition of government   property;   the

assignment to BAE SYSTEMS ATI of any refunds;   and the release   discharging   BAE

SYSTEMS ATI from liabilities.

 

 

G-2       PAYMENT AND CORRESPONDENCE ADDRESS

Payment under this subcontract shall be made to:

 

         ANTENNA PRODUCTS CORPORATION

         ACCT# 600058164 C/O Frost National Bank PO Box 164009 Fort Worth,

         TX 76161-4009

 

 

G-3       CONTRACT ADMINISTRATION

The   BAE   SYSTEMS   ATI   Contract   Administrator   shall   be the   only   individual

authorized to direct   and/or   redirect the effort or in any way amend any of the

terms of this subcontract other than those instances   specifically   delegated to

an Administrative   Contracting Officer, or a Termination Contracting Officer, by

a General   Provision   of this   subcontract.   No verbal   statement   of any person

whomsoever shall, in any manner or degree,   modify or otherwise affect the terms

 

                                       10

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                                                      SUBCONTRACT NO. 511-05-191

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of this   subcontract.   In the event   effects any such change at the direction of

any person   other than the BAE SYSTEMS ATI   Contract   Administrator,   the change

will be   considered   to have been made without   administrative   authority and no

adjustment will be made in the authorized funding to cover any increase in costs

incurred as a result thereof.

 

G-4       POINTS OF CONTACT

The individuals   identified below may be contacted for contractual and technical

administration of this Subcontract.   Any notices consents or approvals   required

or   permitted   by this   Agreement   shall be in writing and shall be given to the

contractual   Point of Contact   or to such other   address as the party to receive

the same shall have designated to the other party hereto.

 

 

BAE SYSTEMS ATI:

----------------

Contractual                              Technical

-----------                              ---------

Name: Anthony Pugh                       Name: Dr. Rob Jacobsen

Title: Contract Administrator            Title: Program Manager

Voice: 202-223-8808                      Voice: 202-223-8808

FAX:   202-223-1377                       FAX:   202-223-1377

E-mail:   anthony.pugh@baesystems.com     E-mail:   jacobsen@baesystems.com

         ---------------------------               -----------------------

 

Quality Assurance

-----------------

Name: Paul Darling

Title: Assistant Program Manager

Voice: 202-223-8808

FAX:    202-223-1377

E-mail: paul.darling@baesystems.com

        ---------------------------

 

SUBCONTRACTOR:

--------------

Contractual                            Technical

-----------                            ---------

Name:   Clark D. Wraight                Name:   Angus Hume

       -------------                          -------------

Title: President                       Title: Program Manager

       -------------                           ---------------

Voice: (940)325-3301                   Voice: (940)325-3301

       -------------                          -------------

FAX:    (940)325-8440                   FAX:    (940)325-8440

       -------------                           -------------

E-MAIL: wraight@antennaproducts.com    E-MAIL: hume@antennaproducts.com

       ----------------------------           -------------------------

 

G-5       PROGRAM MANAGER

 

Performance   under the work   hereunder is subject to the technical   direction of

BAE SYSTEMS   ATI's   Program   Manager or his   designee.   If the   Program   Manager

assigns   a   designee,    such    designee    shall   be    identified   in   a   written

 

                                        11

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                                                      SUBCONTRACT NO. 511-05-191

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correspondence signed by the BAE SYSTEMS ATI Contract Administrator and provided

to the   Subcontractor   Contractual Point of Contact as identified in Section G-4

of this Agreement.   For the purpose of this clause, technical direction includes

the following:

      (a) Direction to the Subcontractor   that shifts work emphasis between work

          areas or tasks, requires pursuit of certain lines of inquiry, fills in

          details or otherwise serves to accomplish the objectives   described in

          the statement of work.

      (b) Guidelines to the Subcontractor   that assist in the   interpretation of

          drawings, specifications or technical portions of work description.

 

The Program   Manager does not have the   authority to issue any   direction   under

this contract,   either technical or otherwise,   that increases BAE SYSTEMS ATI's

financial obligation hereunder.

 

                     SECTION H SPECIAL CONTRACT REQUIREMENTS

 

H-1    CLAIMS AGAINST SUBCONTRACTOR            Subcontractor    shall    not   be   in

                                             default   because of any   failure to

If    notification    of   any    claim           perform this subcontract   under its

against the   Subcontractor   arising           terms if the   failure   arises   from

out of labor or materials furnished           causes    beyond   the    control   and

to the project has been made to BAE           without the fault or   negligence of

SYSTEMS   ATI,   BAE SYSTEMS ATI may,           Subcontractor.   Examples   of   these

at    their    discretion,    withhold           causes   are   (1)   acts of God or of

sufficient   funds from any payments           the public   enemy,   (2) acts of the

to   cover   the   cost   of   any   such           Government   in either its sovereign

claims pending their   settlement to           or Contractual capacity, (3) fires,

the   satisfaction   of   BAE   SYSTEMS           (4)   floods,   (5)   epidemics,    (6)

ATI. BAE SYSTEMS ATI shall have the           quarantine      restrictions      (7)

right at any time to make   payments           strikes, (8) freight embargoes, and

due under this   Agreement   by means           (9) unusually   severe   weather.   In

of     joint      checks     to     the           each    instance,    the   failure   to

Subcontractor or directly to any of           perform   must be beyond the control

the     laborers,     suppliers     or           and without the fault or negligence

Subcontractors directly.                      of      Subcontractor.      "Default"

                                             includes   failure to make   progress

H-2    DUST CONTROL                            in   the   work   so   as   to   endanger

Not Used.                                     performance.

 

H-3    EMPLOYEE SITE -                         H-7    EXAMINATION OF COSTS

      EEO ORIENTATION                         For   the    purpose   of    evaluating

Not Used.                                     Subcontractor's   costs with respect

                                             to   requests   for change   proposal,

H-4    ENVIRONMENTAL FIELD OFFICER             and     proposal     for     follow-on

Not Used.                                     procurement,   Subcontractor   agrees

                                             that BAE   SYSTEMS   ATI may   subject

H-5    ENVIRONMENTAL IMPACTS                   such proposals, requests or reports

Not Used.                                     and   related    fianancial   data   to

                                             anaysis type examintation. For such

H-6    EXCUSABLE DELAYS                        purposes,   Subcontractor   must make

Except      for       defaults      of           available    all    data    supporting

Subcontractor     at     any     tier,           direct   costs to DCAA or any   other

 

 

                                       12

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                                                      SUBCONTRACT NO. 511-05-191

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authorized governement official.              maintenance     or     disposal     of

                                             Government-furnished   property that

H-8    EXISITING UTILITIES                     may    come    into    Subcontractor's

Not Used.                                     possession   during   Subcontractor's

                                             performance   of   this   subcontract;

H-9    FAILURE TO COMPLY WITH EQUAL            such handling,   use, maintenance or

      OPPORTUNITY REGULATIONS                 disposal    is    governed    by    the

This Subcontract may be canceled by           government     furnished     property

BAE SYSTEMS ATI up to 30 days after           clause    in    Section    I   of   this

award and without   liability to BAE           subcontract.

SYSTEMS    ATI   or   others   for   any

payment     or      otherwise,      if           H-12   INSURANCE

Subcontractor    is    found   by   the           In   accordance   with   the   Contract

United   States   Government,   on the           Clause    FAR    52.228-7     entitled

basis of a compliance   review,   not           "Insurance    Liability    to    Third

able to comply with the   provisions           Persons",   the following   kinds and

of     the      Equal      Opportunity           minimum   amounts of   insurance   are

regulations    clause    incorporated           required   during the performance of

herein   and the   Equal   Opportunity           this contract:

regulations of the Government.                    (a) Worker's   Compensation   and

                                                      Employer's         Liability

H-10   FURTHER ASSURANCES                              Insurance:

Subcontractor   will, and will cause                     (i) The   amount   required

its employees, officers, agents and                          by   the   state   where

representatives    to,   prepare   and                         performance       will

execute   at the   executing   party's                         occur,           under

expense,   and will deliver,   at the                          applicable    Worker's

reasonable   request of BAE   SYSTEMS                         Compensation       and

ATI,   any   and   all    documents   or                         occupational   disease

instruments reasonably necessary or                         statutes.

appropriate to create,   evidence or                     (ii)Employer's   liability

confirm   the grant,   discharge,   or                         insurance     in    the

release, as the case may be, of any                         minimum    amount    of

right,    interest    or    obligation                         $1,000,000 per person

acquired    by    BAE    SYSTEMS    ATI                         and    $1,000,000   per

pursuant to this Agreement.                                 accident.

                                                  (b) General            Liability

H-11   GOVERNMENT PROPERTY                             Insurance:   Bodily   injury,

BAE SYSTEMS ATI shall   retain title                   sickness or death liability

to all   property   furnished   to and                    coverage        on        the

utilized    by     Subcontractor    in                   comprehensive     form     of

performance   of   this   subcontract.                   policy   at   $1,000,000   per

Subcontractor       shall      label,                   occurrence   and   $1,000,000

maintain,    and    dispose    of   BAE                   for   loss   or    damage    to

SYSTEMS ATI's   property,   including                   property in one accurrence.

scrap,   according   to   BAE   SYSTEMS               (c) Automobile         Liability

ATI's    written    direction,     and                   Insurance:   Coverage   shall

Subcontractor   shall be responsible                   be   on   the    comprehensive

for   all   loss   or   damage   to   BAE                   form of policy.   The policy

SYSTEMS     ATI's      property     in                   shall   provide   for   bodily

Subcontractor's    possession.   This                   injury and property   damage

clause       does      not      govern                   liability     covering    the

Subcontractor's     handling,    use,                   operation        of       all

 

 

                                       13

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                                                      SUBCONTRACT NO. 511-05-191

-------------------------------------------------------------

         automobiles      used      in                   obtain,   maintain, and keep

        connection   with performing                   in force,   during   the time

        the   subcontract.   Policies                   in which   they are   engaged

        covering         automobiles                   in    performing     Services

        operated    in   the    United                   hereunder,          adequate

        States     shall      provide                   insurance     coverage     in

        coverage     of    at    least                   accordance              with

        $200,000    per   person   and                   Subcontractors'       normal

        $500,000 per occurrence for                   practice   and   furnish   BAE

        bodily   injury and   $20,000                    SYSTEMS    ATI     acceptable

        per occurrence for property                   evidence of such insurance.

        damage.                                   (i) BAE   SYSTEMS   ATI shall not

    (d) The   amount   of    liability                   be    liable    for   loss   or

        coverage on other   policies                   damage     to      equipment,

        shall be commensurate   with                   supplies,    and    materials

        any legal   requirements   of                   belonging         to       the

        the locality and sufficient                   Subcontractor   or   used   on

        to     meet     normal     and                   behalf of Subcontractor for

        customary claims.                             Subcontractor's performance

    (e) All    policies    shall    be                   hereunder.    Any   insurance

        endorsed   to   provide   that                   policies      carried      by

        underwriters   and insurance                   Subcontractor     or    third

        companies of   Subcontractor                   party   on   said   equipment,

        shall not have any right of                   supplies    and     materials

        subrogation    against    BAE                   shall provide for waiver of

        SYSTEMS    ATI   and   agents,                   underwriter's     right    to

        employees,          invites,                   subrogation    against    BAE

        subcontractors,    insurers,                   SYSTEMS ATI.

        underwriters,    and    other               (j) Unless   otherwise   provided

        such parties as BAE SYSTEMS                   pursuant   to FAR   52.228-7,

        ATI may designate.                            it is expressly   agreed and

    (f) Subcontractor shall furnish                   understood that the cost of

        Certificate of Insurance to                   premiums   and    deductibles

        BAE SYSTEMS ATI   evidencing                   for insurance   described in

        the    insurance     required                   this     Agreement     is    a

        hereunder and upon request,                   non-reimbursable cost.

        BAE SYSTEMS ATI may examine               (k) Primary   Insurance   - It is

        true   copies of the   actual                   hereby     understood     and

        policies.   Each certificate                   agreed   that   any   coverage

        shall   provide   that thirty                   provided BAE SYSTEMS ATI by

        (30)   days   prior    written                   Subcontractor's    insurance

        notice   shall   be   given to                   under   this    Agreement   is

        BAE    SYSTEMS   ATI   in   the                   primary insurance and shall

        event   of   cancellation   or                   not       be       considered

        material change in policies                    contributory insurance with

        occurs                                        any   insurance   policies of

    (g) All    policies    shall    be                   BAE SYSTEMS ATI.

        endorsed   to   provide   that               (l) By    so    specifying,    BAE

        there   will be no   recourse                   SYSTEMS    ATI   may   require

        against BAE SYSTEMS ATI for                   additional      types      of

        payment of premium.                           insurance.      (m)     These

    (h) Subcontractor shall require                   insurance   provisions in no

        all     subcontractors     to                   way affect the liability of

 

 

                                       14

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                                                       SUBCONTRACT NO. 511-05-191

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        Subcontractor    as    stated           H-18   PERMITS

        elsewhere       in       this           Not Used.

        Agreement.

                                              H-19   PERFORMANCE AND PAYMENT BOND

H-13   LIGHTING                                Not Used.

Not Used.

                                             H-20 RESPONSIBILITY FOR PERFORMANCE

H-14   LIMITATION OF FUNDS (NOT                BAE   SYSTEMS   ATI   issuance of this

      APPLICABLE TO FIRM FIXED                subcontract is based in part on BAE

      PRICE CONTRACTS)                        SYSTEMS     ATI's     reliance    upon

Not used.                                     Subcontractor's ability,   expertise

                                             and    knowledge    of   the   expected

H-15   NATIONAL CODES                          construction       project,       and

                                             Subcontractor's           continuing

The   following    codes   are   hereby           compliance with all applicable laws

incorporated   into the   subcontract           and     regulations     during     the

by   reference,   with the same force           performance   of   this   subcontract.

and   effect as if it were   provided           Subcontractor     shall    not,     by

in full text.                                 contract,    operation   of   law,   or

    (a) Uniform Building Code (UBC)           otherwise, assign any of its rights

    (b) Uniform    Mechanical    Code           delegate    any   of   its   duties   or

        (UMC)                                 obligations under this subcontract,

    (c) Uniform Plumbing Code (UPC)           including   but not   limited   to any

    (d) National    Electrical   Code           right to   monies   due or to   become

        (NEC)                                 due,    without   BAE   SYSTEMS   ATI's

    (e) Americans with   Disabilites           prior     written     consent.      No

        Act (ADA)                             assignment,       delegation,      or

    (f) National   Fire    Protection           subcontracting    by   Subcontractor,

        Association (NFPA)                    with or without BAE   SYSTEMS   ATI's

                                             consent,         shall        relieve

H-16   NOTIFICATION OF DEBARMENT/              Subcontractor    of    any    of    its

      SUSPENSION STATUS                       obligations under this subcontract.

Subcontractor      shall      provide           Notwithstanding     the    foregoing,

immediate notice to the BAE SYSTEMS           either   party   shall have the right

ATI Contract   Administrator   in the           to assign this   subcontract   to any

event of being suspended,   debarred           successor   of such   party by way of

or   declared    ineligible    by   any           merger   or    consolidation   or   the

Department or other Federal Agency,           acquisition of substantially all of

or   upon   receipt   of a   notice   of           the   business   and   assets   of   the

proposed debarment from another DoD           assigning   party   relating   to   the

Agency,   during the   performance of           subject matter of this subcontract.

this subcontract.                             This    right    shall   be    retained

                                              provided that such successor   shall

H-17   OFF-DUTY EMPLOYMENT                     expressly      assume      all     the

Subcontractor   agrees not to employ           obligations   and liabilities of the

any person who is and   employee   of           assigning     party     under     this

the    United    States    Government,           subcontract, and that the assigning

either     civilian    or    military,           party   shall    remain    liable   and

without assuring that the employees           responsible     to   the   other   party

has     complied     with    all    the           hereto   for   the    performance   and

appropriate   Department   of Defense           observance of all such obligations.

Regulations   pertaining to off-duty

employment       for       Government           H-21   SAFETY

personnel.                                    The     Subcontractor     shall     be

 

                                       15

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                                                      SUBCONTRACT NO. 511-05-191

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responsible   for safety   related to           required    services,     supervising

and during   prosecution of the work           techniques   used in their work, and

and shall ensure that its employees           assuring    the    quality   of   their

and employees of its Subcontractors           product.Subcontractor shall select,

are   notified   of and   observe   and           supervise and exercise   control and

abide by all safety regulations and           direction over its employees   under

laws including,   but not limited to           this    Subcontract.    Subcontractor

State   of   Alaska    General   Safety           shall   not   supervise,    direct   or

Code,   U.S.    Department   of   Labor           control   the    activities    of   BAE

Safety   and   Health   Act   of   1970,           SYSTEMS   ATI   personnel.   Except as

including,   any   revisions   of   the           may     be     otherwise     expressly

foregoing,   that may   hereafter   be           specified    herein,    Subcontractor

applicable,    and   all    applicable           shall     provide    all     necessary

safety   regulations.   Said laws and           administrative and other support to

regulations are designed as minimum           its employees.

requirements for the Subcontractor,

and the   Subcontractor   shall   take           H-25   SUBCONTRACTING RESTRICTIONS

any      additional       precautions           Subcontractor     may    not     issue

necessary    or   proper    under   the           second-tier      subcontracts      to

circumstances   to prevent injury or           business   concerns   that   have been

death to persons   and/or   damage to           debarred from   contracting with the

property.   Neither   compliance with           U.S.   Government.    Nor   shall   the

such    laws   and    regulations    by            Subcontractor    issue    second-tier

Subcontractor nor BAE SYSTEMS ATI's           subcontracts    to    foreign    owned

approval     of    any    actions    or           business concerns.

procedures of the   Subcontractor as

provided herein,   shall relieve the           H-26   TRASH AND WASTE

Subcontractor of its obligations to           Not Used

always   use due care in   performing

services under this subcontract.              H-27   WATER AND SANITARY SERVICES

                                             Not Used.

The Subcontractor shall immediately

notify BAE SYSTEMS ATI and, as soon

thereafter    as    is    practicable,

furnish   BAE   SYSTEMS   ATI   with   a

written   report   of any   damage   to

property and/or injury to, or death

of,    persons    which    occurs    in

connection   with   or is in any   way

related    to    the    execution    of

services under this subcontract.

 

H-22   SECURITY

Not Used.

 

H-23   SERVICE CONTRACT ACT -

      STATEMENT OF EQUIVALENT RATES

Not Used.

 

H-24   SUBCONTRACTOR PERSONNEL

Subcontractor   shall be responsible

for   selecting   personnel   who   are

well    qualified    to   perform   the

 

 

                                       16

<PAGE>

            SECTION I GENERAL PROVISIONS AND FAR FLOWDOWN PROVISIONS

--------------------------------------------------------------------------------

SECTION I: GENERAL PROVISIONS                 21 New Materials

-----------------------------                 22 Offset Credit/Cooperation

1   Acceptance of Contract/Terms and           23 Packing and Shipment

   Conditions                                  24 Payments, Taxes, And Duties

2   Applicable Laws                            25 Precedence

3   Assignment                                 26 Priority Rating

4   Changes                                    27 Quality Control System

5   Commercial Computer Software               28 Release of Information

6   Communication   with BAE   SYSTEMS           29 Stop Work Order

   Customer                                   30 Severability

7   Contract Direction                         31 Survivability

8   Default                                    32 Termination for Convenience

9   Definitions                                33 Timely Performance

10 Disputes                                   34 Waiver, Approval, And Remedies

11 Export Control                              35 Warranty

12 Extras

13 Furnished Property                         SECTION II: FAR FLOWDOWN PROVISIONS

14 Gratuities/Kickbacks                       -----------------------------------

15 Independent            Contractor           A   Incorporation of FAR Clauses

   Relationship                               B   Government Subcontract

16 Information of BAE SYSTEMS                 C   Notes

17 Information of Seller                      D   Amendments    Required   by   Prime

18 Inspection and Acceptance                      Contract

19 Insurance/Entry   on BAE   SYSTEMS           E   Preservation of the Government's

   Property                                      Rights

20 Intellectual Property                      F   FAR Flowdown Clauses

 

SECTION I:   GENERAL PROVISIONS                         included     in     SELLER's

------------------------------                         acknowledgment   hereof are

1.    ACCEPTANCE   OF   CONTRACT/TERMS                    hereby   objected to by BAE

     AND CONDITIONS                                     SYSTEMS and have no effect

                                                      unless accepted in writing

     (a) This Contract   integrates,                    by BAE SYSTEMS.

         merges, and supersedes any

         prior                offers,           2.    APPLICABLE LAWS

         negotiations,           and                (a) This   Contract    shall   be

         agreements   concerning the                    governed by and   construed

         subject   matter hereof and                    in   accordance    with   the

         constitutes    the    entire                    laws   of   the    State    of

         agreement     between    the                    Delaware,    excluding   its

         Parties.                                      choice    of   laws    rules,

                                                      except that any   provision

     (b) SELLER's    acknowledgment,                    in this   Contract   that is

         acceptance of payment,   or                    (i)   incorporated   in full

         commencement             of                    text or by reference   from

         performance,          shall                    the   Federal    Acquisition

         constitute         SELLER's                    Regulation   (FAR); or (ii)

         unqualified   acceptance of                    incorporated   in full text

         this Contract.                                or by   reference   from any

                                                      agency    regulation    that

     (c) Additional    or   differing                    implements or   supplements

         terms     or      conditions                    the FAR or;   (iii) that is

         proposed    by    SELLER   or                    substantially based on any

 

 

                                        17

<PAGE>

         such agency   regulation or                       or may   demand   payment

         FAR   provision,   shall   be                       (in   whole   or in part)

         construed and   interpreted                       of   the    corresponding

          according   to the   federal                       amounts.   SELLER   shall

         common   law of   government                       promptly pay amounts so

         contracts   as    enunciated                       demanded.

         and    applied   by   federal

         judicial bodies, boards of                    (4)In   the    event   it   is

         contracts    appeals,    and                       determined    that    the

         quasi-judicial agencies of                       Work      is     not     a

          the federal Government.                          Commercial     Item    as

                                                         defined   at FAR   2.101,

     (b) (1)SELLER      agrees     to                       then SELLER   agrees the

            comply      with      all                       corresponding     agency

            applicable         laws,                       flowdowns     shall    be

            orders,           rules,                       applicable     to    this

            regulations,          and                       Contract,   in   lieu   of

            ordinances.                                   these      terms      and

                                                         conditions,    effective

         (2)If:   (i)   BAE   SYSTEMS'                        as of the   date of this

            contract   price   or fee                       Contract.

            is   reduced;   (ii)   BAE

            SYSTEMS'     costs    are                (c) SELLER    represents    that

            determined      to     be                    each   chemical    substance

            unallowable;   (iii) any                    constituting   or contained

            fines,    penalties    or                    in Work sold or   otherwise

            interest   are   assessed                     transferred to BAE SYSTEMS

            on BAE SYSTEMS; or (iv)                    hereunder   is on the   list

            BAE SYSTEMS   incurs any                    of    chemical    substances

            other costs or damages;                    compiled and   published by

            as   a   result    of   any                    the   Administrator   of the

            violation of applicable                    Environmental    Protection

            laws,   orders,    rules,                    Administration pursuant to

            regulations,          or                    the     Toxic     Substances

            ordinances   by   SELLER,                    Control    Act   (15   U.S.C.

            its            officers,                    Sec.    2601   et   seq.)   as

             employees,       agents,                    amended.

            suppliers,            or

            subcontractors   at   any                (d) SELLER   shall   provide   to

            tier,   BAE   SYSTEMS may                    BAE    SYSTEMS    with   each

             proceed as provided for                    delivery     any    Material

            in (3) below.                              Safety       Data      Sheet

                                                      applicable   to the Work in

         (3)Upon the   occurrence of                    conformance     with     and

            any         of        the                    containing             such

            circumstances                              information as required by

            identified     in     (2)                    the   Occupational    Safety

            above,   BAE SYSTEMS may                    and Health Act of 1970 and

            make   a   reduction    of                    regulations     promulgated

            corresponding    amounts                     there under,   or its state

            (in   whole   or in part)                    approved counterpart.

            in the price, or in the

            costs and fee,   of this           3.    ASSIGNMENT

            Contract   or any   other                 Any    assignment   of   SELLER's

            contract   with   SELLER,                contract   rights or delegation

 

 

                                       18

<PAGE>

     of    duties    shall   be   void,                (c) Any claim for an equitable

      unless prior   written   consent                    adjustment   by SELLER must

     is   given    by   BAE    SYSTEMS.                    be submitted in writing to

     However,    SELLER   may   assign                    BAE SYSTEMS   within thirty

     rights to be paid amounts due,                    (30) days from the date of

     or   to    become    due,    to   a                    notice    of   the    change,

     financing   institution   if BAE                    unless the   Parties   agree

     SYSTEMS is promptly   furnished                    in   writing   to   a   longer

     a    signed     copy    of    such                    period.

     assignment     reasonably     in

     advance   of the due   date   for                (d) Failure   to   agree   to any

     payment   of any such   amounts.                    adjustment      shall     be

     Amounts     assigned     to    an                    resolved    in    accordance

     assignee   shall be   subject to                    with the "Disputes" clause

     setoffs or recoupment   for any                     of this Contract. However,

     present   or   future   claims of                    nothing   contained in this

     BAE   SYSTEMS   against   SELLER.                    "Changes"    clause    shall

     BAE   SYSTEMS   shall   have   the                     excuse      SELLER      from

     right    to   make    settlements                    proceeding   without   delay

     and/or   adjustments   in   price                    in the performance of this

     without     notice     to     the                    Contract as changed.

     assignee.

                                             5.    COMMERCIAL COMPUTER SOFTWARE

4.    CHANGES                                       (a) As used   in   this   clause,

     (a) The       BAE        SYSTEMS                    "restricted         computer

         Procurement Representative                    software"   means   computer

         may    at   any    time,    by                    program,    computer    data

         written     notice,      and                    base,    or    documentation

          without notice to sureties                    thereof,    that   has   been

         or assignees, make changes                    developed     at     private

         within the   general   scope                    expense   and   either   is a

         of   this   Contract   in any                    trade       secret,       is

         one    or    more    of    the                    commercial    or   financial

         following:   (i)   drawings,                    and      confidential     or

         designs or specifications;                    privileged,       or      is

         (ii) method of shipping or                    published and copyrighted,

         packing;   (iii)   place   of                    and    so     marked     when

         inspection,   acceptance or                     delivered    or    otherwise

         point   of   delivery;    and                    furnished.

         (iv) delivery schedule.

                                                  (b) Notwithstanding         any

     (b) If any such change   causes                     provisions to the contrary

         an increase or decrease in                    contained   in any SELLER's

         the cost   of,   or the time                    standard         commercial

         required for,   performance                     license       or       lease

         of   any    part    of    this                    agreement,   SELLER   agrees

         Contract,     BAE    SYSTEMS                    that     the      restricted

         shall   make   an   equitable                    computer            software

         adjustment in the Contract                    delivered     under     this

         price    and/or     delivery                    Contract shall provide the

         schedule,   and   modify the                    following   rights   to   BAE

         Contract       accordingly.                    SYSTEMS    and    the    U.S.

         Changes   to   the   delivery                    Government.

         schedule   will be   subject

         to   a    price    adjustment                    (1)The restricted computer

         only.                                            software may be:

 

                                       19

<PAGE>

             (i)Used   or copied for                       (vi) Used or copied for

                use in or with   the                             use       in      or

                computer          or                            transferred   to   a

                computers for which                            replacement

                it   was    acquired,                             computer.

                including   use    at

                any       Government                (c) Release   from    liability.

                installation      to                    The SELLER agrees that the

                which such computer                     Government      and      BAE

                or computers may be                    SYSTEMS, and other persons

                transferred;                           to whom the   Government or

                                                      BAE    SYSTEMS    may    have

             (ii)Used or copied for                    released    or     disclosed

                 use in   or   with a                    commercial         computer

                 backup computer if                    software     delivered    or

                 any computer    for                    otherwise   furnished under

                 which     it     was                    this Contract,   shall have

                 acquired         is                    no    liability    for    any

                  inoperative;                          release or   disclosure   of

                                                      such   commercial   computer

             (iii)Reproduced     for                    software    that    are   not

                  safekeeping                           marked   to   indicate   that

                 (archives)       or                    such software are licensed

                 backup purposes;                      data    subject    to    use,

                                                       modification,

             (iv)Modified, adapted,                    reproduction,      release,

                 or   combined   with                    performance,   display,   or

                 other      computer                    disclosure restrictions.

                 software, provided

                 that the modified,           6.    COMMUNICATION WITH BAE SYSTEMS

                 combined,        or                CUSTOMER

                 adapted    portions                BAE   SYSTEMS   shall be   solely

                 of   the derivative                responsible   for   all   liaison

                 software                          and coordination   with the BAE

                 incorporating   any                SYSTEMS   customer,    including

                 of   the delivered,                the U.   S.   Government,   as it

                 restricted                        affects the   applicable   Prime

                 computer   software                Contract,   this Contract,   and

                 shall   be   subject                any related contract.

                 to             same

                 restrictions    set           7.    CONTRACT DIRECTION

                 forth    in     this                (a) Only    the    BAE    SYSTEMS

                 Contract;                             Contract Administrator has

                                                      authority   to   amend   this

             (v) Disclosed   to   and                    Contract.   Such amendments

                  reproduced for use                    must be in writing.

                 by support service          

                 contractors      or                (b) BAE   SYSTEMS    engineering

                 their                                 and   technical    personnel

                 subcontractors,                       may   from    time   to   time

                 subject    to    the                    render   assistance or give

                 same   restrictions                    technical      advice     or

                 set forth in   this                    discuss    or    effect    an

                 Contract; and                         exchange   of    information

 

 

 

                                       20

<PAGE>

         with   SELLER's    personnel                     terminated portion of this

         concerning      the     Work                    Contract.   BAE SYSTEMS and

         hereunder.    Such   actions                    SELLER   shall agree on the

         shall   not be deemed to be                     amount   of    payment    for

         a    change     under     the                    these other deliverables.

         "Changes"   clause   of this

         Contract   and shall not be                (c) SELLER shall continue   all

         the   basis   for   equitable                    Work not terminated.

         adjustment.                         

                                                  (d) If after termination under

     (c) Except     as      otherwise                    paragraph (a), it is later

          provided     herein,     all                    determined that SELLER was

         notices to be furnished by                    not    in    default,    such

         the   SELLER   shall be sent                    termination     shall     be

         to    the     BAE     SYSTEMS                    deemed a   Termination   for

         Contract Administrator.                       Convenience.

 

8.    DEFAULT                                  9.    DEFINITIONS

                                                  The following terms shall have

     (a) BAE   SYSTEMS,   by   written                the meanings set forth below:

         notice, may terminate this

         Contract for   default,   in                (a) "Buyer"   means BAE SYSTEMS

         whole   or   in    part,    if                     Advanced      Technologies,

         SELLER    fails   to   comply                    Inc. (BAE SYSTEMS ATI).

         with   any of the   terms of

         this   Contract,   fails   to                (b) "Contract"     means     the

         make   progress   so   as   to                    instrument of contracting,

         endanger    performance   of                    such   as   "PO",   "Purchase

         this Contract, or fails to                    Order",   "Subcontract"   or

         provide adequate assurance                    other        such       type

         of    future    performance.                    designation, including all

         Seller shall have ten (10)                    referenced       documents,

         days    (or    such    longer                     exhibits and   attachments.

         period as BAE   SYSTEMS may                    If    these     terms     and

         authorize   in   writing) to                    conditions              are

         cure   any    such    failure                    incorporated      into     a

         after   receipt   of   notice                    "master"    agreement   that

         from BAE SYSTEMS.   Default                    provides for releases, (in

         involving          delivery                    the   form   of   a   Purchase

         schedule   delays shall not                    Order    or    other     such

         be   subject   to   the   cure                    document)      the      term

         provision.                                    "Contract" shall also mean

                                                       the Release   document   for

     (b) BAE   SYSTEMS   shall not be                    the Work to be performed.

         liable   for any   Work   not

         accepted;    however,    BAE                (c) "Customer"     means     any

         SYSTEMS may require SELLER                    customer   of   BAE   SYSTEMS

         to deliver to BAE   SYSTEMS                    ATI, any subsequent owner,

         any       supplies       and                    operator   or   user   of the

         materials,    manufacturing                    Goods     and    any    other

         materials,              and                    individual,    partnership,

         manufacturing      drawings                    corporation   or   person or

          that        SELLER       has                    entity     which    has    or

         specifically   produced   or                    acquires   any   interest in

         acquired       for       the                    the Goods from, through or

 

 

                                        21

 

<PAGE>

         under BAE SYSTEMS ATI.                        a part   of   this   Contract

                                                      shall        mean       this

     (d) "FAR"   means   the   Federal                    "Contract."

         Acquisition     Regulation,          

         issued   as   Chapter   1   of                (n) "Subcontractor"   means the

         Title 48,   Code of Federal                    Party   identified   on   the

         Regulations.                                   face of the Contract   with

                                                      whom    BAE     SYSTEMS    is

     (e) "BAE   SYSTEMS"   means   BAE                    contracting.

         SYSTEMS        CORPORATION,          

         acting      through      its                (o) "Work"   means all required

         companies     or    business                    articles,        materials,

         sites as identified on the                    supplies,     goods,     and

         face of this Contract.   If                     services   constituting the

         a subsidiary   or affiliate                    subject    matter   of   this

         of BAE SYSTEMS CORPORATION                    Contract.

         is   identified on the face          

         of the Contract   then "BAE                (p) "Owner"   means   the   means

         SYSTEMS"      means     that                    BAE     SYSTEMS     Advanced

         subsidiary or affiliate.                      Technologies,    Inc.   (BAE

                                                       SYSTEMS ATI).

     (f) "BAE   SYSTEMS   Procurement          

         Representative"   means the          

         person   authorized   by BAE           10.   DISPUTES

         SYSTEMS'          cognizant                All    disputes     under    this

         procurement    organization                Contract     which     are    not

         to     administer     and/or                disposed     of     by     mutual

         execute this Contract.                    agreement   may be   decided   by

                                                   recourse   to an   action at law

     (g) "Goods"   means all   goods,                or   in   equity.    Until   final

         services,    data   software                resolution    of   any    dispute

         and other items   furnished                hereunder,      SELLER     shall

         or to be   furnished to BAE                diligently   proceed   with   the

         SYSTEMS    ATI   under   this                performance   of this   Contract

         Subcontract.                               as directed by BAE SYSTEMS.

         

     (h) "Government"    means    the           11.   EXPORT CONTROL

         government   of the   United                (a) SELLER   agrees   to   comply

         States.                                        with all   applicable   U.S.

                                                      export   control   laws   and

     (i) "Prime Contract" means the                    regulations.        Without

         Government   Contract under                    limiting   the    foregoing,

         which this   Subcontract is                    SELLER agrees that it will

         issued.                                       not   transfer   any   export

                                                      controlled   item,   data or

     (k) "PO" or   "Purchase   Order"                    services,     to     include

         as   used   in any   document                    transfer      to     foreign

         constituting    a   part   of                    persons    employed   by   or

         this   Contract   shall mean                    associated   with, or under

         this "Contract."                              contract    to    SELLER   or

                                                      SELLER's         lower-tier

     (l) "Seller"   means   the Party                    suppliers,    without    the

         identified   on the face of                    authority    of   an   Export

         the Contract with whom BAE                    License    or     applicable

         SYSTEMS is contracting.                        license exception.

         

     (m) "Subcontract"   as   used in                (b) SELLER   agrees   to   notify

         any document   constituting                    BAE     SYSTEMS     if    any

         

                                        22

 

<PAGE>

         deliverable    under    this                    and/or upon   completion of

         Contract is   restricted by                    this   Contract   the SELLER

         export    control   laws   or                    shall    submit,     in    an

         regulations.                                  acceptable form, inventory

                                                      lists      of      Furnished

     (c) SELLER   shall   immediately                    Property and shall deliver

         notify   the   BAE    SYSTEMS                    or    make     such     other

         Procurement Representative                    disposal     as     may    be

         if SELLER is listed in any                    directed by BAE SYSTEMS.

         Denied   Parties List or if          

         SELLER's export privileges                (e) The   Government    Property

         are    otherwise     denied,                    clause      contained     in

         suspended   or   revoked   in                    Section II shall   apply in

         whole or in part by any U.                    lieu   of   paragraphs    (a)

         S.   Government   entity   or                    through    (d)   above   with

         agency.                                       respect    to     Government

                                                       Furnished    Property,    or

12.   EXTRAS                                            property    to   which    the

     Work shall not be   supplied in                    Government    takes    title

     excess of quantities specified                    under this Contract.

     in the Contract.   SELLER shall          

     be liable for handling charges           14.   GRATUITIES/KICKBACKS

     and return   shipment costs for                (a) No gratuities (in the form

      any excess quantities.                            of entertainment, gifts or

                                                      otherwise)    or   kickbacks

13.   FURNISHED PROPERTY                                shall be   offered or given

     (a) BAE SYSTEMS may provide to                    by SELLER, to any employee

         SELLER   property   owned by                    of BAE SYSTEMS with a view

         either BAE   SYSTEMS or its                    toward securing   favorable

         customer         (Furnished                    treatment as a supplier.

         Property).        Furnished          

         Property    shall   be   used                (b) By      accepting       this

         only   for the   performance                    Contract, SELLER certifies

         of this Contract.                             and represents that it has

                                                      not made or solicited   and

     (b) Title      to      Furnished                    will not   make or   solicit

         Property   shall   remain in                    kickbacks   in violation of

         BAE     SYSTEMS     or    its                    FAR     52.203-7    or    the

         customer.    SELLER    shall                    Anti-Kickback   Act of 1986

         clearly   mark   (if   not so                    (41   USC   51-58),   both of

         marked)    all     Furnished                    which    are    incorporated

         Property    to    show    its                    herein   by   this   specific

         ownership.                                     reference,    except    that

                                                      paragraph   (c)(1)   of   FAR

     (c) Except for reasonable wear                    52.203-7 shall not apply.

         and tear,   SELLER shall be          

          responsible for, and shall           15.   INDEPENDENT CONTRACTOR

         promptly      notify     BAE                RELATIONSHIP

         SYSTEMS   of,   any   loss or                (a) SELLER   is an   independent

         damage. Without additional                     contractor    in   all    its

         charge,     SELLER     shall                    operations   and activities

         manage,     maintain,    and                    hereunder.   The   employees

         preserve          Furnished                    used by SELLER to   perform

         Property    in    accordance                    Work under   this   Contract

         with     good     commercial                    shall      be       SELLER's

         practice.                                     employees        exclusively

                                                      without     any     relation

     (d) At BAE   SYSTEMS'   request,                    whatsoever to BAE SYSTEMS.

         

                                       23

 

<PAGE>

     (b) SELLER         shall       be                    without additional charge.

         responsible   for any costs          

         or    expenses     including                (b) No such   inspection   shall

         attorneys'     fees,     all                    relieve    SELLER    of   its

         expenses    of    litigation                    obligations to furnish all

         and/or    settlement,    and                    Work   in   accordance   with

         court costs,   arising from                    the   requirements   of this

         any   act   or   omission   of                    Contract.    BAE    SYSTEMS'

         SELLER,     its    officers,                    final     inspection     and

         employees,          agents,                    acceptance    shall   be   at

         suppliers,               or                    destination.

         subcontractors     at    any          

         tier,   in the   performance                (c) If      SELLER      delivers

         of any of its   obligations                    non-conforming   Work,   BAE

         under this Contract.                          SYSTEMS   may;   (i)   accept

                                                      all or part   of such   Work

16.   INFORMATION OF BAE SYSTEMS                        at   an    equitable    price

     Information   provided   by   BAE                    reduction;    (ii)    reject

     SYSTEMS to SELLER   remains the                    such Work;   or (iii) make,

     property    of    BAE    SYSTEMS.                    or have a third party make

     SELLER   agrees to comply   with                    all                repairs,

     the   terms of any   Proprietary                    modifications,           or

     Information Agreement with BAE                    replacements   necessary to

     SYSTEMS and to comply with all                    enable such Work to comply

     Proprietary         Information                    in    all    respects    with

     markings     and     Restrictive                    Contract   requirements and

     Legends applied by BAE SYSTEMS                     charge   the cost   incurred

     to anything provided hereunder                    to SELLER.

     to SELLER.   SELLER   agrees not          

     to    use    any    BAE    SYSTEMS                (d) SELLER shall not re-tender

     provided   information   for any                    rejected     Work    without

     purpose except to perform this                    disclosing   the corrective

     Contract   and   agrees   not   to                    action taken.

     disclose such   information   to          

     third    parties    without   the           19.   INSURANCE/ENTRY ON BAE SYSTEMS

     prior   written   consent of BAE                PROPERTY

     SYSTEMS.                                      In the event that SELLER,   its

                                                   employees,       agents,      or

17.   INFORMATION OF SELLER                         subcontractors     enter     the

     SELLER   shall not   provide any                site(s) of BAE   SYSTEMS or its

     Proprietary Information to BAE                customers   for any   reason   in

     SYSTEMS       without      prior                connection with this Contract,

     execution   by BAE SYSTEMS of a                then      SELLER      and     its

     Proprietary         Information                subcontractors   shall   procure

     Agreement.                                    and      maintain       worker's

                                                  compensation,     comprehensive

18.   INSPECTION AND ACCEPTANCE                     general    liability,     bodily

      (a) BAE     SYSTEMS    and    its                injury   and   property    damage

         customer   may   inspect all                insurance     in      reasonable

         Work


 
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