|AGREEMENT OF SUBCONTRACT
|------------------------
|                        

| | THIS AGREEMENT OF SUBCONTRACT (hereinafter referred to as this Subcontract), made as of
the       day of             2004, is by and between General Dynamics Government Systems Corporation, a Delaware
Corporation, having an office and place of business at Needham, Massachusetts (hereinafter called
GD or the Contractor) and ION Networks Inc., a Delaware Corporation, having
an office and place of business at 120 Corporate Blvd., South Plainfield, NJ 07080 (hereinafter called
ION or the Subcontractor).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                
|------------------------------------------------
|WITNESSETH, THAT:
WHEREAS IT IS UNDERSTOOD THAT:
|                                                

|(i)   | The United States of America (hereinafter referred to as the Government) acting through
a duly authorized Contracting Officer of the Department of Defense has heretofore entered into a
contract identified as Prime Contract No. DAAB07-01-D-H101 (which contract is hereinafter referred
to as the Prime Contract) whereunder certain work was undertaken to be performed for
the Government; and
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                                                                                                                                                                                         
|(ii)  | The Contractor by such Prime Contract has undertaken the performance of all or a portion of such work;
and                                                                                                                                                                                                                                                                                              
|      |                                                                                                                                                                                                                                                                                                                                                                                                         
|(iii) | The Contractor desires to have the Subcontractor perform the work called for by this Agreement and
the Subcontractor desires to so perform upon the terms and conditions in this Agreement set forth.                                                                                                                                                                                                   

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Now, therefore, in consideration of the foregoing and the undertaking hereinafter set forth, and subject
to the approval of the Government, the parties hereto do hereby agree as follows:
This
Subcontract is intended to establish and set forth any and all special or unusual conditions of the
Subcontract upon which the Subcontract Parties have mutually agreed to:
1.
All terms and conditions required by federal law and regulations in full text or by incorporation
by reference,
2.
All terms and conditions necessary for Subcontractor to fully satisfy all of its subcontract requirements
under LTLCS3 Prime Contract Number DAAB07-01-D-H101 by and between the U.S. Army, CECOM and Contractor.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

| | ARTICLE 1:  Object and Scope of Subcontract                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                     
| | The object of this Subcontract is to set forth the parties respective rights and obligations with regard
to the design, fabrication, testing, delivery, maintenance and operation of

|1
|-



| | the equipment, materials and services to be supplied hereunder when and as provided in the Price Schedule
and Statement of Work (SOW) included herein.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                                               
| | --------------------------------------------------------------------------------------------------------------
| | ARTICLE 2:  Documents Comprising Subcontract                                                                  
| |                                                                                                               
| | The Subcontract is comprised of the following Subcontract Documents, each of which is an integral part
hereof:
| |                                                                                                               
| | 2.1           Agreement of Subcontract                                                                        

|                                                                                                                      
|----------------------------------------------------------------------------------------------------------------------
|Part I:             Special and General ProvisionsPart II:            Statement of WorkPart III:           Attachments

|Attachment 1 - Price Schedule                                  
|---------------------------------------------------------------
|Attachment
2 - Representations, Certifications and Instructions

|                                           
|-------------------------------------------
|ARTICLE 3:    Interpretation and Precedence
|                                           

|3.1 | In the event of a conflict with or inconsistencies between the provisions of this Subcontract, such conflicts
or inconsistencies shall be resolved by giving precedence to the various portions of the Subcontract
in the following order:
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | 3.1.1        Articles            1 through 7
    3.1.2        Part I:               Special and General Provisions
    3.1.3        Part II:              Statement of Work                               
|    |                                                                                                                                                                                                           
|3.2 | The title and captions of any parts, sections or paragraphs of this Subcontract are for convenience
or reference only and shall have no meaning in the construction or interpretation of this Subcontract.
|    |                                                                                                                                                                                                           
|3.3 | This Subcontract incorporates one or more clauses by Reference with the same force and effect as if
it were given in full text.                                                                           

|                                            
|--------------------------------------------
|ARTICLE
4:  Controlling Law and Severability
|                                            

|4.1 | Irrespective of the place of performance, this Subcontract shall be construed, interpreted and enforced
and the rights of the Parties hereto shall be determined in accordance with the United Stated federal
common law of government contracts as enunciated and applied by federal judicial bodies, boards of
contract appeals and other judicial and quasi-judicial agencies of the Federal Government of the
United States. To the extent that the federal common law of government contracts is not dispositive,
the laws, without regard to its laws concerning conflicts of law, of the Commonwealth of Massachusetts,
which is the State wherein this Subcontract was made, shall apply. Any dispute, controversy or claim,
arising out of or in connection with this Subcontract, that
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2
|-



| | cannot be resolved in accordance with the Disputes Clause hereof, shall be submitted to and finally
resolved by a court of competent jurisdiction in the Commonwealth of Massachusetts.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                        

|4.2 | Over and above the governing laws listed above, the Subcontractor is obligated to subscribe to the laws and regulations of the foreign state in which they are performing pursuant to this subcontract, and in Agreements between the U.S. Government and these foreign countries for work performance pursuant to this subcontract.                                                           
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                
|4.3 | Any provision hereof which is held invalid or unenforceable shall not affect the validity or enforceability
of any other provisions hereof. In the event that any provision of this Subcontract is held invalid
or unenforceable, the Parties shall make every effort to mutually agree to and incorporate into the
Subcontract by Modification, a new provision in regard to the same subject.

|                                         
|-----------------------------------------
|ARTICLE 5:    Communication and Authority
|                                         

|5.1 | The Contractors duly authorized representative of the Contractors Contractual Relations
Department shall be the only Contractor individual authorized to issue Subcontract changes and stop-work
orders, altering the time or place of performance under the Subcontract, or otherwise varying the
terms of the Subcontract. No other Contractor or Government communications shall have any contractual
validity or be binding on the Contractor.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|5.2 | Except as otherwise specified herein, all correspondence, notices and approvals permitted or required hereunder shall be made to or by the duly authorized representative of parties as set forth below:                                                                                                                                                                                                                                            

|                                                                                                                                                                                   
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Contractor:                Margery
A. CunninghamTitle:                           Subcontract
Manager
Subcontractor:          Patrick E. DelaneyTitle:                           CFO
|                                                                                                                                                                                   

|5.2.1 | The Parties shall promptly notify each other in writing of any changes made to their respective designated
representatives hereunder.
|----- | -------------------------------------------------------------------------------------------------------------------------------------

|                                    
|------------------------------------
|ARTICLE 6:    Integration and Merger
|                                    

| | This Subcontract constitutes the final and entire expressed agreements of the Parties concerning the
subject matter hereof, and supersedes all prior negotiations, discussions, representations, correspondence,
promises or agreements, either written or oral, that
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3
|-



| | may have been made in connection with the subject matter hereof. This Subcontract or any Contract Document
which is a part hereof may only be amended by written agreement of the Parties. The only person authorized
to modify this Subcontract on behalf of Contractor is the duly authorized representative of the Contractual
Relations Department as specified in Article 5.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ARTICLE 7:    Force and Effect                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                           
| | This Subcontract shall enter into full force and effect and shall be binding on the Parties upon signature
by the duly authorized representatives of the Parties. The Effective Date shall be the date specified
in the attestation below:
| |                                                                                                                                                                                                                                           
| | ATTESTATION                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                           
| | IN WITNESS WHEREOF, the Parties hereto have caused this Subcontract to be signed by their duly authorized representatives
as of the day and year first written.                                                                           

|                                                            
|------------------------------------------------------------
|GD GOVERNMENT SYSTEMS CORPORATIONNetwork Systems(Contractor)
|                                                            

|BY: _____________________________  | WITNESS:  __________________________
|---------------------------------- | ------------------------------------
|                                   |                                     
|NAME: __________________________   | DATE: _____________________________ 
|                                   |                                     
|TITLE: ___________________________ |                                     
|                                   |                                     
|DATE: ___________________________  |                                     

|                                
|--------------------------------
|ION Networks Inc.(Subcontractor)
|                                

|BY: ______________________________   | WITNESS:  __________________________
|------------------------------------ | ------------------------------------
|                                     |                                     
|NAME: Patrick E. Delaney ___________ | DATE: _____________________________ 
|                                     |                                     
|TITLE: CFO ______________________    |                                     
|                                     |                                     
|DATE: ___________________________    |                                     

|
|

|The Effective Date of this Subcontract is:
|------------------------------------------

|4
|-



|PART I                        
|------------------------------
|                              
|SPECIAL AND GENERAL PROVISIONS
|                              
|SPECIAL PROVISIONS            
|                              

|1.0 | SUBCONTRACT TYPE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | It is understood that this is a Firm Fixed-Price, Indefinite Delivery Infinite Quantity (IDIQ) subcontract
for equipment, supplies and services in support of the LTLCS Prime Contract DAAB07-01-D-H101. As
required, Contractor may order any of the items specified in Attachment 1 from the Subcontractor
that are necessary to be purchased by the Contractor in order to fulfill its obligations under the
LTLCS Program. The minimum ordering guarantee hereunder is $__________ not to exceed a maximum of $445,299.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|2.0 | TERM OF THE SUBCONTRACT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | 2.1 For the purpose of this subcontract the following option years are established:                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (a) Base Year 1 effective 21 August 2001 through 20 August 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (b) Option Year 1 effective from 21 August 2002 through 20 August 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (c) Option Year 2 effective from 21 August 2003 through 20 August 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (d) Option Year 3 effective from 21 August 2004 through 20 August 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|    | (e) Option Year 4 effective from 21 August 2005 through 20 August 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                    

|
|

| | 2.2 | The Subcontract shall be applicable to all Purchase Orders dated and placed in the mail by the Contractor
up to the expiration date of the Subcontract.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------
|3.0 | PRICES, SCHEDULES, AND PERFORMANCE                                                                                                                    
|    |                                                                                                                                                       
|    | All prices shall be as provided in Part III, Attachment 1. Travel prices will be based on the JTR per
diem rate in effect at the time of the proposal.
|    |                                                                                                                                                       
|    | Specific requirements will be attached to each purchase order.                                                                                        

|5
|-



| | The prices in Part III, Attachment 1 are firm fixed prices granted by the Subcontractor which the Contractor
may exercise with the Subcontractor at any time during the Option period delineated in Paragraph
2.1 Term of the Subcontract.                                                                                                                                                                                                                                                                                                                  
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | The four (4) Option Years may be exercised individually, at the sole discretion of Contractor. In the
event the Contractor decides not to exercise its option hereunder, the Contractor shall provide the
Subcontractor with written notification of its decision not later than thirty (30) days prior to
the expiration of the Subcontract. If said notice is not provided, the option to extend the term
of the contract shall be considered to have been exercised, and the Term of the Contract will be
extended without further action by the Parties.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | Neither this Subcontract nor its Attachments shall be construed to expressly or implicitly commit Contractor
to exercise in whole or in part any of the options set out in this Subcontract. The options are independent
and if any option(s) are not exercised the Subcontractor will not be entitled to any reimbursement
or adjustment and all future options will remain in effect.                                                                                                                                                                     

|    |                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4.0 | CONSIDERATION AND PAYMENT                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                   
|    | 4.1   Prices                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                   
|    | In consideration for the equipment, services and other items ordered by Contractor and supplied by
Subcontractor when and as specified herein, Contractor shall pay to Subcontractor the Subcontract
firm fixed prices set forth in Attachment 1 hereto for any options exercised.
|    |                                                                                                                                                                                                                                                                                   
|    | 4.2   Payment                                                                                                                                                                                                                                                                     

| |       |                                                                                                                                                
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------
| | 4.2.1 | Payment for Firm Fixed Price Items                                                                                                             
| |       |                                                                                                                                                
| |       | Contractor shall pay the Subcontractor for firm fixed price items less any deductions permitted hereunder
or at law, net thirty (30) days upon:
| |       |                                                                                                                                                

|(1) | Contractors acceptance of the item(s) invoiced; and                                                                                                                      
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                           
|(2) | Contractors receipt of Subcontractors invoice, specifying the Prime Contract Number, Subcontract
Number, Line Item Number(s), Quantity(s) and unit prices together with:
|    |                                                                                                                                                                           

| |  | (i) Two (2) copies of the Contractor Approved Acceptance Test Results (if applicable); and,                                                                                                                                                      
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |                                                                                                                                                                                                                                                  
| |  | (ii) A statement signed by a duly authorized representative of Subcontractor certifying that the items
covered under the invoice were manufactured or procured by Subcontractor and delivered to Contractor
in conformance with this Subcontract.

|6
|-



| | (1) | Subcontractor may submit invoices based upon the price schedule at Attachment 1.
| | --- | --------------------------------------------------------------------------------
| |     |                                                                                 

| |     | 4.3   Invoicing
    Invoices are to be submitted to:
    GD Government Systems Corporation
  77 A Street
  Needham, MA 02194-9123
  Attention: Margery Cunningham
  Payment is to be 
  remitted to:
    ION Networks Inc.120 Corporate BlvdSouth Plainfield, NJ 07080  
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                           
| | 4.4 | Offsets and Reductions                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                           
| |     | Contractor reserves the right to withhold and offset any amounts due to Subcontractor from Contractor
under the terms of this Subcontract from any payments due or which may become due to Subcontractor
pursuant to the provisions of the claims/disputes clauses herein.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 4.5   Release of Claims                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | As condition precedent to any payments under this Agreement, Contractor may require the Subcontractor
to furnish his affidavits that no liens or rights in rem of any kind lie upon or have attached against the work, or materials, article or equipment therefor,
or any part thereof, either for or on account of any work done upon or about such work, or any materials,
articles or equipment furnished therefore or in connection therewith, or any other cause or thing,
or any claims or demands of any kind (except claims of the Government.)
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

|5.0 | PURCHASE ORDER MECHANISM                                                                                                                                                                                                                        
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                 
|    | 5.1 For purposes of Subcontract procedure, the equipment, materials, services and other items
to be supplied hereunder shall be ordered and delivered in accordance with Purchase Orders to be
placed by Contractor.                            
|    |                                                                                                                                                                                                                                                 
|    | 5.2 Notwithstanding any provisions on any form supplied by Contractor or Subcontractor to the
contrary, all Purchase Orders issued pursuant to this Subcontract shall be subject to and governed
by the terms of this Subcontract. Any terms and

|7
|-



| | conditions that may appear on any form supplied by Contractor or Subcontractor which alters, revises,
conflicts with or supplements the terms of this Subcontract shall have no force or effect unless
such provisions are mutually agreed to in writing and expressly incorporated into this Subcontract
by duly authorized representatives of the Parties.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                             
| | 5.3  Each Purchase Order shall include a description of the equipment, materials or services
as well as delivery date and ship to address(es). As applicable, each Purchase Order shall contain
a reference to the Prime Contract Number in addition to a separate Order Number assigned to the Purchase
Order by Contractor.                               

|    |                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------
|6.0 | DELIVERY/PERFORMANCE                                                                                                                                   
|    |                                                                                                                                                        
|    | 6.1   Delivery Schedule                                                                                                                                
|    |                                                                                                                                                        
|    | The Subcontractor shall provide all supplies, services and data ordered in accordance with the delivery
dates specified in the accepted purchase order.
|    |                                                                                                                                                        
|    | 6.2   Time of Performance                                                                                                                              
|    |                                                                                                                                                        

| | All work shall be completed within the time period(s) specified. Subcontractor agrees to comply with
the schedule and completion dates as agreed upon herein.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 6.3   Delays in Delivery                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 6.3.1  In the event the Subcontractor anticipates
difficulty in complying with the Subcontract delivery schedule, the Subcontractor shall immediately
notify the Contractors Subcontract Administrator in writing, giving pertinent details, including
the date by which it expects to make delivery. This data shall be informational only and receipt
thereof shall not be construed as a waiver by the Contractor of any Subcontract delivery schedule,
or any rights or remedies provided by law under this Subcontract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | 6.3.2  If at any time it appears that the
Subcontractor has not or will not meet the Subcontract delivery schedule, or any extension thereof,
the Contractor shall have the right to require the Subcontractor to submit a revised delivery schedule
together with adequate information and documentation to support the reasonableness of the proposed
schedule. The proposed delivery schedule shall provide a date certain for each deliverable item or
service under the terms of the Subcontract. Such delivery schedules shall take into consideration
all contingencies based upon events or circumstances which are known to the Subcontractor or reasonably
foreseeable at the time of submission. The Subcontractor shall submit the revised delivery schedule
within twenty-five (25) days after receipt of notification by the Contractor. Such notification shall
not be deemed a waiver of the existing Subcontract delivery schedule. The Contractor shall have thirty-five
(35) days within which to approve or disapprove the Subcontractors proposed revision to the
delivery schedule. If approved by the Contractor, the proposed delivery schedule shall be incorporated
into the Subcontract by bilateral modification.

|8
|-



| | If Subcontractor fails to submit a revised delivery schedule within the time specified above, or any
extension thereof granted in writing by the Contractor, the Subcontractor shall be deemed to have
failed to make delivery within the meaning of the Default clauses of this Subcontract
and this Subcontract may be subject to termination.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                   

| | 6.3.3 Notwithstanding any other remedies available to the Contractor, in the event that Subcontractor
fails to deliver items or services to be supplied hereunder on or by the Delivery Dates specified,
Subcontractor shall, at its expense, ship such items in accordance with Contractors instructions
so as to ensure expeditious delivery.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|    |                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|7.0 | ACCEPTANCE OF SERVICES                                                                                                                                                                  
|    |                                                                                                                                                                                         
|    | Notwithstanding acceptance of any services provided herein, all such services remain subject to meeting
all the SOW requirements of this Subcontract and the remedies contained therein.

|    |                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|8.0 | WARRANTY OF SUPPLIES AND SERVICES                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                      
|    | 8.1 Warranty shall be provided in accordance with Statement of Requirements.                                                                                                                                                         
|    |                                                                                                                                                                                                                                      
|    | 8.2 All defective parts which are removed and replaced during the warranty period shall become
the property of the Subcontractor.                                                                                                    
|    |                                                                                                                                                                                                                                      
|    | 8.3 The warranty shall not apply to maintenance and or repair required due to the fault or negligence
of the Contractor or Government or third persons (eg. vandal(s), saboteur(s), visitor(s), etc.) or
due to Acts of God.         
|    |                                                                                                                                                                                                                                      
|    | 8.4 The Subcontractor will not be responsible for providing a warranty on any Government Furnished
Equipment (i.e. excess switches in the Government inventory) provided under this Subcontract.                                     
|    |                                                                                                                                                                                                                                      
|    | 8.5  Replacement items that are provided in exchange for defective equipment during warranty shall be warranted for a period of 90 days, or for the remainder of the warranty period of
the original equipment, whichever is greater.

|     |                                                                                                                                                                                                                                          
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|9.0  | SUBCONTRACTOR RESPONSIBILITY                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                          
|     | The Subcontractor warrants that Subcontractor has reviewed all specifications, drawings and documents
that are applicable to this Subcontract and agrees that deliverable items will meet or exceed all
requirements of this Subcontract.
|     |                                                                                                                                                                                                                                          
|10.0 | LIAISON WITH THE CONTRACTORS CUSTOMER                                                                                                                                                                                                   

|9
|-



| | Except in emergency situations or where authorized in the specification, the Subcontractor shall not
communicate with the Contractors customer regarding this Subcontract without the express permission
of the Contractor. The Subcontractor shall provide assistance to the Contractor, upon request, in
the preparation for and/or conducting of meetings with the Contractors customer.                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | The Subcontractor shall be responsible for immediately notifying the Contractor by telephone, facsimile
or telegram should the Contractors Customer or anyone other than the Subcontractors suppliers
communicate in any manner directly with him regarding this Subcontract. Communication(s) to the Government
from the Subcontractor and all other subcontractors regarding this Subcontract shall be conducted
through the Contractor.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | The Subcontractor shall notify the Contractor, in writing, of any impending visit by Government personnel
relative to this Subcontract or its subcontractors facilities or on-site installation offices
immediately upon being advised thereof.                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | For the purpose of this clause, the Contractors customer(s) is U.S. Army CECOM.                                                                                                                                                                                                                                                                                                                                                            

|     |                                                                                                                                                                                                                                                                                             
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|11.0 | DEFENSE PRIORITY RATING                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                             
|     | Subcontractor acknowledges that Contractor has informed it that the Prime Contract has been assigned
a Defense Order Rating D0-A7 and agrees to extend this rating to this Subcontract and all lower tier
subcontractors and suppliers and to comply with the requirements of FAR 52.211-15.

|     |                                                                                                                                                                                                                                                                     
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|12.0 | DISCLOSURE OF INFORMATION                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                     
|     | Subcontractor shall not in any manner, advertise or publish the fact that it has furnished or has contracted
to furnish the Contractor with any items ordered unless authorized in writing by the Contractor.
Such authorization shall not be unreasonably withheld.

|     |                                                                                                                                                                                       
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|13.0 | CERTIFICATIONS AND REPRESENTATIONS                                                                                                                                                    
|     |                                                                                                                                                                                       
|     | All the Subcontractor Certifications and Representations, enclosed herewith as Attachment 2 - Representations,
Certification and Instructions, are incorporated into this Subcontract.
|     |                                                                                                                                                                                       
|14.0 | DISPUTES                                                                                                                                                                              

| |    |                                                                                                                                                                                                                                       
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A. | Disputes Related to the Government Prime Contract                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                       
| |    | Any dispute that arises under or is related to this Subcontract, and which also relates to Government
  action under the Prime Contract shall be resolved in accordance with the Disputes clause
  of the Prime Contract as follows:

|10
|--



| |    | (1)   Provided Subcontractor has afforded Contractor prior notice of the claim, Subcontractor
  will submit to Contractor a fully-supported written claim concerning any such dispute within one
  (1) year after the claim accrues, but in no event later than final payment under this Subcontract
  or delivery order issued thereunder. Subcontractor shall be barred from any remedy for such claim
  if Subcontractor fails to provide the required notice specified herein;                                                                                                                                                                                                                                                                                   
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | (2)   Subcontractor shall cooperate fully with Contractor in prosecuting any such dispute
  and shall be bound by the outcome unless: (a) without Subcontractors consent, Contractor settles
  the dispute; or (b) Contractor, having determined to discontinue its own prosecution of the dispute,
  does not afford Subcontractor an opportunity to continue to prosecute the dispute in Contractors
  name;                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | (3)   Each party shall bear its own costs of prosecuting any such dispute under this
  subparagraph;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | (4)   Any final decision of the contracting officer if not appealed, and any decision or
  judgment upon appeal, shall be final and conclusive upon Contractor and Subcontractor insofar as
  it relates to this Subcontract;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | (5)   If the dispute is solely between Subcontractor and Contractor and is not otherwise subject to a
  final decision of the contracting officer, the dispute will be decided in accordance with the procedures
  set forth in subparagraph B below;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | (6)   Nothing in this Subcontract gives Subcontractor a direct right of action under the Disputes
  clause of the Prime Contract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | B. | Disputes Between Contractor and Subcontractor Only                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | (1)   For any dispute arising under this Subcontract which is not based on Government action under the
  Prime Contract and which relates solely to a dispute between the parties, the parties agree to seek
  an amicable resolution of such dispute through good faith negotiations. Any dispute which cannot
  be resolved through good faith negotiations shall be decided by the Contractor upon submission by
  the Subcontractor of a written claim. Contractor shall make reasonable efforts to decide such claim
  within sixty (60) days, or such longer period as may be practical given the size and complexity of
  the claim. In no event shall Subcontractor submit a claim under this subparagraph more than one (1)
  year after such claim accrues.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    | (2)   Within thirty (30) days after receipt of Contractors decision denying any such
  claim, Subcontractor shall notify Contractor in writing of its disagreement with the decision. In
  the absence of such notice, such decision shall be final. As appropriate, and consistent with this
  clause, either party may pursue resolution of any dispute under this subparagraph at law or in equity
  through litigation. Any                                                                                                                                                                                                                                                                                                                                     

|11
|--



| |    | such action shall be filed only in a court of competent jurisdiction in the Commonwealth of Massachusetts,
  subject to Subcontractors compliance with paragraph D below; provided, however, that the parties
  hereby expressly waive any rights to a trial by jury and agree that any legal proceeding hereunder
  shall be tried by a judge without a jury. The parties agree that the governing law applicable to
  any such action under this Subcontract shall be the federal law of government contracts, as interpreted
  by federal judicial bodies and administrative boards of contract appeals. To the extent federal government
  contract law is not dispositive, the parties agree that the law of the Commonwealth of Massachusetts
  shall govern. Any such action by the Subcontractor must be commenced within one (1) year from the
  date of Contractors final decision, if applicable.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | C. | As used in this clause, claim means a written demand or assertion seeking, as a matter
  of right, the payment of money in a sum certain, the adjustment or interpretation of subcontract
  terms or other relief arising under or relating to this Subcontract. Any claim submitted for decision
  hereunder shall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | (a)     specify
  the facts, contract terms and conditions and authorities relied upon by the Subcontractor in support
  of the relief sought; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    | (b)     if
  for an amount of $100,000 or more, be accompanied by a certification executed by a senior company
  official authorized to bind the Subcontractor who has knowledge of the basis of the claim, knowledge
  of the accuracy and completeness of the supporting data and knowledge of the claim stating that:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

| | (i)    The claim is made in good faith;                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                      
| | (ii)    All data supporting the claim are accurate and
    complete to the best of the certifiers 
    knowledge and belief;                        
| |                                                                                                                                                      
| | (iii)    The amount requested accurately
    reflects the contract adjustment for which the 
    Subcontractor believes the Contractor is liable; and
| |                                                                                                                                                      
| | (iv)     The certifier is duly authorized to
    certify the claim on behalf of the 
    Subcontractor.                                              
| |                                                                                                                                                      

| | D. | Pending final resolution of any dispute hereunder, Subcontractor shall diligently proceed with performance
  of this Subcontract in accordance with the decision and instructions of Contractor.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12
|--



| | E. | The parties may, by mutual agreement, elect to submit the dispute to an Alternative Dispute Resolution
  (ADR) Process with a mutually acceptable neutral mediator or dispute resolution firm (arbitrator)
  and mutually acceptable procedures. The arbitrator selected shall have demonstrated experience in
  the area of telecommunications and federal government contracts, and shall not be related to, employed
  by, or have any substantial or ongoing business or ownership relationship with, any party, its affiliates
  or subcontractors. The arbitrator shall have no power or authority to make awards or issue orders
  of any kind except as permitted by this Subcontract or by written agreement of the parties, and in
  no event shall the arbitrator have the authority to make any award that provides for consequential,
  punitive or exemplary damages. The arbitrator shall follow the plain meaning of the relevant documents
  and render a decision that is consistent, to the extent applicable, with the federal law of government
  contracts as interpreted by federal judicial bodies and administrative boards of contract appeals.
  To the extent federal government contract law is not dispositive, the arbitrator shall apply the
  law of the Commonwealth of Massachusetts. The costs of the ADR process shall be shared equally by
  the parties. Each party shall bear the cost of preparing and presenting its own case.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|15.0 | TERMINATION FOR CONVENIENCE OF THE CONTRACTOR                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     | (a)  The Contractor may terminate performance of work under this subcontract in whole or, from
time to time, in part, if                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     | (1)  The Contractor determines that a termination
is in the Contractors interest; or if the Contractor is ordered to terminate by the Government
in accordance with FAR 52.249; or                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|     | (2)  The Subcontractor defaults in performing
this subcontract by failing to: (i) deliver the supplies or perform the services within the
time specified in the subcontract or any extension; (ii) make progress, so as to endanger performance
of this subcontract; or (iii) perform any other provisions of this subcontract. The Contractors
right to terminate this subcontract under (a)(2)(ii) or (a)(2)(iii) above may be exercised if the
Subcontractor does not cure such failure within ten (10) days (or more if authorized in writing by
the Contractor) after receipt of the notice from the Contractor specifying the failure.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

| | (b) | If the Contractor terminates this subcontract in whole or in part pursuant to (a)(2) above, it may
acquire, under the terms and in the manner the Contractor considers appropriate, supplies or services
similar to those terminated, and the Subcontractor will be liable to the Contractor for any excess
costs for such supplies or services. However, the Subcontractor shall be required to continue to
work on the portions of the subcontract not terminated.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13
|--



| | (c) | The Contractor shall terminate by delivering to the Subcontractor a Notice of Termination specifying
whether termination is for default of the Subcontractor or for convenience of the Contractor or of
the Government, the extent of termination, and the effective date. If, after termination for default,
it is determined that the Subcontractor was not in default or that the Subcontractors failure
to perform or to make progress in performance is due to causes beyond the control and without
the fault or negligence of the Subcontractor as set forth in the Excusable Delays clause, the rights
and obligations of the parties will be the same as if the termination was for the convenience of
the Contractor or of the Government.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

| | (d)   After receipt of a Notice of Termination and except as directed by the Contractor, the Subcontractor
shall immediately proceed with the following obligations, regardless of any delay in determining
or adjusting any amounts due under this clause:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                            

| | 1.  Stop work as specified in the notice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 2.  Place no further lower tier subcontracts or
orders (referred to as subcontracts in this clause) except as necessary to complete the continued
portion of the Subcontract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 3.  Terminate all lower tier subcontracts to the
extent they relate to the work terminated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 4.  Assign to the Contractor or the Government,
as directed by the Contractor, all right, title and interest of the Subcontractor under the subcontracts
terminated, in which case the Contractor or the Government shall have the right to settle or to pay
any termination settlement proposals arising out of those terminations.                                                                                                                                                                                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 5.  With approval or ratification to the extent
required by the Contractor or the Government, settle all outstanding liabilities and termination
settlement proposals arising from the termination of subcontracts, the cost of which would be reimbursable
in whole or in part, under this contract; approval or ratification will be final for purposes of
this clause.                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 6.  As directed by the Contractor, transfer title
and deliver to the Contractor or the Government (i) the fabricated or unfabricated parts, work in
process, completed work, supplies, and other material produced or acquired for the work terminated,
and (ii) the completed or partially completed plans, drawings, information and other property that,
if the Subcontract or Prime Contract had been completed, would be required to be furnished to the
Contractor or the Government and (iii) the jigs, dies, fixtures, and other special tools and tooling
acquired or manufactured for this subcontract, the cost of which, the Subcontractor has been or will
be reimbursed under this contract.

| |                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 7.  Complete performance of the work not terminated.                                                                                                                        
| |                                                                                                                                                                             
| | 8.  Take any action that may be necessary, or
that the Contractor may direct, for the protection and preservation of the property related to this
Subcontract that is in the

|14
|--



| | possession of the Subcontractor and in which the Contractor or the Government has or may acquire an
interest.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | 9.  Use its best efforts to sell, as directed
or authorized by the Contractor, any property of the types referred to in subparagraph (6) above;
provided, however, that the Subcontractor (i) is not required to extend credit to any purchaser and
(ii) may acquire the property under the conditions prescribed by, and at prices approved by, the
Contractor and the Government. The proceeds of any transfer or disposition will be applied to reduce
any payments to be made by the Contractor under this Subcontract, credited to the price or cost of
the work, or paid in any other manner directed by the Contractor.                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (e)   After expiration of the plant clearance period as defined in Subpart 45.6 of the Federal Acquisition
Regulation, the Subcontractor may submit to the Contractor a list, certified as to quantity and quality,
of termination inventory not previously disposed of, excluding items authorized for disposition by
the Contractor. The Subcontractor may request the Contractor or the Government to remove those items
or enter into an agreement for their storage. Within 15 days, the Contractor or the Government will
accept title to those items and remove them or enter into a storage agreement. The Contractor may
verify the list upon removal of the items, or if stored, within 45 days from submission of the list,
and shall correct the list, as necessary, before final settlement.                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (f)   After termination, the Subcontractor shall submit a final termination settlement proposal
to the Contractor in the form and with the certification prescribed by the Contractor. The Subcontractor
shall submit the proposal promptly, but no later than six (6) months from the effective date of termination,
unless extended in writing by the Contractor upon written request of the Contractor within this six
(6) month period. However, if the Contractor determines that the facts justify it, a termination
settlement proposal may be received and acted on after six months or any extension. If the Subcontractor
fails to submit the proposal within the time allowed, the Contractor may determine, on the basis
of information available, the amount, if any, due the Subcontractor because of the termination and
shall pay the amount determined.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (g)   Subject to paragraph (f) above, the Subcontractor and the Contractor may agree upon the whole
or any part of the amount to be paid (including an allowance for fee) because of the termination.
The contract shall be amended, and the Subcontractor paid the agreed amount.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (h)   If the Subcontractor and Contractor fail to agree in whole or in part on the amount of costs
and/or fee to be paid because of the termination of work, the Contractor shall determine, on the
basis of information available, the amount, if any, due the Subcontractor, and shall pay that amount,
which shall include the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (1)  All costs reimbursable under this contract,
not previously paid, for the performance of this subcontract before the effective date of the termination,
and those                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

|15
|--



| | costs that may continue for a reasonable time with the approval of or as directed by the Contractor;
however, the Subcontractor shall discontinue these costs as rapidly as practicable.                                                                                                                                                                                                                                                 
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (2)  The cost of settling and paying termination
settlement proposals under terminated subcontracts that are properly chargeable to the terminated
portion of the subcontract if not included in subparagraph (1) above.                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (3)  The reasonable costs of settlement of
the work terminated, including-                                                                                                                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (i)      Accounting,
legal, clerical, and other expenses reasonably necessary for the preparation of termination settlement
proposals and supporting data;                                                                                                                                                                                                                                                                               
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (ii)    The
termination and settlement of lower tier subcontracts (excluding the amounts of such settlements);
and                                                                                                                                                                                                                                                                                                                       
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (iii)   Storage,
transportation, and other costs incurred, reasonably necessary for the preservation, protection,
or disposition of the termination inventory. If the termination is for default, no amounts for the
preparation of the Subcontractors termination settlement proposal may be included.                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (4)  A portion of the fee payable under the
subcontract, determined as follows:                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (i)  If
the subcontract is terminated for the convenience of the Contractor or the Government, the settlement
shall include a percentage of the fee equal to the percentage of completion of work contemplated
under the subcontract, but excluding subcontract effort included in subcontractors termination
proposals, less previous payments for fee.                                                                                
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (ii)  If
the subcontract is terminated for default, the total fee payable shall be such proportionate part
of the fee as the total number of articles (or amount of services) delivered to and accepted by the
Contractor is to the total number of articles (or amount of services) of a like kind required
by the subcontract.                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (5)  If the settlement includes only fee,
it will be determined under subparagraph (h)(4) above.                                                                                                                                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (i)  The cost principles and procedures in Part 31 of the Federal Acquisition Regulation, in effect
on the date of this subcontract, shall govern all costs claimed, agreed to, or determined under this
clause.                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | (j)  The Subcontractor shall have the right of appeal, under the Disputes clause, from any determination
made by the Contractor under paragraph (f) or (h) above, or paragraph (k) below, except that if the
Subcontractor failed to submit the termination settlement proposal within the time provided in paragraph
(f) and failed to request a time extension, there is no right of appeal. If the Contractor has made
a determination

|16
|--



| | of the amount due under paragraph (f), (h), or (l), the Contractor shall pay the Subcontractor (1)
the amount determined by the Contractor if there is no right of appeal or if no timely appeal has
been taken, or (2) the amount finally determined on an appeal.                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | (k) In arriving at the amount due the Subcontractor under this clause, there shall be deducted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | (1)   All unliquidated advance or other payments
to the Subcontractor, under the terminated portion of this subcontract;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | (2)   Any claim which the Contractor has against
the Subcontractor under this subcontract; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | (3)   The agreed price for, or the proceeds
of sale of materials, supplies, or other things acquired by the Subcontractor or sold under this
clause and not recovered by or credited to the Contractor.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | (l)  The Subcontractor and the Contractor must agree to any equitable adjustment in fee for the
continued portion of the contract when there is a partial termination. The Contractor shall amend
the contract to reflect the agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | (1)  The Contractor may, under the terms and conditions
it prescribes, make partial payments and payments against costs incurred by the Subcontractor for
the terminated portion of the contract, if the Contractor believes the total of these payments will
not exceed the amount to which the Subcontractor will be entitled.                                                                                                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | (2)  If the total payments exceed the amount finally
determined to be due, the Subcontractor shall repay the excess to the Contractor upon demand, together
with interest computed at the rate established by the Treasury under 50 U.S.C. App. 1215(b)(2). Interest
shall be computed for the period from the date the excess payment is received by the Subcontractor
to the date the excess is repaid. Interest shall not be charged on any excess payment due to a reduction
in the Subcontractor termination settlement proposal because of retention or other disposition of
termination inventory until 10 days after the date of the retention or disposition, or a later date
determined by the Contractor because of the circumstances.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

| | (m) | The provisions of this clause relating to fee are inapplicable if this contract does not include a
fee.                                                                                                                                                                                                                                                                                                                                                                                         
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (n) | Unless otherwise provided in this subcontract or by statute, the Subcontractor shall maintain all records
and documents related to the terminated portion of this subcontract for three (3) years after final
settlement. This includes all books and other evidence related to the Subcontractors costs
and expenses under this subcontract. The Subcontractor shall make these records and documents available
to the Government (or Contractor, as appropriate) at a place designated by the

|17
|--



|
|
|

| | Government or Contractor at all reasonable times, without any direct charge under this subcontract.
If approved by the Contractor, photographs, microphotographs or other authentic reproductions may
be maintained instead of original records and documents.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|16.0 | DEFAULT FOR NONPERFORMANCE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | (a) (1) The Contractor may, subject to paragraphs (c) and (d) below, by written notice of default
to the Subcontractor, terminate this Subcontract in whole or in part if the Subcontractor fails to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | (i)   Deliver
the supplies or to perform the services within the time specified in this Subcontract or any extension;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | (ii)
 Make progress, so as to endanger performance of this Subcontract (but see subparagraph (a)(2) below);
or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | (iii)  Perform
any of the other provisions of this Subcontract (but see paragraph (a)(2) below).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | (2)  The Contractors right to terminate
this Subcontract under subdivisions (1)(ii) and (1)(iii) above, may be exercised if the Subcontractor
does not cure such failure within ten (10) days (or more if authorized in writing by the Contractor)
after receipt of the notice from the Contractor specifying the failure.                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | (b)  If the Contractor terminates this Subcontract in whole or in part, the Contractor may acquire,
under the terms and in the manner the Contractor considers appropriate, supplies or services similar
to those terminated, and the Subcontractor will be liable to the Contractor for any excess costs
for those supplies or services. However, the Subcontractor shall continue the work not terminated.                                                                                                                                                                                                                                                                   
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | (c)  Except for defaults of subcontractors at any tier or Force Majeure, the Subcontractor shall
not be liable for any excess costs if the failure to perform this Subcontract arises from cause beyond
the control and without the fault or negligence of the Subcontractor. Examples of such cause include
(1) acts of God, (2) acts of the government in either its sovereign or contractual capacity, (3)
fires, (4) floods, (5) epidemics, (6) quarantine restrictions, (7) strikes, (8) freight embargoes,
and (9) unusually severe weather. In each instance the failure to perform must go beyond the control
and without the fault or negligence of the Subcontractor.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|     | (d)  If the failure to perform is caused by the default of a subcontractor at any tier, and if
the cause of the default is beyond the control of both the Subcontractor and lower tier subcontractor,
and without the fault or negligence of either, the Subcontractor shall not be liable for any excess
costs for failure to perform, unless the subcontracted supplies or                                                                                                                                                                                                                                                                                                   

|18
|--



| | services were obtainable from other sources in sufficient time for the Subcontractor to meet the required
delivery schedule.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (e)  If this Subcontract is terminated for default, the Contractor may require the Subcontractor
to transfer title and deliver to the Contractor or the Government, as directed by the Contractor,
any (1) completed supplies, and (2) partially completed supplies and materials, parts, tools, dies,
jigs, fixtures, plans, drawings, information, and contract rights (collectively referred to as manufacturing
materials in this clause) that the Subcontractor has specifically produced or acquired for
the terminated portion of this Subcontract. Upon direction of the Contractor or the Government, the
Subcontractor shall also protect and preserve property in its possession in which the Contractor
has an interest.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (f)  The Contractor shall pay the Subcontract price for completed supplies delivered and accepted.
The Subcontractor and Contractor shall agree on the amount of payment for manufacturing materials
delivered and accepted and for the protection and preservation of the property. Failure to agree
will be a dispute under the applicable clause of this Subcontract. The Contractor may withhold from
these amounts any sum the Contractor determines to be necessary to protect the Contractor or the
Government against loss because of outstanding liens or claims of former lien holders.                                                                                                                                     
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (g)  If, after termination, it is determined that the Subcontractor was not in default, or that
the default was excusable, the rights and obligations of the Parties shall be the same as if the
termination had been issued for the convenience of the Contractor or the Government.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | (h)  The rights and remedies of the Contractor or the Government in this clause are in addition
to any other rights and remedies provided by law or under this Subcontract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|17.0 | STOP-WORK ORDER                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     | 17.1   The Contractor may, at any time, by written order to the Subcontractor, require the Subcontractor
to stop all, or any part, of the work called for by this Subcontract for a period of 90 days after
the stop-work order is delivered to the Subcontractor, and for any further period to which the parties
may agree. The order shall be specifically identified as a stop-work order issued under this clause.
Upon receipt of the order, the Subcontractor shall immediately comply with its terms and take all
reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during
the period of work stoppage. Within a period of 90 days after a stop-work order is delivered to the
Subcontractor, or within any extension of that period to which the parties shall have agreed, the
Contractor shall either 

| |    |                                                                                                                                   
| | -- | ----------------------------------------------------------------------------------------------------------------------------------
| | 1. | Cancel the stop-work order; or                                                                                                    
| |    |                                                                                                                                   
| | 2. | Terminate the work covered by the order as provided in the Default, or the Termination for Convenience clause of this Subcontract.

|19
|--



| | 17.2    If a stop-work order issued under this clause is canceled or the period of the order or any extension
thereof expires, the Subcontractor shall resume work. The Contractor shall make an equitable adjustment
in the delivery schedule or subcontract price or both, and the Subcontract shall be modified, in
writing, accordingly, if 
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                  

| | 1. The stop-work order results in an increase in the time required for, or in the Subcontractors
costs properly allocable to, the performance of any part of this Subcontract; and                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                          
| | 2. The Subcontractor asserts a claim for the adjustment within 20 business days after the end of the
period of work stoppage; provided, that, if the Contractor decides the facts justify the action,
the Contractor may receive and act upon the claim asserted at any time before final payment under
this Subcontract.
| |                                                                                                                                                                                                                                                                                                                          

|     | 17.3    If a stop-work order is not canceled and the work covered by the order is terminated in accordance
with the Termination for Convenience Clause, the Contractor shall allow reasonable costs resulting
from the stop-work order in arriving at the termination settlement.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                  
|     | 17.4    If stop-work order is not canceled and the work covered by the order is
terminated for default, the Contractor shall allow, by equitable adjustment or otherwise, reasonable
costs resulting from the stop-work order.                                                   
|     |                                                                                                                                                                                                                                                                                  
|18.0 | ASSIGNMENT AND SUBCONTRACTING                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                  

|     | 18.1                                                    | Subcontractor shall not assign any interest herein, in whole or in part, without the prior written
consent of the Contractor.                                                      
|---- | ------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                         |                                                                                                                                                                                    
|     | 18.2                                                    | Neither all nor substantially all of the work to be performed under this Subcontract may be further
subcontracted by Subcontractor without the prior written consent of Contractor.
|     |                                                         |                                                                                                                                                                                    
|19.0 | TITLE AND RISK OF LOSS OR DAMAGE TO PURCHASED EQUIPMENT
|     |                                                         |                                                                                                                                                                                    

| | Title and risk of loss passes to the Contractor upon acceptance.                                                                                                                                                                                                                                                                                                                      
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                       
| | In the event loss or damage to Subcontractor equipment is caused by nuclear reaction, nuclear radiation
or radioactive contamination for which the U.S. Government is legally responsible or when loss or
damage is due to the negligence of the Government, Subcontractor shall be indemnified by Contractor
to the extent Contractor is indemnified by the U.S. Government therefor.
| |                                                                                                                                                                                                                                                                                                                                                                                       
| | Risk of loss to equipment, accessories and devices rented under the Subcontract shall remain with the
Subcontractor.                                                                                                                                                                                                                                                                  

|20
|--



|20.0 | NOTICE OF LOSS OR DAMAGE                                                                                                                                                                                                                                                                                                                                                                        
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                 
|     | Each party shall be liable for any loss of or damage to the other parties property, including Government
Property which it proximately caused by negligence, theft, or willful misconduct of its agents, servants,
and employees. The responsible party shall submit a full written report to the other party within
sixteen (16) hours following the occurrence of such damage, loss or injury.

|     |                                                                                                                                                                                                                                                                                                                             
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|21.0 | SAFETY AND HEALTH                                                                                                                                                                                                                                                                                                           
|     |                                                                                                                                                                                                                                                                                                                             
|     | 21.1   The Subcontractor will comply with all Department of Army (DA) Safety and Health regulations and
Department of Labor, Occupational Safety and Health Administration (OSHA) Standards.                                                                                                                                
|     |                                                                                                                                                                                                                                                                                                                             
|     | 21.2   The Subcontractor shall report on a monthly basis to the Contractor the number of employees performing
on the job site. All Subcontractor accidents occurring on Government property resulting in loss of
one full scheduled shift or $1,000.00 in damage to Government property must be submitted to the Contractor.
|     |                                                                                                                                                                                                                                                                                                                             
|22.0 | SUBCONTRACTOR PERSONNEL                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                             

|     | 22.1   The Subcontractor is responsible for selecting personnel who are well qualified to perform under
this Subcontract, for supervising the techniques used in performance and for keeping them informed
of all improvements, changes, methods or operations.                                             
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                             
|     | 22.2   The Subcontractor shall have the right to replace or transfer his personnel and to substitute
other personnel of equal or greater qualification in lieu thereof, provided that such transfers or
replacements will not cause a delay in performance.                                                 
|     |                                                                                                                                                                                                                                                                                                             
|     | 22.3   The Contractor may direct, at its sole discretion, the Subcontractor to
remove, and the Subcontractor shall remove, any employee from assignment to this Subcontract for
reasons of security or misconduct. Replacement shall be at the Subcontractors expense and not
chargeable to the Contractor.
|     |                                                                                                                                                                                                                                                                                                             
|23.0 | PERMITS, TAXES, LICENSES, ORDINANCES AND REGULATIONS                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                             

| | Subcontractor shall, at his own expense, obtain all necessary permits, give all notices, pay all license
fees and taxes, comply with all Federal, State, municipal, county and local Board of Health ordinances,
rules and regulations applicable to the business carried on under this Subcontract and be responsible
for all applicable State and Use Taxes. The Subcontractor warrants that he has been duly authorized
to operate and do business in the countries in which this contract is to be performed; that he has
obtained, at no cost to the U.S. Government, all necessary license and permits required with this
contract; and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|21
|--



| | that he will fully comply with all the laws, decrees, labor standards and regulations of such countries
during performance of this contract.
| | --------------------------------------------------------------------------------------------------------------------------------------------

|     |                                                                                                                                                                                                                                                                                                         
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|24.0 | NORMAL WORKING HOURS                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                         
|     | The Subcontractor shall schedule his working hours to coincide with the normal work hours of each location.
In the event that hours are required beyond normal work hours, Subcontractor shall notify the cognizant
GD site project manager for written concurrence. E-mail authorization is acceptable.

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|25.0 | LOCAL, STATE AND FEDERAL REGULATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     | The Subcontractor is responsible for knowledge and compliance with all local, state and federal regulations
which may have impact on the performance of this Subcontract. These include, but are not limited
to, laws and regulations pertaining to environmental laws such as hazardous material handling and
disposition, Occupational Safety and Health Administration (OSHA) regulations, zoning and construction
regulations and requirements imposed by historical commissions and landmark preservation committees.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|26.0 | SUBCONTRACTOR ACCESS TO INSTALLATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

| |  | Each installation will identify the appropriate procedures and policies regarding Subcontractor access
to the areas where services will be required. Clarification of Terms: installation,
site, facility and Government shall be deemed to mean U.S.
Government.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|27.0 |  | NON-WAIVER OF RIGHTS                                                                                                                                                                                                                                                                                                                                                                                                                                   
|     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |  | The failure or delay of Contractor to insist upon strict performance of any of the terms and conditions
in the Subcontract or to exercise any rights or remedies, shall not be construed as a waiver of its
rights to assert any of the same or to rely on any such terms or conditions at any time thereafter.
The invalidity in whole or in part of any terms or conditions of this Subcontract shall not affect
the validity of other parts thereof.

|     |                                                                                                                                                                                                                                                                                                                                                                                                               
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|28.0 | SUBCONTRACT FLOWDOWN REQUIREMENTS                                                                                                                                                                                                                                                                                                                                                                             
|     |                                                                                                                                                                                                                                                                                                                                                                                                               
|     | Subcontractor agrees to flowdown any mandatory FAR and DFAR clauses of this Subcontract, and other
sections of this Subcontract to lower tier subcontractors. Subcontractor agrees to furnish all information
requested by Contractor respective to such subcontracts. If Subcontractor does not choose to pass
these clauses down, it does not relieve Subcontractor of its responsibilities and obligations.
|     |                                                                                                                                                                                                                                                                                                                                                                                                               
|29.0 | PASSPORTS AND VISAS                                                                                                                                                                                                                                                                                                                                                                                           

|22
|--



|     | All Subcontractor personnel who are required to travel OCONUS under this Subcontract, shall possess
all required passports and visas and will have obtained all required immunizations prior to such
employment. In addition, the Subcontractor shall obtain for those personnel departing from CONUS
all necessary security clearances and identification. Inability by the Subcontractor to obtain, or
delay in obtaining required passports, visas or other requirements in conjunction therewith, shall
not be construed as a cause for an excusable delay in performance of the Subcontract. Expense for
passports, visas and immunizations are solely those of the Subcontractor, and are not direct reimbursable
hereunder.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|30.0 | REQUEST OVERSEAS AREA CLEARANCES, TRAVEL AUTHORIZATION ORDERS, LOGISTICAL PRIVILEGES AND SECURITY CLEARANCES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|     | The Subcontractor shall submit a request for Travel Authorization Orders, Logistical Privileges and
Security Clearances (if required) to the Contractor. Normally a security clearance will not be required.
The Subcontractor must allow thirty days for the Contractor to solicit and obtain Government approval
of overseas clearances for Subcontractor personnel. Failure, due to the fault or negligence of Subcontractor,
to obtain such clearances shall not excuse timely Subcontract performance. As a minimum, the request
shall include the following:                                                                                                                                                                

|                                                     
|-----------------------------------------------------
|a.     Subject:  Invitational Travel Order           
|                                                     
|b.     Last, First, Middle Name of Visitor:          
|                                                     
|c.     Passport Information: Number and date of issue
|                                                     
|d.     Position:                                     
|                                                     
|e.     Citizenship:                                  
|                                                     
|f.      Social Security Number:                      
|                                                     
|g.     Date/Place of Birth:                          
|                                                     
|h.     Security Clearance:  Date/Agency of Issue     
|                                                     
|i.      Date, Purpose of Duration of Visit:          
|                                                     
|j.      Subcontract Number:                          
|                                                     
|k.     Prime Contract Number:                        

|     |                                                                                                                                                                                                                                                                                                 
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.0 | SUPPORT IN HOST COUNTRY                                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                 
|     | 31.1   The United States citizen Subcontractor employees who are authorized entry to the overseas command
will be authorized the following Logistical Support Services with the approval of the applicable
site commander, subject to availability, and in accordance with Army costing methods:

| |        |  |                                                          
| | ------ |  | ---------------------------------------------------------
| | 31.1.1 |  | Civilian Personnel Administrative Services (Reimbursable)
| |        |  |                                                          
| | 31.1.2 |  | Legal Services (Reimbursable)                            
| |        |  |                                                          
| | 31.1.3 |  | Mail Pickup and Delivery (Nonreimbursable)               

|23
|--



| | 31.1.4  |  | Administrative Office Space (Reimbursable)        
| | ------- |  | --------------------------------------------------
| |         |  |                                                   
| | 31.1.5  |  | Custodial/Disposal Services (Reimbursable)        
| |         |  |                                                   
| | 31.1.6  |  | Fire Protection (Nonreimbursable)                 
| |         |  |                                                   
| | 31.1.7  |  | Police Services (Nonreimbursable)                 
| |         |  |                                                   
| | 31.1.8  |  | Housing/Lodging (Reimbursable)                    
| |         |  |                                                   
| | 31.1.9  |  | Laundry and Dry Cleaning (Reimbursable)           
| |         |  |                                                   
| | 31.1.10 |  | Health Services (Reimbursable)                    
| |         |  |                                                   
| | 31.1.11 |  | Utilities Services (Reimbursable)                 
| |         |  |                                                   
| | 31.1.12 |  | Real Property Maintenance                         
| |         |  | (Reimbursable/Nonreimbursable)                    
| |         |  |                                                   
| | 31.1.13 |  | Chaplain/Religious Services (Nonreimbursable)     
| |         |  |                                                   
| | 31.1.14 |  | Social Actions (Nonreimbursable)                  
| |         |  |                                                   
| | 31.1.15 |  | Expendable/General Supplies (Reimbursable)        
| |         |  |                                                   
| | 31.1.16 |  | Commissary and Base Exchange Privileges           
| |         |  | (Reimbursable                                     
| |         |  |                                                   
| | 31.1.17 |  | Use of Military Banking Facilities (Reimbursable) 
| |         |  |                                                   
| | 31.1.18 |  | Telephone/Message Services (Reimbursable)         
| |         |  |                                                   
| | 31.1.19 |  | Pet and Firearm Registration (Reimbursable)       
| |         |  |                                                   
| | 31.1.20 |  | Ground Transportation (Regularly Scheduled-       
| |         |  | Nonreimbursable); taxi, UDrive and Rental        
| |         |  | Reimbursable)                                     
| |         |  |                                                   
| | 31.1.21 |  | Mortuary Services (Reimbursable) The              
| |         |  | support/facilities to be provided shall be further
| |         |  | defined by the Contractor on a site-by-site basis.
| |         |  |                                                   
| | 31.1.22 |  | Driver Licensing and Vehicle Registration         
| |         |  |                                                   
| | 31.1.23 |  | Use of Officers and NCO Clubs                    

|24
|--



| | 31.1.24 |  | Government Messing Facilities                    
| | ------- |  | -------------------------------------------------
| |         |  |                                                  
| | 31.1.25 |  | Local and Government Recreational Facilities     
| |         |  | (Space Available)                                
| |         |  |                                                  
| | 31.1.26 |  | Subcontractor personnel may travel by military   
| |         |  | aircraft in host country subject to availability.
| |         |  |                                                  

|31.2 | Subcontractor employee dependents who are authorized entry to the overseas command will also be authorized
the above logistical support with the approval of the applicable site commander, subject to availability,
and in accordance with Army costing methods.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                  
|31.3 | Subcontractor employees requests for Logistic Support and Privileges while in Host Country will be
processed through the Contractor.                                                                                                                             

|                                          
|------------------------------------------
|32.0         LIABILITY AND INDEMNIFICATION
|                                          

|32.1 | GD or its employees shall not be liable for any injury to the person or property of Subcontractor,
except where such injury was directly caused by the fault or negligence of GD or such employees in
the course of their employment.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                      

| | 32.2 | Subcontractor shall indemnify, defend and hold GD harmless from and against:
| | ---- | ----------------------------------------------------------------------------
| |      |                                                                             

| | (i)   | Subcontractors failure to deduct and pay taxes required by law on compensation Subcontractor
pays to its officers, employees or independent contractors.      
| | ----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                
| | (ii)  | Personal injury or death occurring to any of its officers, employees and independent contractors engaged
in the performance of the work under this Subcontract.
| |       |                                                                                                                                                                
| | (iii) | Damage or loss to property of Subcontractor, its officers, employees or independent contractors related to performance of the work of this Subcontract.        
| |       |                                                                                                                                                                

|33.0 | SUBCONTRACTOR OR TECHNICAL REPRESENTATIVES STATUS-REPUBLIC OF KOREA (ROK) (Applies to Korea sites only)                                                                                                                                               
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                       
|     | 33.1   As obtained through the Contractors Prime Contract, Invited-Subcontractor or technical representatives
status under the US-ROK Status of Forces Agreement (SOFA) is subject to the written approval of HQ
USFK, Attn.: ACJ, APO SF 96301-0010.
|     |                                                                                                                                                                                                                                                       
|     | 33.2   The Contractor and the Government will coordinate with the HQ USFK in accordance with DFARS subpart
25.77 and USFK Reg. 700-19. The ACofs,                                                                                                     

|25
|--



| | Acquisition Management, HQ USFK, will determine the appropriate Subcontractor status under the SOFA
and notify the Contractor and the Government of the determination.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 33.3   Subject to the Government providing the above approval to Contractor based upon Subcontractors
timely submittal of required documentation, the Subcontractor, including their employees and lawful
dependents, may be accorded such privileges and exemptions as specified in the US-ROK SOFA and implemented
per USFK Reg. 700-19, subject to the conditions and limitations imposed by the SOFA and that regulation.
These privileges and exemptions may be furnished during the performance period of the Subcontract,
subject to their availability and provided the Invited Subcontractor or technical representatives
status is not withdrawn by USFK.                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 33.4   The Subcontractor officials and employees performing under this contract collectively and separately
warrant that they are not now performing nor will perform during the period of this Subcontract,
any subcontract, service or otherwise engage in business activities in the ROK other than those pertaining
to the U.S. Armed Forces.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 33.5   During performance of work in the ROK required by this Subcontract, the Subcontract will be governed
by USFK regulations pertaining to the direct hiring and the personnel administration of Korean National
employees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 33.6   The authorities of the ROK will have the right to exercise jurisdiction over Invited-Subcontractors
and technical representatives including officials and employees, and their dependents, for offenses
committed in the ROK and punishable by the Laws of the ROK. In recognition of the role of such persons
in the defense of the ROK, they will be subject to the provisions of paragraph 5, 7(b), and 9 of
the US-ROK SOFA and the related agreed minutes of SOFA, Article XXII. In those cases in which the
authorities of the ROK decide not to exercise jurisdiction, they shall notify the US Military authorities
as soon as possible. On such notification, the military authorities will have the right to exercise
such jurisdiction over the person(s) referred to, as is conferred on them by the law of the United States.
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 33.7   Invited-Subcontractors and technical personnel agree to cooperate fully with the USFK sponsoring
agency and responsible officer on all matters pertaining to logistical support. In particular, Subcontractors
will provide prompt and accurate reporting of changes in employee status as required by this regulation
to the assigned sponsoring agency. All U.S. Subcontractors performing work on classified Subcontracts
will report to the nearest Security Police Information Security Section for the geographical area
where the Subcontract is to be performed.                                                                                                                                                                                                                                                                  
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 33.8   Invited-Subcontractor and technical representatives status will be withdrawn by USFK upon:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 33.8.1 Completion of termination of the Subcontract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

|26
|--



|
|
|

| | 33.8.2 Proof
that the Subcontractor or its employees are engaged in business activities other than those pertaining
to the US Armed Forces in the ROK or are violating USFK regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 33.8.3 Proof
that the Subcontractor or its employees are engaged in practices illegal in the ROK or are violating
USFK regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 33.9 It is agreed that the withdrawal of the Invited-Subcontractor or technical representative status
or any of the privileges associated therewith by the U.S. Government due to the fault or negligence
of the Subcontractor, will not constitute grounds for excusable delay by the Subcontractor in the
performance of the Subcontractor, nor will it justify or excuse the Subcontractor defaulting the
performance of this Subcontract; and such withdrawal will not serve as a basis for the filing of
any claims against the U.S. Government if withdrawal is made for the reasons stated above. Under
no circumstances will the withdrawal of such status privileges be considered or construed as a breach
of contract by the Contractor or the U.S. Government. The determination to withdraw SOFA status and
privileges by USFK shall be final and binding on the parties unless it is patently arbitrary, capricious
and lacking in good faith.

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|34.0 | SUPPORT OFFERED IN SOUTHWEST ASIA (SAUDI ARABIA)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     | U.S. Subcontractor employees are not authorized in-host country Logistics Support Services and Privileges
in accordance with the Status of Forces Agreement (SOFA) with the Saudi Arabia Government. Only Military
personnel permanently assigned to U.S. Military Units in Saudi Arabia are authorized typical US Military
support such as indicated in 29.0 Support in Host Country. Further, Subcontractors doing business
in Saudi Arabia may be required to provide a yearly tax payment to the Saudi Arabian Government.                                                                            
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     | Subcontractor employee dependents who are authorized entry to the overseas command will also be authorized
logistical support as applicable in accordance with above.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     | Subcontractor employees requests for Logistic Support Services and Privileges while in Host Country
will be processed through the Overseas Contract Administration Office who will assist with procedures
required for obtaining individual support.                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|35.0 | CONFORMITY TO JAPANESE LAWS AND REGULATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|     | The subcontractor shall be responsible for assuring that employees assigned to this subcontract comply, while in Japan, with the applicable Laws and Regulations of the Government of Japan (GOJ) and political subdivisions thereof. In addition, the subcontractors employees must comply with the military rules and regulations when employed in areas under the jurisdiction of the Commander, U.S. Forces Japan. In the event that a subcontractors employee is barred from continuing to perform under the subcontract for failure to comply with the Laws, Rule and Regulations described in the

|27
|--



| | foregoing paragraph, any costs incurred by the subcontractor as the result of the removal of the employee
or the substitution of a replacement employee for the overseas assignment shall not be allowed. The
disallowed costs include relocation costs incurred by the subcontractor to furnish a substitute employee
for the overseas assignment. The subcontractor shall be responsible for obtaining the required authorization
and licenses from the Government of Japan (GOJ) necessary for the performance of this subcontract.
The subcontractor shall comply with the applicable articles of the Status of Forces Agreement (SOFA)
between the U.S. Government and the Government of Japan (GOJ).
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|36.0 | CENTURY COMPLIANCE CLAUSE                                                                                                                                                                                                                                                                                                                                                                                            
|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | 36.1 Century Compliance                                                                                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | When used in this Agreement with initial capital letters, the following terms have the respective
meanings given below:                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | Procured System means the computer software, computer firmware, computer hardware (whether
general or special purpose), documentation, data, and other similar or related items of the automated,
computerized, and/or software system(s) that are provided by or through Vendor pursuant to this Agreement,
or any component part thereof, and any services provided by or through Vendor in connection therewith.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | Calendar-Related refers to date values based on the Gregorian calendar as defined in Encyclopedia
Britannica, 15th  edition, 1982, page 602, and to all uses in any manner of those date values, including without
limitation manipulations, calculations, conversions, comparisons, and presentations.                                                                                                            
|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | Date Data means any Calendar-Related data in the inclusive range January 1, 1900, through
December 31, 2050, which the Procured System uses in any manner.                                                                                                                                                                                                                                                         
|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | System Date means any Calendar-Related data value in the inclusive range from January 1,
1985, through December 31, 2035, (including the natural transition between such values), which
the Procured System shall be able to use as its current date while operating.                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | Century Compliant means that the Procured System satisfies the requirements set forth in
sections 36.2, 36.3 and 36.4 below.                                                                                                                                                                                                                                                                                       
|     |                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | Century Noncompliance means any failure of the Procured System to be Century Compliant.                                                                                                                                                                                                                                                                                                                            

|28
|--



| | 36.2   Vendor represents that, in connection with Calendar-Related data and Calendar-Related
processing of the Date Data or of any System Date, the Procured System will not malfunction, will
not cease to function, will not generate incorrect data, and will not produce incorrect results.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 36.3   Vendor further represents that, in connection with providing Calendar-Related data
to and accepting Calendar-Related data from other automated, computerized, and/or software systems
and users via user interfaces, electronic interfaces, and data storage, the Procured System represents
dates without ambiguity as to century.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 36.4   Vendor further represents that Vendor has verified through testing that the Procured
System is Century Compliant and that testing included, without limitation, each of the following
specific dates and the transition to and from such date: December 31, 1998; January 1,
1999; September 9, 1999; September 10, 1999; December 31, 1999; January 1, 2000; February
28, 2000; February 29, 2000; March 1 2000; December 31, 2000; January 1, 2001; and
December 31, 2004; and January 1, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 36.5   These representations survive the expiration or earlier termination of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 36.6   Interfacing.  If the Procured System is a commercial-off-the-shelf (COTS) product,
it shall have the present capability, which can be readily utilized by GD, of providing Calendar-Related
data to and accepting Calendar-Related data from other automated, computerized, and/or software systems
and users in a four-digit CCYY format, where CC are the two digits expressing the century and YY
are the two digits expressing the year with that century (e.g., 1996, 2003, and 2007).                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 36.7   Century Noncompliance Remedy. In the event that the Procured System is Century
Noncompliant in any respect, Vendor shall, at no cost to GD, promptly under the circumstances, including
without limitation GDs schedule commitments (prior to delivery under the subcontract)correct the Century Noncompliance and provide the corrected Century Compliant Procured System to GD.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 36.8    Noncompliance Notice. In the event Vendor becomes aware of (i) a
possible or an actual Century Noncompliance in the Procured System or (ii) any international, governmental,
industrial, or other standard (proposed or adopted) regarding Calendar-Related data and/or processing,
or Vendor begins any significant effort to conform the Procured System to any such standard, Vendor
shall promptly inform GD of all relevant information (and timely provide GD updates to such information)
with respect to Vendors knowledge. Vendor shall respond promptly and fully to inquiries by
GD (and timely provide updates to any responses provided to GD) with respect to (i) any possible
Century Noncompliance in the Procured System or to (ii) any international, governmental, industrial,
or other standards. In the foregoing, the use of timely means promptly after the relevant
information becomes known to or is developed by or for Vendor.

|29
|--



|37.0   YEAR 2000 (Y2K) WARRANTY (COMMERCIAL ITEMS)
|--------------------------------------------------
|                                                  

| | (a) | The Subcontractor warrants that any Information Technology including, but not limited to, hardware,
  software, firmware and middleware delivered under this contract shall accurately process date/time
  data (including, but not limited to, calculating, comparing, and sequencing) from, into and between
  the twentieth and twenty-first centuries, and the years 1999 and 2000 and leap year calculations,
  to the extent that other information, used in combination with other information technology being
  acquired, properly exchanges date/time data with it.                                
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (b) | Contractors obligation. The contractors warranties under this clause shall apply only to
  those defects discovered by either the Government or the Contractor on or before 31 December 2001.
  Should a warranted item fail to meet the requirements set out in the foregoing paragraph, the Contractor
  agrees to correct or replace the item at no cost to the Government. The parties agree that this correction
  or replacement shall not act as a limitation of remedies and that the Government may seek such additional
  remedies as may be available through this contract or at law or equity.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (c) | This clause takes precedence over any other warranty or disclaimer thereof in this contract. It is
  in addition to the rights and remedies set forth in any other warranty for this item.                                                                                                                                                                                                                                                                                                                                                                                                                   

|     |                                                    
|---- | ---------------------------------------------------
|38.0 | MINIMUM SUGGESTED INSURANCE REQUIREMENTS           
|     |                                                    
|     | Recommended minimum coverage limits are as follows:
|     |                                                    

| | Type of Insurance            | Minimum Limit                                                                        
| | ---------------------------- | -------------------------------------------------------------------------------------
| |                              |                                                                                      
| |                              |                                                                                      
| | Commercial General Liability | $1,000,000 - Personal Injury & Property Damage - Combined single limit per occurrence
| |                              |                                                                                      
| | Automobile Liability         | $1,000,000 - Bodily Injury
& Property Damage - Combined single limit per occurrence  
| |                              |                                                                                      
| | Workers Compensation        | Statutory ----------                                                                 
| |                              |                                                                                      
| | Employers Liability         | $1,000,000 - per occurrence                                                          
| |                             

| |   
| | --
| |   
| | 1)
| |   

| | 2) | As is regards Workers Compensation (WC), the insurance carrier must agree in
  writing to waive its right to subrogation.
| | -- | --------------------------------------------------------------------------------------------------------------------------

|30
|--



| | 3) | General Dynamics Corporation should be provided thirty (30) days advanced written
  notice if any coverage is suspended, voided, cancelled or reduced in limits.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                 

| | 4) | The insurance shall be primary as respects General Dynamics Corporation,
  subsidiaries, and employees.
| | -- | -------------------------------------------------------------------------------------------------------

|     |                                                                                                                                                                                                                                                                                                                                                                                      
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|38.0 | GENERAL PROVISIONS                                                                                                                                                                                                                                                                                                                                                                   
|     |                                                                                                                                                                                                                                                                                                                                                                                      
|A.   | In addition to the clauses specifically set forth herein, this Subcontract is subject to and the Subcontractor
will comply with the below listed provisions of the Federal Acquisition Regulations (FAR) and DoD
FAR Supplement (DFAR) modified to the extent indicated, and which are incorporated herein by reference
with the same force and effect as though set forth at length.
|     |                                                                                                                                                                                                                                                                                                                                                                                      
|B.   | The changes noted in this paragraph (B)(i) through (v) below are applicable to all clauses of the FAR
and DFAR referenced in this Part II as General Provisions of this subcontract unless otherwise specifically
noted at the clause as it appears:                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                      

| | (i)   | The term Contract means this Subcontract.                                                                            
| | ----- | -------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                          
| | (ii)  | The term Subcontract means Lower Tier Subcontract.                                                                   
| |       |                                                                                                                          
| | (iii) | The term Contractor means Subcontractor or Seller                                                                  
| |       |                                                                                                                          
| | (iv)  | The term Contracting Officer means the GD Government Systems duly authorized representative
unless otherwise indicated.
| |       |                                                                                                                          
| | (v)   | The term Government means GD Government Systems Corporation, or Buyer
unless otherwise indicated.                  
| |       |                                                                                                                          

|C. | The FAR and DFAR clauses incorporated herein are those in effect on the dates specified in this Part
III.                                                                                                                                                  
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                            
|D. | It is the intention of the parties hereto that the above substitutions shall obligate the Subcontractor
directly to the Contractor, where applicable, in the same manner as if it were the Government referred
to herein.                                  
|   |                                                                                                                                                                                                                                                            
|E. | Pursuant to the General Provision clauses FAR 52.227-7013, Rights in Technical Data and Computer
Software the acquisition of the rights in technical data and computer software prescribed by
these clauses, is by the Government and not the Contractor.

|31
|--



| | CLAUSE    | DESCRIPTION
| | --------- | -----------
| |           |            
| | 52.202-1  |            
| |           |            
| | 52.203-3  |            
| |           |            
| | 52.203-05 |            
| |           |            
| | 52.203-6  |            
| |           |            
| | 52.203-7  |            
| |           |            
| | 52.211-14 |            
| |           |            
| | 52.211-15 |            
| |           |            
| | 52.211-16 |            
| |           |            
| | 52.212-1  |            
| |           |            
| | 52.212-3  |            
| |           |            
| | 52.212-4  |            
| |           |            
| | 55.212-5  |            
| |           |            
| | 52.215-02 |            
| |           |            
| | 52.215-05 |            
| |           |            
| | 52.216-18 |            
| |           |            
| | 52.216-22 |            
| |           |            
| | 52.219-04 |            
| |           |            
| | 52.219-8  |            
| |           |            
| | 52.219-9  |            
| |           |            
| | 52.219-16 |            
| |           |            
| | 52.222-03 |            
| |           |            
| | 52.222-19 |            

|32
|--



| | 52.222-20 |  | WALSH-HEALEY PUBLIC CONTRACTS ACT (DEC 96)                                                                     
| | --------- |  | ---------------------------------------------------------------------------------------------------------------
| |           |  |                                                                                                                
| | 52.222-21 |  | PROHIBITION OF SEGREGATED FACILITIES (FEB 99)                                                                  
| |           |  |                                                                                                                
| | 52.222-26 |  | EQUAL OPPORTUNITY (FEB 99)                                                                                     
| |           |  |                                                                                                                
| | 52.222-35 |  | AFFIRMATIVE ACTION FOR DISABLED VETERANS AND VETERANS OF THE 
      VIETNAM ERA (38 U.S.C. 4212) (APRIL 98)    
| |           |  |                                                                                                                
| | 52.222-36 |  | AFFIRMATIVE ACTION FOR WORKERS WITH DISABILITIES (29 U.S.C. 793) (JUN 98)                                      
| |           |  |                                                                                                                
| | 52.222-37 |  | EMPLOYMENT REPORTS ON DISABLED VETERANS AND VETERANS OF
      THE VIETNAM ERA (38 U.S.C 4212) (JAN 99)         
| |           |  |                                                                                                                
| | 52.222-41 |  | SERVICE CONTRACT ACT OF 1965 AS AMENDED (41 U.S.C. 351, ET SEQ.) (MAY 89)                                      
| |           |  |                                                                                                                
| | 52.225-08 |  | DUTY FREE ENTRY (FEB 2000)                                                                                     
| |           |  |                                                                                                                
| | 52.225-13 |  | RESTRICTIONS ON CERTAIN FOREIGN PURCHASES ( E.O. 12722, 12724, 
      13059, 13067, 13121 AND 13129) (FEB 2000)
| |           |  |                                                                                                                
| | 52-225-16 |  | SANCTIONED EUROPEAN UNION COUNTRY SERVICES (E.O. 12849) 
      (FEB 2000)                                      
| |           |  |                                                                                                                
| | 52.227-01 |  | AUTHORIZATION AND CONSENT (JUL 95)                                                                             
| |           |  |                                                                                                                
| | 52.227-02 |  | NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT 
      INFRINGEMENT (AUG 96)                              
| |           |  |                                                                                                                
| | 52.227-03 |  | PATENT INDEMNITY (APR 84)                                                                                      
| |           |  |                                                                                                                
| | 52.227-9  |  | REFUND OF ROYALTIES (APR 84)                                                                                   
| |           |  |                                                                                                                
| | 52.227-10 |  | FILING OF PATENT APPLICATIONCLASSIFIED SUBJECT MATTER 
      (APR 84)                                         
| |           |  |                                                                                                                
| | 52.228-05 |  | INSURANCE - WORK ON A GOVERNMENT INSTALLATION (JAN 1977)                                                       
| |           |  |                                                                                                                
| | 52.232.29 |  | TERMS FOR FINANCING OF PURCHASES OF COMMERCIAL ITEMS (OCT 95)                                                  
| |           |  |                                                                                                                
| | 52.237-02 |  | PROTECTION OF GOVERNMENT BUILDINGS, EQUIPMENT, AND 
      VEGETATION (APR 84)                                  
| |           |  |                                                                                                                
| | 52.242-17 |  | GOVERNMENT DELAY OF WORK (APR 84)                                                                              
| |           |  |                                                                                                                
| | 52.243-1  |  | CHANGES FIXED PRICE (AUG 87)                                                                                  
| |           |  |                                                                                                                
| | 52.244-01 |  | SUBCONTRACTS (FIXED-PRICE CONTRACTS) (FEB 95)                                                                  

|33
|--



| | 52.244-03    |  | SUBCONTRACTS (TIME-AND-MATERIALS AND LABOR-HOUR  CONTRACTS)                                 
| | ------------ |  | --------------------------------------------------------------------------------------------
| |              |  |                                                                                             
| | 52.244-05    |  | COMPETITION IN SUBCONTRACTING (DEC 96)                                                      
| |              |  |                                                                                             
| | 52.244-06    |  | SUBCONTRACTS FOR COMMERCIAL ITEMS AND COMMERCIAL COMPONENTS (OCT 98)                        
| |              |  |                                                                                             
| | 52.245-2     |  | GOVERNMENT PROPERTY (FIXED-PRICE CONTRACTS AND 
      ALTERNATE I (APR 84)                  
| |              |  |                                                                                             
| | 52.246-2     |  | INSPECTION OF SUPPLIES - FIXED PRICE (AUG 96)                                               
| |              |  |                                                                                             
| | 52.246-23    |  | LIMITATION OF LIABILITY (FEB 97)                                                            
| |              |  |                                                                                             
| | 52.246-25    |  | LIMITATION OF LIABILITY SERVICES (FEB 97)                                                   
| |              |  |                                                                                             
| | 52.247-34    |  | F.O.B. DESTINATION (NOV 1991)                                                               
| |              |  |                                                                                             
| | 52.252-01    |  | SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (JUN 88)                                  
| |              |  |                                                                                             
| | 52.XXX       |  | CONTINUED PERFORMANCE DURING CRISIS SITUATIONS (JULY 1988)                                  
| |              |  |                                                                                             
| | 52.6081      |  | REPORTING OF CONTRACTOR MANPOWER DATA ELEMENTS (JAN 2001)                                   
| |              |  |                                                                                             
| | 52.6126      |  | HAZARDOUS MATERIAL IDENTIFICATION AND MATERIAL SAFETY DATA 
      SHEET (MSDS) (APR 1992)   
| |              |  |                                                                                             
| | 52.6130      |  | SCHEDULE OF GOVERNMENT FURNISHED PROPERTY(EQUIP)(SEPT 2000)                                 
| |              |  |                                                                                             
| | 52.6195      |  | CONTRACTOR AND COTR IDENTIFICATION (OCT 1999)                                               
| |              |  |                                                                                             
| | 52.7025      |  | PLACE OF PERFORMANCE AND SHIPPING POINT (MAR 99)                                            
| |              |  |                                                                                             
| | 52.7043      |  | STANDARD PRACTICE FOR COMMERCIAL PACKAGING (APR99)                                          
| |              |  |                                                                                             
| | 52.7410      |  | DEPLOYMENT OF CONTRACTORS TO THE FAR EAST (FE) (SEP 99)                                     
| |              |  |                                                                                             
| | 52.7625      |  | Y2K WARRANTY (COMMERCIAL ITEMS) (FEB 99)                                                    
| |              |  |                                                                                             
| | 52.7650      |  | YEAR 2000 (Y2K) WARRANTY                                                                    
| |              |  |                                                                                             
| | 52.7910      |  | INSURANCE (STATEMENT OF WORK (SEPT. 1992)                                                   
| |              |  |                                                                                             
| | 252.203-7002 |  | DISPLAY OF DOD HOTLINE POSTER (DEC 1991)                                                    
| |              |  |                                                                                             
| | 252.204-7004 |  | REQUIRED CENTRAL CONTRACTOR REGISTRATION (CCR) (MAR 2000)                                   
| |              |  |                                                                                             
| | 252.205-7000 |  | PROVISION OF INFORMATION TO COOPERATIVE AGREEMENT HOLDERS 
      (10 U.S.C. 2416) (DEC 91)  
| |              |  |                                                                                             
| | 252.209-7001 |  | DISCLOSURE OF OWNERSHIP OR CONTROL BY THE GOVERNMENT OF A 
      TERRORIST COUNTRY (SEPT 94)

|34
|--



| | 252.212-7001 |  | CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT
      STATUTESOR EXECUTIVE ORDERS APPLICABLE TO DEFENSE
      ACQUISITIONS OFCOMMERCIAL ITEMS (DEC 2000)
| | ------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |              |  |                                                                                                                                                             
| | 252.219-7003 |  | SMALL, SMALL DISADVANTAGED BUSINESS AND WOMEN- OWNEDSMALL BUSINESS SUBCONTRACTING P LAN (DOD CONTRACTS(15 U.S.C. 637) (APR 96)                              
| |              |  |                                                                                                                                                             
| | 252.225-7001 |  | BUY AMERICAN ACT AND BALANCE OF PAYMENTS PROGRAM 
      (41 U.S.C.10A-10D, E. O. 10582) (MAR 98)                                                            
| |              |  |                                                                                                                                                             
| | 252.225-7008 |  | SUPPLIES TO BE ACCORDED DUTY-FREE ENTRY SUPPLIES (MAR 98)                                                                                                   
| |              |  |                                                                                                                                                             
| | 252.225-7009 |  | DUTY-FREE ENTRY - QUALIFYING COUNTRY (END PRODUCTS AND 
      COMPONENTS) (AUG 2000)                                                                        
| |              |  |                                                                                                                                                             
| | 252.225-7010 |  | DUTY FREE ENTRY - ADDITIONAL PROVISIONS (AUG 2000)                                                                                                          
| |              |  |                                                                                                                                                             
| | 252.225-7012 |  | PREFERENCE FOR CERTAIN DOMESTIC COMMODITIES (AUG 2000)                                                                                                      
| |              |  |                                                                                                                                                             
| | 252-225-7014 |  | PREFERENCE FOR DOMESTIC SPECIALTY METALS, ALTERNATE 1 
      (10 U.S.C. 2241 NOTE) (MAR 98)                                                                 
| |              |  |                                                                                                                                                             
| | 252-225-7031 |  | SECONDARY ARAB BOYCOTT OF ISRAEL (JUN 92)                                                                                                                   
| |              |  |                                                                                                                                                             
| | 252-225-7043 |  | ANTITERRORISM/FORCE P ROTECTION POLICY FOR DEFENSE 
      CONTRACTORS OUTSIDE THE U.S. (JUN 98)                                                             
| |              |  |                                                                                                                                                             
| | 252.227-7015 |  | TECHNICAL DATACOMMERCIAL ITEMS (10 U.S.C. 2320) (NOV 95)                                                                                                   
| |              |  |                                                                                                                                                             
| | 252.227-7016 |  | RIGHTS IN BID OR PROPOSAL INFORMATION (JUN 95)                                                                                                              
| |              |  |                                                                                                                                                             
| | 252.227-7019 |  | VALIDATION OF ASSERTED RESTRICTIONS - COMPUTER SOFTWARE 
      (JUN 95)                                                                                     
| |              |  |                                                                                                                                                             
| | 252.227-7027 |  | DEFERRED ORDERING OF TECHNICAL DATA OR COMPUTER SOFTWARE (APR 88)                                                                                           
| |              |  |                                                                                                                                                             
| | 252.227-7028 |  | TECHNICAL DATA OR COMPUTER SOFTWARE PREVIOUSLY DELIVERED 
      TO THE GOVERNMENT (JUN 95)                                                                  
| |              |  |                                                                                                                                                             
| | 252.227-7030 |  | TECHNICAL DATA - WITHHOLDING OF PAYMENT (OCT 98)                                                                                                            
| |              |  |                                                                                                                                                             
| | 252.227-7036 |  | DECLARATION OF TECHNICAL DATA CONFORMITY (JAN 1997)                                                                                                         
| |              |  |                                                                                                                                                             
| | 252.227-7037 |  | VALIDATION OF RESTRICTIVE MARKINGS ON TECHNICAL DATA (10 U.S.C.2321) (SEP 97)                                                                               

|35
|--



| | 252.243-7002 |  | REQUESTS FOR EQUITABLE ADJUSTMENT (10 U.S.C. 2410) (MAR 98)                                                      
| | ------------ |  | -----------------------------------------------------------------------------------------------------------------
| |              |  |                                                                                                                  
| | 252.246-7000 |  | MATERIAL INSPECTION AND RECEIVING REPORT (DEC 91)                                                                
| |              |  |                                                                                                                  
| | 252.247-7023 |  | TRANSPORTATION OF SUPPLIES BY SEA (10 U.S.C. 2631) 
      (ALTERNATE I) (ALTERNATE II) (9 U.S.C. 2631) (MAR 2000)
| |              |  |                                                                                                                  
| | 252.247-7024 |  | NOTIFICATION OF TRANSPORTATION OF SUPPLIES BY SEA (10 U.S.C. 
      2631) (MAR 2000)                             

|36
|--