Document No. FBM014 1/1/05 15 January 2003 Prime Contract: 1. Contract N00030-02-C-0100 GOVERNMENT BILLS OF LADING (GBL) (Applicable for all purchase orders/subcontracts with deliverables) All shipments from other Lockheed Martin Companies or Subcontractor's plants to Lockheed Martin, the boost propulsion Subcontractors, Lockheed Martin Field Operations or the Government shall be on Government Bills of Lading (GBLs). All shipments from Lockheed Martin Field Operations to LMSSC-Sunnyvale, boost propulsion subcontractors, subcontractors or Government Facilities shall also be on GBL. Commercial Bills of Lading (CBL) may be used when schedule, cost, or other program advantages may thereby be obtained. Lockheed Martin will evaluate transportation costs in the award of competitive subcontracts issued hereunder. 2. INDEMNIFICATION (U. K.) - COST REIMBURSEMENT (Applicable to Thiokol Corporation, Alliant Techsystems Inc., (dba) ATK Aerospace Company Inc., ATK Thiokol Propulsion Company Atlantic Research Corporation, and BAE Systems, Ordnance Systems Inc., if any of these companies are issuing a cost reimbursement type subcontract to a United Kingdom Firm) H-11 SSP 5252.250-9753 Indemnification Supplement (Sep 1999) 1. Public Law 85-804. If this contract includes the "Indemnification Under Public Law 85-804" clause, the Contractor shall provide and maintain financial protection of the types and in the amounts as are from time to time approved by the Secretary of the Navy in the latest memorandum of approval under Public Law 85-804. For purposes of such clause: (a) "nuclear risks" means those risks attributable to the radioactive, toxic, explosive, or other hazardous properties of "special nuclear material," "by-product material," or "source material," as such materials are defined in the Atomic Energy Act of 1954, as amended; and (b) "unusually hazardous risks" means those risks of explosion, detonation, burning or propulsion attributable to the utilization of high energy propellants in (a) POLARIS, POSEIDON, TRIDENT or Tomahawk Cruise Missiles or of any component thereof, or (b) propellant-powered POLARIS, POSEIDON, TRIDENT or Tomahawk Cruise test missiles or of any component thereof, or (c) any other component or subcomponent of the POLARIS, POSEIDON, TRIDENT or Tomahawk Cruise Missile weapon system which uses high energy propellants; Document No. FBM014 Document No. FBM014 1/1/05 2. 10 U.S.C. 2354. For purposes of the "Indemnification Under 10 U.S.C. 2354 -Fixed Price" or "Indemnification Under 10 U.S.C. 2354 -- Cost Reimbursement" clause (if included in this contract): (a) "claim, loss, or damage" is deemed to "arise from the direct performance of this contract" if the cause of such claim, loss, or damage occurred during the period of performance of this contract and as a result of the performance of this contract; and (b) "unusually hazardous risks" means (1) those risks attributable to the radioactive, toxic, explosive, or other hazardous properties of "special nuclear material," "byproduct material," or "source material," as such materials are defined in the Atomic Energy Act of 1954, as amended, and (2) those risks of explosion, detonation, burning, or propulsion attributable to the utilization of high energy propellants in (i) POLARIS, POSEIDON, TRIDENT or Tomahawk Cruise Missiles or of any component thereof, or (ii) propellant-powered POLARIS, POSEIDON, TRIDENT or Tomahawk Cruise test missiles or of any component thereof, or (iii) any other component or subcomponent of the POLARIS, POSEIDON, TRIDENT or Tomahawk Cruise Missile weapon system which uses high energy propellants. H-12 SSP 5252.250-9752 Indemnification (U.K.) (Sep 1999) 1. This clause applies only to the extent this contract is a procurement on behalf of the United Kingdom and applies in lieu of any "Indemnification Under Public Law 85-804" or "Indemnification Under 10 U.S.C. 2354" clause in this contract. 2. For purposes of this clause: (a) "Contractor's principal officials" means directors, officers, managers, superintendents, or other representatives supervising or directing-(1) all or substantially all of the Contractor's business; (2) all or substantially all of the Contractor's operations at any one plant or separate location in which this contract is being performed; or (3) a separate and complete major industrial operation in connection with the performance of this contract; (b) "nuclear risks" means those risks attributable to the radioactive, toxic, explosive, or other hazardous properties of "special nuclear material," "by-product material," or "source material," as such materials are defined in the Atomic Energy Act of 1954, as amended; and (c) "unusually hazardous risks" means those risks of explosion, detonation, burning, or propulsion attributable to the utilization of high energy solid or liquid propellants in (1) POLARIS or TRIDENT missiles or of any component thereof, or (2) propellant-powered POLARIS or TRIDENT test missiles or of any component Document No. FBM014 Document No. FBM014 1/1/05 thereof, or (3) any other component or subcomponent of the POLARIS or TRIDENT weapon system which uses high energy solid or liquid propellants. 3. Regardless of any other provisions of this contract, the Government shall, subject to the limitations contained in the other paragraphs of this clause, indemnify the Contractor against-(a) Claims (including reasonable expenses of litigation or settlement) by third persons (including employees of the Contractor) for death; personal injury; or loss of, damage to, or loss of use of property; (b) Loss of, damage to, or loss of use of Contractor property, excluding loss of profit; and (c) Loss of, damage to, or loss of use of Government property, excluding loss of profit. 4. This indemnification applies only to the extent that the claim, loss, or damage (a) arises out of or results from a risk defined in this contract as unusually hazardous or nuclear and (b) is not compensated for by insurance or otherwise. Any such claim, loss, or damage, to the extent that it is within the deductible amounts of the Contractor's insurance, is not covered under this clause. If insurance coverage or other financial protection in effect on the date the approving official authorizes use of this clause is reduced, the Government's liability under this clause shall not increase as a result. 5. When the claim, loss, or damage is caused by willful misconduct or lack of good faith on the part of any of the Contractor's principal officials, the Contractor shall not be indemnified for-(a) Government claims or United Kingdom claims against the Contractor (other than those arising through subrogation); or (b) Loss or damage affecting the Contractor's property. 6. With the Contracting Officer's prior written approval, the Contractor may, in any subcontract under this contract, indemnify the subcontractor against any risk defined in this contract as unusually hazardous or nuclear. This indemnification shall provide, between the Contractor and the subcontractor, the same rights and duties, and the same provisions for notice, furnishing of evidence or proof, and Government settlement or defense of claims as this clause provides. The Contracting Officer may also approve indemnification of subcontractors at any lower tier, under the same terms and conditions. The Government shall indemnify the Contractor against liability to subcontractors incurred under subcontract provisions approved by the Contracting Officer. 7. The rights and obligations of the parties under this clause shall survive this contract's termination, expiration, or completion. The Government shall make no payment under this clause unless the agency head determines that the amount is just Document No. FBM014 Document No. FBM014 1/1/05 and reasonable. The Government may pay the Contractor or subcontractors, or may directly pay parties to whom the Contractor or subcontractors may be liable. 8. The Contractor shall-(a) Promptly notify the Contracting Officer of any claim or action against, or any loss by, the Contractor or any subcontractors that may be reasonably be expected to involve indemnification under this clause; (b) Immediately furnish to the Government copies of all pertinent papers the Contractor receives; (c) Furnish evidence or proof of any claim, loss, or damage covered by this clause in the manner and form the Government requires; and (d) Comply with the Government's directions and execute any authorizations required in connection with settlement or defense of claims or actions. 9. The Government may direct, control, or assist in settling or defending any claim or action that may involve indemnification under this clause. 10. The following applies to the extent this contract is a cost-reimbursement contract: The cost of insurance (including self-insurance programs) covering a risk defined in this contract as unusually hazardous or nuclear shall not be reimbursed except to the extent that the Contracting Officer has required or approved this insurance. The Government's obligations under this clause are-(a) Excepted from the release required under this contract's clause relating to allowable cost; and (b) Not affected by this contract's Limitation of Cost or Limitation of Funds clause. 11. The Contractor shall provide and maintain financial protection of the types and in the amounts as are from time to time approved by the Secretary of the Navy in the latest memorandum of approval under Public Law 85-804. 12. Article VIII of the Polaris Sales Agreement of 6 April 1963 (T.I.A.S. 5313) and 22 U.S.C. 2762 constitute authority for the above indemnification. 3. UNITED KINGDOM SUBCONTRACTS (Applicable if you are a United Kingdom company) Special Provisions MSD-l (UK-D5) or MSD-2 (US/UK-D5) dated July 1990 as applicable, if you are a UK company check with the Lockheed Martin buyer that issued your purchase order/subcontract for a copy of the applicable document. Document No. FBM014 Document No. FBM014 4. 1/1/05 APPROVED SUBCONTRACTOR INDEMNIFICATION (Applicable to Thiokol Corporation, Alliant Techsystems Inc., (dba) ATK Aerospace Company Inc., ATK Thiokol Propulsion Company, Atlantic Research Corporation, and BAE Systems, Ordnance Systems Inc.) "The Contracting Officer approves the inclusion of indemnification provisions pursuant to the clauses of this contract entitled, "Indemnification Under Public Law 85-804" and "Indemnification (U. K.) - Cost Reimbursement" in any subcontract made under this contract. However, no inclusion is authorized unless the Government will receive the benefit of all cost savings, if any, to the Subcontractor, the Prime Contractor and all higher-tier subcontractors, if any. The clause developed for this Indemnification identified as either '7068/0196C' (Fixed Price) or '7076/0196C' (Cost Reimbursement). For copies of either of these clauses, contact the Lockheed Martin Buyer. 5. SUBCONTRACTOR'S RISK OF LOSS (Applicable to Alliant Techsystems Inc., (dba) ATK Aerospace Company Inc., ATK Thiokol Propulsion Company, Hamilton Sundstrand Corporation, Moog, Inc., Thiokol Corporation (Elkton Division), and Atlantic Research Corporation for cost reimbursement, time and material or labor hour subcontracts) FAR 52.245-5: Approval is provided for the flowdown of paragraph (g) of the FAR clause 52.245-5, Government Property (Cost-Reimbursement, Time and Material, or Labor Hour Contracts). 6. INSURANCE - LIABILITY TO THIRD PERSONS (Applicable to Alliant Techsystems Inc., (dba) ATK Aerospace Company Inc., ATK Thiokol Propulsion Company and Atlantic Research Corporation for Cost Plus Incentive Fee or Cost Plus Fixed Fee subcontracts) FAR 52.228-07, Insurance – Liability to Third Persons (Mar 1996) 7. SUBCONTRACTOR'S EMPLOYEES AT U. K. INSTALLATIONS (SEP.l999) (Applicable if you will have any employees working at a United Kingdom Installation) SSPO 5252.225-9750 a. The Subcontractor shall ensure that its employees and the employees of any of its lower-tier subcontractors shall learn and comply with the rules, regulations and requirements in force at those establishments in the U. K. where the work is performed. In addition, with respect to work performed within the U. K., the Subcontractor and any of its lower-tier subcontractors shall comply with the security regulations and requirements of the Ministry of Defense of U. K. Document No. FBM014 Document No. FBM014 b. 8. 1/1/05 If any of the employees of the Subcontractor or of any of its lower-tier subcontractors are found to be either not qualified to perform the work required or otherwise unsuitable, Lockheed Martin may direct that these employees to be returned to the U.S. and replaced with qualified and suitable employees. NON- DISCLOSURE AGREEMENT (SEP 1999) (Applicable to all purchase orders/subcontracts) Government employees shall not be required to sign a non-disclosure agreement or any other document as a condition to gaining access to a Subcontractor’s (or any tier Subcontractor’s or Supplier’s) data and other information needed to perform their official duties. In addition, Government employees shall not be required to furnish personal or biographical information or documents as a condition to gaining access to a subcontractor (or any tier Subcontractor’s or Supplier’s) data and other information needed to perform their official duties. Pursuant to the Trade Secrets Act, 18 U. S. C. § 1905, Government employees are prohibited from making unauthorized disclosures of a Subcontractor’s (or any tier Subcontractor’s or Supplier’s) proprietary information. 9. 10. FAR 52.247-67, Submission of Commercial Transportation Bills to the General Services Administration for Audit (Jun 1997). Applicable if your subcontract is a cost reimbursement subcontract. DFARS Clause 252.227-7017, Identification and Assertion of Use, Release, or Disclosure Restrictions (Jun 1995). Applicable if purchase order/subcontract requires delivery of non-commercial items. Note: “Offeror” means “Seller”, “Contracting Officer” means “Lockheed Martin or Contracting Officer”. In paragraphs (a) and (b) the references to the Small Business Innovative Research Data Rights clause are deleted. Document No. FBM014